Trends & Insights

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.”  

Originally published by Jacksonville Business Journal An industrial property in one of Jacksonville’s tightest submarkets recently sold for more than $5 million. The property at 3440 Evergreen Ave., which consists of two buildings built in 1945, sold for $5.3 million. Jimmy Ulrich and Michael J. Macchia of Stan Johnson Co. brokered the transaction. The seller was a local private investor, and the buyer was an individual investor named Sunday Xu from Los Angeles, according to information from Stan Johnson Co. “This sale was more than a sale – it was the culmination of a multi-generational family ownership of the property, first as the owner-user, and later as the owner-investor,” said Ullrich. “In an interesting turn of events, the winning bidder was a California investor who is an owner-user turned national real estate investor, so Mr. Xu was able to understand and work through some of the nuances of a 70-year-old family-owned property.” The property consists of 115,500 total square feet and is fully leased to KME America Marine & Tube Fitting. It is located close to Jaxport, in an area that has a vacancy rate of less than 3%. KME contracts with the U.S. Navy, and it fabricates copper alloy pipes for shipping and offshore. “Selling KME was a pleasure,” Ullrich said. “The property offered a great combination of lease term, market and property type. Therefore, we experienced a feeding frenzy of buyer activity. We received more than a dozen bids and six of them were at full asking price.” The deal is one more example of the First Coast's attractive industrial submarket of commercial real estate, which has seen numerous investment sales this year as well as new developments to try and meet a high demand for industrial space.  

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 published by Commercial Property Executive Commercial real estate executives weigh in on what’s to come in the office and industrial sectors. With a new year right around the corner, Commercial Property Executive asked industry experts to forecast the business and economic factors that will determine deal flow and pricing in the office and industrial real estate sectors. Jeff Cox, Managing Partner & Sales Leader, East Region, Stan Johnson Company: Access to capital remains quite good, and we’re seeing strong buyer demand as investors rush to take advantage of the current lending environment. Our clients are also watching the return to office policies communicated by large corporate employers, the growing labor shortage, and persistent supply chain issues.  

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.