Retail property sales transactions meeting Reis’ criteria have been minimal in the recent term: only two deals have completed since the second quarter of 2011, one of which, for $11.2 million, closed during the latest quarter. In the transaction at hand, Woodbury Strategic Partners Fund paid Legacy Commercial LLC $106 psf for the 105,973-square-foot Midvale Plaza property in Midvale. The sale closed in June at a 12.7% cap rate. The 12-month rolling cap rate per quarter-end also was 12.7%, up from 11.6% a year earlier. These rates, however, reflect only small numbers of transactions.
Marcus & Millichap’s third quarter 2012 report notes strong demand for “credit-tenant assets, such as Walgreens and corporate fast-food locations.” Meanwhile, although “elevated investor interest persists for multi-tenant deals, the pool of available, high-quality assets remains limited.”