SALINA, KS – [September 14, 2022] – Blue West Capital has completed the sale of Sunset Plaza, a Dillons grocery-anchored shopping center, located at 1111-1221 West Crawford Street in Salina, KS for $9,000,000. The property sold for 97% of the asking price.
Robert Edwards, Zach Wright, and Shawn Dickmann, of Blue West Capital, exclusively represented the seller in the transaction. The seller was a Kansas-based private equity real estate company. The purchaser was a 1031 exchange investor based in Denver, CO. This was the third property in Salina, KS sold by Blue West Capital within the past year.
Sunset Plaza is anchored by Dillons, a division of Kroger, and included outparcels leased to McDonald’s and a Dillons fuel center. The Dillons grocery store was remodeled in 2019 with approximately $2 million invested into the property. Dillons added their fuel center in 2020 investing an additional $2 million into the property. Approximately 50% of the shopping center was leased to investment grade rated tenants and the center was almost fully leased at the time of sale.
The 126,606 square foot shopping center is strategically located at the signalized intersection of South Broadway and East Crawford Street. Sunset Plaza was originally constructed in 1960 and is positioned on 7.69 acres. The center is centrally located in Salina serving as a vital neighborhood center. There are approximately 50,000 people living within five miles of the property.
“Blue West Capital has an extensive track record of assisting owners of Kansas retail properties sell their assets for aggressive prices and terms. We received significant interest from investors nationally for this property, despite its location in a secondary market. Investors from expensive Western and Coastal markets are attracted to the economics, low prices per foot, and stability offered by properties in Midwestern markets such as Kansas,” said Robert Edwards, Managing Partner.
“Shopping centers with valuable outparcels included are in high demand amongst investors. This sale included ground leases to McDonald’s and a Dillons (Kroger) fuel center. Investors of these properties are afforded flexibility and the opportunity to spin-off outparcels to reduce their basis,” stated Zach Wright, Director & Partner.