LOCATION: 6005 Parkwood Road, Blackfalds, Alberta
PURCHASE PRICE: $3,100,000
DATE PURCHASED: April 30th, 2016
CASH ON CASH RETURN: 5.2%
COMPOSITE RETURN: 12%
TENANCY: Sobeys (Operating as IGA)
YEAR BUILT: 2005, Addition 2008
FOOTAGE: 16,600 Sq. Ft.
JOINT VENTURE: Safety First Projects 2 Ltd
While completing an exterior upgrade on another shopping centre, the contractor approached us about purchasing a property leased to a Grocery operator, Family Foods. We immediately started to do Due Diligence as Family Foods was the independent grocery line of Safeway. We discovered that the original Developer of the property had passed away and heirs were not wanting to operate the property and would sell.
After negotiations to bring an offer together on the property in addition to renegotiation of the lease to the Family Foods we brought the deal together.
A driving motivator to purchase the property is the fact the grocery outlet is the only grocery serving a population of 9,000 people. The opportunity presented itself well even with the understanding that competition may enter the market at some point. This location has premier exposure as it sits on the main corridor through town.
Recently, Sobeys bought out Safeway and the Family Foods has become an IGA now owned and operated by Sobeys.