Wheeler Buys Georgia Shopping Center for $37M
- Jan 05, 2017
Macon, Ga.—Wheeler REIT Inc., a fully-integrated self-managed commercial real estate investment company focusing on acquiring and managing income-producing retail properties, mainly targeting grocery-anchored centers, has announced the purchase of Rivergate Shopping Center in Macon, Ga. The property traded for almost $37.3 million.
Located at 121 Tom Hill Sr Blvd., the 205,811-square-foot Publix-anchored shopping center is situated within the main artery of the North Macon corridor and is roughly 17 miles south of Atlanta. The property has 11 points of entry and recently went through an extensive renovation and façade upgrade in the last four years. Publix has been the anchor tenant for 22 years. The center’s tenant roster also includes Dollar Tree, T-Mobile and H&R Block. At the time of the deal the shopping center was 96 percent occupied.
The company financed the purchase through a combination of cash and a three-year bank loan with one-year floating interest and 25 years-amortization schedule for the second and third year. The cap rate is 7.4 percent and the loan-to-value rate is 65 percent.
“We believe Rivergate Shopping Center is a high quality, stable center to add to our portfolio which now is comprised of sixty-five retail centers and nine land parcels. . I am thrilled to be adding Publix to our tenant roster and feel that this strategic acquisition will be accretive to our shareholders. Rivergate Shopping Center has the potential to provide the Company the opportunity to sell quality tenant outparcels, taking advantage of the net lease market, and recycle the capital back into our core business of acquiring mainly grocery-anchored centers. We have been able to execute on this strategy previously, and feel that it was beneficial to our portfolio and our shareholders,” Jon Wheeler, founder, chairman & CEO of Wheeler said in a prepared statement.
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