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SOUTHGATESOUTHGATELake Charles, Louisiana
OFFERING SUMMARY
INVESTMENT SUMMARYHolliday Fenoglio Fowler, L.P. (“HFF”) is pleased to exclusively present to qualified investors the opportunity to acquire Southgate Shopping Center (the “Property”), a 170,628 square-foot, grocery anchored center located in Lake Charles, Louisiana. The Property benefits from its location within an established retail node, in close proximity to Simon’s Prien Lake Mall. In addition to a strong location, the Property is anchored by the trade area’s only discount grocery offering.
PROPERTY OVERVIEWAddress: 2710 Ryan Street
Lake Charles, LA 70601
Occupancy: 89.0%Size (SF): 170,628Land Area: 14.36Year Built: 1958 / 2012Year 1 NOI: $1,581,000
TENANCY CHART
Major Tenants Size (SF) % of GLA Years of Occupancy* Remaining Lease Term*
Market Basket 31,119 18% 34.7 yrs. 4.3 yrs.
Office Depot 24,985 15% 24.5 yrs. 6.0 yrs.
Books-A-Million 21,310 12% 22.3 yrs. 4.7 yrs.
Avery James 11,308 7% 3.3 yrs. 6.9 yrs.
Dollar Tree 10,221 6% 3.3 yrs. 1.7 yrs.Total 98,943 16.6 yrs. 4.9 yrs.*As of January 2019
OFFERING SUMMARY2
INVESTMENT HIGHLIGHTS
Very Extremely FairlySomewhat Not at All
44%
20%
23%
12% 1%
SHOPPER SATISFACTION WITH INDEPENDENT GROCER
ANCHORED BY INDEPENDENT GROCERThe Property is anchored by Market Basket which generates daily traffic from a loyal customer base. The Louisiana grocery market is heavily supported by local independent grocer chains such as Market Basket. The Strength of Independent Grocers
» Independent grocers in the State of Louisiana generate over $1.6 Billion in sales, employ over 16,000 people and contribute over $340 million in taxes annually
» Convenience and price are the most important factors that determine shopper’s decisions about where to shop independent grocers consistently beat competition in these categories• Over 87% of independent grocer shoppers are satisfied
Market Basket – Louisiana’s Independent Grocer » The grocer was founded in 1961 and operated 34 locations throughout Louisiana and Texas
» The Property has been anchored by Market Basket for 35 years and they recently executed a 5-year renewal
» The tenant’s annual sales are 70% higher than the average independent Louisiana grocer and operates at a 3.15% health ratio
STABLE CASH FLOW WITH UPSIDE POTENTIALThe Property provides the next owner stable cash flow from a committed tenant base as well as upside potential through the lease up of vacant space in a strong leasing environment
Average tenant tenure of nearly 15 years
Recent 5-year renewals by Market Basket and Office Depot
Over 49,000 SF of leasing activity since 2017
9,305 SF available for lease up
35 Years at Property!
3OFFERING SUMMARY
SOUTHGATESOUTHGATE
210
Country Club at theGold Nugget
Course in Louisiana#2
WALNUT GROVE DEVELOPMENT
180 Homes 92,000 SF of Commercial Space
VILLAGE GREEN APARTMENTS198 Units
99.5% Occupancy
1.6 Miles7,638 Total Enrollment
SOUTHGATESOUTHGATE
13,381 VPD385
61,555 VPD
WITHIN A 3-MILE RADIUS - 2.1M SF Office Space,
92% occupied- 5,280 Apartment Units,
95% Occupied - 2,200 Hotel Rooms
Barbe Elementary School
4.0 MillionAnnual Visitors
3.8 MillionAnnual Visitors
STRATEGIC LOCATION » Mall Peripheral Location• Located next to Prien Lake Mall which spans over
783,000 square feet and includes over 80 retailers including Dillard’s, JCPenney, Dick’s Sporting Goods and Cinemark Theatre
» Established Retail Corridor• The Property’s submarket has experienced rental rate
growth of 66% since 2014 and has maintained over 92% over the past decade
89.0%90.0%91.0%92.0%93.0%94.0%95.0%96.0%97.0%98.0%
$0.00$2.00$4.00$6.00$8.00
$10.00$12.00$14.00$16.00
2014 2015 2016 2017 2018
Rental Rate Occupancy
Southgate Shopping Center Submarket
Lake Charles Unemployment Rate
8.0% 7.6%6.8%
6.4%5.9%
5.4%4.8%
3.9% 3.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
4.5%
6.3%
LAKE CHARLES ECONOMY » Lake Charles, the fastest-growing city in the state, is experiencing an economic boom and has a projected growth 5x greater than the overall state
» Chennault International Airport is undergoing a $250+ million expansion which is expected to create 1,500 jobs
» The Port of Lake Charles is the 12th largest seaport in the U.S. and has an estimated economic impact of over $264 billion
» Three casinos attract year-round visitors, employ over 4,000 people and generate over $600 million in revenues annually
OFFERING SUMMARY4
210
Country Club at theGold Nugget
Course in Louisiana#2
WALNUT GROVE DEVELOPMENT
180 Homes 92,000 SF of Commercial Space
VILLAGE GREEN APARTMENTS198 Units
99.5% Occupancy
1.6 Miles7,638 Total Enrollment
SOUTHGATESOUTHGATE
13,381 VPD385
61,555 VPD
WITHIN A 3-MILE RADIUS - 2.1M SF Office Space,
92% occupied- 5,280 Apartment Units,
95% Occupied - 2,200 Hotel Rooms
Barbe Elementary School
4.0 MillionAnnual Visitors
3.8 MillionAnnual Visitors
SOUTHGATE SOUTHGATESOUTHGATE
5OFFERING SUMMARY
AARON JOHNSON | Director | [email protected] | 469.232.1987
RYAN SHORE | Managing Director | [email protected] | 469.232.1919
ANDREW LEVY | Senior Managing Director | LA Lic# 0995686164MATT McCARNEY | Associate | [email protected] | 469.232.1955
WESLEY GILMER | Analyst | [email protected] | 469.232.1932
ADDITIONAL INFORMATIONIf you have any questions or require additional information, please contact:
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
2323 Victory AvenueSuite 1200
Dallas, TX 75219 214-265-0880 214-265-9564www.hfflp.com
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Frasch Park
Chennault Int'l Airport
Lake Charles Regional Airport
Southland Field West Calcasieu Arpt
Sam Houston Jones State Park
LAKE CHARLES
Sulphur
Moss Bluff
Iowa
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Chloe
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Newton
Ararat
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Carlyss
Stegall
Le Bleu
Bon Air
Westlake
Lockmoor
Goosport
Bellevue
Holmwood
Chalkley
MossvilleBrimstone
Maplewood
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Houston River
Bridge Junction
University Place
Mallard Junction
Greinwich Village
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£¤90
£¤171
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Prien Lake
Moss Lake
Lake Charles
HERE, Esri
0 1.6 km
0 1 mi1:72,200
SOUTHGATESOUTHGATE
For information regarding debt structures on the property, please contact:
DJ MEAGHER | Director | [email protected] | 469.221.7782
EXISTING DEBT SUMMARY (AS OF APRIL 2017)
LENDER Wells Fargo Bank
ORIGINATION DATE January 16, 2015
MATURITY DATE February 6, 2025
BALANCES
Principal Balance $10,306,678
TERM 120 months
INTEREST RATE 4.56%
MONTHLY PAYMENT $53,066.69
*Free Window Date is 3 months prior
Occupied Static VacancyVacant