Alabama firm buys Keystone, Greenwood shopping centers for $27.5M, seeks more upscale targets

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Keystone Shoppes at 3435 E. 86th St. (Photo courtesy of Shannon Waltchack LLC)

After acquiring a shopping center in Greenwood last year, a Birmingham, Alabama-based real estate company has made a move to purchase another property in central Indiana—this time, a fully occupied shopping center across from the Keystone Fashion Mall.

Shannon Waltchack LLC, a real estate investment firm with dozens of properties across the southern United States, paid $17.4 million to purchase Keystone Shoppes, 3435 E. 86th St., late last month. The 35,500-square-foot center counts as tenants Crumbl Cookies, First Watch, Hand & Stone, Jimmy John’s and Mattress Firm.

“We’re really proud of our purchase of that asset—it’s a fantastic property,” Derek Waltchack, founder and a partner in the firm, told IBJ. “It’s got big-time visibility and great tenants, and that is a part of town where rents are continuing to rise.”

According to data from the Indianapolis office of Cushman & Wakefield, the average asking rent for the Keystone corridor was $16.58 per square foot per year in the third quarter.

“Keystone Shoppes has all the hallmarks we look for in a deal: incredible visibility, easy access, affluence and a fantastic tenant lineup,” Jonathan Kahalley, acquisitions manager for Shannon Waltchack, said.

The company’s primary investment focus is unanchored shopping centers located in more affluent areas of major cities, he said. It’s a focus that has worked well for the company, although the firm also has invested in office, industrial, and mixed-use retail properties since it was founded in 2005.

Most of the company’s holdings are in the southern U.S., with properties in Alabama, Georgia, Florida, Tennessee, Arkansas, North Carolina, Texas and Virginia. It also has properties in Chicago and southern Wisconsin.

Greenwood Springs at 1279 Emerson Ave. (Photo courtesy of Shannon Waltchack LLC)

Shannon Waltchack plans to continue expanding in central Indiana, as well as other Midwest markets such as Cincinnati and Columbus, Ohio; Louisville; Kansas City; and St. Louis over the next several years. But for now, it’s focus remains largely on Indianapolis.

“We see Indianapolis as one of the most attractive cities in the Midwest,” Waltchack said. “We like its growth prospects and good governance. Hopefully, we’ll be able to buy another seven to 10 centers in the market by 2030.”

The company acquired the fully-leased retail Keystone Shoppes property on Nov. 20 from Columbus, Ohio-based Washington Prime Group LP, which had owned the shopping center since 2014. It was represented in the deal by Kevin Broderick and Adam Forte with the Indianapolis office of Dallas-based brokerage CBRE.

The property was developed in 1985 by Indianapolis-based Simon Property Group and occupies about 3.4 acres along East 86th Street.

In July 2022, Shannon Waltchack acquired Greenwood Springs for $10.1 million in its first foray into the Indianapolis market. That deal was also brokered by Broderick.

The 28,000-square-foot, two-building shopping center at 1279 Emerson Ave. is adjacent to the Indy South Greenwood Airport and is almost fully leased, with tenants including Newk’s Eatery, Small Cakes, The Sassy Donut Co., Sport Clips and Greenwood Springs Family Dental Care.

The property, which was developed in 2006 by Gibraltar Schrage Development Company, is about 2.4 acres.

“There’s not a lot of land for development in that area,” said Waltchack. “So … it’s going to be hard for a lot [more] smaller shopping centers to be built in that corridor. … We really liked the lack of land and having this prime location.”

Kahalley said the company has not yet finalized who will lease and manage the properties on the firm’s behalf, but that interviews are underway.

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4 thoughts on “Alabama firm buys Keystone, Greenwood shopping centers for $27.5M, seeks more upscale targets

    1. Packed parking is a good sign in any commercial environment, which means lots of customers and stable revenues to pay the rent.

    2. It’s also impossible to get into the Greenwood shopping center due to poor traffic design.

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