The one-time Barnes & Noble retail center is on the block
The Uptown Square retail center across from the Fayette Pavilion on Ga. Highway 85 North is up for sale.
Above, aerial view of Uptown Square. Photo/Submitted.
Canada-based Avison Young’s Capital Markets Group has been retained to market and sell Uptown Square, a 100-percent-occupied retail center spanning 72,314 square feet on 8.58 acres at 1415 Hwy. 85 North.
Anchored by Goodwill, which, in addition to Harbor Freight, recently extended its lease long-term, the class A center is directly across from Fayette Pavilion, a 1.5-million-square-foot power center with tenants including Home Depot, Target, Walmart, Kohl’s, and a Cinemark Theater.
“Investors are looking for assets that provide stability of income and yield, and with full occupancy and an 11-year projected net operating income growth of 40 percent, Uptown Square offers both,” said Avison Young Principal John Crotty. “The quality of the asset coupled with our strategic collaboration across markets is expected to attract healthy and diverse attention to the offering.”
According to Avison Young’s first quarter 2018 Atlanta retail market report, Metro Atlanta’s investment sales activity remains robust. The average price per square foot increased 5 percent year-over-year to $166 in the first quarter, and cap rates saw an average of 7 percent. Tenant demand for retail space demonstrated by 20 consecutive quarters of positive absorption continues to draw investor interest.
“More than half of Uptown Square’s current tenants have been at the property for five years or longer, indicating solid retention,” said Avison Young Senior Vice President Theresa Johnson. “At the same time, where some rents are below market, the premier location of the asset allows a new buyer to replace outgoing tenants in the future at a profit easily.”
Uptown Square boasts a diverse tenant mix of national and local retailers including Sprint, The UPS Store and Republic Finance. Although the asset is less than 20 years old, notable capital improvements were completed including parking lot upgrades, exterior repainting, an HVAC replacement and recent new roof installation, Avison Young said.
