Restaurant-Heavy Peachtree City Center Sells For More Than $200/SF
How does a shopping center in Peachtree City command a sales price that exceeds $200/SF? Add some restaurants like Mellow Mushroom, Noche and Sushi Tomi.
A West Virginia investor, Larry Fritts, sold a 22,500 SF retail center in Peachtree City, just south of Hartsfield-Jackson Atlanta International Airport, for a little more than $5M.
While the gross amount is relatively small, the per-square-foot price is impressive: $224.70/SF at a 7.2% cap rate, said Will Young, an associate from Bull Realty who brokered the sale. The buyer is Ho Chung, an individual investor based in Atlanta.
Retail properties have been trading up in recent quarters in Atlanta, according to a Marcus & Millichap report, as retail rents continue to grow despite dire reports of coming retail store closures.
“Buyers in the $1M to $10M tranche are dominating transaction velocity in Atlanta,” Marcus & Millichap officials state in the report.
While the average retail sale metrowide reached $300/SF, single-tenant retail centers really commanded the most. But multi-tenant centers were selling for an average around $200/SF, according to the report.
"Investors are willing to pay a premium for quality retail centers located both in and around the affluent Peachtree City submarket, which has very strong demographics and recently has experienced substantial growth," Young said.