BNEI BRAK, Israel, April 21, 2021 /PRNewswire/ -- Global real estate investment firm Mishorim has announced the sale of its Hickory Hollow shopping center, in the Antioch neighborhood of Nashville, TN, for $18M. The property, purchased in 2018 by the Mishorim Gold group, together with Mark Gold, for approximately $12.1M, is built on a 560,000 sq. ft. lot, with almost 145,000 sq. ft. of commercial space. The two main tenants currently leasing spaces there are the Kroger supermarket chain and Citi Trends retail clothing chain.
During Mishorim Gold's ownership of the property, the company has taken several improvement measures which have resulted in an increase from a 77% occupancy rate at purchase, to a current 100% occupancy rate. The property's NOI has increased during this time from approximately $1M to almost $1.4M, selling at almost 8% yield.
Mishorim CEO Daniel Leventhal stated: "We are pleased to report the realization of the property in Nashville as part of our strategy to realize assets that have exhausted their potential. Realization of the property for about 18 M USD after doubling the equity invested after about two and a half years and selling above the value of the property in our books, expresses the company's capabilities in identifying and improving the assets we focus on. The asset was acquired during 2018 for approximately $ 12.1 million, and with an equity investment of approximately $ 5.2 million. After we worked to significantly improve the properties results, raising the occupancy rate to 100% - which contributed to an improvement of about 40% of the property's NOI, we are pleased to report a transaction for the realization of the property. We will continue to focus our business on improving and realizing assets that have exhausted the potential for improvement, as we did in this transaction, and at the same time increasing the company's income-producing assets portfolio. These moves reflect the strategy we have chosen to flood the hidden value in the company's assets to the shareholders."
The company, traded on the Tel Aviv Stock Exchange (TASE) under the symbol MSHR and as part of the Tel Aviv Real Estate Index, is currently worth $70.5M (approximately $2 per stock). Mishorim, controlled by Mr. Alex Shnaider, specializes through itself and its subsidiaries in yielding real estate investments across Israel and the US, currently owning approximately 2.8 million sq. ft. of property (alongside its partners). The company's capital, through its shareholders, is estimated as of December 31st, 2020, at $144.5M (about $4.1 per share). Mishorim is also a partial owner (%50) of Skyline Investments, a company that owns and operates hotel and resort yielding properties in the US and Canada, traded in the TASE with a current market capitalization of about $78M.