Originally published by Tulsa World A retail center in south Tulsa has been purchased for $9.1 million, according to the locally based commercial real estate company that helped broker the sale. The Burlington-anchored center is located at 7020-7030 S. Memorial Drive, spans more than 102,000 square feet across two buildings and includes an out parcel occupied by men’s clothing retailer DXL. The property is located just west of Woodland Hills Mall, the city’s largest shopping mall. Stan Johnson Co.’s Mike Sladich, Jeff Hughes, Maggie Holmes and Michael Watson exclusively represented the seller, a Baltimore-based investor. A private 1031 exchange buyer from San Jose, California, was the buyer. A 1031 exchange allows an investor to sell one or more appreciated assets and defer the payment of capital gain taxes by acquiring one or more replacement properties. “This asset had some obstacles to overcome in the sales process, namely the oversized box for the main tenant, Burlington,” Sladich, regional director and partner in Stan Johnson Co.’s Atlanta office, said in a statement. “Burlington has communicated their intent to decrease their average store size and operate in the 25,000-30,000-square-foot range moving forward. “Because this site featured a larger floor plate commitment of 55,000 square feet, there was little to no interest from institutional investors that typically would have jumped to acquire an asset like this. However, this opened the door for private investors to purchase a well-located, multi-tenant center in the heart of south Tulsa’s retail corridor, and we were able to secure a California exchange buyer who saw the intrinsic value of the shopping center.”  

Excerpt of article originally published by GlobeSt In advance of the live ICSC Here, We, Go. 2021 networking conference in Las Vegas from Dec. 5-7, GlobeSt.com chatted with a few retail experts on what they are looking forward to from this year’s event. Here, We Go. 2021 networking conference is fast approaching and dealmakers and innovators will soon gather in person from December 5-7 in Las Vegas. Mike Sladich, regional director and partner of Stan Johnson, for one, is excited. “It will be a great opportunity to renew old relationships and build new ones in person,” Sladich tells GlobeSt.com. “Nothing compares to the efficiency of large conferences for business development and knowledge sharing.” Sandy Sigal, president and CEO of NewMark Merrill Cos., exclusively tells GlobeSt.com that he is excited to see so many friends and colleagues. “It will be great to share experiences, compare notes, and create new ICSC experiences.” He adds that “there is no substitute for in person experiences… This is how you create lasting, life changing opportunities.” Hillary Steinberg, senior advisor of MDL Group/CORFAC International, is especially looking forward to being able to meet face-to-face with property owners and asset managers in town for the convention. Additionally, Steinbern says, it will be an opportunity to hear about up and coming retailers from other parts of the country. We also caught up with Vicky Hammond, principal of Coreland Cos., who says that ICSC Las Vegas conferences are valuable events for our industry. “I’m encouraged that the organization is navigating a complicated environment to make it happen this December,” Hammon says. “Retail is a large worldwide industry that relies heavily on relationships and I’m personally looking forward to taking this first step back.”

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed three portfolio sale transactions for a combined $75.5 million. The portfolios were comprised of single-tenant assets leased primarily to discount retailers. Tenants included Tractor Supply Company, Dollar General and Advance Auto Parts, among others. Ryan Butler of Stan Johnson Company arranged the off-market transactions on behalf of ownership. “All three portfolios had weighted average lease terms in excess of eight years and offered a very attractive mix of retail tenants,” said Butler, Managing Director and Partner in Stan Johnson Company’s Tulsa, Oklahoma headquarters. “We worked diligently to evaluate the buyers for each transaction and executed a series of off-market campaigns that resulted in a competitive environment and strong pricing. We successfully closed with three different institutional investor groups who were each pleased to add these high-quality, high-performing properties to their existing portfolios.” In total, the three transactions included 40 properties which were located across seven states.

Excerpt of article originally published by GlobeSt Walmart is launching three full-time DroneUp airport hubs for on-demand delivery operations. The first operation has already taken flight at a Walmart Neighborhood Market in Farmington, Ark. The program features three locations at Walmart stores, making it the first multi-site commercial drone delivery operation. Each will operate from 8 a.m. to 8 p.m., seven days per week and will deliver items to eligible Walmart customers by air in as quickly as 30 minutes. The two other sites will begin business in the coming months, Walmart said in a release. “When we invested in drone delivery earlier this year, we envisioned an operation that could be quickly executed and replicated across multiple stores,” Tom Ward, senior vice president of last mile at Walmart US, said in prepared remarks. Walmart Has Significant Infrastructure in Place The process begins with eligible customers entering their address to verify eligibility. They then can select from thousands of items for delivery. Operators next pack the order and secure the box to the drone using a patented delivery release mechanism. The FAA-certified flight engineer then manages a controlled and guided delivery, placing the order gently at the customer’s home. Walmart is well-positioned to be the drone delivery leader given its extensive retail footprint—it has more than 4,700 stores located within 10 miles of over 90% of the US population. Analysts expect drone delivery use to further develop in retail. Drones require fewer fossil fuel-powered vehicles for short delivery trips and also could be a remedy for some supply-chain issues. Warehouses, in fact, have begun preparing for this technology. “The timing is perfect for Walmart to be experimenting with drone delivery,” Chad Byerly, Director & Partner, Stan Johnson Company, tells GlobeSt. “Current supply and labor shortages are impacting the ability to deliver goods to consumers in a timely manner, so I’m not surprised Walmart is making investments in new technology and finding creative ways to reach their customers.” When Amazon launched its drone delivery service back in 2013, the idea seemed very futuristic, Byerly continued. “But now, I think we’re seeing the true beginning of a trend. If Walmart is successful, it’s likely we’ll see other national retailers like Walgreens, CVS, Dollar General and more follow suit.”  

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the ground lease sale of a single-tenant retail property leased to 7-Eleven. The 4,070-square-foot convenience store is located at 1343 Belcamp Road in Belcamp, Maryland. Stan Johnson Company’s BJ Feller and Mike Philbin exclusively represented the seller, a local developer. The property was acquired by a New York-based 1031 exchange buyer for $5.0 million. “This property represented one of the more unique opportunities of a 7-Eleven relocation property in tandem with a fresh 20-year lease,” said Feller, Managing Director and Partner in Stan Johnson Company’s Chicago, Illinois office. “The property understandably attracted a wide range of interest from both private investors and also institutional investors, owing to the strength of the location off Interstate 95, as well as a multitude of major drivers nearby, including the Aberdeen Proving Grounds.” The newly built gas station and convenience store is situated on a 2.41-acre parcel near the intersection of Riverside Parkway and Interstate 95 and is just 30 miles northeast of Baltimore, Maryland. The tenant relocated from a nearby site and increased their footprint by 67 percent to meet growing demand.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property leased to Dollar Tree. The 14,265-square-foot building is located at 2585 Lineville Road in Howard, Wisconsin. Ronnie Givargis of Stan Johnson Company represented the seller, a New York-based private equity group. The asset was purchased by a private 1031 exchange investor based in Boca Raton, Florida. The property sold for $2.8 million reflecting a 5.10 percent cap rate. “This was a record-breaking cap rate for Dollar Tree in Wisconsin,” said Givargis, Senior Director in Stan Johnson Company’s Newport Beach, California office. “Dollar Tree was in a neighboring shopping center half a mile from this site for many years and outgrew the space. This was a relocation deal to a freestanding building in a proven market.” The property was originally built in 2004 and was renovated in 2021. It is situated on 1.4 acres at a signalized intersection just 15 minutes northwest of downtown Green Bay, Wisconsin. Neighboring tenants include Sherwin-Williams, Auto Zone, Goodwill, Piggly Wiggly and Anytime Fitness, among others.

Originally published by GlobeSt Throughout the majority of the pandemic, office investors were widely driven by a flight-to-quality, as those assets offered the most resilience amid demand uncertainty. While core and core-plus office properties are still in favor, value-add liquidity is quickly recovering as clarity surrounding rent growth and the future of office demand improve, according to new findings from JLL.  Thus far in 2021, value-add is the most sought-after profile with the share of value-add office properties in the current pipeline recovered from declines in 2020, and now recovering towards the 2017-2019 levels, JLL said. Additionally, value-add buyer pools are broadening after significant impact in 2020 and have seen the most improvement in 2021 relative to 2020. “We’re seeing investors pivot back to previously out of favor sectors like office and hospitality that can produce very attractive yields,” said Coleman Benedict, senior managing director and co-head of JLL’s National Office Practice, in prepared remarks. “As part of this rotation back to office, value-add is definitely back on investors’ radar reinforcing the investment community’s confidence in the long-term stability of the office market.” ‘Uncertainty No Longer Clouds’ Multi-Tenant Asset Sectors Ryan Roedersheimer, director in Stan Johnson Company’s Cincinnati office, specializes in nationwide multi-tenant investment property sales. He tells GlobeSt that he has seen a resurgence of interest in recent months for a variety of asset classes that had demand levels squeezed by the pandemic. “The most renewed interest is in multi-tenant assets—this includes office and retail, with an emphasis on value-add properties,” Roedersheimer said. “Uncertainty no longer completely clouds these sectors. Workers are returning to office environments and consumers are returning to stores. “For investors who’ve been chasing yield, they’re finding fewer options in the red-hot industrial market, and this dynamic is leading them to look elsewhere. With suppressed demand for multi-tenant assets in the last two years, there’s a lot of opportunity here for investors, and it will be interesting to see the story play out in 2022.” The Spector of Hybrid Work  To be sure, questions remain surrounding the impact of hybrid work on office demand. However, the majority of corporate occupiers have signaled that the office will remain the center of the work ecosystem. Hybrid work’s net impact on space usage and footprints will be relatively minor. Leasing activity supports this thesis, JLL notes, which nearly surpassed 40 million square feet in Q3 2021 for the first time since the onset of the pandemic and bringing the trailing six-month transaction total almost 40% above the same time period in 2020. Recent sales also drive home the rediscovery of value-add office’s appeal. There was the $155 million sale of Mount Eden Research Park in the Bay Area and the $56.5 million sale of CASA in Phoenix. “The amount of interest we received for Mt. Eden was truly astounding,” said Senior Managing Director Rob Hielscher, JLL Capital Markets. “A combination of value-add and life sciences drove pricing and the number of bids upward in a highly competitive process.” The CASA office sale set a new price-per-square-foot record for Phoenix’s Piestewa Peak submarket.  

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 2420 Gulf to Bay Boulevard in Clearwater, Florida. The 8,000-square-foot multi-tenant retail center was 45 percent occupied at the time it was purchased by a local developer for $1.4 million. Jeff Enck of Stan Johnson Company represented the seller, a group of private investors based in Atlanta, Georgia. Currently leased to three tenants, the strip center also features two vacancies totaling 4,400 square feet. “While the property had excellent visibility and traffic, it was limited by use restrictions for redevelopment by the city,” said Enck, Associate Director in Stan Johnson Company’s Atlanta, Georgia office. “We received about a dozen offers and were able to close with a buyer who needed to satisfy a 1031 exchange with plans to develop it later down the road.” The property was originally built in 1963 and is situated on 0.94 acres. Current tenants operate on short-term gross leases, offering opportunities for lease-up or redevelopment. The exceptionally located property is just 20 miles west of Tampa, Florida in a densely populated residential and retail corridor. With 60,000 vehicles per day on the site’s main roadway frontage, and convenient access to U.S. Highway 19 North, the area’s main north-south artery, the center benefits from nearby retailers and shopping areas that include anchors such as Home Depot, Sam’s Club, Target, PetSmart, Costco and more.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a shopping center located at 825 Seaway Drive in Fort Pierce, Florida on Hutchinson Island. Harbour Cay is a 10,530-square-foot unanchored shopping center and is fully leased to a diverse mix of restaurant, service and professional tenants. Stan Johnson Company’s Jeff Enck and Mike Philbin represented the seller, a Jupiter, Florida-based developer. An individual investor from Lighthouse Point, Florida purchased the asset for $4.1 million reflecting a 6.08 percent cap rate. “Harbour Cay is a seven-tenant unanchored retail center on the coast of Fort Pierce, Florida,” said Enck, Associate Director in Stan Johnson Company’s Atlanta, Georgia office. “Brand new retail properties have been highly sought after this year, and while some of the tenants at the property had yet to open, we were able to find an exchange buyer to close on the property before all the tenants took occupancy.” The newly built property is situated on more than 1.50 acres at the corner of the entrance to Harbour Isle Marina and luxury condominium community. Centrally located between Cocoa Beach and West Palm Beach, Hutchinson Island is a tourist and vacation destination on Florida’s Atlantic coast. The site features direct frontage on Highway A1A in an area with limited retail. All tenants operate on triple net leases which commenced in 2021 at the time construction was completed.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a net lease bank branch located at 5938 FM 2920 in Spring, Texas. Mark Lovering of Stan Johnson Company exclusively represented the Texas-based private seller. The buyer, a Milwaukee, Wisconsin-based investor, was represented by Stan Johnson Company’s Matt Lipson and Mike Philbin. The asset traded at a 6.00 percent cap rate, although the price was not disclosed. “This is a trophy site for Bank of America, which has operated at this location since 2003 and benefited from strong annual deposit growth,” said Lovering, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “Despite several significant delays caused by COVID-19, we successfully navigated the deal across the finish line with the buyer’s 1031 timeline.” The property was built in 2003 and is situated on 1.7 acres in a northern suburb of Houston, Texas. The site features a drive-thru, has outstanding visibility and is strategically located as an outparcel to a Walmart-anchored shopping center. “This was a great acquisition for our buyer who needed to satisfy a 1031 exchange. He loved the location and the credit behind the lease,” added Lipson, Associate Director in Stan Johnson Company’s Portland, Oregon office.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale leaseback of a Pilot Travel Center located at 901 Bankhead Highway West in Birmingham, Alabama. The 9,790-square-foot convenience store sold for approximately $9.4 million reflecting a 7.0 percent cap rate. Matt Lipson and Mike Philbin of Stan Johnson Company represented the buyer, Brodersen Management Corporation based in Milwaukee, Wisconsin. The seller was Acworth, Georgia-based Mountain Express Oil Company. “This was a great deal for the buyer and tenant,” said Lipson, Associate Director in Stan Johnson Company’s Portland, Oregon office. “The tenant was purchasing a location from Pilot and rather than use traditional business financing, they found a real estate buyer to help fund the acquisition. Since you have to merge an asset purchase agreement with the purchase and sale agreement to ensure a simultaneous close, structuring a sale leaseback to fund an M&A is slightly more challenging than a typical net lease transaction. However, both parties maintained healthy communication and were experienced enough to get this across the finish line.” The property was originally built in 1995 and includes a Wendy’s quick service restaurant on-site. The 7.4-acre parcel is strategically located just north of Interstate 20 at a signalized intersection. “I like these types of transactions because the buyer is able to purchase an attractive net lease asset at a higher yield than a traditional deal, and the tenant is able to get into the property free of loan contingencies and with limited acquisition costs,” Lipson added. “Our client is also thrilled that their new tenant will have plenty of working capital that would normally be reserved for the cost of an acquisition.”  

Excerpt of article originally published by GlobeSt.com Overall, the retail market is in a very healthy space as essential retailers have been thriving. So says Mike Sladich, Regional Director and Partner of Stan Johnson. GlobeSt.com spoke with Sladich among a few other retail experts about all things retail in preparation for the upcoming RECon convention. The event will be hosted this year by ICSC on December 5-7 in Las Vegas. According to Sladich, tenants who are susceptible to e-commerce, have effectively experienced the worst-case scenario for brick-and-mortar sales. But he says, “these non-essential retailers can now better model their businesses moving forward and optimize their spaces as consumers return to stores.” Additionally, he says, “as we review financials and sales data for sale-leaseback candidates in the retail sectors perceived to be hit hardest, like casual dining restaurants, family entertainment centers and fitness centers, we’re seeing that their business in recent months has surpassed pre-COVID-19 levels.” According to Sladich, the pent-up consumer demand for these experiential retail tenants has been substantial and may be even more important moving forward as the population desires a return to routines.