In an effort to unload several of its southwest Missouri holdings, the former owner of area Price Cutter stores has packaged for sale nine properties occupied by the grocery stores. The asking price: $27.7 million.
Price Cutter has long-term leases on the buildings, according to commercial agent Mike Fusek of Sperry Van Ness Rankin Co., who listed the properties July 12 for Maryland-based Roswil Inc.
Altogether, the properties represent more than 400,000 square feet of southwest Missouri real estate and produce more than $2.3 million in annual rent.
The average store size for the nine locations is 45,828 square feet, according to the listing. Price Cutter has between seven years and 12 years left on its current lease agreements, with four five-year options to renew, Fusek said.
Fusek said Roswil, the former parent company of Price Cutter, Smitty’s and Ramey’s stores, decided to sell the properties as a way to keep its collective commercial real estate holdings closer to home. Roswil officials could not be reached for comment.
Fusek said it is not uncommon for clients to list properties together when the same tenant is involved, and he already has worked to inform potential buyers from across the country.
“We’ve sent out an e-mail blast to 65,000 commercial real estate brokers nationwide. In addition, we have it listed on seven different Web portals that advertise commercial real estate for sale, and we are making hundreds of phone calls to institutional buyers and high-net worth individuals that would have an interest in investment real estate,” Fusek said.
Erick Taylor, president and CEO of Price Cutter parent company Pyramid Foods, said he’s not concerned about losing the grocery chain’s former owners as a landlord.
“It really shouldn’t affect us. The leases dictate the terms, and so this really shouldn’t impact our company,” Taylor said.
He said the company wouldn’t rule out making a bid to buy the properties, but it currently is not actively pursuing the real estate.
“We’d rather work to grow our business than grow our commercial real estate portfolio,” Taylor said.
In separate listings, Fusek is shopping two other properties related to the Price Cutter chain – a former 50,000-square-foot store at 2851 W. Republic Road and a 6,400 square foot store at 469 W. Valley St. in Granby with 12 years left on the current lease.
He said commercial properties with long-term tenants increase property values, and properties with recession-proof businesses are typically more attractive to buyers.
“There’s a high demand for grocery-leased properties, because regardless of the economy, people will continue to buy groceries,” Fusek said. “Some people like to invest in stocks and bonds, and some people like to invest in real estate.”
Three of the packaged properties are in Springfield – 1720 W. Grand St., 1901 E. Division St. and 2021 W. Republic Road – and the others are in Republic, Ozark, Aurora, Monett, Nevada and Webb City. The annual rent at each of the stores ranges from $170,000 to $300,000, according to the listing. The properties range in size between 27,106 square feet and 67,505 square feet.
The appraised values of the properties listed for sale in Greene County range from $526,100 for the Republic store to $3.2 million for the store in southwest Springfield, according to county assessor records.
Other properties owned by Roswil Inc. in Greene County but not part of the listing, according to assessor records, are 3264 E. Battlefield Road and 704 W. Commercial St.
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