Cap Rate: 7.89%
Size: 39,198 SF
Lot Size: 4.00 Acres
Marcus & Millichap is pleased to exclusively market for sale South Lake Plaza (“Property”). It is a 39,198 square foot value-add retail shopping center on an approximately 4 acre parcel in Conroe (Houston MSA), Texas. The Property has great frontage on the high-traffic Highway 105 W, just east of the Conroe’s premier destination, Waterpoint Marina. South Lake Plaza’s location on Highway 105 W in Conroe places it in close proximity to Waterpoint Marina, a destination for water related recreational enthusiasts and residents in the area. The marina offers boat slips and jet skis, events center, retail, and a new mid-rise luxury condominium development under construction Based on a recent US Census Bureau report, Conroe, Texas, was the fastest-growing city in the nation last year with a population increase of 7.8%. That’s a growth rate 11 times higher than the national average.
Accordingly, the population density surrounding South Lake Plaza is impressive, with more than 52,700 people residing within a 5-mile radius of the Property. According to CoStar, there has been over 4,200 multifamily units built in Conroe over the past five years. There are currently, 651 multifamily units under construction. In addition, the population growth is estimated to increase 18.05% by 2023, within that same radius, providing the Property’s tenants the opportunity to supply the residents and recreational enthusiasts with their goods and services.
Located within the large and expansive Houston MSA, the Lake Conroe area has experienced incredible growth and transformation over the last quarter century. Some of the finest residential developments in the country have sprung up around the picturesque shores and wooded terrain surrounding the lake. Neighborhoods such as April Sound, Walden, Del Lago, Bentwater, Seven Coves, Grand Harbor, Point Aquarius, and Corinthian Point have become sources of the most sought after residential real estate in the Houston metropolitan area.
The Property is currently 80% occupied with an appealing tenant mix. All of the tenants have NNN leases. The current tenant mix is Amazon resistant, including, but not limited, to two restaurants, a hair and nail salon, a recreational off-road vehicles retailer (UTVs, Motorcycles, and Dirt Bikes), and a horse and rider apparel and equipment business. Additionally, there is the opportunity to lease the 8,000 square foot vacancy to further enhance an investor’s return South Lake Plaza provides the opportunity for new ownership to take advantage of the Property’s strong location characteristics, leisure and recreational-oriented tenant roster, and opportunity for tremendous upside.
- High Demographic Area AHI Exceeds $108,000
- NNN Leases 80% Occupied
- Price/SF $130.72
- Outstanding Frontage on Conroe’s Hwy 105 W