FEATURED ACQUISITION

Spradlin Farm

Christiansburg, Virginia
|
square feet

Spradlin Farm is a 181,055 square foot Target and Home Depot shadow-anchored regional shopping center ideally located in the heart of the dominant US Rte 460 retail corridor on North Franklin St. With Anchor tenants including Big Lots, T.J. Maxx, Barnes & Noble, Michael’s and Petco, Spradlin Farm has a diverse mix of national retailers, restaurants and service businesses.

Targeted Growth Market:  With a Trade area population of 186,000 people and average household income of $65,000, Blacksburg-Christiansburg-Radford MSA ranked #6 in Top 10 Best Metro Job Market in 2018 (USAToday).  Spradlin Farm is located within an established, growing trade area, and is positioned within the dominant regional retail hub, given its central location to the adjacent population centers of Blacksburg (Virginia Tech) and Radford (Radford University).  This allows the property to take full advantage of the student, faculty and staff populations, in addition to the residents and businesses of the surrounding communities. 

Visibility and Accessibility: Spradlin Farm is located along U.S. Route 460 Business/ Franklin Road, with approximately 49,000 vehicles passing the property per day. The shopping center has easy access to U.S. Route 460 Bypass (19,000 vehicles per day) and is just 3.8miles from Interstate-81 (43,000 vehicles per day)

National Tenant Anchors: Along with traffic-generating shadow-anchors Target and Home Depot, Spradlin Farm is dominated by national tenants including Sally Beauty, Rack Room Shoes, GameStop, Sprint, MattressFirm, AT&T, Pier 1 Imports and several more. This diverse list of nationally recognized tenants strongly benefits the shopping center’s dominance within the flourishing retail node of Christiansburg, Virginia.

Strong Renewal History:  The anchor tenants at this shopping center have operated in their locations for at least 10 years with each exercising renewal options within the last 5 years. Over 80% of the current tenants in place have exercised at least one renewal option and several even expanded their footprint into more space.

Tenant Mix: Spradlin Farm contains an ideal mix of discount, service-oriented and restaurant tenants, demonstrating a strong resiliency to e-commerce competition. 

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: There are 3 outparcels and 1 subdivide opportunity here with the potential to sell at a compressed cap rate relative to the purchase price of the center, that would enable us to harvest significant value. 

5 Year Projected IRR: 15.23% annualized

Projected Average Annual Cash on Cash: 15.78%

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