NEWS

Gastonia shopping center bought for $20.5 million

New owner says two potential new tenants could replace former hhgregg building

Michael Barrett
mbarrett@gastongazette.com
The shopping center that is home to the former hhgregg building in Gastonia has been sold for $20.5 million. [JOHN CLARK/THE GASTON GAZETTE]

An eight-figure sale of a shopping center could lead to a vacant big box space in Gastonia being filled again soon.

The newest and easternmost portion of the Franklin Square shopping district, in all, includes about 72,000 square feet of retail and restaurant space at 3924 E. Franklin Blvd. One of the largest buildings there was most recently occupied by hhgregg. But the electronics and appliance store went out of business last month along with every other one of its locations across the country.

Indiana-based hhgregg had declared bankruptcy in early March.

The shopping center — which is still home to tenants such as Ashley Furniture, Thai House and Monkey Joe's — was constructed in 2006 and was most recently sold in 2013 for $17.7 million. Its value increased substantially over the last four years, at least in the eyes of a company known as MDR Franklin Square LLC, which closed on the purchase of all 10 acres this month for $20.5 million.

The two separate parcels have a collective tax value of more than $14.7 million, according to Gaston County tax records.

MDR is an acronym for Medalist Diversified Real Estate Investment Trust. Tim Messier, co-president of the Richmond, Virginia-based firm, said they're already talking with potential tenants for the former hhgregg spot.

"We have a couple of prospects for the space that we don't want to reveal at this point," he said. "We'd like to fill it as soon as possible."

Messier said the purchase just made sense for them.

"We look for properties in Virginia, North Carolina, South Carolina and Georgia," he said. "This is pretty typical of something we would buy."

Given Gastonia's strong regional growth as a part of metro Charlotte, Messier said the market should be good for finding someone who needs this kind of space.

"We just look for value," he said. "And we think this has future value."

You can reach Michael Barrett at 704-869-1826 or on Twitter @GazetteMike.

Site: Shopping center on eastern edge of Franklin Square

Address: 3924 E. Franklin Blvd., Gastonia

Sale price: $20.5 million