It would appear that Santa came early for our friends in the Hocker Group. The Hocker Group was until recently the owners of Springhurst Towne Center shopping center on Westport Rd, which almost everyone seems to associate primarily as the home of Tinseltown Cinema. The Hocker Group bought this center about 2 years ago for about $42.4 Million from the Centro Properties Group, which was a Real Estate Investment Trust out of Australia which was having financial difficulties due to the world wide recession and real estate crash. It was announced last week that the center had been sold on December 7th to the California State Teachers Retirement System for $78 Million.
The obvious question now is, does this indicate a big turning point in retail property values in Louisville? Since the financial crash in 2008, property values of retail properties have been hard hit. Although this is a very encouraging sign, I am not ready to declare an end to the difficulties in the retail market. When you look around the city, there is still a lot of vacancy and until we begin to see occupancy levels returning to pre-recession levels, I don't think we can begin to celebrate.
For our friends with leases in Springhurst Towne Center, they can expect to get a different kind of surprise next year. Most retail leases require the tenant to pay their pro-rata share of the real estate taxes on a property. With a sale at nearly double the price of the previous sale, they can expect those taxes to also double next year when the property is re-assessed due to the sale.
In any case, Kudos to our friends at the Hocker Group. They obviously hit a home run with this one.
Have a great day everybody!
BTW - If you have a real estate question or problem, give me a call. I work with Landlords, Tenants, Buyers, Sellers and Investors. I handle Office, Industrial, Land, Investment and Retail properties. Heck, I can even hook you up with a residential broker if you need one. I would love to help
ALSO - I am sure that my managing broker would appreciate me clarifying that the views expressed are my own and do not necessarily represent the views of Commonwealth Commercial Real Estate, its brokers, agents, or employees (other than me, of course). If you have a question or a different opinion, you are welcome to express it in the comments, or give me a call. However, you are not welcome to make inappropriate or offensive remarks. Should I encounter any, I will exercise my right to delete them.
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299
www.ccre.biz
ofc: 502-379-6005
cel: 502-905-5274
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