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REO Value-Add Retail Center for Sale Near St. Louis

Tuesday, August 02, 2016

Update: This property is no longer on the market since HFF brokered its sale.

 

Alton Corners Shopping Center for saleOn behalf of the owner, HFF is marketing Alton Corners Shopping Center for sale. The 50,053-square-foot retail strip center is located in Alton, Illinois, just north of downtown St. Louis, Missouri. Built in 2002, the retail center is home to nine tenants, of which 87.1 percent are nationally-known retailers, including Applebee’s, Fantastic Sam’s, Firehouse Subs, Mattress Firm, Petco and DaVita.

Alton Corners Shopping Center is situated on Homer Adams Parkway, which is part of Illinois Route 3, the primary gateway to St. Louis from Alton. Additionally, Martin Luther King Drive is to the south, and the property’s access point is through Alton Square Mall Drive, which connects to both Martin Luther King Drive and Homer Adams Parkway. This allows Alton Corners Shopping Center to benefit from both highways and be visible to approximately 36,900 vehicles per day. Many residents north of the city travel to St. Louis for work via Alton. Acting as a major thoroughfare, Alton capitalizes on the 131,000 residents living in the northern part of the region.

Strategically located in a major trade area, Alton Corners Shopping Center is near several big box retailers that attract customers from the surrounding region. The retail property for sale is shadow anchored by a Lowe’s Home Improvement just southeast of Alton Corners, which drives traffic to the center. The property also shares parking with an Office Depot. Across Homer Adams Parkway is Target, Home Depot, Kohl’s and the 634,181-square-foot Alton Square Mall.

The shopping center for sale satisfies demand from the surrounding residential communities; it has less retail per capita than many other similar trade areas, which demonstrates a potentially under-served retail consumer base, implying pent-up demand for quality retail in a mature market with significant barriers to new development in the area.

Retail Center for Sale Investment Highlights

  • Low Cost of Living:  The Cost of Living Index is a useful and accurate measure of living cost differences among urban areas. Items on which the index is based have been carefully chosen to reflect the different categories of consumer expenditures. Madison County, where the property for sale is located, has a Cost of Living Index of 86, which is considerably lower than the national average of 100, mostly deflated by the low housing costs and grocery expense items.
  • Strong Recent Leasing Velocity:  Current ownership has achieved remarkable leasing velocity over the past 14 months. The property has successfully retail property for sale near St. Louis, Missourimanaged to absorb 30 percent of the retail space across three tenants, indicating strong demand for retail space in the area. The landlord is the the final stages of negotiating a lease with Shoe Carnival to take the remaining space at the property.
  • Value-Add Opportunity:  With an occupancy of 85 percent, the shopping center presents an incredible opportunity to capitalize on landlord-favorable market fundamentals and robust leasing activity in a strong retail trade area. The nationally-diverse rent roll provides a staggered rollover profile with the ability to drive income growth through rolling in-place below market rents up to market.
  • National Tenant Base:  The property is currently 85 percent occupied with a remaining average lease term of approximately five years, allowing an investor to stabilize the asset and realize additional value in the near term through long-term leases. Furthermore, approximately 78.8 percent of the leased area at Alton Corners Shopping Center holds a credit rating and/or are publicly-traded companies, providing an owner with secure income streams.

Alton Corners Shopping Center is a retail property for sale near St. Louis, Missouri, with a value-add opportunity for investors. For more information on this commercial property or to schedule a private property tour between August 9 and 11, contact HFF Managing Director  Jules Sherwood in HFF’s Denver office or HFF Managing Broker Jeff Bramson in HFF's Chicago office.





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