Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a retail property located at 4317 Feedwire Road in Centerville, Ohio. The 28,780-square-foot property is leased to Marshalls, the second largest off-price clothing retailer in the U.S. The T.J. Maxx affiliate operates under a long-term triple net lease structure. Northmarq’s Mark Lovering represented the seller, an individual investor based in Chicago, Illinois. A Vancouver, Washington-based group of investors acquired the asset for approximately $7.3 million.
“Although cap rates for investment-grade net lease assets have remained low, interest rates have risen steeply. This created a rare opportunity for the owner, who had previously been unable to defease a CMBS loan that encumbered the building; however, once rates skyrocketed, their defeasance cost went down, creating the perfect window for the owner to sell this high-quality asset,” said Lovering, Associate Director in Northmarq’s Chicago, Illinois office. “As the commercial real estate industry continues to adjust to rising interest rates, we expect defeasance requests to continue to trend upwards in the coming months.”
The property is positioned within a 324,000-square-foot power center directly across from a new, 125-acre multi-use development. In addition to its outstanding location, the property benefits from exceptional demographics, with 132,492 residents within a five-mile radius. Neighboring tenants include PetSmart, Target, The Home Depot, Costco Wholesale, Cabela’s and Kroger.