This article is from the Australian Property Journal archive
Galileo Shopping America Trust has bought the Merchants Exchange shopping centre located in Marietta, Georgia for $US22.5 million ($A28.42 million).
The Merchants Exchange comprises GLA of 130,010 sq ft with a occupancy rate of circa 98%.
The centre is anchored by LA Fitness (sublease from Kroger), Picture Show Movie Theater and Hancock Fabrics with the remaining space leased to smaller national/regional tenants and local operators.
The LA Fitness at Merchants Exchange has experienced approximately 19% annual sales growth from 2004 to 2005, with occupancy costs of less than 2% of sales.
The asset is expected to produce a year one yield of 7.46%. This acquisition was settled using floating rate debt and the assumption of an existing CMBS loan.
Australian Property Journal