Abrams Forest Shopping Center
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Listing Highlights
- •Value-add, multi-tenant neighborhood retail center
- •Shadow-anchored by Walmart Supercenter driving over 2.3M visits annually
- •Anchored by a top-performing Dollar Tree
- •Operates as two adjacent buildings (69,820 SF) plus a separately parceled 13,013-SF CVS ground lease unit
- •Triple-net leases on the operating component with below-market recoveries
- •Significant leasing upside given current occupancy levels
Philip Levy
Levy Retail Group
Investment Highlights
- Value-add neighborhood retail center at 67.5% occupancy with upside potential
- Shadow-anchored by Walmart Supercenter driving over 2.3M visits annually
- Strong tenant mix including Dollar Tree, AutoZone, T-Mobile, and a CVS ground lease
- Diverse income streams with multi-tenant retail and a separate CVS ground lease component
- Below-market rents with upside potential through lease-up of vacant spaces
- Weighted average lease term of 3.01 years provides stable income and repositioning opportunity
Risk Factors
- Current occupancy at 67.5% requires active leasing strategy
- Two tenants (Anonymously Yours and Custom Security Doors) on month-to-month leases
- CVS has vacated but continues to pay ground lease through 2027
- Aging property built in 1971 requires capital improvements
- Below-market rents for Dollar Tree ($10.70/SF) compared to market averages
- Legal dispute with Moderna Bakery & Café tenant
Feature Tags
Underwriting Insights
Underwriting assumes increasing occupancy from 67.5% to 100% over a 24-month period. Market rents for new tenants projected at $16-18/SF, significantly higher than several existing tenants (particularly Dollar Tree at $10.70/SF). The proforma cap rate of 10.11% is based on stabilized NOI of approximately $1,364,891, which represents a 104.6% increase from current NOI of $667,011.
Analyst Notes
The CVS ground lease component (13,013 SF) pays $23.01/SF through January 2027 with renewal options, providing stable income despite the tenant having vacated. This ground lease represents approximately 30% of the property's current income. The property has significant existing parking ratio which should accommodate any prospective tenant use. Several tenants have expansion options which provides additional upside if exercised. Legal dispute with Moderna Bakery & Café should be resolved as part of acquisition due diligence.