Tulsa Shopping Center Sells to California Investor

Sperry Van Ness, one of the nation’s largest commercial real estate investment brokerage firms, has completed the sale of Eastgate Shopping Center, an 84,888 SF retail property anchored by Pep Boys and Dollar General, to a private investor from Beverly Hills, Calif. for $3.05 million. The center is located at the Interstate 244/Gilcrease Expressway Interchange at 7800 E. Admiral Place in Tulsa.
Jason Little of Sperry Van Ness in Oklahoma City, OK represented the seller, Fen-Ridge, LLC of St. Louis, MO. Ian Schroeder and Mehran Foroughi of Sperry
Van Ness in Irvine, Calif. represented the 1031 exchange buyer who was seeking an investment with strong cash on cash return.
The property sold at an 8.66 percent cap rate and $36 per-square-foot compared to the average cap rate of 6.01 percent and average price per-square-foot of $271 in Los Angeles, making the out of state purchase attractive to the buyer.
The buyer, who put less than 28 percent down on the property, was also attracted to the stabilized investment and the upside in rent growth due to many tenants at below market rents. Unlike many of the area’s comparable shopping centers, both of the property’s anchor spaces are occupied with strong tenants with long-term tenancies.
Originally built in 1953, the center is situated on 6.17 acres and is 93.5 percent leased to 13 tenants including Pep Boys, Dollar General, Furniture Factory Outlet and Bank of Oklahoma.
During escrow, Sperry Van Ness negotiated and completed lease renewals for Dollar General and Bank of Oklahoma. The property provides easy access with nine points of ingress and egress along Admiral Place, S. Memorial Dr. and S. 78th St. and includes 400 parking spaces. Eastgate Shopping Center is well located on a major retail corridor just minutes away from Tulsa’s major attractions including University of Tulsa, Tulsa State Fairgrounds, Tulsa Expo Center and Tulsa International Airport.

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