COLD SPRING, Ky., Dec. — 2018 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Cold Spring Crossing, a 325,383-square-foot, grocery-anchored power center in Cold Spring, Kentucky. The property sold at a 7.53 percent cap rate for $26 million, which was over 98 percent of list price.
“Cold Spring Crossing is anchored by best-in-class retailers Kroger, Home Depot, and Kohl’s who together comprise 87 percent of the gross leasable area and are responsible for 72 percent of the gross rental revenue,” said Craig Fuller, IPA executive director. “All three anchors are bound by original 20-year leases that extend into 2024 or longer.”
Fuller and IPA executive directors Erin Patton and Scott Wiles represented the seller, a private Cincinnati based-developer. The buyer, a private investor in a 1031 exchange, was procured through Ashish Vakhariya, a first vice president investments in Marcus & Millichap’s Detroit office. Colby Haugness is Marcus & Millichap’s broker of record in Kentucky.
The center is located directly off the trade area’s primary north-south corridor, Kentucky Route 27, which runs from to Ohio to Tennessee border and feeds directly into Interstate 471 and Interstate 275 three miles north of the property. Northern Kentucky University is three miles away.
“The trade area has a strong demographic profile and is growing rapidly,” added Patton. “Average household income within a five-mile radius is well above the national average at nearly $88,000 and the population within a three-miles radius is projected to increase 7 percent by 2022.
Constructed in 2003 and 2004, Cold Spring Crossing was 99 percent occupied at the time of the sale. Kroger occupies a 75,000-square-foot absolute net ground-leased inline box, leases an additional 2,067 square feet of adjacent inline space and operates a separate 5,000-square-foot liquor store and a fuel center at the center. Home Depot has a 102,000-square-foot freestanding store and Kohl’s leases an 88,408-square-foot inline box. In addition to the fuel station, there are two more absolute net ground-leased outparcels and 30,428 square feet of non-anchor small-shop space.
RCN The River City News – https://www.rcnky.com/articles/2018/12/20/cold-spring-crossing-sold