Sterling Organization has acquired a 102,864-square-foot grocery-anchored shopping center, formerly known as Cherokee Plaza, in Atlanta.
Sterling acquired the asset at 3871-3895 Peachtree Road NE on behalf of its stabilized grocery-anchored shopping center fund, Sterling United Properties II LP (SUP II). Marketplace at Buckhead is the 14th property in the $267 million equity fund.
The center is anchored by an 81,718-square-foot Kroger grocery store and is also home to Starbucks, Jersey Mike’s Subs and Salon Lofts. The demographics of the surrounding are sound. The population base within a 3-mile radius is about 146,000 residents, with an average household income of more than $175,000.
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In a prepared statement, Jordan Fried, principal of Sterling Organization, called Marketplace at Buckhead a trophy asset, based on a prime location “with very strong underlying property fundamentals” and being “fully leased to a lineup of tenants offering necessity goods and services….”
Despite economic uncertainty, population growth is fueling metro Atlanta’s retail space market, especially for necessity retailers, according to a second-quarter report from Marcus & Millichap.
Consistent net absorption above deliveries has pushed vacancy to a record low of 4.1 percent. Further, construction is lagging, which is helping to drive double-digit rent increases.
Though investment activity has been slowed by the tighter lending market, Marcus & Millichap says, “impressive fundamentals are proving engaging to a number of investors. In recent weeks, many properties are selling at or near the initial asking price, suggesting that buyer/seller expectations are falling increasingly in line.”
This past January, Branch Properties acquired a 14-acre site in Gainesville, Ga., in the Atlanta suburbs, to develop Limestone Marketplace, an approximately 76,800-square-foot project anchored by a 55,000-square-foot Publix Super Market.