Acquisition of Shops on Montevallo represents second by Continental Realty Fund IV, and first in Alabama area, that seeks value-add retail and multifamily opportunities
Continental Realty Corporation, a Baltimore-based real estate investment and management company, has acquired Shops on Montevallo, a 65,000 square foot retail center located at 4500 Montevallo Road in Birmingham, Alabama for $8.4 million. The asset was purchased from Shops on Montevallo, LLC, who was represented by Cliff Taylor of CBRE.
The shopping center was acquired on behalf of Continental Realty Fund IV, L.P., which is focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions, and represents the second retail property purchased by the Fund.
Shops on Montevallo was constructed in 1990 and services one of Birmingham’s wealthiest neighborhoods, Mountain Brook, and also draws consumer traffic from the adjacent Crestwood and Crestline neighborhoods. More than 50,000 households are contained within a three-mile radius with average household incomes approaching $90,000. The center is anchored by Planet Fitness, was 93% occupied at the time of the acquisition and is shadow-anchored by two stand-alone grocery stores in Winn Dixie and Publix.
“Shops on Montevallo has a distinct competitive advantage in the local marketplace based on the relative absence of traditional shopping centers nearby, as well as the strong barriers to entry that exist in this sub-market,” explained Paul Kang, Vice President of Acquisitions for Continental Realty. “We were attracted to the immediate proximity of high-income neighborhoods, the access to major transportation arteries that service these neighborhoods, and the long-term success of many of the tenants that cater to nearby residents. Additionally, we saw the opportunity to acquire a historically well-occupied center at an attractive going-in yield, coupled with the ability to add value by increasing occupancy and implementing site enhancements including parking lot lighting, signage, and landscaping.”
“The recent addition of Planet Fitness has provided a dynamic new anchor tenant and substantially increased visitor traffic to the Shops on Montevallo,” explained David Donato, Senior Vice President of Continental Realty’s Commercial Division. “We are actively seeking complementary retailers, restaurants, medical clinics, and service businesses to fill up the remaining availabilities.”
Bill Clements and Brooks Corr of Birmingham-based Retail Specialists have been selected as the exclusive leasing brokers for the center. Retail Specialists will assume day-to-day property management responsibilities.
Continental Realty Corporation, headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of more than three million square feet of space, as well as apartment home communities featuring more than 9,000 units. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $1 billion. For additional information, visit www.crcrealty.com.
