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Monday, March 18, 2024
March 18, 2024

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Fourth Plain Center sells for $21 million

Grocery could be new tenant

By , Columbian staff writer
Published:

A shopping center in the Ogden neighborhood has sold for $21.5 million.

Fourth Plain Center, near the intersection of Northeast Andresen Road and Fourth Plain Boulevard, sold this week to an undisclosed buyer, according to Holiday Fenoglio Fowler LP, the Texas-based brokerage who handled the deal.

The center is anchored by a 24-Hour Fitness and a Walgreens, peppered with tenants such as Saigon Restaurant, Rainwater Insurance and Sunrise Salon. It is 117,143 square feet in size.

Owner Ron Keil hoped to shift away from the center to reinvest in centers anchored by grocery tenants, according to Nick Kassab, director with the brokerage.

The bidding process for Fourth Plain Center was “competitive,” Kassab added. With 73 percent occupancy, new owners were drawn to a property where they could immediately sign tenants they valued. Oftentimes they are full and unwieldy, he said.

“They can add upside immediately,” Kassab said. “That’s a highly desirable asset category. Whereas a property that’s fully stabilized, at 100 percent lease, you know what you’re getting,” but you are bound by leases before you can make changes.

The center is also at a desirable location. According to the brokerage, 42,241 vehicles pass by every day; and the firm reports that 112,805 residents live within 3 miles of the center, earning an average household income of $62,740.

Keil, a retired businessman, built the center in the late 1970s, according to Columbian archives. The space now occupied by 24-Hour Fitness had been a Safeway for decades until it shuttered in February 2005.

Kassab said the new owners hope to land a specialty grocer at the space, but it could also suit some kind of junior retailer.

“Take your pick,” he said.

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Columbian staff writer