Super Target-Anchored Retail Center Near Salt Lake City for Sale

Thursday, April 11, 2019

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing a 316,274-square-foot shopping center for sale in the Salt Lake City community of Sandy, Utah. Anchored by Super Target on a ground lease, Marketplace at South Town is 100% leased and has recently undergone significant renovations and capital investment from current ownership.

Marketplace at South Town has recently undergone over $1.2 million in capital improvements including exterior painting, façade upgrades, new signage, landscaping upgrades, sidewalk and parking lot improvements. A new owner will have little need for additional capital reserves over the hold period.

Located at 10090-10290 State Street, Marketplace at South Town is located at the heart of the State Street Corridor of Sandy, one of the most affluent communities in the Salt Lake City market. It is connected to the newly renovated regional mall, The Shops at South Town. More than 291,000 residents are located within a five-mile radius of the property with average household incomes exceeding $113,000.

Retail Center Sale Investment Highlights

  • Target Included in the Collateral on a Long-Term Ground Lease:  The Marketplace at South Town represents the rare opportunity to acquire an asset with Target on a ground lease. Target (NYSE:TGT; S&P Credit Rating: A), an investment-grade tenant whose holiday sales increased 5.7% in 2018, recently executed an early renewal that extended the lease through May 2026.
  • Stable Rent Roll with Recent Renewal and New Leasing Velocity:  Target, Chick-fil-A, Old Navy and Barnes & Noble (71.6% of the GLA) all recently extended their lease terms at the retail property for sale, indicating sustainable rent levels and profitable store performance. Slackwater Pizzeria & Pub also recently leased the 6,648-square-foot vacant restaurant pad for 10 years to bring the property to full occupancy.
  • Proximity to High-Performing Shopping Mall:  The adjacent The Shops at South Town regional mall is undergoing an extensive renovation to further enhance the area’s draw as a regional destination for consumers. The Marketplace at South Town benefits from the traffic patterns and synergy of the adjacent mall.
  • Brand New Panera Bread Pad Development:  Current ownership has obtained tenant approvals and begun the development of a 4,872-square-foot pad site that will be located directly adjacent to State Street at the stoplight access point on the east side of the property, pending final approval by the City. Panera Bread will be occupying the space upon delivery, bringing additional long-term national tenancy and traffic to Marketplace at South Town.
  • Below Replacement Cost:  The retail property for sale is expected to trade at a significant discount to replacement cost of similar product today. The extensive nearly 30-acre lot size and low price per square foot on the existing improvements create an attractive basis for long term ownership.

For more information on this retail and office property for sale or other available retail properties for sale in the western United States, please contact Chad Murray, Bryan Ley or Jason Schmidt or visit the property’s listing page, where you can download a CA. Click here for to view our real estate investment sales search page to see all of the available commercial properties for sale.

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