Investment Overview

The offering consists of a fully occupied 44,414 square foot shopping center on the irreplaceable hard corner and signalized intersection of Richmond Avenue and Fondren Road in Houston, TX. The asset is situated on 4.76 acres and has two restaurant pads. All tenants are currently under triple net leases and reimburse for Taxes, Insurance, and CAM. The average rents for the subject property are at market rent with most tenants having significant rent bumps included in their current term. The landlord currently charges $0.50/SF for NNN's, adjusting accordingly for the potential tax, insurance, and CAM increases. The current loan is assumable with 4-years left on a 4.25 percent interest rate and a current cash-on-cash return of 6.90 percent. In 2027, the subject property will have a cap rate increase of 77 basis points and a cash-on-cash increase of 266 basis points. The roof was replaced in 2016 and had the following renovations done in 2023 : Re-striped parking lot, tenant signage renovation with extra lightning, exterior painting, roof repairs, etc. The asset is located just South of Westheimer Road in a highly dense region of Southwest Houston within minutes from the Uptown/Galleria area and Westchase District. Traffic counts at the property are 35,866 vehicles per day and is surrounded by various major retailers including: H-E-B, Target, Walmart Supercenter, Home Depot, Kroger, Micro Center, Academy, and many others.