Victory Shops at Basswood III
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Listing Highlights
- •Fully Stabilized, 15,789-SF multi-tenant retail center
- •100% leased with triple net leases
- •Scheduled rent increases driving year-over-year income growth
- •New construction (2022) with attractive architecture
- •Located in a high-growth area of Fort Worth, TX with strong demographics
Philip Levy
Levy Retail Group
Investment Highlights
- 100% occupied, newly constructed (2022) retail center with quality tenants
- Strong weighted average lease term (WALT) of 9.26 years
- Triple-net leases with scheduled rent increases across all tenants
- Diversified tenant mix across food service, personal services, and specialty retail
- Located in high-growth area of Fort Worth with strong demographics
- Minimal landlord responsibilities due to NNN lease structure
- Modern, attractive architecture requiring minimal maintenance
Risk Factors
- Premium pricing compared to market averages
- Some tenants are local or regional operators with less credit strength than national tenants
- Concentration in service-oriented retail that can be impacted by economic downturns
- Limited value-add opportunities due to full occupancy and new construction
Feature Tags
Underwriting Insights
The property's stabilized NOI of $509,056 generates a cap rate of 6.0% on the asking price of $8,484,266. While this cap rate is slightly below the market average of 6.6%, it reflects the premium quality of the asset. The tenant reimbursements of $126,312 annually adequately cover the property's operating expenses, creating a true triple-net scenario with minimal landlord financial responsibility. The projected rental income is secure given the long WALT of 9.26 years and the scheduled rent escalations built into all leases, which range from 2-3% annually depending on the tenant. With minimal anticipated capital expenditures due to the new construction, cash flow stability is the primary investment thesis.
Analyst Notes
Victory Shops at Basswood III represents an exceptional stabilized retail investment opportunity with minimal management requirements due to its triple-net lease structure. The 6.0% cap rate, while below market averages, appropriately prices in the quality of construction, strength of tenancy, and above-average lease terms. An investor seeking stable, growing income with minimal landlord responsibilities would find this property particularly attractive. The Fort Worth market continues to demonstrate strong retail fundamentals with high occupancy rates and steady rent growth, providing a supportive backdrop for this investment. The property's diverse tenant mix across food service, personal services, and specialty retail creates a resilient income stream less susceptible to disruption from e-commerce competition than traditional soft goods retailers.