Transactions Demonstrate the Strong Demand for Retail Shopping Centers in Sought-After Secondary Markets
CINCINNATI, OH – February 8, 2016– Viking Partners Fund II (“Fund II”), launched in 2012 by Viking Partners, LLC, a private equity real estate investment firm focused on the acquisition, turnaround and disposition of value-add real estate and real estate related assets in the Midwest and Southeast United States, completed the sale of three retail shopping centers for an aggregate purchase price of $17.6 million. The properties, Indian Creek Commons, Louisville Kroger Center and Grand Central Station, are located in the highly desirable secondary markets of Indianapolis, Louisville and Cincinnati, respectively.
Indian Creek Commons is a 59,716 square foot shopping center located in Indianapolis, Indiana. The property is shadow-anchored by a Wal-Mart Supercenter and has a national lineup of tenants including Pet Supplies Plus, Rainbow, Sally Beauty, Buffalo Wild Wings and Dollar Tree. At the time of acquisition the center was 64 percent occupied. Viking Partners executed on the focused leasing plan for the center, improving occupancy to 96 percent and increasing net operating income by 74 percent.
Louisville Kroger Center is a 51,906 square foot stand-alone Kroger grocery store located in Louisville, Kentucky. The property was acquired by Fund II in November 2014 and subsequent to the acquisition by Fund II, Kroger extended their lease for a 5-year term. This is an attractive asset as Kroger is the dominant grocer in the Louisville market.
Grand Central Station is a 76,057 square foot shopping center located in Cincinnati, Ohio. The property is anchored by Fitworks Gym and other tenants include Youthland Academy, Sherwin William, Rent-A-Center, Arby’s and PNC Bank. Grand Central Station is centrally located in the Norwood suburb of Cincinnati and benefits from a population of over 260,000 people within 5 miles of the property.
“The ability of our team to locate good properties in solid markets and execute on the turnaround plans for each property, resulted in strong interest from several buyers who were seeking retail real estate buying opportunities in secondary markets,” said Bret Caller, Principal of Viking Partners. “We believe the demand and resulting sale of these properties supports our investment thesis of acquiring properties in secondary and tertiary markets, as they produce stable cash flows and provide a good risk adjusted return for our investors”, he continued.[ssba]