Penhold Shopping Centre
LOCATION: 30 Robinson Avenue, Penhold, Alberta
DATE PURCHASED: May 31st, 2016
CASH ON CASH RETURN: 5%
COMPOSITE RETURN: 11%
TENANCY: Sobeys (Operating as IGA), Alberta Treasury Branch, Studio D, Pizza Stop
OCCUPANCY: 100%
YEAR BUILT: 2013
FOOTAGE: 16,100 Sq. Ft.
JOINT VENTURE: Safety First Projects 3 Ltd.
The Story:
As a result of purchasing the Blackfalds Family Foods property, the owner of the Family Foods store confirmed that he also owned the Family Foods store in Penhold. The Shopping Centre also included a lease to ATB, a Hair Salon and a Pizza Restaurant. The Grocer wanted to free up some equity to inject into his business by selling the property. We made an offer on much the same terms as the Blackfalds property and were successful in negotiating a successful purchase.
The comforting factor with this property is the fact that it has four tenants, one of which is a Triple A tenant (ATB).
Recently, Sobeys bought out Safeway and the Family Foods has become an IGA now owned and operated by Sobeys, another Triple A tenant.