Northgate Shopping Center

VAC Development (the “Sponsor”) is required to capitalize about $31M to acquire and reposition a +/-165,556 SF retail property in Boise’s North Boise submarket (the “Project”). Currently the Project is 72% occupied, the Project showcases a blend of essential daily services, food & beverage, and lifestyle establishments, perfectly positioned for redevelopment to meet the needs of the community it serves. The Property is shadow anchored by Albertson’s (ACI) who has been operating in this location since 1983 and recently made a multi-million-dollar capex investment into their space in 2019 and is operating at around a 1% health ratio with over 15 years worth of options on their lease left. The current ownership in place is a syndicator who has run out of money and neglected to provide adequate TI allowance on expiring spaces. Which has led to a center with below market rents and vacancies that are not being filled. By bringing in fresh capital and active management, we expect to increase the NOI by more than $1.5M over a 3-year period from the current In-place NOI of $1.16M. With the current tenant’s in tow, the Sponsor projects to have over 95% of the vacancy leased or moving towards a lease before acquisition. The LOIs in tow for the vacancies are Marshalls and Planet Fitness as well as Harbor Freight to takeover the current Rite Aid space incase Rite Aid exercises their right to vacate in June 2025. Once the junior boxes are filled in combination with the tight retail vacancy (2.1%) in the market, the opportunity to push rents on the smaller spaces under 10k SF will be more feasible and reduce the risk of tenancy turnover.