Parkway Plaza in Idaho Falls has a Boise buyer

Eagle-based Alturas Capital Partners bought the lender-owned Parkway Plaza shopping center in Idaho after investors from more than a dozen states took a look at the nearly half-empty center.

The prior owners did land a Planet Fitness that opened in 21,500 square feet at the end of December, but about 32,000 square feet remain available in the 75,300-square-foot Parkway Plaza, Alturas President Travis Barney said.

The sale closed Feb.14 but the purchase price was not disclosed.

The property was owned by C-III Capital Partners of Irving, Texas, and New York-based NAI Global.

Parkway Plaza was listed Oct. 16 by NAI Select of Boise, the NAI Global office in Idaho, with 51 investors from 14 states signing confidentiality agreements to view property details before the center ultimately sold to Idaho investors, said Mike Erkmann, a principal at NAI Select, who represented C-III in the sale.

“The fact we have people all over the nation seeking tertiary markets like Idaho Falls demonstrates that Idaho Falls has achieved an awareness in the commercial real estate market,” Erkmann said.

Parkway Plaza was only 22 percent occupied in September 2016, Erkmann said.

Parkway Plaza at Woodruff Avenue and First Street is located about a mile north of Idaho Falls’ major retail corridor with the Grand Teton Mall and other large national retailers, but Alturas found the property appealing for its first eastern Idaho investment as the center is across from a WinCo.

“We strategically target markets with strong population growth as well as job growth, and Idaho Falls certainly fits in that category,” Barney said. “Woodruff is a key retail corridor with high traffic counts, and the center has excellent visibility.”

Erkmann said Parkway Plaza, built in 1977, is the second-oldest supermarket-anchored shopping center in Idaho Falls behind the Westfield plaza, which has an Albertsons built in 1975. Idaho Falls has eight supermarket-anchored shopping centers.

Parkway Plaza is considering a value-add property, one that can increase dramatically in value with investment.

“We are planning to improve the signage by upgrading the existing pylon sign on Woodruff Avenue as well as adding a pylon sign on First Street,” Barney said. “We are also considering a facade renovation and we are planning to develop up to two pad sites.”

“They’re buying it based on the income today,” said Brent Wilson, a Thornton Oliver Keller Commercial Real Estate agent based in Idaho Falls. “It’s going to be a nice investment. It’s a B-plus location. One of the challenges in this market is (retailers) want to be near the mall.”

Alturas Capital owns the Adelmann building in downtown Boise (the one with the turret on Capitol Boulevard), 1444 Entertainment across from Boise Spectrum, Treasure Valley Crossing and Eagle Marketplace. Alturas has made 15 commercial real estate acquisitions since September 2015  in Boise, Twin Falls, central Washington, Washington’s Puget Sound region and Phoenix.

All the investments were for the Alturas Real Estate Fund.