Big Box Bartering
Montgomery shopping center sales reflect a stir in the long-dormant retail market.
Two highly visible retail properties in Montgomery totaling $14.4 million changed hands recently with the sale of Promenade Montgomery and The Home Depot shadow center Promenade North to Atlanta-based Monarch Investments.
Kathy Dennis, leasing and tenant representative for The Shopping Center Group, represented the seller, New-York based Garrison Investment Group. The Shopping Center Group, the largest privately owned retail real estate advisory firm in the eastern United States, has leased both retail properties since 2012 and will continue to do so on behalf of Monarch Investments. Both shopping centers are visible to more than 45,000 cars per day on Eastern Boulevard.
Situated at Eastern and Vaughn Road, Promenade Montgomery sold for $10.8 million. Anchored by Winn Dixie and h.h. gregg, the 165,114-square-foot neighborhood center also includes national retailers Goody’s, Tuesday Morning, Guitar Center and Dollar Tree. A 6,000-square-foot lease is pending with the Alabama Beverage Control (ABC) bringing occupancy to 86 percent.
Located approximately 1,000 feet north of Promenade Montgomery, the Promenade Montgomery North sold for $3.6 million. The Home Depot was not included in the transaction. The Shopping Center Group is in final negotiations with a national retailer for the 43,500-square-foot, freestanding box that formerly housed Sports Authority.
While not at liberty to identify the big box retailer being pursued, Dennis did allow that such deals take longer nowadays to close. “I don’t think we’re back where we were six years ago. Business is slowly increasing and big boxes are being filled, but there’s not as many big boxes out there as there used to be,” she says. “Landlords are seven years past the market peak and now they’re more willing to take discounted rent to backfill it.”