22,500 SF unanchored strip center with strong daytime traffic and below-market rents. Mark-to-market upside on three of seven suites.
Seven-suite strip center, 1.8 acres, 110 parking stalls. Pylon signage on a 28,000 VPD corridor. Roof replaced 2021.
Building systems, envelope, and site improvements were evaluated against age-appropriate benchmarks. Overall condition is consistent with the asset's vintage and prior capital plan; near-term capex is limited to cosmetic refresh and tenant-driven improvements.
Trade-area population growing 2.1% annually. Retail vacancy 5.6% with leasing velocity strongest among QSR, medtail, and service tenants.
Three-method valuation triangulating Income, Sales Comparison, and Cost approaches. Concluded value reflects current market conditions and the asset's position within South Charlotte Retail Corridor.
| Cap rate ↓ / NOI → | -5% | Base | +5% |
|---|---|---|---|
| 5.75% | $15.2M | $16.0M | $16.8M |
| 6.25% | $14.0M | $14.9M | $15.4M |
| 6.75% | $12.9M | $13.6M | $14.3M |
Projected stabilized cash flows assume 3% annual rent growth, 2% expense growth, and a 7% vacancy reserve. Returns are illustrative and pre-debt.
| Line item | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 |
|---|---|---|---|---|---|
| Gross Potential Income | $1,420k | $1,463k | $1,507k | $1,552k | $1,599k |
| Vacancy & Collection | ($99k) | ($102k) | ($105k) | ($109k) | ($112k) |
| Effective Gross Income | $1,321k | $1,361k | $1,402k | $1,443k | $1,487k |
| Operating Expenses | ($388k) | ($396k) | ($404k) | ($412k) | ($420k) |
| Net Operating Income | $933k | $965k | $998k | $1,031k | $1,067k |
| Capex Reserve | ($28k) | ($29k) | ($30k) | ($31k) | ($32k) |
| Cash Flow Before Debt | $905k | $936k | $968k | $1,000k | $1,035k |
Five strip-center sales within the trade area. Cap rates 6.25–7.10% depending on tenancy and lease term.
| # | Property | Distance | $/SF | Cap rate |
|---|---|---|---|---|
| 1 | Oakridge Marketplace | 0.9 mi | $262 | 6.7% |
| 2 | Sunset Shoppes | 1.8 mi | $271 | 6.5% |
| 3 | Lakeview Plaza | 2.4 mi | $268 | 6.6% |
| 4 | Crestwood Center | 3.2 mi | $274 | 6.4% |
| 5 | Ivy Junction | 4.1 mi | $265 | 6.8% |
Comp set drawn from arm's-length transactions in the trailing 18 months; outliers (REIT portfolio trades, intra-family transfers) excluded. Adjustments applied for age, condition, lease structure, and location.
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Tenant rollover | Med | High | Pre-leasing & early renewal |
| Cap rate expansion | Med | Med | Lock fixed-rate debt |
| OpEx inflation | High | Low | NNN passthrough where possible |
| Insurance market | High | Med | Bundle & higher deductible |
Re-tenant the end-cap to a QSR drive-thru concept, reset two expiring leases to market, then evaluate a refinance or sale.
Property Sage AI provides informational estimates, market observations, and commercial property insights for educational purposes only. Reports are not appraisals, broker opinions of value, legal advice, financial advice, or guarantees of future performance. Users should independently verify information before making real estate decisions.
