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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.
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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.
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