ALPHARETTA, Ga. — Milton-based Orkin & Associates has purchased Stonewood Village, a 106,485-square-foot shopping center at 670 North Main Street in Alpharetta. Newmark Knight Frank announced the sale June 13.
“Stonewood Village presented a rare opportunity for investors to capitalize on a well-positioned shopping center that offers significant value enhancement from the empty big box and outparcel development,” said Mark Joines, senior managing director with Newmark Knight Frank. “It was no surprise that the buyer, with a focus on long-term ownership, jumped on the chance to own the property.”
Orkin & Associates, through its development partner, Devin Properties, develops retail, residential and mixed-use properties, and provides full-service management to in-house assets through Orkin Asset Management.
Built in 1986, Stonewood Village had been marketed as providing an ideal value-add opportunity with flexible space options for grocers and junior anchors. It lies within one of Metro Atlanta’s fastest growing suburban corridors. More than 137,000 people work within a five-mile radius of Stonewood Village, with average household incomes in the area exceeding $146,000.
Key tenants at Stonewood Village include Dover Saddlery, Anytime Fitness, Queen of Hearts Antiques and Pure Spa. More than 32,000 square feet of space is currently available for lease, including a vacant big box.
In a statement issued following the sale, Orkin said Stonewood Village presents a great opportunity for the company, and it looks forward to filling it with businesses the community will enjoy.
The transaction reflects continued investor demand for value-add shopping centers located in high-growth suburban areas and feature a healthy mix of service and necessity-based retailers, making them less vulnerable to e-commerce.
Joines said the north Atlanta market is ripe for retail, especially as a component within mixed-use development.
“Retail in the area is strong,” he said. “There has not been the overdevelopment over the last 10 years that we saw leading up to the recession.”
Joines conceded there have been instances of retail headwinds.
“We’ve lost a number of big-box retailers out there, your Sports Authority, some of your office suppliers like Office Depot and Office Max, and of course Toys “R” Us and Babies “R” Us,” he said. “But those have been back-filled pretty easily, especially in areas like Roswell, Alpharetta and Johns Creek, where the general outlook is strong; there’s a lot of growth.”
A lot of the development going on now, Joines said, is densification in older, more mature areas, like Alpharetta City Center, which includes office, retail and residential.
In other areas, new retail development is taking on a different look.
“Some of that backfill includes some new-age, non-traditional retailers, such as fitness clubs, discount-oriented tenants like Big Lots and Goodwill,” he said.
Alpharetta’s key economic indicators continue to trend upward. The city’s population has grown by approximately 15 percent over the last eight years, with nearly two-thirds of residents holding a bachelor’s degree. More than 5,000 companies are located within the city limits.