LUCESCU REALTY Selected to Sell Bentley Mall in Fairbanks, Alaska
LUCESCU REALTY has been awarded the disposition assignment to sell Bentley Mall, located in Fairbanks, Alaska.
The Offering, anchored by Costco (NAP), Safeway, Michaels and OfficeMax, is the most dominant shopping center in the Fairbanks trade area and offers an immediate opportunity to add substantial value through leasing and management expertise.
Safeway, owned by Albertsons, is the second largest supermarket chain in North America with over $60 Billion in Annual Sales. Safeway has been operating at the subject property since its construction in 1977 and, in 2006, invested an estimated $1.5 Million to upgrade the store to their “Lifestyle” format after expanding, by 16,559 square feet, and remodeling, at their own expense, in 1997. The Safeway store features fresh produce, seafood, service deli, liquor, pharmacy, fresh meat, bakery, beer, wine and floral departments, Safeway Gas Station (NAP), Starbucks and Western Union. Costco (NAP), one of the largest, most successful and credit worthy retailers in the world, operates directly adjacent to the Property and provides a tremendous draw to the center. Additional regional and national retailers in immediate proximity include Walmart, The Home Depot, Lowe’s, Fred Meyer, Sportsman’s Warehouse, Barnes & Noble, Petco, Old Navy, REI, Aaron’s, Jo-Ann Fabrics and Crafts, and others.
In addition to the major tenants the property includes 20 shop tenants (12 indoor | 8 out pads) that report sales averaging in excess of $500 PSF; well above industry averages. The Property is currently 92.1% leased with more than 90% regional and national tenants in the leased Gross Leasable Area. Additional national and regional tenants include Foot Locker,
Journeys, American Eagle, Hot Topic, Zumiez, GameStop, Icing by Claire’s, Lids, Zale’s, Torrid, Regis Salons, Sally Beauty Supply, Great Harvest Bread Company, Papa John’s, AutoZone, Wells Fargo, Cricket Wireless and Starbucks.
There is an immediate opportunity to add value through leasing and management expertise due to eight (8) vacant shop spaces included in the Offering. The NOI could increase 44.94% during the next 10 years. The Offering is being offered free and clear of existing debt, allowing a Buyer the flexibility to obtain its own financing at desired leverage and yields.
The Fairbanks North Star Borough’s population of 101,343 boasts an average annual household income of $94,358. Additionally, the Air Force’s decision to station two squadrons of F-35 Lightning II fighter jets at Eielson Air Force Base will bring 3,300 additional residents (5,724 by 2030), businesses and employment opportunities, $500 Million of construction and infrastructure investments, and much more to the Borough in the coming years.
The Property is owned by the Krausz Company, an investor based in San Francisco, CA. Krausz has owned the property since 2007.