2727 Memorial Road in Oklahoma City has been sold to Zerby Investments, LLC for $3,795,000. Built in 1995, 2727 Memorial is an approximately 30,360 square foot retail/ special purpose building. The current tenant, Platt College, has occupied the space since 2003. The 2.84-acre property features over 170 feet of frontage along Memorial Road and with traffic counts above 90,000 per day. The building’s proximity to Quail Springs Mall made it a very desirable location to buyers across the country.
(Whole Foods' Oklahoma City location at 6001 N Western Ave)
The June announcement that Amazon was purchasing Whole Foods led to a lot of excitement and speculation. Much of the perception is that Amazon is destroying traditional retailers, the acquisition turned that same speculation to the grocery sector. But, what will Amazon do with Whole Foods?
Office Market Still Holding Steady
The second quarter of 2017 has shown remarkable resilience in the Oklahoma City office sales market. The anticipated downturn in sales has not yet hit the marketplace. We know vacancies in the office market have risen, which would normally lead to a slump in sales but that has not occurred, at least not yet. The numbers are a bit skewed due to the low per square foot sales price on one property but with that exception, the market remains solid.
(McAfee & Taft renovation completed by Price Edwards & Co. Construction Division)
Section 1031 of the United States Internal Revenue Code has been in existence for nearly 100 years, first instituted in 1921. However, the new administration’s promise of tax reform has House Republicans working on a proposal that could severally limit or repeal this investment tool.
(Spring Creek Village, Edmond, Oklahoma)
On June 14th, the Federal Reserve increased the federal funds rate by another .25%, which will take the prime rate to 4.25%. It is expected by many that a third increase will be approved later this year further impacting investors’ expected investment returns.
Contrary to the news headlines you might see throughout the various reports on retail, brick and mortar is still growing at a steady rate. Overall retail market vacancy is down to 5.1% versus 5.5% this time last year per Marcus and Millichap research department. The overwhelming majority of this growth is certainly in the food and beverage sector as new and exciting concepts continue to roll out. The up and coming soft good retailers that are thriving are those tenants that focus on the unique in-store experiences, quality of product and sustainability.
In the last blog “Modern Updates Attracts Younger Generations” we discussed that the owners of office buildings should take a serious look at the exterior of their buildings and consider updating and upgrading the appearance of their buildings to bring them into a new era of office building design with an accent on the good and replacing or redesigning the bad and the ugly. That was outside. Now, let us go inside.