Town Square is a 302,135 square foot Sam’s Club shadow-anchored power center, superbly located at the intersection of Towne Square Blvd. and Benvenue Rd (30,000+ VPD combined), and directly adjacent to the Roanoke-Blacksburg Regional Airport with over 5,000 patrons traveling daily. Anchors include Ross Dress for Less, Marshall’s, Bed Bath and Beyond, Petco and Kirkland’s.
Targeted Growth Market: With a population of 301,442 people with average household income of $77,000, Roanoke is the center of one of Virginia’s largest metropolitan regions and a hub of transportation, finance and industry for the southwestern part of the state. Large area employers include Carillion Clinic, Volvo, Norfolk Southern, Wells Fargo, Allstate and is the headquarters for Advanced Auto Parts. Since 2009, there has been $400 million in private and public development investment. The center is located within a densely populated area with over 127,000 people living within 5 miles.
Downside Protection: According to our estimates, the center is being purchased for 40% 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.
Discount and Service Oriented Tenants: There’s an intelligent mix of e-commerce resistant and discount tenants spanning 39 different businesses with proven business models across various retail subsectors, resulting in a very stable and diversified rent roll. As a shadow-anchor, Sam’s Club generates additional traffic to the center.
Lease Up Opportunity in a Strong Market: The vacancy rate for Roanoke market is 2.8% compared to the national average of about 10%. Towne Square has 18% vacancy (about 54,000sf), indicating there’s significant demand for the available space we plan on leasing.
Outparcel Sales: We plan on selling the Popeye’s at a compressed cap rate relative to the purchase price of the center, as it is a highly desirable asset in the single tenant NNN investor market.
5 Year Projected IRR: 17.12% annualized
Projected Average Annual Cash on Cash: 18.07%