JLL has been retained as exclusive advisor for the sale of Asheville Mall (the “Mall” or “Property”), a well-located, strategically positioned, super-regional mall located in Asheville, North Carolina. Comprising approximately 973,371 square feet (“SF”) of gross leasable area (“GLA”), the Property offers a strong anchor lineup that includes Belk (156,000 SF, ground lease) and non-owned anchors Dillard’s Men, Children & Home (114,765 SF), Dillard’s Women’s (90,071 SF), JCPenney (130,000 SF) and Sears (159,151 SF, dark).
The Property is situated on approximately 46.35 acres and prominently located at the intersection of Tunnel Road and Exit 7 of I-240, near the Blue Ridge Mountains and between the Great Smoky National Park and Shenandoah National Park. The proximity of I-240 and I-40, two miles southwest of the mall, provides convenient access from throughout the Asheville metropolitan statistical area and accessibility to Greensboro and Raleigh-Durham to the east and Knoxville, Tennessee to the west.
ATTRACTIVE DEMOGRAPHIC PROFILE
Asheville Mall’s primary trade area features a population of more than 218,500 residents with an average household income of approximately $81,700 within a 10-mile radius of the Property. Population growth within a 10 and 20-mile radius of the Property is projected to outpace the MSA and State through 2025.
EXCEPTIONAL LOCATION AND ACCESS
Situated approximately 2.5 miles east of downtown Asheville, the Property is ideally located at the intersection of I-240 and US Highway 70/Tunnel Road – making it easily accessible from throughout the trade area. Both roadways are well-traveled, with combined traffic counts of 105,000 VPD and given the Property’s prominent location, Asheville Mall serves as the anchor of the S Tunnel Road/Wood Avenue retail corridor – enhancing the overall drawing power of the center.
LIMITED DIRECT COMPETITION
Asheville Mall serves as the largest enclosed regional mall in western North Carolina and enjoys a strong competitive position as the closest competing regional mall is located approximately 65 miles driving distance to the north in Johnson City, Tennessee.
ROBUST SALES PRODUCTIVITY
With T-12 inline sales (<10,000 SF) of ~$380/SF as of November 2021, average small shop sales now exceed pre-Covid levels of $355/SF (2019) — evidence of the
robust economic remand in Asheville and the Property’s dominant position within the market.
SIGNIFICANT UPSIDE POTENTIAL
Asheville Mall includes 28 well-located available suites totaling 36,169 SF – presenting prospective purchasers with meaningful value enhancement potential via lease up.
COMPREHENSIVE PROPERTY-WIDE REZONING
Asheville Mall was rezoned by the Asheville City Council on January 11, 2022 as an Urban Place Form District. The intent of this rezoning is to promote higher density, mixed-use development and may positively impact any future redevelopment of Asheville Mall.
PROPOSED SEARS REDEVELOPMENT
The currently vacant Sears anchor box was recently acquired from Seritage by a third-party owner and under consideration for a sizable redevelopment which would include residential and retail uses complementary to the overall Property - demonstrating the continued relevance of Asheville Mall as the primary retail hub of the trade area. The recent zoning change of this specific parcel (separate and apart from the remainder of the mall) by the City of Asheville pushes for higher density, mixed-use urban areas and may help facilitate this redevelopment.
Asheville Mall was renovated in late 2017 including interior and exterior enhancements – an indicator of prior ownership’s commitment to the Property and likely eliminating the need for immediate required aesthetic capital improvements.
A new owner’s ability to implement a successful remerchandising and / or redevelopment strategy will be greatly enhanced by an exceptionally attractive basis
– particularly relative to prior ownership’s basis.
FLEXIBLE ASSUMABLE IN-PLACE DEBT
Asheville Mall is being offered with the option to assume and modify the existing loan, providing an exceptionally attractive financing opportunity.