InvenTrust Properties Corp., the creator of the Dothan Pavilion, has sold the large commercial retail development for $33.75 million to a group consisting of mainly local investors.
Holliday Fenoglio Fowler L.P., a real estate firm, announced the sale Wednesday on behalf of InvenTrust – a group originally formed in Maryland. A representative for the group that purchased the Pavilion said 90 percent of its investment is from the Dothan area.
Several national retailers rent space at Dothan Pavilion, located on U.S. Highway 231 North, including Bed Bath and Beyond, Barnes and Noble, and Dick’s Sporting Goods.
According to the HFF press release, approximately 89 percent of the retail space is leased. An average of 29,390 cars per day passed through the intersection of Highway 231 and Plum Road, which leads to one of the Pavilion’s entrances, according to 2016 Alabama Department of Transportation figures.
A filing with the Securities and Exchange Commission on Dec. 31, 2015, indicated InvenTrust spent $8.2 million on the land for the complex and more than $38 million in development costs. The company listed $10.5 million depreciation on the property in the same filing.
The local group, called Dothan Pavilion Group LLC, filed a certificate of formation on Dec. 19. The representative said the group plans on conducting business differently than InvenTrust, noting the new group will be “easier to work with” with regard to potential local tenants. The representative added one local group has already looked at locating to an area in front of the AMC Theater, where many spaces have been open for years.
Dothan Pavilion opened in 2007 and is approximately 327,423 square feet in size, according to the HFF press release.