$100M Generational Infill Atlanta Retail Investment Opportunity

Thursday, May 24, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is offering qualified investors the opportunity to acquire two adjacent infill Atlanta retail centers  on an individual or combined basis. The opportunity comprises The Exchange at Hammond, a 176,376-square-foot, generational Whole Foods-anchored retail center, and Parkside Shops, an infill 158,411-square-foot retail center that presents a value-add / repositioning opportunity. Both centers are in the highly affluent Atlanta submarket of Sandy Springs, which presents high barriers to entry due to the commercial density and lack of available development sites. Together, the assets offer investors the opportunity to assemble 25 contiguous acres in one of the most highly-sought-after submarkets in the Southeast.

The Exchange at Hammond and Parkside Shops are in one of Atlanta’s premier locations near two of the most heavily traveled and connective interstates in Georgia, Interstate 285 and Georgia 400. The properties are positioned at the intersection of Roswell Road and Hammond Drive, the most sought-after intersection in Atlanta with approximately 70,800 vehicles passing the properties per day. The affluent Buckhead community is three miles away, with midtown and downtown Atlanta eight and 10 miles away, respectively.  Within three miles of the centers, there are 86,120 residents earning an average annual household income of more than $145,000.

 

The Exchange at Hammond is situated on 12.6 acres at 5932- 5980 Roswell Road. Completed in 1963 and renovated in 2002, the property is fully leased and home to Whole Foods Market, Marshalls, Office Depot, Petco, Dollar Tree and more.

The Exchange at Hammond Retail Investment Highlights

  • Whole Foods Market-Anchored Retail Center:  Whole Foods is the most sought-after grocer in the market and has been at The Exchange at Hammond for 20 years. A multi-million-dollar interior and exterior renovation is planned for 2018. Additionally, due to Amazon’s recent purchase of Whole Foods, it is the most technologically advanced grocer in the market.
  • Generational Infill Investment Opportunity:  The property has been owned and operated by the seller for more than 40 years and is situated in a highly sought-after location in metro Atlanta with high barriers to entry. The submarket has experienced explosive growth, with more than 1,300 new multi-housing units having been recently delivered or under construction within a half mile of the property.
  • Secure Income Stream:   Sixty-eight percent of the GLA is occupied by national and regional tenants. Additionally, Whole Foods, Marshalls, Dollar Tree, Petco and Office Depot are responsible for 59 percent of the income stream.
  • Significant Contractual NOI Growth:  The projected NOI growth at the property is more than 37 percent, with a CAGR of 2.9 percent. Of this projected income, more than 65 percent is derived from contractual rent bumps in tenants’ current lease terms. 

Parkside Shops comprises four buildings with six points of egress / ingress on 12.8 acres.  Completed in 1988, the retail center for sale is 97.7 percent leased to a diversified and Internet-proof tenancy.

Parkside Shops Retail Investment Highlights

  • Significant Value Add and/or Repositioning Opportunity:  Current zoning allows for multi-family and mixed-use purposes. Additionally, the retail center for sale has below-market rents; 41 percent of the GLA is below market, giving investors the opportunity to increase potential revenue by more than $350,000.
  • Diversified and Internet-Proof Tenancy:  The center has Internet-proof tenancy with sustained, in-person visits from the committed customer base. No tenant outside of The Springs Cinema & Taphouse makes up more than eight percent of the income stream.
  • Explosive Submarket Growth:  The population within a five-mile radius has grown 28 percent in 18 years, from 176,781 residents to an (estimated) 227,097 residents this year, with a projected growth of 6.8 percent by 2023. Mercedes Benz recently opened its new, $93 million, 225,000-square-foot headquarters, which can house as many as 1,000 employees, located just a half-mile north of the property.   

The Exchange at Hammond and Parkside Shops present a generational opportunity to acquire 25 contiguous acres in a premier infill Atlanta submarket. For more information on these commercial properties for sale or other available retail properties in the southeast, please contact Jim Hamilton in HFF’s Atlanta office. Click here for our real estate investment sales search page.

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