Chenal Commons
Little Rock, Arkansas 12801 Chenal Parkway
NOT OPEN TO GENERAL SOLICITATION
The Opportunity
Sage Equity Partners (”Sage”) is seeking to invest alongside Long Cap Partners(“Long Cap”) who is purchasing Chenal Commons – a 70,147 sf, eight tenant retail center in West Little Rock including Old Navy, Ulta, Petco, and Kirkland’s in the heart of the region’s premier retail corridor. Chenal Blvd is the primary east-west thoroughfare that runs through Little Rock’s most affluent neighborhoods. The trade area includes a ‘who’s who’ of anchor retailers including Whole Foods, Target, Trader Joes, and Home Depot.
Key Highlights
Great Location: Surrounded by affluent and growing residential neighborhoods of West Little Rock that includes 115,000 residents, $100,000 average household income, and 3.9% 5-Yr population growth within 5-miles.
Little Rock’s Primary Retail Corridor: Whole Foods (1 of 2 in Arkansas), Target, Home Depot, Trader Joe’s (only one in the state) and Sam’s Club are all located within the trade area.
Proximity to Region’s Largest Employers: Major proximate employers include University of Arkansas for Medical Sciences (#1 hospital in the state), Baptist Health, Arkansas Children’s Hospital, Central Arkansas VA Hospital, CHI St. Vincent.
Unique to Market: Tenant spacing is very favorable here with the closest tenants as follows – Old Navy (15 Miles), David’s Bridal (sole Little Rock location), Ulta (5 miles), Shoe Carnival (15 miles), and Kirkland’s (15 miles).
Seasoned Tenant Roster: Tenant spacing is very favorable here with the closest tenants as follows – Old Navy (15 Miles), David’s Bridal (sole Little Rock location), Ulta (5 miles), Shoe Carnival (15 miles), and Kirkland’s (15 miles).
Great Physical Attributes: Situated on 5.4 Acres of land, with accessibility via three entrances, 286 total parking spaces (4.03 / 1,000), and roof systems replaced in 2012 and 2013.
Project Summary
Year Built: 1999
Land Area: 5.4 acres
Building Size: 70,174 sqft
Occupancy: 100%
Purchase Price: $14,850,000
Cap Rate: 7.83% CAP
Business Plan
Sage Equity Partners anticipates maintaining this asset for a traditional hold period of 5-7 years. Business Plan attributes are as follows:
Hire Kelly Commercial, a local management and leasing company that can bring down operating costs and has strong tenant relationships.
Long Cap has locked rate on a loan with Arkansas based Encore Bank with 65% loan to value, 4.75% interest rate, 1 year interest only, and 25 years amortization. The debt is pre-payable at any time so if rates come down and/or full-term interest only debt is available ownership will be able to take advantage.
The Asset
Market Demographics
$4,600,000
Offering size
Timing
Timing of Funds:
July 8th, 2022
Timing of Close:
July 31st, 2022
Management Team
Long Cap Partners (LCP) is a Houston-based real estate operator founded in 2020. The team has acquired and redeveloped three retail projects with another six properties totaling 750,000 square feet in the pipeline. LCP’s principals have extensive experience in retail real estate investment, redevelopment and asset management with a geographic concentration in Texas and the Southeast. They leverage their extensive broker network and institutional relationships to acquire urban infill redevelopment opportunities and well-located income-producing retail assets with price dislocations driven primarily by operating inefficiencies.
