A freestanding Dick’s Sporting Goods store next to one of the largest malls on the East Coast has sold close to its original asking price.
Ace 1 Southpark LLC purchased the net-leased retail property, located in Charlotte, North Carolina’s SouthPark, from another private entity, Dowel Charlotte LLC, for $16.83 million, or about $200 per square foot. The buyer is a “syndicator of foreign equity,” according to brokerage services firm Marcus & Millichap, which represented the seller in the deal.
The building was originally listed for a little under $17 million when it hit the market, according to CoStar data.
“We were pleased to achieve 99% of list price despite the market challenges of two-story big box retail,” Karly Iacono, vice president of investments at Marcus & Millichap’s National Retail Group, said in a statement. Iacono is based in the firm’s Saddle Brook, New Jersey, office.
Ace 1 Southpark LLC secured a $10.94 million CMBS loan through Morgan Stanley Bank, N.A. to finance the acquisition, according to CoStar data. The buyer’s acquisition was “heavily dependent on getting competitive financing,” according to Marcus & Millichap. Rick Lechtman and Dan Lisser of Marcus & Millichap Capital Corp. sourced the financing for the buyer.
“We focused on analyzing the best long-term permanent loan financing scenarios for our client,” Lisser said in a statement. “In the end, we secured a lender who provided a ten-year full-term interest only solution which enhanced the clients cash on cash returns for their investors through the investment hold period.”
The Dick’s Sporting Goods is located at 4325 Barclay Downs drive. It is an outparcel to the SouthPark mall, the 10th largest mall on the East Coast and the 28th largest in the United States, according to Marcus & Millichap.
Overall, Charlotte is one of the nation’s fastest-growing cities, surpassing Indianapolis as the 16th largest city in the United States, according to CoStar Market Analyst Jesse McConnico.