FEATURED ACQUISITION

Harbison Court

Columbia, South Carolina
|
317305
square feet

Harbison Court is a 317,305 square foot regional shopping center, ideally located with excellent visibility on Harbison Blvd., in the heart of one of Columbia’s main retail corridors, just off the major I-26 thoroughfare. Anchors include Nordstrom Rack, Ross Dress for Less and Marshalls, along with national discount retailers Petco, Five Below, Dollar Tree, Show Carnival, Tuesday Morning and Rainbow.

Strong Fundamental and Growing Market: With a population of 900,000 (70th largest MSA in country), Columbia is South Carolina’s capital and largest MSA with a stable economic base, supported by state government, education and healthcare sectors.  Some of Columbia’s larger employers include University of South Carolina, Palmetto Health, Amazon and AT&T. Migration from other states into South Carolina made it the 6th fastest growing state in 2019 (source: Post and Courier).  The workforce is highly educated and the cost of business is low.

Property Location and Demographics: Harbison Court is located adjacent to I-26 making it readily accessible to the entire metropolitan area.  The 1.4 mile stretch contains approximately 3.2 million square feet anchored by the nation’s top retailers including Target, Walmart, Costco, TJ Maxx, Best Buy  and Home Depot.  Over 300,000 people live within a 20 minute drive to the center and 167,000 live within a 7 mile radius.             

Minimal Deferred Maintenance: Harbison Court went through a $10million+ transformation in 2014 including a new façade, new monument signage and a complete refurbishment of the hardscape, parking lot and parking lot lighting.

Discount and Service Oriented Tenants: There’s an intelligent mix of e-commerce resistant and discount tenants with proven business models resulting in a very stable and diversified rent roll whereby no one tenant accounts for more than 14% of the revenues.

Downside Protection:  According to our estimates, the center is being purchased for 60% below the cost of what it would take to buy the land and build new today.  The low cost enables us to charge lower rents, which keeps both occupancy and the likelihood of lease renewals high.

Outparcel Strategy: Usually, we sell outparcels but in an unusual but fortuitous event, we were able to purchase an outparcel, merge it into the center and lease it long-term, thus harvesting significant value.  On the sell side, there are three outparcels that could be sold at a compressed cap rate relative to the purchase price of the center. 

5 Year Projected IRR: 15.30% annualized

Projected Average Annual Cash on Cash: 16.31%

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