A retail building in Somerset has sold for more than $2.6 million.
Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced last week that the firm has completed the sale of two multi-tenant retail pad buildings located in the Southeastern U.S. in separate transactions for a combined value of approximately $7 million -- one in Somerset and the other in Knoxville.
Dylan Mallory of Hanley Investment Group arranged the sale of the Somerset building -- a 6,847-square-foot facility which houses Visionworks, Kay Jewelers and GNC. Built in 2015, the building is located at 2007 South US 27 on a .76-acre lot in front of Walmart and Lowe's. Mallory represented the seller, Thompson Thrift Retail Group, a nationally recognized full-service real estate development company based in Indianapolis, Indiana. The sale price for the three-tenant, triple net-leased investment was $2,625,000.
"The property is positioned near the entrance of one of the busiest shopping centers in the region," Mallory said. "It also features frontage along U.S. Highway 27, which experiences traffic counts in excess 30,000 cars per day and is considered the longest stretch of businesses in the state of Kentucky outside of Louisville and Lexington. The surrounding immediate area has had notable, recent retail growth in the last five years, including the addition of many new national retail players.
"In this time of COVID-19, where non-essential retail has been difficult to sell, we were able to use our proprietary database to procure the right buyer who understood the positive, long-term outlook on both of the properties," Mallory continued. "We also focused investors on the strong real estate fundamentals of the property and found creative ways to structure around significant termination rights present in two of the three leases at the property."
Mallory added that, due to the pandemic, only GNC was actually operating at the time of the sale but the commonwealth has released a phased reopening plan. All tenants are expected to remain at the property with the current leases in effect -- which can generate a yearly income of over $195,000.
Chris Girdler, president and CEO of SPEDA (Somerset Pulaski Economic Development Authority), had no direct knowledge of the sale itself but called it a positive indication that the business community is still making things happen.
"Investors and those within the business community recognize the great things taking place in Somerset and Pulaski County," Girdler said. "This latest transaction demonstrates the confidence people have in our community's resiliency and the potential for future growth".
In the related Tennessee transaction, Hanley Investment Group Executive Vice Presidents Jeff Lefko and Bill Asher arranged the sale of a two-tenant retail building leased to Aspen Dental and Visionworks at 2960 & 2964 Miller Place Way in Knoxville, Tennessee. Built in 2015, the two-tenant, 7,500-square-foot retail pad building is located on 1.15 acres and features a 3,500-square-foot Aspen Dental-branded practice and a 4,000-square-foot Visionworks relocation store. Lefko and Asher represented the seller, a private investor based in New York. The sale price for the two-tenant net-leased investment was $4,325,000.
Both of the properties were purchased all-cash by a Kentucky-based private investor. The buyer, according to Mallory, has ties to Somerset and was motivated to purchase the properties because of the long-term strength of the locations and the national tenants.
Hanley Investment Group has closed escrow on over $100 million in retail sales in the last 48 days and has achieved record cap rates for single-tenant and multi-tenant retail in the Southeastern U.S.
For more information, visit www.hanleyinvestment.com.