CRC Makes Utah Debut With 630 KSF Retail Buy
The deal is part of the company's Continental Realty Opportunistic Retail Fund I LP, a $323 million investment vehicle.
Continental Realty Corp. has entered the Utah market with the purchase of The Crossroads of Taylorsville, a 630,000-square-foot super regional shopping center in Salt Lake City. TriGate Capital sold the asset in a transaction brokered by Eastdil Secured.
CRC acquired The Crossroads of Taylorsville through its Continental Realty Opportunistic Retail Fund I LP, a close-ended fund for which roughly $323 million has been raised and that the company also used to enter the Virginia market this spring.
Over the past 12 months, new leases and renewals at the shopping center totaled more than 75,000 square feet.
Anchored by Target and shadow-anchored by Harmon’s Grocery, The Crossroads of Taylorsville has 60+ tenants, including Dollar Tree, T.J. Maxx, Ross Dress for Less, EOS Fitness, Guitar Center, PetSmart, King Buffet, Lifetime Products, Applebee’s , Subway, Regal Cinema and Sierra Trading Post, among others.
The shopping center was 94 percent leased at the time of the deal, but CRC plans to leverage the current tenant mix to achieve full occupancy, according to a prepared statement from CEO JM Schapiro.
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The Crossroads of Taylorsville came online in 1982, encompassing 10 buildings and 7 separate outparcels or multitenant strip buildings. The retail center’s parking lot has a capacity of almost 3,900 vehicles. Six years ago, The Crossroads of Taylorsville became subject to a $69 million loan originated by NexBank, CommercialEdge data shows.
Located at 5400 S. Redwood Road, The Crossroads of Taylorsville is within an Opportunity Zone in Salt Lake City’s Taylorsville submarket. The shopping center serves around 420,000 individuals and 53,000 households within a 5-mile radius, with the average household income of approximately $96,000, according to CRC.
Salt Lake City’s retail scene
The Salt Lake City retail market ended the second quarter with a 3.9 percent availability rate, marking a 0.2 percent increase from the previous quarter, according to a recent CBRE report. In the second quarter of the year, only 45,000 square feet of retail space was introduced to the market, compared to 136,000 square feet in the first three months of the year.
Meanwhile, the average asking lease rate fell by $0.60, settling at $22.35 per square foot as of June. The total sales volume was only $41.3 million in the second quarter, the same source shows.
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