Belle Mill Shopping Center
About this Property
U.S. Realty Partners and Compass Acquisition Partners are seeking investors to co-invest in the Belle Mill Shopping Center located at 84-146 Belle Mill Road, Red Bluff, California 96080. The property consists of approximately 119,888 square feet of leasable area situated on approximately 9.43 acres of fee owned land and was built in 1982. It is a dominant shopping center in the trade area and is anchored by Food Maxx, Aarons Rents, Verizon Wireless, Round Table Pizza, Shari’s Restaurant and Check N Go. This is a stable cash flowing shopping center featuring leases with built in rent increases and a significant value-add component. Our business plan is to freshen the appearance of the center, lease-up the vacant space, cure deferred maintenance, and then sell the property.
- Food Maxx Grocery Anchored Center (a subsidiary of SaveMart regional grocery chain with 234 stores) – Food Maxx store has excellent sales volume at this location ($36 million; $850+ per square foot in 2014).
- Purchase Price is $96 PSF (well below estimated replacement cost approaching $175 PSF).
- Purchase price is based on a +/- 7% cap rate on in-place income. The lease-up of the vacant space is all upside.
- Low anchor tenant rent creates downside protection as FoodMaxx is only paying $0.71 PSF/Month. Many shop rents are below market.
- Center has been poorly managed with no attention to leasing. Opportunity to add significant value. The majority of the vacancy was created by the failure of the current owner to keep CVS as a tenant.
- Freeway visible location with adjacent off-ramp. Very strong daily traffic count of over 24,000 cars per day on Highway 36 and over 44,500 cars per day on I-5 Freeway.