Heslin Holdings, Inc. Acquires West Central Plaza Shopping Center in Albuquerque, NM for Planned Redevelopment
Firm to Initiate $12 Million Acquisition, Renovation and Re-Tenanting Plan for the Property
Laguna Hills, CA (April 9, 2015) – Heslin Holdings, Inc., a privately owned commercial real estate investment and development firm, today announced the acquisition of West Central Plaza Shopping Center, a retail property located in Albuquerque, New Mexico. The firm plans to invest more than $12 million – for both the acquisition and to redevelop and re-tenant the property – as part of a value-add investment strategy.
The 123,048-square-foot retail center sits on 12.9 acres at 4208 Central Avenue SW, and is the former site of a Kmart, which occupied the largest single tenant space onsite until the retailer vacated last year. Additionally, the center features a number of smaller retail tenants in a separate, adjacent multi-tenant building, as well as a restaurant occupying a third building. A generous 651 parking spaces are included in the outdoor parking lot.
“The West Central Plaza Shopping Center represents a unique opportunity because of the strong, unmet demand for retail services in this part of the city, as well as Albuquerque’s restrictions on constructing new retail spaces over 80,000 square feet,” said John Belanich, Principal and CFO of Heslin Holdings. “With a vacant facility well over that threshold and multiple national credit tenants interested in locating at this property, the center is guaranteed to attract tenants and offers a superb value-add opportunity for us.”
As part of the planned rehabilitation and renovation, Heslin Holdings will re-tenant the 104,000-square-foot facility vacated by Kmart. The company expects to re-configure the space to accommodate multiple tenants. The plan will also likely include expansion and upgrading of the smaller buildings.
“We have already received inquiries from multiple credit tenants looking to occupy space here,” added Belanich. “Retailers in this area tend to outperform the national average, with year over year sales trending higher and higher. This is due in part to the strong demand coming from the downtown Albuquerque area, but is also likely attributed to the city’s strong employment and housing growth.”
The recent Heslin Holdings acquisition follows a similar transaction in late 2014, when the company purchased 1640 Rio Rancho Boulevard, a similar retail property located in Rio Rancho, a city within the major metropolitan region of Albuquerque. Similarly, the property included a big box single-tenant retail space, which Kmart planned to vacate.
“We are actively seeking similar retail properties with upside potential in Albuquerque, as well as throughout the Western United States,” said Casey McKeon, Vice President of Acquisitions for Heslin Holdings. “We will invest at least $100 million this year in class B and C properties that provide opportunities for value enhancement. We always look for well-located commercial acquisitions in all sectors in areas where housing, employment and retail fundamentals are strong.”
Jeremy Nelson, Lia Armstrong CCIM and Jim Dountas of CBRE in Albuquerque, represented the seller of West Central Plaza. This is the third former Kmart anchored shopping center in the region the team has successfully sold in recent months, with the 1640 Rio Rancho Boulevard property being one of the other two.
“This is the second successful transaction we have had with Heslin Holdings in recent months,” said Nelson. “Heslin Holdings brings a high level of sophistication, vision and expertise to these opportunities and is already actively negotiating offers from several national retailers interested in both properties.”
The CBRE retail team has been retained by Heslin Holdings to assist in the leasing and redevelopment efforts of both properties and has garnered substantial interest from several national anchor and junior anchor tenants.
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