Strong tenants push through strip center sale despite pandemic
Courtesy / Malone Commercial Brokers
Thanks to a strong tenant base and location, the sale of a strip center at 127 Topsham Fair Mall Road went through despite the pandemic, selling for $1.6 million.
A strong base of tenants and a prominent location pushed through the sale of a strip center at the Topsham Fair Mall despite the pandemic.
Zenith Asset Group bought the 8,674-square-foot freestanding strip center, at 127 Topsham Fair Mall Road, from Dakota Bear Properties for $1.615 million.
That was $280,000 below the list price of $1.895 million.
Josh Soley of Maine Realty Advisors represented the buyer and John Doyon of Malone Commercial Brokers represented the seller in the deal, which closed June 11.
Built in 2007, the one-story center, with five retail units, is located on 1.09 acres. Tenants include Sally Beauty Supply and Gentle Dental, according to the listing brochure.
The center, just off Exit 31 of I-295, is opposite an 85,636-square-foot retail center at 131 Topsham Fair Mall Road that is anchored by Target and is a retail hub for the Brunswick-Topsham area.
The property was listed last October, said Doyon.
“The owner is now dividing her time between Maine and New York,” he said. “She thought exchanging into a single-tenant building with a national tenant would be a more simple investment.”
The listing attracted several interested buyers, all based in New England, he added.
Compromise price
The deal was under contract before the pandemic, said Soley.
“People were saying that retail uses were getting crushed and sales were falling apart,” he said.
Nevertheless, he said, the center’s tenants continued to pay rent through the pandemic.
“So there was no hesitation for the buyer,” he said.
Zenith is a group of southern Maine investors that targets suburban shopping centers.
“They go for high yields and they like to be anchored by national tenants,” he said.
About six months ago, Soley submitted an offer of $1.45 million on the $1.895 million listing. The offer was rejected. But further negotiations resulted in a compromise of $1.615 million.
Zenith plans to keep the property as a long-term hold, with the idea that Topsham is a key retail center for the area.
Last December, Zenith bought a 20,554-square-foot retail center located at 126 Main St. in Topsham. Soley represented the buyer in that deal, too. Like this deal, the acquisition was built on solid tenancy as well as the potential for gradual appreciation of the property’s value.
Across the parking lot, the 85,636-square-foot retail center at 131 Topsham Fair Mall Road sold in December 2017 for $5.25 million.
That same month, the neighboring 105 Topsham Fair Mall, a 45,469-square-foot retail building, sold for $5.14 million. Both deals were brokered by the Boulos Co.
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