Cypresswood Crossing - Phase II & III
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Listing Highlights
- •Value‐Add, Multi‐Tenant Retail Center Portfolio
- •Comprised of two adjacent centers on a total lot size of 5.57 acres
- •Deal is divisible, please see offering memorandum for each center's individual financial information and pricing
- •Phase II: 90,818 SF with a mix of service‐oriented retailers, restaurants and office tenants
- •Phase III: 16,367 SF with only 31% leased and significant upside potential
- •Located at a signalized, hard‐corner intersection with over 45,585 vehicles per day
Philip Levy
Levy Retail Group
Investment Highlights
- Value-Add multi-tenant retail center portfolio comprised of two adjacent centers totaling 101,853 SF
- Located at signalized, hard-corner intersection with 45,585+ vehicles per day
- Current occupancy of 63.8% offers significant upside through lease-up
- Diverse tenant mix including restaurants, service providers, and healthcare offices
- Strong anchor with Goldfish Swim School's 11,047 SF space providing long-term stability (lease until 2034)
- Multiple long-term tenants demonstrating location strength and tenant satisfaction
Risk Factors
- Below-market occupancy compared to submarket average of ~95%
- Phase III portion only 31% leased, requiring aggressive leasing strategy
- Potential tenant concentration risk with Goldfish Swim School occupying ~17% of leased space
- Some near-term rollover risk with Family Dental Care lease expiring in April 2025
- Properties will need capital investment for modernization and tenant improvements
Feature Tags
Underwriting Insights
The current in-place cap rate of 4.83% reflects the value-add nature of the opportunity. Proforma cap rate of 11.54% assumes achieving 100% occupancy at market rental rates (approximately $18-22/SF triple net depending on suite size and configuration). Leasing costs are estimated at $5-7/SF for commissions and $15-25/SF for tenant improvements depending on suite condition and tenant requirements. The weighted average lease term of 3.45 years provides reasonable stability while executing the value-add strategy.
Analyst Notes
This acquisition represents a classic value-add retail opportunity in a strong demographic area with proven tenant demand. The property benefits from a diverse mix of retail, service, restaurant, and office tenants providing multiple income streams and reducing sector-specific risks. The in-place cash flow provides adequate coverage while implementing a value-add strategy, and the significant upside potential through increased occupancy makes this an attractive opportunity for investors seeking both current income and appreciation. The 5.57-acre site may also offer potential for outparcel development in the future, though that has not been incorporated into current return projections.