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| Bill Asher |
SANDY, UT - 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 has completed the sale of Canyon
Center, a 47,866-square-foot shopping center shadow-anchored by Smith’s
Grocery in Sandy, Utah, which is located in the southeast Salt Lake City metro
area. The sale price was not disclosed.
Hanley Investment Group Executive Vice Presidents Bill Asher and Kevin
Fryman, along with President Edward Hanley, represented the seller,
Pacific Canyon Center, LLC, based in Irvine, California.
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| Kevin Fryman |
The buyer was a local investor and was represented by Greg
Swedelson and Jon-Eric Greene with SSG Realty Partners. The property was
part of a multi-property acquisition strategy, across multiple states, to
fulfill the buyer’s 1031 exchange requirement.
Built in 1998, Canyon Center is located on 6.79 acres at the intersection of
9400 South and Highland Drive in Sandy.
The sale included Smith’s gas station,
Wells Fargo and Wendy’s (all stand-alone pad locations within the center) as
well as 38,000 square feet of active lifestyle and daily needs shop tenants.
The property was 80 percent occupied at the time of the sale.
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| Jon-Eric Greene |
“The shopping center has enjoyed long-term historical occupancy and an
internet-resistant mix of tenants,” Fryman said. “Nearly 80 percent of the
occupied square footage has been leased by the same tenants since 2010 or
earlier.”
The property offered an attractive value-add opportunity with a multitude of
different ways to achieve future upside potential. “The buyer has the immediate
opportunity to lease-up 20 percent vacancy within a high-performing Smith’s
Grocery-anchored center, as well as the future flexibility to execute a
break-up sale strategy if desired,” Asher noted.
The shopping center benefits from the high-traffic signalized intersection
location with 30,000 cars per day and affluent demographics.
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| Edward Hanley |
Within a one-mile radius, the average household income is
$127,000. The current population within a five-mile radius of the center is
223,000. Smith’s at Canyon Center is well-positioned to continue to be the
dominant, long-term grocer for the surrounding community, according to
Hanley.
The shopping center is also minutes from Snowbird and Alta Ski Resorts and is
ideally positioned as the last grocery store prior to traveling through
Cottonwood Canyon to the nearby ski resorts.
“This is a highly desirable retail trade area with national
and regional anchor tenants located nearby, including Walmart Supercenter, 24
Hour Fitness, Fresh Market, Hobby Lobby, Home Depot, Lowe’s and Walgreens.
"Smith’s is a division of Kroger (NYSE: KR; S&P:
BBB), the largest supermarket chain by revenue in the U.S. and is an excellent
daily traffic generator to the shopping center,” said Asher. The population is
expected to grow by 110,000 over the next 30 years.
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| Canyon Center |
Hanley added, “Investor demand for multi-tenant retail assets leased to
national credit tenants in prime locations with an opportunity to improve
cash-flow long-term through the upside of additional lease-up and a potential
break-up strategy to maximize ROI will continue to be the most attractive
opportunities for investors in 2018.”
SSG Realty Partners is a boutique commercial real estate firm with offices in
Los Angeles, Honolulu and Park City, Utah. SSG provides full-service real
estate services including investment advisory, asset management, development
and leasing.
SSG specializes in
buy-side representation serving as a collaborative business partner and
outsourced acquisition team, managing the purchase process from initial
investment strategy, sourcing, underwriting, financing, closing and property
transition..
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