Biggest Retail Center Deal of 2020?: Hines Sells Mall for $141 Million

In Nashville, Houston-based Hines has sold an 843,000-square-foot shopping center in suburban Nashville for what the buyer says is the largest shopping center sale in 2020.

The power center, called The Avenue Murfreesboro, is located in Murfreesboro, Tenn., about 30 miles southeast of downtown Nashville.

“The purchase of the 843,248 SF center at a price of $141,300,000 makes The Avenue the largest commercial center per sq ft to transact this year to date,” said the acquiring partnership, a venture of Equity Street Capital, in partnership with Big V Property Group.

Many shopping centers struggle during the coronavirus pandemic as retailers and restaurants have been strangled by shutdowns and cutbacks. Many mall tenants have requested forbearance on rent and quite a few have filed for Chapter 11, including JC Penney, Lord & Taylor and Stage Stores. The pressures on retailers have in turn put pressure on the organizations that own the malls. Some anchor stores are being torn down for replacement with more viable options. Amazon considers putting distribution facilities in empty anchor space..

But the acquirers call The Avenue Murfreesboro center is “one of the most dominant retail power centers in the Southeast, featuring some of the most profitable and recognized retail brands in the U.S. including Best Buy, Dick’s Sporting Goods, Belk, H&M and Petco.”

Six Buildings on 96 Acres

The Murfreesboro property consists of six multi-tenant buildings, eight freestanding outparcels and 5 vacant pads on 96.3 acres and it’s in one of the most active retail trade areas in the state of Tennessee.

It marks the 30th commercial real estate purchase for Equity Street Capital, a San Diego-based investment group.

“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 center was completed in 2007.

Hines Global REIT purchased the center in 2013 for $163 million from Faison & Associates and Cousin Properties, Inc.

Equity Street Capital was founded by Than Merrill and Paul Esajian.