An international investment firm has entered the Chattanooga market with the first of several planned acquisitions, buying a Lookout Valley shopping center for more than $7 million.
Alea Properties, which manages offices, medical practices, retail and industrial properties in half a dozen US states and has foreign interests in Australia and Africa, acquired nearly 10 acres and 49,000 feet squares of retail space near the Walmart superstore on Cummings Highway in Chattanooga.
The mall, which includes a Dollar Tree and 14 other stores, was built in 2005 and was previously owned by Bright-Meyers Lookout Valley Associates, a real estate partnership managed by Fletcher Bright Realtors, according to the Hamilton County Register of Deeds.
Robert Edwards, founder and principal of Alea Properties in Franklin, Tennessee, said his company is looking forward to investing in the Chattanooga market and expects to make more commercial property purchases here in the future. . Edwards said Chattanooga was the state’s second fastest growing market, and Alea had been looking for the right buying option for several years.
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“This is the first of several planned acquisitions in this exciting market,” Edwards said in a telephone interview Tuesday. “This property ticks all the boxes of what we are interested in investing in.”
The purchase was financed by First Bank and the sale was completed by Ellen Edwards, director of acquisitions and leasing for Alea, which owns or manages approximately 7.5 million square feet of buildings, Robert Edwards said.
Edwards said he intends to improve the Lookout Valley property, lease the remaining 2,800 square feet of vacant space and likely increase rental rates, which have not increased in several years. for some tenants.
Located next to a 203,818 square foot Walmart supermarket that opened in early 2006, the Lookout Valley Mall is just off Interstate 24, which averages 64,258 vehicles per day. The property is near several industrial parks with more than 2 million square feet of industrial space, Edwards said.
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The purchase follows Alea Properties’ acquisition earlier this year of a similar 126,000 square foot retail center anchored at Kroger in Powderly, Kentucky.
Alea is the latest outside investment firm to buy a mall in Chattanooga in the past two months.
Last month, an Ontario investment firm bought the Issa Crossing mall in Hixson for $10.75 million from Chattanooga developer Bassam Issa, and in May, a Las Vegas real estate investment firm paid $16. $7 million to buy the Towne Center North mall, also on the freeway. 153 at Hixson. This 11-acre mall was originally developed in 2006 by Chattanooga-based Wolford Development.