Part of South End Shopping Center being sold

December 23, 2009|By DAN DEARTH

HAGERSTOWN -- A deal is being negotiated to sell one half of the South End Shopping Center on Maryland Avenue in Hagerstown.

Jordan Muchnick, an associate with Marcus & Millichap Real Estate Investment Services of Philadelphia, said this week the sale would include the portion of the shopping center from Aaron's to Big Lots.

Some of the other businesses in the shopping center are Planet Fitness and the Save-A-Lot grocery store.

Muchnick said the Pizza Hut, which is at the entrance of the shopping center, would not be included in the sale.

"We're actually negotiating a contract at the present time," said Muchnick, who declined to give the name of the interested buyer. "There have been seven offers."


Muchnick said the shopping center went on the market about five weeks ago with an asking price of $7.2 million.

The assessed value of the property is $3.67 million, according to the Maryland Department of Assessments and Taxation's Web site.

Muchnick said the 140,000-square-foot shopping center would be a good investment because nearby competition is minimal, and only one of the property's eight to 10 spaces is vacant. He said the vacant space is 13,250 square feet.

Muchnick said another positive feature is that the shopping center attracts tenants because the rent is 15 percent to 25 percent below the market value.

"Fundamentally, it's very strong," Muchnick said. "It's not like the tenants are paying high rent."

Muchnick said he believed the shopping center's current owner, BTR Capital and Partners of Lutherville, Md., bought the property in 2006.

BTR Capital wanted to sell the business to "redeploy their equity in other ventures," Muchnick said.

BTR Capital could not be reached for comment.

State tax records show the primary structure was built in 1966.

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