Dominant Grocery-Anchored Retail Center for Sale in Nashville MSA

Wednesday, June 21, 2017

Update:  HFF closed the sale of this property, so it is no longer on the market.  Please contact Jim Hamilton in HFF’s Atlanta office for current retail investment opportunities or visit HFF’s Property Search page for a list of available commercial real estate properties for sale.

Holliday Fenoglio Fowler, L.P., (HFF), on behalf of the owner, is exclusively marketing for sale Merchant Pointe, a 138,818-square-foot community shopping center in the Nashville-area suburb of Hendersonville, Tennessee. The 99-percent-leased retail center for sale was constructed in 2016 and is anchored by The Fresh Market, Marshalls, Michaels and Off Broadway Shoes. Merchant Pointe offers investors the opportunity to acquire a community retail center with a dynamic tenant line-up and significant income security.

Situated at 217 Indian Lake Boulevard, Merchant Pointe is located on the “going home” side of the road on Hendersonville’s heavily traveled main retail corridor (31,000 vehicles per day). Hendersonville encompasses 26 miles of shoreline on Old Hickory Lake, which attracts more than a million visitors annually, and is approximately 15 miles from downtown Nashville. Within a five-mile radius of the property, more than 79,000 residents earn an average annual household income exceeding $90,000. Additionally, the property is located in a strong retail submarket with 4.5 million square feet of retail space that is impressively 95 percent leased.

Grocery-Anchored Retail Center for Sale Investment Highlights

  • Nashville MSA’s Thriving and Diverse Economy:  Merchant Pointe is located in the Nashville MSA, which is one of the fastest-growing regions in the U.S. The current population is estimated at 1.9 million residents, which is an increase of nearly 34 percent since 2000. According to Nielsen Research, the Nashville MSA is expected to grow by seven percent over the next five-years. 
  • Necessity Retail Anchor with Significant Remaining Lease Term and Limited Competition:  The Fresh Market provides consistent traffic patterns to the retail property for sale and serves as an excellent anchor to the shop tenants by providing maximum exposure. The Fresh Market has significant term remaining, providing stability and secure cash flow to the property, and has base rent increases built into their lease, which provides considerable cash flow growth. The closest specialty grocer is approximately 20 miles away, making Merchant Pointe the dominant specialty grocery-anchored center in the region.
  • New Development in a Master-Planned Community:  The property was recently developed, limiting any near term CapEx for future ownership. The shopping center is part of the Indian Lake Center Master Development Plan area with stringent architectural and landscaping guidelines.
  • Strong Weighted Average Leasing Term and Significant Income Security:  The retail center for sale has a weighted average lease term of 11 years with only one percent of the property’s GLA rolling over the next five years. Additionally, 98 percent of the property’s leased GLA is occupied by national and/or regional tenants, including the anchors, Zoe’s Kitchen, Five Below, Carter’s, Osh Kosh, Hibbett Sports, Moe’s Southwest Grill, Kay Jewelers and Xfinity, some of which have strong credit and long-term leases.

For more information on Merchant Pointe or other retail properties for sale, please contact Jim Hamilton
or Richard Reid in HFF’s Atlanta office. For information on acquisition financing, please contact Chip Sykes

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