SRS Real Estate Partners’ National Net Lease Group on Wednesday said it completed the ground lease sale of a 185,682-square-foot property occupied by Walmart located at 1050 W. Edgar Road in Linden. Built in 2019, the property is situated on 14.02 acres and has a corporate-guaranteed lease in place with 17 years remaining.
The Walmart sale is part of a larger break-up strategy for eight parcels of Legacy Square, which, when completed, will be valued in excess of $86.5 million.
SRS NNLG Managing Principals Matthew Mousavi and Patrick Luther, Managing Director Britt Raymond and Senior Vice President Kyle Fant represented the sellers, Dallas-based developer Cypress Equities and San Francisco-based investment firm Stockbridge Capital Group. The buyer, a partnership of several individuals in a large 1031 exchange, was represented by David Chasin with Los Angeles-based Pegasus Investments Real Estate Advisory.
Walmart is the anchor tenant to newly developed Legacy Square, a 47-acre shopping center where the historic General Motors plant formerly operated. Other tenants include LA Fitness, Wawa, Chick-fil-A and Starbucks, among others. Walmart relocated to this site from Aviation Plaza across the street, a 550,000-square-foot power center anchored by Target, Home Depot, Marshall’s and Old Navy, among others.
Legacy Square features a new LA Fitness adjacent to Walmart, several strip centers and outparcels occupied by Chick-fil-A, Panera, Taco Bell, Starbucks, Wawa, Freddy’s Frozen Custard & Steakburgers, and a two-tenant building with AFC Urgent Care and Aspen Dental.
“Within the past few months, we executed the sale of the Taco Bell outparcel as well as the Chick-fil-A, to separate buyers,” Mousavi said. “Additionally, the Panera, Starbucks, AFC Urgent Care/Aspen Dental properties are under contract, and we are also marketing the Wawa and Freddy’s Frozen Custard & Steakburgers, the remaining two available outparcels within Legacy Square. The investor demand for these types of assets remains strong as evidenced by these transactions, with the buyers being sourced from across the country.”
“Breakup strategies for larger retail centers is a strategic way for sellers to add more value to their exit strategy,” Fant said. “By selling off the assets one by one, the buyer pool is expanded and the pricing is typically more than if one buyer acquired the entire center. This strategy creates a winning situation for the seller as well as the buyers, who can have ownership in a portion of a large, institutional-quality shopping center that they otherwise could not afford or have access to.”
In 2022, SRS’ Investment Properties Group and National Net Lease Group completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.