In The News

By Marty Finley  – Reporter, Louisville Business First
Sep 15, 2016, 10:47am

A tenant has claimed a 13,000-square-foot retail building recently completed by Hagan Properties Inc. at Middletown Station, a large mixed-use commercial development on nearly 70 acres in eastern Jefferson County.

Tommy Edwards, a retail leasing representative with Louisville-based Hagan Properties, said Louisville-based Norton Healthcare Inc. is taking the entire building, which was constructed on more than an acre at 12955 Shelbyville Road. He did not disclose the lease terms.

The new space is along English Station Road, next to a building that houses a Feeder’s Supply Store. Construction costs previously were estimated at around $800,000.

Edwards said he thought Norton would move in early next year. But Norton public relations project manager Lynne Choate said it’s very early in the planning process and there’s no firm timeline.

Norton plans to relocate Kosair Children’s Hospital Medical Associates – Middletown from a smaller space it currently leases across the street.

“We want the additional space,” she said. Two doctors work in that pediatric practice, and both will move.

Middletown Station is anchored by a Wal-Mart Supercenter and Target store off Shelbyville Road near the Gene Snyder Freeway. Together, Target and Wal-Mart account for about 360,000 square feet of the shopping center, which has more than 600,000 square feet.

Middletown Station has multiple buildings that house a mix of restaurants, retailers and medical users.

And the development still has room for growth. Hagan Properties has the capacity, Edwards said, to add another 130,000 square feet of space to the development near Target if needed.

Edwards said he expects that Middletown Station, once completed, will have about 750,000 square feet of leasable space. Hagan has not indicated a timeline for additional construction there.

“We will construct it as the market demands,” Edwards told me late last year.

By Marty Finley – Reporter, Louisville Business First
Apr 29, 2016, 1:37pm EDT

Carter’s Inc., the parent company of Carter’s, Osh Kosh B’Gosh and other baby and children’s apparel brands, plans to open two Louisville locations before the end of the year.

According to the company’s website, Carter’s expects to open its first Louisville store in July at Shelbyville Road Plaza in St. Matthews.

Tommy Edwards, a retail leasing representative with Louisville-based Hagan Properties Inc., which manages leasing for Shelbyville Road Plaza, said Carter’s has signed a lease to take about 5,000 square feet at Shelbyville Road Plaza, where it plans to open a dual-branded Carter’s and Osh Kosh store this summer.

Edwards said the space will need renovation but did not disclose the lease terms or the expected renovation costs.

Carter’s is taking the space formerly occupied by Kiddie Castle Fine Childrens Furniture, which relocated a few months ago to 215 S. Hurstbourne Parkway, near Whittington Parkway.

Edwards said about 22,700 square feet, or 6 percent, of Shelbyville Road Plaza is still available for lease. Quest Outdoors is vacating a nearly 10,000-square-foot space as it consolidates multiple stores into the 25,000-square-foot storefront at Shelbyville Road Plaza once occupied by Borders Books and Music.

Edwards said another vacant space was left by Backyard Birds when it recently relocated elsewhere in the shopping center.

“We have active proposals being negotiated for every vacant space,” Edwards said in an e-mail Friday.

Carter’s, which has an outlet store at the Outlet Shoppes of the Bluegrass in Simpsonville, also indicates plans on its website to open a second Louisville location by October at the Springhurst Towne Center at 4141 Town Center Dr. There are no other details about the store on the company’s website, and it was not clear whether this will be a dual-branded store like the one in St. Matthews. I was unable to reach Carter’s officials for comment on the stores or leasing representatives for Springhurst Towne Center.

Carter’s (NYSE:CRI) is headquartered in Atlanta. The company’s brands include Child of Mine, Just One You and Genuine Kids, in addition to Carter’s and Osh Kosh. The company has more than 600 stores.

By Marty Finley – Reporter, Louisville Business First
Mar 23, 2016, 12:48pm EDT Updated Mar 23, 2016, 4:46pm EDT

An East End apartment complex that was held up in a protracted legal dispute received its building permits from the city earlier this week and has broken ground, shooting for a December 2017 finish.

Louisville-based Hagan Properties Inc. is constructing the 356-unit 9910 Sawyer Apartments on 24.5 acres it has owned for years at 9910 Westport Road. The property backs up to the 650-acre E.P. “Tom” Sawyer State Park.

The site’s proximity to shopping at the Paddock Shops and Springhurst Towne Center and to interstate highways make it an ideal fit for new multi-family housing, said Wendy Hagan, president and multi-family developer of Hagan Properties.

“The demographic will be a blend of young professionals, families who want to be close to schools and shopping, nature lovers who want to be in walking proximity to Sawyer Park and couples who are at a stage in their lives when they prefer to rent a quality home rather than pay a mortgage and have the maintenance and upkeep of a traditional single-family home,” Hagan said in an e-mail.

When asked whether she is concerned that there might be too many apartment projects under development in Louisville, Hagan said a marketing study found a need for housing at the location.

The project has been years in the making. As we reported last yea r, a group called Vision for Integrity and the Expansion of Westport Road, or VIEW, opposed the building of the apartment complex and sued Hagan Properties and Louisville Metro Government. The size of the complex was one concern outlined in the group’s lawsuit.

A judge ruled in favor of Hagan Properties, and VIEW appealed. Eventually, a settlement agreement was reached. Terms of the settlement agreement were not disclosed. but Hagan said the company agreed to drop plans for three-story buildings in the complex.

“It took a long time to settle, but we finally got it settled,” Hagan told me during a phone interview Wednesday morning.

The project is a $49 million investment for Hagan, which is financing the project through the Louisville offices of U.S. Bank.

The 518,986-square-foot complex will be spread out over 22 two-story apartment buildings with 98 one-bedroom, 238 two-bedroom, and 20 three-bedroom units. Hagan said the complex will feature eight floor plans with 700 square feet to 1,400 square feet. Rent is expected to range from $990 to as much as $1,560 per month.

Hagan expects leasing to start in August and said the first building should be available for occupancy in October, barring any construction delays. The general contractor is HCC LLC, Hagan’s in-house construction company.

Unit amenities include granite counter tops, stainless steel appliances, European-style cabinetry, wood-style flooring, crown molding and ceiling fans..

The complex also will have a 6,000-square-foot clubhouse with a study lounge and business center.

Other community amenities include two dog parks catering to small and large dogs, a standalone car care center and pet salon, electric car charging stations, a bike repair station, a playground and picnic areas with grills.

9910 Sawyer apartments also will feature several resort-style amenities that are popular with new apartment construction in Louisville, such as a saltwater pool with cabanas and an outdoor TV lounge, an outdoor fireplace, and a grassy lawn that would have festival seating.

Hagan Properties also plans to build a 468-unit apartment complex called Victory Knoll on a 35-acre property it owns at Blankenbaker Parkway and Ellingsworth Lane, near Southeast Christian Church. Hagan said that project is expected to cost about $65 million.

But Victory Knoll won’t break ground until late 2017 because Hagan said the firm wants to stabilize 9910 Sawyer Apartments and lease most of the units there before beginning another project.

She said company officials don’t want “two properties in production at the same time competing against one another.”

By Marty Finley – Reporter, Louisville Business First
Mar 10, 2016, 2:27pm EST

A 500-unit apartment complex on Skywatch Lane near La Grange Road and the Gene Snyder Freeway in Louisville’s East End has changed hands in a deal that has flown completely under the radar.

The Paddock at Eastpoint, which was completed in 2007, long has been owned by Louisville-based Hagan Properties Inc. Hagan held the Paddock property through an affiliated holding company, TPE LLC, but that holding company recently gained a new owner.

According to the Kentucky Secretary of State’s office, TPE LLC has been transferred from Hagan Properties to the Bedford, N.H., office of Bluestone Property Management LLC, which does business as Bluestone Properties and manages apartment residences in the Midwest and parts of the South.

The Paddock at Eastpoint is listed on Bluestone’s website as one of its managed properties, and the company’s name also appears on the apartment complex’s website.

Wendy Hagan, a principal with Hagan Properties, confirmed that Hagan no longer manages the Paddock, but she declined further comment.

An industry source with knowledge of the deal told me Thursday that TPE LLC was sold in a deal valued between $70 million and $75 million. That source also told me TPE now is controlled by California-based real estate investment firm Mount Auburn Multifamily, of which Bluestone Properties is an affiliate.

I could not immediately reach Mount Auburn representatives for comment on the deal.

In commercial real estate deals, companies sometimes purchase the entity that holds a property rather than the property itself. One result of such a transaction is that there is no deed transfer for the property involved.

According to the Paddock’s website, the complex has a mix of one-, two- and three-bedroom units that range from about 675 square feet to a little more than 1,400 square feet. Rental rates vary from about $890 to more than $1,200 per month, the website stated. The property is on about 19 acres, according to

online PVA records.

Amenities at the complex include a fitness center, business center, car care facility, children’s playground, BBQ and picnic area, courtyard, Internet cafe and a pool and lounge area with personal cabanas.

By Marty Finley – Reporter, Louisville Business First
Jan 14, 2016, 1:51pm EST Updated Jan 20, 2016, 8:39am EST

Quest Outdoors is closing its longtime store at the Paddock Shops and consolidating its store operations in an expanded space at Shelbyville Road Plaza in St. Matthews.

Ryan King, owner of the Louisville sporting-goods retailer, said the store at 4340 Summit Plaza Drive in the Paddock Shops will close by the end of January. He plans to consolidate that store and the Shelbyville Road Plaza store in a larger space at the St. Matthews shopping center: the 25,000-square-foot storefront once occupied by Borders Books and Music.

The company offers adventure gear for camping, hiking, climbing, winter and water recreation. King bought Quest Outdoors from Don Burch and Barbara Burch in 2010.

King said the decision to relocate into the three-level storefront was a rather hasty one, but he said it will give his company a chance to bring all of its operations under one roof.

Quest has been in its current space at Shelbyville Road Plaza for about five years and has had a presence at the Paddock Shops, formerly the Summit, since 2003, King said.

“You’re never where everyone wants you to be,” King said, laughing.

He hopes to have the new location opened by April, ahead of the Kentucky Derby.

About 13 employees will be relocated to the new Shelbyville Road Plaza location from the Paddock Shops store. Once that store closes, he said, those employees will assist at the Shelbyville Road location and with the relocation. He said it will be a blessing to have extra hands available to help with the move.

Quest has about 38 employees, King said.

“The people who work for me are like family,” King said. “No matter what happens, no one’s losing their jobs.”

In fact, he said, he will likely need to bring on “several” additional staff to help staff the new store because it will be a much larger space.

The store that is closing on Summit Plaza Drive is about 6,700 square feet, and the Quest store at Shelbyville Road Plaza in St. Matthews is just under 10,000 square feet. King closed a 5,000-square-foot Quest outlet shop at 2330 Frankfort Ave. late last year, he said.

Of the new 25,000 square feet space, about 20,000 square feet will be retail space, and the rest will be used for office and warehouse space. Quest also gains a loading dock with the new space.

King said he is working out the details of a strategic plan to ensure that Quest won’t close for more than three days during the relocation.

“We may not close down a day, to tell you the truth,” he said.

The relocation will require minor construction to the Borders space, which has been vacant for years. King said he plans to paint the space, replace the flooring and change the layout of the store. He said, he will have to build out space, for instance, for dressing rooms. He said he does not yet have a cost for the construction.

King brokered the new lease deal, the terms of which were not disclosed, with the shopping center’s owner, Louisville-based Hagan Properties Inc. He said the condition of the vacant space “is not bad.” Hagan will assist with the construction on the new space, but King did not explain the specifics of that agreement.

King said he does not intend to “reinvent the wheel” with the expanded store, but he said it will have new elements that were not found in other stores, though he declined to say what those elements will be.

King said Hagan had floated the idea of taking the space before, but he always felt it was too big until he realized the potential the space provides.

Tommy Edwards, a retail leasing representative with Hagan Properties, said Quest is able to expand well beyond its current footprint because the products the company offer have been so well received in Louisville.

As for the space Quest is vacating at Shelbyville Road Plaza, Edwards said no tenant has been signed for the space yet.

He declined to say what type of retail user Hagan is seeking for the space. “We’re talking with various retailers, and we’ll see what happens.”

This is the second store in recent weeks that the Paddock Shops has lost after natural food retailer Earth Fare announced its closure. Leasing at The Paddock Shops is handled by Louisville-based TRIO Commercial Property Group.

Justin Baker, a principal broker and partner with TRIO, said the firm is aggressively pursuing new tenants for the spaces but declined further comment.