Market Square
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Listing Highlights
- •Fully Stabilized Asset
- •100% Occupied
- •100% Triple-Net Leases
- •Scheduled Rent Escalations for Year-over-Year Income Growth
- •Diversified Tenant Base of Ethnic Grocer, National and Local Restaurants, and Retailers
- •Situated on 5.55 Acres with Ample Parking
- •Prime Location with High Traffic and Strong Demographics
Philip Levy
Levy Retail Group
Investment Highlights
- 100% occupied with diversified 23-tenant roster
- All triple-net leases providing expense protection
- Strong ethnic food and local service tenant mix
- Scheduled rent escalations across tenant base
- 5.55-acre site with ample parking
- Established location on high-traffic North MacArthur Boulevard
- Diverse tenant mix reduces single-tenant dependency risk
Risk Factors
- Significant lease rollover risk with 3.67-year WALT
- Non-credit tenant base limits rent growth potential
- Concentration of lease expirations in 2027-2028
- 1984 vintage may require capital improvements
- Local/ethnic tenant mix may limit re-leasing options
- Secondary market liquidity constraints
- Potential challenges retaining specialized tenants upon rollover
Feature Tags
Underwriting Insights
Key sensitivity around tenant rollover given 3.67-year WALT. NOI sustainability depends on landlord's ability to retain existing tenants and maintain current rent levels. Expense reimbursement structure provides some inflation protection, but limited upside in base rents due to local tenant profile.
Analyst Notes
Market Square represents a stabilized neighborhood retail investment with solid fundamentals but limited upside potential. The property's strength lies in its diverse tenant mix and full occupancy, while key risks center on upcoming lease rollovers and tenant credit quality. Investment thesis depends on landlord's operational capabilities and local market knowledge to navigate tenant rollovers successfully. Property is well-suited for income-focused investors seeking stable cash flow with modest hands-on management requirements.