IN THE LION'S DEN

Marcus & Millichap's Tim Giambrone  is selling the  lion's share of Food Lions in metro Atlanta.
 
We caught up with Tim at his Perimeter office after he sent out an offer to buy  four Food Lion anchored shopping centers—including Maple Street Commons in Carrollton, Flint River in Jonesboro, and Jackson Street Station and Sargent Plaza in Newnan—for nearly $27M, or $143/SF. It's one of the larger  retail portfolio  offerings out of Atlanta at the moment. All are being sold by the developer, Tim says, and are part of Food Lion's new store layout. Tim says he expects strong  institutional interest  in the portfolio given the credit tenant takes up  almost 80%  of the entire shopping center portfolio (meaning a lot less exposure to smaller retailers affecting the rent roll), and the stores have an average of 18 years left on a lease. ?These stores are in the path of growth, even though they're in secondary markets,? he says.
It's still a struggle to sell a shopping center, Tim says. But stick a food store as the anchor (like this Food Lion center above), and most of those troubles just go away. ?In multi-tenant retail, financing is always going to be an issue now. If it's grocery, you have a better chance,? he says. ?It's credit. That's basically what it boils down to.? With REITs and institutional investors active in major markets for credit tenant retail centers—especially single-tenant triple net leases— Tim says he's seeing caps in the sixes again.

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Related Topics: Food Lion , Tim Giambrone
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