The Shops at Roanoke City Center
Listing Highlights
- •16,714-Square-Foot Multi-Tenant Retail Center
- •Located in Historic Downtown Roanoke, TX
- •100% leased with triple-net leases
- •Part of a mixed-use development with residential apartments above
- •Complementary mix of restaurants, retailers, and service businesses
Philip Levy
Levy Retail Group
Investment Highlights
- 100% occupied retail center with 7 diversified tenants in a vibrant historic downtown district
- Modern 16,714 SF retail center built in 2017 as part of a mixed-use development with residential above
- Strong weighted average lease term (WALT) of 4.62 years with all tenants on triple-net leases
- Positioned in Roanoke's prime Oak Street corridor - the heart of the 'Unique Dining Capital of Texas'
- Complementary tenant mix of restaurants, retail, and service businesses supporting cross-traffic
Risk Factors
- Primarily local tenant base without national credit tenants increases tenant default risk
- Two tenants (Wild Oak Studio and Manh Bui Nails & Spa) comprise 42% of the rentable area
- Mixed-use structure may create operational complexities with residential owners above
- Limited barriers to entry in the broader DFW metro area for competing retail developments
Feature Tags
Underwriting Insights
The property's current NOI of $589,818 translates to a 7.0% cap rate at the asking price of $8,420,000. With modest 3% rent growth on renewals, we project a stabilized NOI of approximately $607,513, increasing the pro forma cap rate to 7.22%. The triple-net lease structure effectively passes through operating expenses to tenants, providing investors with a predictable income stream with minimal operational risk. The average base rent of $35.29 PSF is strong for the submarket, with room for modest growth upon lease renewals. Expense reimbursements are well-documented and appear to be appropriately structured to recover actual expenses.
Analyst Notes
The Shops at Roanoke City Center represents an attractive stabilized retail investment opportunity in a growing secondary market. The property's integration within Roanoke's branded 'Unique Dining Capital' creates inherent demand that should support continued strong occupancy. The tenant mix is carefully curated to create complementary uses, though lacks credit tenants that would further enhance the investment profile. Given the property's prime location, modern construction, and 100% occupancy with a WALT of 4.62 years, the current asking price appears justified despite being slightly above market averages on a per-square-foot basis. For investors seeking yield with minimal operational requirements, this triple-net leased property offers an attractive option with some modest upside potential through lease renewals at market rates.