Overview

The center is shadow-anchored by a well-performing Kroger that has recently been renovated on a street getting 31,000+ VPD with avg. HH incomes of $130k+. It is in a very tight submarket, with less than 5% vacancy in retail shopping centers and strong new home development. We are able to assume a loan from the seller and add to it to take the leverage up to 70%. We are projecting an 8.5%+ CoC return to investors in Year 1 and an average cash-on-cash of 11.62% over the 5-year hold. The center averages rents sub $10 PSF in a market where new leases are $18 PSF+. The center has 2 vacancies we look to leased up, and we have an agreed LOI for one and are negotiating an LOI for the second. If these become leases at an 8.5% cap valuation, we will add another $1,144,370 dollars in property value within the first 3 months and roughly $100,000 in property NOI. The asset is currently leased and managed by an international group so we believe we can increase operational efficiencies.