Due to lack of supply, investors seek upside through leasing remaining vacancies
Franklin Street announces the sale of recently-remodeled 36,050-square-foot shopping center, Virginia Commons, for $2.9 million. This sale represents $80.44 per square foot.
John Tennant and Mac McCall of Franklin Street Real Estate Services represented the seller, Two Virginia Commons, LLC during the sale. The buyer is FOMS, LLC, a local opportunistic investor interested in unanchored retail centers throughout the Southeast.
“This property offers the new owner entry into a very tight retail submarket, ”Tennant said. “There is also a good upside of 9,972 square feet for the investor by leasing the excess space from Staples, who is downsizing to 14,078 square feet. This space is ideally suited for a home furnishing type of use.”
Virginia Commons is currently 72 percent occupied, 55 percent occupied by national tenants – three of which who are on new leases.
“Due to the lack of supply of assets of this type in core markets, investors are being forced to go to tertiary and secondary markets to find opportunities,” Tennant said. “These investors are often seeking upside through leasing the remaining vacancies in these types of deals. Low maintenance overhead is what really attracted this buyer to the site. The new owner has financed the property and upon successful lease-up of the remaining vacancy, the buyer will dramatically increase the NOI on the asset as well as his corresponding value.”
Built in 1999 and remodeled in 2013, Virginia Commons is located at 194 S. Virginia Avenue in South, Central Georgia. Virginia Commons is surrounded by several national tenants including PetSense, Tokyo Japanese Restaurant, 1st Franklin Financial, and Staples.
About Franklin Street:
Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, and Management—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com.