SANDY, Utah – 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. 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.
“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. 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.
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.”
About SSG Realty Partners
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.
See www.ssgpartners.com.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved.
For more information, visit www.hanleyinvestment.com.
Media Contact
Company Name: Hanley Investment Group
Contact Person: Bill Asher, Executive Vice President
Email: Send Email
Phone: 949.585.7684
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: http://www.hanleyinvestment.com