Newport Beach, Calif. (March 26, 2018) – SRS Real Estate Partners’ National Net Lease Group announced the recent sale of The Shoppes at Drexel, a 10,351-square-foot pad in Oak Creek, Wisconsin for $5.2 million. The property is currently occupied with five national retailer tenants including Mod Pizza, Men’s Hair House, Five Guys, Orange Leaf Frozen Yogurt, and Potbelly Sandwich Shop. Each of the tenants has signed five and ten year leases with options to extend.
The buyer was a private New York based investor that is creating a shopping center portfolio for his family across the U.S. The sales price of $5.2 million, with a 6.60 percent cap rate, represented a price per square foot of $502. According to comps available from CoStar, the sale set a record for price per square foot of a multi-tenant shopping center in Wisconsin for 2017 through 2018 year-to-date.
“The property was occupied by five national tenants, with 40 percent of the income coming from franchised credit and 60 percent coming from corporate credit,” said Patrick Luther, managing principal for the NNLG. “The strong pricing is indicative of resurgent interest in the Midwest, particularly the Milwaukee MSA from out of state investors, as the area continues to grow economically and diversify out of its industrial roots.”
Patrick Luther and Matthew Mousavi, managing principals of SRS’ National Net Lease Group represented the seller, a Chicago based merchant developer, in the transaction.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in the U.S. exclusively dedicated to retail services. Headquartered in Dallas with more than 20 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.