VOL. 132 | NO. 142 | Wednesday, July 19, 2017
Bartlett Shopping Center Sells for Nearly $30M
By Patrick Lantrip
Atlanta-based investment firm Branch Properties LLC purchased the Bartlett Towne Centre, citing good demographics in making the investment. (Daily News/Brandon Dahlberg)
An Atlanta-based real estate investment firm has made its first purchase in the Memphis market with the acquisition of a 198,103-square-foot shopping center in the heart of Bartlett.
The Bartlett Towne Centre, located at 6005 Stage Road, was acquired by Branch Properties LLC from Houston-based real estate investment trust Weingarten Realty for $28.8 million.
“It’s an extremely strong performing Kroger asset, well located and good demographics – kind of the typical criteria,” Jesse Shannon, Branch Properties’ chief investment officer, said.
Shannon said his company wasn’t specifically shopping the Memphis market prior to the deal, but found the asset very attractive nonetheless.
“We already have properties in Tennessee, so it made sense,” he said. “It was a natural extension of the existing investments we made in the market.”
Though it is Branch Properties’ first acquisition in Memphis, Shannon said they own several assets in Nashville, Chattanooga and Knoxville.
In addition to Tennessee and Georgia, Branch has acquired, developed and manages more than $2.5 billion in commercial properties throughout the Southeast, accounting for more than 12 million square feet of space since it was founded in 1973.
Shannon said his company typically invests long term, and will tap The Shopping Center Group’s Danny Buring to handle leasing at Bartlett Towne Centre, which he added was common for the properties they manage outside of Atlanta.
Built in 1989, the Kroger-anchored retail center sits on just under 18 acres at the southeast quadrant of Stage Road and Bartlett Boulevard.
Earlier this year, the Shelby County Property Assessor appraised the property for $18.5 million.
According to documents filed with the Shelby County Register of Deeds, the shopping center has 27 other tenants besides Kroger, including Petco, Dollar Tree, Rent-A-Center and several restaurants, including an O’Charley’s.
Mark D. Stout, senior vice president/general counsel for Weingarten, signed the deed on its behalf, while Richard H. Ross, Branch Properties’ executive vice president/CFO, signed for his company.
Representatives with Weingarten did not return a request for an interview by press time.
Among its other Memphis holdings, Weingarten developed the 26-acre Ridgeway Trace Center on Poplar Avenue near Interstate 240 that is anchored by a Target store and includes several other large retailers.
The Branch Properties deal marks the second notable acquisition of a large-scale suburban shopping center by an out-of-town investor in the past three months.
In April, a Boyle Investment Co. real estate investment fund sold the Germantown Village Square to PEBB Enterprises, a private equity firm based in Boca Raton, Florida, for $29.3 million.
Boyle continues to handle the leasing and management of the 200,000-square-foot, two-level, mixed-use center, which was developed in 1973 as an enclosed shopping mall and was “de-malled” in 1985.
“Germantown Village Square is a fantastic property, located right in the heart of Germantown on Poplar Avenue,” Mark Halperin, executive vice president and COO of Boyle, said when the sale was announced. “Working with all of the tenants during the past several years was a great experience, and we look forward to seeing the property’s continued success.”
Boyle was represented in that sale by Johnny Lamberson, Terry Radford, Chris Cozby and Chris Gerard of CBRE.
Major office and retail tenants at Germantown Village Square include The West Clinic, TJ Maxx, Pier 1 Imports, OfficeMax, Petco, Designer Shoe Warehouse, Crye-Leike Realtors and McAlister’s Deli.