O’FALLON, Mo. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a 20,400-square-foot multi-tenant retail center in the St. Louis, Missouri metro area.
Hanley Investment Group's Executive Vice Presidents Jeff Lefko and Bill Asher, in association with ParaSell, Inc., represented the seller, a private owner in St. Louis, Missouri. The buyer was a private investor from the Nashville, Tennessee metro area.
"We generated multiple offers within the first week of formally marketing the property for sale and procured a 1031 exchange buyer who closed escrow at 97% of the asking price," said Lefko.
"Investors were attracted to the property's favorable fundamentals; a fully occupied center priced below replacement cost situated along the busy Highway K, a high-traffic (41,000 cars per day) dominant retail corridor in the region," Lefko continues. "Additionally, the tenants at the Shops on K are a mix of internet-resistant and service-based tenants and nearly 65% of the tenants have occupied space at the center for at least 10 years."
The 100%-occupied, nine-tenant building is located on a 1.98-acre parcel at 2376-2400 Highway K in O'Fallon, Missouri, and includes tenants Aaron's, Advance America Cash Advance, American Family Insurance, Cloud 9 Massage, Stallone's Formal Wear, Pottery Hollow, a dance academy, dog grooming and a fitness center. The retail building, built in 1997, is situated next to a Target and Kohl's-anchored shopping center. According to Placer.ai, the adjacent Kohl's ranks in the top 12% of all Kohl's in Missouri. Other tenants in the immediate area along Highway K include Ashley HomeStore, Buffalo Wild Wings, Chase Bank, Chick-fil-A Drive-Thru, Chipotle Mexican Grill, Five Below, Fresh Thyme, Hobby Lobby, Lowe's, Michaels, PetSmart, Ross Dress for Less, Starbucks, The Home Depot, Dierbergs and a Walmart Supercenter.
Lefko added that the tenants at Shops on K benefit from the dense, affluent demographics in one of Missouri's fastest-growing cities. There are over 173,000 people with an average household income of $118,000 within a five-mile radius of the property. The area has experienced a population growth of nearly 13% from 2010 to 2020.
O'Fallon, a suburb of St. Louis, provides easy access to downtown St. Louis, West St. Louis County and St. Charles County. St. Louis Metropolitan Statistical Area is one of the largest MSAs in the United States and has 2.8 million residents. There are 14 Fortune 1000 companies headquartered in St. Louis.
"Even with rising interest rates in 2022, and more anticipated in 2023, multi-tenant retail investors will continue to pursue assets in the Midwest like the Shops on K as an alternative to the volatility of the stock market and an opportunity to achieve a higher yield compared to other segments in the retail industry," noted Lefko.
Some of the recent transactions that Hanley Investment Group has completed in Missouri include a single-tenant Chick-fil-A Drive-Thru, multiple Valvoline-occupied properties in Missouri, a two-tenant Chase Bank and T-Mobile occupied property, and single-tenant Heartland Dental and P.F. Chang's.
Hanley Investment Group has sold $860 million in retail properties in the Midwest in the last four years.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $10 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients' needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Jeff Lefko, Executive Vice President
Email: Send Email
Address:3500 E. Coast Highway, Suite 100
City: Corona del Mar
Country: United States