Investment Overview

Marion Plaza is a 121,700-square-foot community retail center that is anchored by Tractor Supply, Ollie’s Bargain Outlet, and Dollar Tree. The center features a diverse mix of retail, medical, service, and restaurant tenants. It is located along Lee Highway (US-11), with additional visibility from Interstate 81. The center is next to a Walmart and within one mile of three schools that serve a total of 1,500 students. Additionally, more than 30,000 vehicles pass through the center daily. This makes Marion Plaza the area’s premier community hub and retail destination. The recent renewal of Tractor Supply for an additional 10 years at a low $2.50 per square foot NNN rent, with increases every five years, and a new medical practice currently negotiating to occupy the space vacated by the VA Clinic at $14 per square foot NNN annual rent, speak volumes about the viability of this location. Converting some gross leases to net leases and utilizing the outparcel presents a promising value-add opportunity. Other essential tenants include the US Geological Service, Marion Family Pharmacy, Domino’s Pizza, Tender Tots Daycare, Dr. Mary Curtiss, M.D., among others. 65 percent of the center is occupied by Tractor Supply, Dollar Tree, and Ollie’s Bargain Outlet, all with remaining lease terms that add to the long-term stability of the center. The center has benefited from recent capital improvements, including upgrades to the parking lot, exterior painting, and HVAC replacements. The roof is in good condition, with seven years remaining on the roof warranty over the Ollie’s Bargain Outlet, further reducing near-term capital expenditure risk. This property falls within the State of Virginia’s ‘Enterprise Zone’ (VEZ Grant), qualifying for state funds for capital expenditures—an additional benefit to ownership. The offering includes optional assumable financing at a fixed interest rate of 5.7982 percent, with 3.3 years remaining on the loan term. With a loan-to-value ratio of 52 percent, this financing option allows investors to enter the deal with enhanced cash-on-cash returns exceeding 10 percent from day one and an overall equity return of approximately 14 percent due to accelerated principal paydown. The current cap rate is approximately 8.4 percent. Located just off Interstate 81 at Exit 47, the center sits directly adjacent to Smyth County Community Hospital and benefits from exposure to more than 58,000 vehicles passing along Interstate 81 each day. The General Dynamics Mission Systems Composite Solutions site is located less than one mile from the center. While the exact number of employees at this facility is not disclosed, General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. With its access to Interstate 81, Marion is well positioned for future economic growth with the arrival of one large manufacturer or business.