VOL. 111 | NO. 11 | Thursday, January 16, 1997
lj 10/5 cates
Saddle Creek sections sell for $12.5 million
By LAURIE JOHNSON
The Daily News
Two sections of the Saddle Creek shopping center Saddle Creek West and Saddle Creek South changed ownership this week in a transaction totaling almost $12.5 million.
Jones Lang Wootton Realty Advisors, a national real estate investment firm based in New York, purchased Saddle Creek South at 2055 West St. for $8.5 million and Saddle Creek West at 7509 Poplar Ave. for $3.9 million, according to two special warranty deeds filed Monday in the Shelby County Registers Office.
Jones Lang Wootton acquired the property from LaSalle Fund IV, a Chicago-based national real estate investment group, on behalf of one of its clients, said Jeffrey Barclay, senior director for Jones Lang Wootton. Barclay declined to name the client but said it was a domestic institutional investment firm.
"We look for investments all over the United States," Barclay said. "We keep our eyes open for properties like Saddle Creek, and weve been wanting to find something in Memphis for some time."
Barclay said Saddle Creeks Germantown locale was attractive because it was located in a booming residential area.
"We believe there is a limited amount of new commercial development that can come in there," he said.
"And as residential development in Germantown and the areas that surround it continues to solidify, we expect to see Saddle Creeks retail sales continue to increase."
At the time of sale, the two sections of Saddle Creek, which contain almost 59,000 square feet of retail space, were more than 96 percent leased.
Saddle Creek South, which opened in 1989, contains 37,800 square feet of retail space. It is now 100 percent leased, said Terry McEwen of Poag & McEwen Co., the Memphis firm that developed the shopping center.
Poag & McEwen will continue to manage the property and serve as the leasing agent for the new owners.
Twelve tenants currently lease retail space in Saddle Creek South, including Eddie Bauer, Williams-Sonoma, Talbots, Harolds, Gap Kids and the Mozzarella Cafe.
Saddle Creek West, which opened in 1995, contains 21,100 square feet of retail space. This section currently is 89 percent leased, with one retail bay out of five unoccupied, McEwen said.
Tenants in Saddle Creek West include Talbots Petites, the Eddie Bauer Home Store, Structure and Britches Great Outdoors.
Jones Lang Wootton did not acquire Saddle Creek North, the only remaining section, Barclay said.
Local real estate experts agree that Saddle Creek would be a good addition to an investors portfolio.
"When large investors like this are looking for places in which to invest their money, they look for properties that meet certain profiles," said Larry Jensen, president of Commercial Tennessee Inc. "When they find something that meets these parameters, they are willing to pursue it.
"A property like Saddle Creek, which has national tenants, a great location and is relatively new, is something most investors would probably be glad to have in their portfolio."