Overview

The Criterion Fund is thrilled to present an exclusive opportunity to invest in Laburnum Park, a highly sought-after retail center located in Henrico, VA, just outside of Richmond. With a nearly 100% occupancy rate and a robust tenant mix, including national brands like Dollar Tree and Davita, this property offers both stability and significant upside potential. The strategic location, leasing opportunities, and operational efficiency positions Laburnum Park for impressive returns and long-term growth. Financial Highlights: Acquisition Cap Rate: 9.10%, offering a strong entry point below replacement cost. Projected Investor IRR: 21.30% over a 5-year hold. Equity Raise: $2.84M, with a target investor return of 21.30x equity multiple. Cash-on-Cash Returns: 9.98% projected in year one, growing to 15.33% by year five. The attractive mix of national and regional tenants supports stable and predictable cash flows throughout the investment horizon. Combined with opportunities to increase rent via lease restructuring and vacant space leasing, Laburnum Park offers a compelling case for strong returns. This is further enhanced by the fact that all of the units are in excellent condition, which eliminates the need for upgrades and improvement by the way of capital expenditures. Property Highlights: Location Advantage: Positioned in Henrico County, located on a lighted intersection with prime visibility and traffic counts exceeding 37,000 vehicles per day. The center sits directly across from the 900,000 SF White Oak Village shopping center, anchored by Target, Lowe’s, Publix, Chick-fil-A, Burlington, and PetSmart. Strong Demographics: Population of 145,000+ within a 5-mile radius, with average household income exceeding $80,000. Growth Potential: 8% of the center remains vacant, offering upside through leasing at higher rental rates. Additionally, 11 tenants are scheduled for rent increases over the next few years. Below Market Rents: The current average rent is $18 PSF, compared to market rents near $25 PSF—presenting an opportunity to drive income through renewals. Consistent Occupancy: The center has maintained occupancy above 90% for the past decade, reflecting strong historical performance. Lease in Tow: We have a 10-year lease ready for signature with a 4,200-sf tenant at $17.50 PSF + NNN. Once executed, this lease will add over $90K in additional NOI to the shopping center. Investment Strategy: The investment strategy focuses on enhancing cash flow by leveraging the potential for rent increases through lease restructurings, along with leasing vacant spaces at higher market rates. In addition, the property offers the opportunity to generate further value through the potential sale of Atlantic Union Bank’s outparcel by Year 3, which will significantly enhance the investor return profile. Roughly 50% of the net sale proceeds from the outparcel are projected to be returned to investors as a return of equity—estimated at approximately 20% of the original investment. We are also 50 basis points conservative in our exit cap rate assumption compared to the BOV provided by a national NNN sales group. We’ve underwritten the deal conservatively, assuming an exit cap rate of 9%—the same as our acquisition cap. However, we’ve negotiated that the seller will cover the cost of remediating the environmental issue tied to a former dry cleaner, which we expect will reduce the exit cap rate by 25 to 50 basis points. Additionally, we secured a $180,000 credit from the seller, which will be allocated toward immediate property improvements. We are confident that this opportunity presents an exciting potential for strong, stable returns in a high-demand retail market. We would be thrilled to discuss this project with you in more detail.