This property is a pad to a shopping center that includes Michael's, Cost Plus World Market and Best Buy. The site is surrounded by a dense concentration of retail centers within a 1.5 mile radius. This property is located in the heart of Redding's primary retail trade area, one block from Mt. Shasta Mall, the area's premier regional mall that is home to over 80 retail stores and anchored by Macy's.
The subject property is approximately 153,000 square feet of undeveloped land, located at the southeast signalized intersection of Airport Boulevard and North Davis Highway. The intended development includes the construction of 13,000 SF of building and a ground lease. The property is ideally positioned at the southern gateway to University Town Plaza and the eastern gateway to Cordova Mall, Sacred Heart Medical Center, Washington High School, Pensacola State College, and the Pensacola Airport. Some of the major businesses in the area include Beall’s Department Store, JoAnn Fabrics, Hobby Lobby, Kirkland’s, Barnes & Noble, hhGregg, Sports Authority, Sam’s Club, Lowe’s Home Improvement, The Home Depot, Michael’s, Target, Office Depot, Publix, Rave Motion Pictures, and La-Z-Boy Furniture. Tenant delivery 2015.
We acquired this asset through a preferred long-term relationship with Target Stores. The asset was 3.1 acres of vacant outparcels to a Super Target anchored center, known as Millenia Plaza. We constructed 3 buildings on 3 parcels with long-term, corporately backed leases. Located in the 23rd largest U.S. metro, the asset draws from a retail trade area that consists of 1.5 million people with a potential for retail expenditures north of $5 billion. The asset is situated at the gateway to Millenia Plaza benefiting from excellent visibility along Millenia Blvd and has a signalized entrance to the larger center. The asset is near the Mall at Millenia, the #1 mall in the state of Florida and top-ten in the US (anchored by Neiman Marcus, Bloomingdale’s, and Macy’s, including Chanel, Gucci, Prada, Louis Vuitton, Tiffany & Co, Burberry, and Jimmy Choo). We closed the acquisition with executed leases, approved permits, a guaranteed-maximum construction contract, and financing in place. We employed a Develop-to-Core asset investment strategy, thus we planned to sell the asset soon after the tenant opens.
Value Creation
Acquired the asset below full-market price while competing against 20 prospective buyers due to a preferred long-term relationship with Target Stores. Executed 10-year net leases with creditworthy national tenants, including average rent psf of $51. Constructed three new buildings under budget and tenants opened for business on schedule. Subdivided the acquired acreage into 3 assets, increasing the buyer pool and commanding a higher price, exceeding the targeted sales price by 20%.
We acquired this asset off-market by touring and analyzing the market, then proactively contacting the owner. The asset was 1.5 acres of vacant land on the intersection of the market’s two preeminent thoroughfares with outstanding visibility. We subdivided the parcel to construct 3 buildings on 3 parcels with long-term, corporately backed leases. Located in the 3rd largest U.S. metro, this affluent submarket is approximately 30 miles from Chicago’s CBD and characterized by a diversified economy and deep labor pool. The asset is situated in the middle of 850,000 square feet of retail space that is anchored by Walmart, Target, TJ Maxx, HomeGoods, Petco, Aldi, Hobby Lobby and Ross among many others. We closed the acquisition with executed leases, approved permits, a guaranteed-maximum construction contract, and financing in-place. We employed a Develop-to-Core asset investment strategy, thus we planned to sell the asset soon after the tenant opens.
Value Creation
Acquired the asset off-market. Executed one 15-year and two 10-year net leases with creditworthy national tenants, realizing an average rent of $38 psf. Subdivided the acquired acreage into 3 parcels. Obtained Tax Increment Financing from the jurisdiction. Constructed three new buildings, with the tenants opening for business on schedule. Exceeded the targeted sales price by 3%.
Wheeling, a city in Northern West Virginia in Ohio and Marshall counties, is located on what is known as the northern panhandle. The subject parcel is located in The Highlands shopping, dining and entertainment complex just east of Wheeling, WV in Triadelphia, WV. This is a master planned development that has been underway for 10 years. Tenant delivery 2014.
Site / Location: US 70 & Cabela Drive, Lot 7B
Square Feet: 14,850
Tenant(s): Mattress Firm, Kay Jeweler's, GNC, Sally Beauty, Five Guys Burgers, Great Clips, Sprint
