NASHVILLE – (Realty News Report) – Houston-based Hines has sold an 843,000-square-foot shopping center in suburban Nashville in what the buyer describes as the largest shopping center transaction of 2020.
The power center, known as The Avenue Murfreesboro, is located in Murfreesboro, Tennessee, about 30 miles southeast of downtown Nashville.
The acquiring partnership — a venture of Equity Street Capital in partnership with Big V Property Group — said the 843,248-square-foot center was purchased for $141,300,000. “The acquisition of the 843,248 SF center at a price of $141,300,000 makes The Avenue the largest commercial center per square foot to transact this year to date,” the partners noted.
Many shopping centers have struggled during the coronavirus pandemic as retailers and restaurants were hit by mandated closures, reduced customer traffic and cost-cutting measures. Several national mall tenants have sought rent forbearance or filed for Chapter 11 bankruptcy, including J.C. Penney, Lord & Taylor and Stage Stores. Those challenges have put pressure on mall owners and prompted adaptive strategies: some underperforming anchor stores are being demolished to make way for more viable uses, and there have been reports of potential distribution or logistics uses occupying former anchor space.
Despite those headwinds, the buyers described The Avenue Murfreesboro as “one of the most dominant retail power centers in the Southeast,” anchored by well-known, profitable national brands including Best Buy, Dick’s Sporting Goods, Belk, H&M and Petco.
Six Buildings on 96 Acres
The Murfreesboro property comprises six multi-tenant buildings, eight freestanding outparcels and five vacant pads across 96.3 acres. It sits in one of Tennessee’s most active retail trade areas, benefiting from strong regional demographics and highway access.
The purchase is the 30th commercial real estate acquisition for Equity Street Capital, a San Diego-based investment firm. Equity Street Capital was founded by Than Merrill and Paul Esajian.
“The Equity Street Capital team is extremely excited about acquiring this property with our partners as it is truly one of a kind,” said Than Merrill, co-founder of Equity Street Capital and FortuneBuilders.
Construction of the center was completed in 2007. Hines Global REIT previously acquired the center in 2013 for $163 million from Faison & Associates and Cousin Properties, Inc.
Sept. 2, 2020 Realty News Report Copyright 2020
File: Hines Sells Mall for $141 Million
File: (2) Avenue Murfreesboro. Hines Sells Mall for $141 Million. Equity Street Capital. 9-2-20
