South Creek, a 66,834-square-foot, 29-unit, retail complex located at the corner of South Virginia Street and Foothill Road in Reno, sold for $25.5 million earlier this year.
Chad Coons, of Gilmore Coons Commercial Real Estate, represented the buyer, Alves South Creek, in the investment-oriented sale and indicated that the center would not be facing any dramatic changes.
Lyle Chamberlin, CCIM, managing partner of Lee & Associates Reno, represented the seller, Horseshoe Bend, LLC. Chamberlain said in a press release, “the buyer plans to hold the property indefinitely.” He also noted the transaction was a 1031 Exchange and 97 percent of the units are leased. “This Center is characterized by a great mix of regional tenants which includes various local eateries, traditional retail, and Medical Office users.”
Construction at the South Creek Center began in 2008 and finished recently. Among the 29 tenants are Los Compadres Fine Mexican Food, Soak, Squeeze Inn, Bibo Coffee, South Creek Pizza and Beer NV.
Coons explained that the high quality unique selections that are offered at the South Creek location is part of what makes the tenant mix great. They have no negative tenants and work to try to avoid competition among their existing tenant mix. “Boutique style regional tenants,” as he called them is part of what drives South Creek instead of a big box store. The U-shape of the shopping center also allows all the tenant space to be visible from other locations in the center, which Coons viewed as a positive. The spaces in South Creek are competitive to the area and range in size with the largest being The Grove event venue that Coons guessed to be an average of 1,500 to 2,000 square feet.
Coons explained that the location is completely built out at this time and the on going goal is to maintain their successful tenant mix. For more about the South Creek center, visit their website at http://www.shopsouthcreek.com.
Across the street from South Creek is Foothill Commerce Center on South Meadows Parkway and South Virginia Street where Surf Thru Express Car Wash purchased a 1.4 acre parcel for $804,115, $13 per-square-foot, according to information from Dickson Commercial Group (DCG). Scott Howry, owner of Surf Thru Car Wash estimated that they will break ground on the location in the next 60 to 90 days and hope for completion in 5 to 6 months, meaning they hope to be up and running late 2016.
He explained part of their interest in the location, “We like the area. (It has) good demographics and (Foothill Commerce is) a good shopping center.” Howry also addressed other locations in the area. He indicated that if the Foothill Commerce Center location does well, as it will be their first in the area, they would look to expand to other locations. He mentioned that it is hard to find a good location with commercial real estate currently in high demand.
Howry explained that they comply with a variety of ordinance approvals from agencies in the city and that it is a long demanding process. Surf Thru Express Car Wash works to recycle and reclaim the water they use and they work to keep their usage down compared to other car wash facilities in the industry. They strive, successfully, to capture and dispose of contaminates off cars accordingly, rather than them ending up in sewers and other places many contaminates don’t belong.
The cost to build the Surf Thru Express Car Wash is high and their goal is to provide service that is nicer than anything currently in Reno. They offer a $6, $9 and $12 wash option, monthly memberships as well as free vacuums. For more about Surf Thru Express Car Wash visit their website at http://www.surfthruexpress.com.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.