Shops At Little Elm

407 West Eldorado Parkway, Little Elm, TX

$9,350,000

Price

6.65%

Cap Rate

$621,723

NOI

Overview
Cap Rate
6.65%
NOI
$621,723
Building Size
39,520 sqft
Lot Area
3.25 acres
Occupancy
95.5%
Lease Type
Triple Net
Year Built
1985
Price Per Sqft
$236.59
Parking Spots
158
Year Last Renovated
20104
Description

The Shops at Little Elm is a grocery anchored shopping center in one of the fastest growing cities in the country. The center is comprised of three buildings totaling nearly 40,000 square feet and is anchored by La Azteca Market. It is situated on Eldorado Parkway, the primary retail node in Little Elm. It is also the only thoroughfare that bridges Frisco to Denton over Lake Lewisville. The site enjoys excellent visibility and access, with three entry points and a dedicated east-bound turn-in lane. The Shops at Little Elm underwent a $2.3 million renovation in 2014 and a variety of new dining and service-oriented tenants have been brought in. Rents at the property are still lagging the growth in the market as the average rent per square foot is only $16.62 psf. There is opportunity to take advantage of the scheduled rent increases ($40,000 over the next 3 years) as well as bring others tenants up to a market rate.

Catalyzed by the surge in development and employment centers in Frisco (just a 10 minute drive from the center), Little Elm has experienced a tremendous amount of growth in the last 15 years. The population has increased from 4,400 to nearly 50,000 since 2000, and has increased over 50% just since 2014. The city has also been consistently recognized for its excellent commercial planning work and great family environment. Retailers and investors are taking notice with a surge in commercial activity in the last 5-6 years.

The Shops at Little Elm provides an investor a safe long-term investment due to its anchored tenancy, healthy average rents compared to newly developed centers, and the growth and density projected for the submarket. Moreover, at only $236 per square foot, the center is priced significantly lower than most comparable retail in the market. An investor should be able to increase the center’s value over time via steady rent increases and the continued growth of Little Elm.

Highlights
  • $236 PSF
  • Excellent Visibility on Eldorado Parkway
  • Average Rents $16.62
Documents
Title
Shops_at_Little_Elm_OM_Nov_19.pdf
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Location
Gallery