Nuveen Sells Atlanta Retail Asset for $25M

125 Pavilion Parkway. Image via Google Street View

Nuveen Real Estate has completed the $24.5 million sale of a 216,251-square-foot Walmart-occupied retail building within Fayette Pavilion in Fayetteville, Ga. A JLL Retail Capital Markets team represented the seller and procured the buyer, a private investor.

One of the largest open-air shopping centers in Georgia, the 146-acre Fayette Pavilion totals 1.5 million square feet of retail space. Nuveen acquired the property in 2007 for $152.2 million, according to CommercialEdge data.

Walmart has fully occupied the building at 125 Pavilion Parkway since 1996 and has recently signed a 10-year renewal of its lease. The retail giant renovated the entire space in 2020 to include a health services-related section. The store is close to many Atlanta-area suburbs, within 20 miles of downtown Atlanta.

The JLL team was led by Senior Managing Director Jim Hamilton, Senior Director Whitaker Leonhardt and Director Michael Brewster.

Atlanta’s retail revels

Atlanta’s population growth, motivated by lucrative jobs at companies such as Microsoft and Google, has generated demand for more retail space, and the city’s fundamentals positively reflect such trends, according to a third quarter 2022 report from Marcus & Millichap. The metro will add 1.8 million square feet to its inventory by the end of the year, having gone through its second year in a row of sub-5 percent space availability, the report data shows.

The trends mirror the nation’s strong retail-related vitals, as consumer spending has grown significantly across all sectors, even in the face of rampant inflation and supply-chain breakdowns.