The Shops at Tomball Parkway
Tomball, Texas 21515 Tomball Parkway
The Opportunity
NOT OPEN TO GENERAL SOLICITATION
Sage is please to present an opportunity to invest alongside Jay Williams and Property Commerce in the Shops at Tomball Parkway (“T-Parkway”), a 100% occupied, 5,281 sf, 3-tenant retail shopping center. T-Parkway is a shadow anchored by a top performing Target with exposure to over 280k cars per day. Current tenants are Castle Dental (national), Sally Beauty (national), and Pho Trang restaurant.
Key Highlights
Stable Cash Flow: This is a fully leased, 100% occupied, shopping center located in an established retail corridor in Tomball, Texas. Current tenants are Castle Dental (national), Sally Beauty (national), and Pho Trang restaurant (local).
Great Real Estate: The asset is located in an established retail corridor with immediate highway access to Highway 290 and is shadow anchored by a Target. The overall area is a primary retail node, serving an affluent area. Additionally, this is a newer asset, built in 2017, which means minimal future capex.
Great Management Team: Jay Williams and Property commerce will manage day to day operations of the asset. PC is one of the leading retail developers in Houston with extensive experience and a proven track record of success. Property Commerce currently owns the asset and plans to stay on as GP, contributing 10% of equity, which is a great sign of their commitment to the shopping center .
Exit Strategy: The buyer pool for small, shadow anchored strip retail centers is robust with significant amounts of capital chasing the space which bodes well for the future exit. Also, Property Commerce is a preferred developer for Target and therefore has unique insight into store operating metrics to help drive up sales price of our center.
Project Summary
Year Built: 2002
Land Area: 0.64 acres
Acquisition Price: $2,181,000
Net Rentable Area: 5,281 sf
Occupancy: 100%
Year 1 NOI: $161,924
Business Plan
Sage Equity Partners anticipates maintaining the asset for a traditional hold period of 5-7 years. With three service tenants, being a relatively new build, and accretive financing, T-Parkway offers a unique cash flow play. The upside scenario assumes that small, shadow anchored shopping center space remains highly sought after by a large pool of buyers. If that’s the case and coupled with lease extensions the exit cap rate could compress into the 6% cap rate range which would also deliver solid exit proceeds. Property Commerce will place new bank financing with five years of term, 65% leverage, an approximately 3.75% interest rate, with FCCU – a local credit union.
The Asset
Market Demographics
Tenant & Lease Overview
$700,000
Offering size
Timing
Timing of Funds:
April 25th, 2022
Timing of Close:
May 6th, 2022
Management Team
Property Commerce was founded in 1976 and has built a strong, continually evolving shopping center development and investment organization, complemented by it's property management, leasing and brokerage teams. They have extensive experience in real estate investment, development and management, as well as proven track record of generating returns that out perform the broader real estate market. Property Commerce has worked with tenants such as Chili's, Chase Bank, Chick-Fil-A, Arby's, Whataburger, Panda Express and Sonic. They invest in high density, high barrier-to-entry markets, with a focus on properties that are undermanaged, underpriced or both. Property Commerce owns and operates single and multi-tenant retail properties located in dense, urban neighborhoods or within walking distance of universities. They focus on acquiring assets that generate superior returns through re-development, leasing or other value-add opportunities.
