May 2, 2008
Do You Have $25.8 Million in Cash? Pullman Square Up for Sale
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By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Metropolitan Properties has put Pullman Square up for sale. An internet commercial real estate website lists the asking price as $25,756,971. According to the site, the Lifestyle Center has a net operating income of about $1.9 million per year (which includes absorption of some vacant space in 2008).
The development has been on the market for several months. In fact, Vicki Shaffer , chief executive officer of the Tri State Transit authority, anticipates that it will be purchased by a buyer from outside the region with experience managing commercial entertainment centers.
Federal funds earmarked for TTA build the two parking garages. TTA owns the theatre, the streets, sidewalks and the plaza.
Long time council member Dr. Calvin Kent, a former chairman of the MU College of Business, at first found the news “sad” and “worrisome,” but quickly added that “Pullman Square has made a contribution to the revitalization of downtown.”
Recalling that the city gave much of the property to the developers Tim Rollins and Bill Dargusch, Kent said the city will receive no money from the sale. “But that’s the deal we made…it has been a good deal for the city a whole, but probably not for city government.”
At-large council member Garry Black called it “the normal course of events for the developer to put the project together, get it ready for the market, and sell it to people who run shopping centers. Their business is developing and building that’s what they do best. They turn it over to people to [manage] it. I think its just a normal evolution.”
Council member Frances Jackson said “that’s what Rollins and Dargusch do, they develop a place then they sell it.”
Another media source quoted Dargusch as stating that Metropolitan’s plan all along was to sell Pullman once it was up and operating.
Council chairwoman Mary Neely praised the development for “generating more people downtown” and she hopes the new owner will add more retail, such as a men’s clothing store. “I do not frequent the mall that much so it would be great to have more stores downtown. Hopefully whoever buys it will do that.” For that matter, the spiraling $3.67 price per gallon of gas provides another incentive for more people living inside the city coming downtown.
Jackson agreed that she hopes the purchaser will make it even better that the boost to downtown that has occurred since it opened.
Kent stressed “it will still be Pullman Square” and hopes anyone buying it continues to “maintain it in a high quality fashion.” He too would like to see the addition of more retail.
According to http://www.loopnet.com, the investment property has a building size of 135,261 square feet, on 7.64 acres, with an occupancy rate of 94%. The cap rate listed is 7.5%. The price per square foot breaks down to $190.42. The pro forma financial summary for 2008 lists as follows: Scheduled Gross Income of $2,582,313 million; effective Gross Income $3,279,348; Operating Expenses $1,361,357; Net Operating Income $117,991.
“Pullman Square has only 4% of the leases expiring over the next seven years offering investors a stable investment in a ‘forever’ location,” the listing states. “There is no existing permanent debt on the property.”
Marquee Cinemas has the most square footage at approximately 60,000 square feet leased through 2024; Max & Erma’s has about 6,000 square feet through 2015; Uno’s Pizzeria, 7,500 sq. ft. through 2017; Empire Books, 12,387 sq. ft. through 2019 and Moe’s Southwest Grill, 3,124 sq. ft. through 2018. Expiration dates for additional tenants are not listed.
“Pullman Square offers investors the opportunity to invest in Huntington’s most dominant retail development built in the market over the past two decades.”
You can download the commercial offering by clicking: http://www.loopnet.com/Attachments/C/6/8/C682F032-F7C8-40C6-9A8B-75E571C117E9.pdf
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Do You Have $25.8 Million in Cash? Pullman Square Up for Sale
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Metropolitan Properties has put Pullman Square up for sale. An internet commercial real estate website lists the asking price as $25,756,971. According to the site, the Lifestyle Center has a net operating income of about $1.9 million per year (which includes absorption of some vacant space in 2008).
The development has been on the market for several months. In fact, Vicki Shaffer , chief executive officer of the Tri State Transit authority, anticipates that it will be purchased by a buyer from outside the region with experience managing commercial entertainment centers.
Federal funds earmarked for TTA build the two parking garages. TTA owns the theatre, the streets, sidewalks and the plaza.
Long time council member Dr. Calvin Kent, a former chairman of the MU College of Business, at first found the news “sad” and “worrisome,” but quickly added that “Pullman Square has made a contribution to the revitalization of downtown.”
Recalling that the city gave much of the property to the developers Tim Rollins and Bill Dargusch, Kent said the city will receive no money from the sale. “But that’s the deal we made…it has been a good deal for the city a whole, but probably not for city government.”
At-large council member Garry Black called it “the normal course of events for the developer to put the project together, get it ready for the market, and sell it to people who run shopping centers. Their business is developing and building that’s what they do best. They turn it over to people to [manage] it. I think its just a normal evolution.”
Council member Frances Jackson said “that’s what Rollins and Dargusch do, they develop a place then they sell it.”
Another media source quoted Dargusch as stating that Metropolitan’s plan all along was to sell Pullman once it was up and operating.
Council chairwoman Mary Neely praised the development for “generating more people downtown” and she hopes the new owner will add more retail, such as a men’s clothing store. “I do not frequent the mall that much so it would be great to have more stores downtown. Hopefully whoever buys it will do that.” For that matter, the spiraling $3.67 price per gallon of gas provides another incentive for more people living inside the city coming downtown.
Jackson agreed that she hopes the purchaser will make it even better that the boost to downtown that has occurred since it opened.
Kent stressed “it will still be Pullman Square” and hopes anyone buying it continues to “maintain it in a high quality fashion.” He too would like to see the addition of more retail.
According to http://www.loopnet.com, the investment property has a building size of 135,261 square feet, on 7.64 acres, with an occupancy rate of 94%. The cap rate listed is 7.5%. The price per square foot breaks down to $190.42. The pro forma financial summary for 2008 lists as follows: Scheduled Gross Income of $2,582,313 million; effective Gross Income $3,279,348; Operating Expenses $1,361,357; Net Operating Income $117,991.
“Pullman Square has only 4% of the leases expiring over the next seven years offering investors a stable investment in a ‘forever’ location,” the listing states. “There is no existing permanent debt on the property.”
Marquee Cinemas has the most square footage at approximately 60,000 square feet leased through 2024; Max & Erma’s has about 6,000 square feet through 2015; Uno’s Pizzeria, 7,500 sq. ft. through 2017; Empire Books, 12,387 sq. ft. through 2019 and Moe’s Southwest Grill, 3,124 sq. ft. through 2018. Expiration dates for additional tenants are not listed.
“Pullman Square offers investors the opportunity to invest in Huntington’s most dominant retail development built in the market over the past two decades.”
You can download the commercial offering by clicking: http://www.loopnet.com/Attachments/C/6/8/C682F032-F7C8-40C6-9A8B-75E571C117E9.pdf
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