Publix-Anchored Retail Center for Sale in Nashville MSA

Wednesday, June 28, 2017

Update:  HFF announced the closing of this sale on February 6, 2018. Click here to be taken to our Search Properties page to view current commercial real estate investment opportunities.

Holliday Fenoglio Fowler, L.P., (HFF), on behalf of the owner, is pleased to exclusively market for sale Providence Commons, a dominant 110,137-square-foot grocery-anchored shopping center with significant value add through the development of a prime phase II development site. The property is located in Tennessee’s second-fastest growing submarket, Mt. Juliet, which is within the Nashville metropolitan statistical area. The 100-percent-leased retail center for sale was constructed in 2009 and anchored by Publix, the 14th largest retailer in the United States. 

Providence Commons has one of the submarket's strongest tenant lineups, with 87 percent of the rentable GLA leased to national and regional tenants, including Tuesday Morning, Anytime Fitness, Starbucks, Pizza Hut, Subway, Moe’s Southwest Grill, Edible Arrangements, Supercuts and Precision Eye Care. Additionally, the +/- 7.19-acre development site that is located adjacent to the property is easily developable and improved for utilities and is both engineered fill and engineered grade.

Mt. Juliet is a dominant retail hub for the eastern half of the Nashville MSA. The retail center for sale is located at 631 South Mt. Juliet Road less than 12 miles from downtown Nashville in a booming submarket. Mt. Juliet is nationally ranked for new home construction, job creation and household growth. Additionally, Wilson County is the second wealthiest county in Tennessee with more than 20,000 residents earning an average annual income of exceeding $86,000 within a three-mile radius of the center. Furthermore, 7,500 residential units are under construction within a five-mile radius of the property, which will result in nearly 18,000 future residents. The Providence master-planned community is located directly behind the property and contains 2,000 upscale residential units.

Grocery-Anchored Retail Center for Sale Investment Highlights

  • Thriving and Diverse Nashville MSA Economy:  Providence Commons is located within the Nashville MSA, which is one of the fastest-growing regions in the country. With a current population around 1.9 million residents, the Nashville MSA’s population has increased nearly 34 percent since 2000. Nashville is home to 16 publicly traded healthcare companies and is also an educational center with 21 four-year colleges and universities in addition to 17 community colleges. Nashville provides an array of cultural, musical and sporting events that attract more than 100 million annual visitors that create a $5.5 billion economic impact.
  • Significant Value-Add Opportunity:  The offering includes a prime 7.19-acre future development site located adjacent to the Publix building and shops. The undeveloped land has potential entitlements for up to 91,000 square feet of retail space, which provides significant upside potential to the next owner. The land is zoned CI, allowing a variety of uses and is improved for utilities and engineered fill and engineered grade.
  • Necessity Retail Anchor with Long-Term Track Record of Strong Sales:  Publix, which has more than 12 years remaining on its primary  lease term, has operated at the property for more than seven years with reported significant sales increases every year of operation. Publix provides consistent traffic patterns to the property and serves as an excellent anchor for shop tenants, who require maximum exposure. With an implied S&P credit rating of A+ and solid financial statements, Publix is viewed as one of the healthiest retailers in the world.
  • Outstanding Property Features:  The retail center for sale was constructed in 2009 and has been well maintained, which will limit any near-term capital expenditures for a new landlord. More than 20,000 vehicles pass the property daily on South Mt. Juliet Road, which also has signalized access to the property. Additionally, the center has an ideal anchor-to-shop-space ratio of approximately 50:50 to blend income security and growth.

For more information on Providence Commons or other retail properties for sale, please contact Jim Hamilton in HFF’s Atlanta office. For information on acquisition financing, please contact Gregg Shapiro. Click here for HFF’s real estate investment sales search page.

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