Priced Below Replacement Cost – Abingdon Shopping Center offers investors the opportunity to purchase a high performing Kroger and stabilized shops for well below replacement value, $54.00 PSF.
Percentage Rent – Kroger pays percentage rent annually at the maximum amount allowed by the lease, $20,000. The tenant’s gross rent in 2018 was less than 1% of its gross sales. Kroger has occupied space in the shopping center since 1979. It expanded the store by 9,000 SF in 2000, performed a major remodel in 2014, and added fuel pumps on a seperate parcel.
Small Shop Rents and Lease Expirations – The average shop rental rate is $7.73 net PSF annually. With lease expiration dates on the horizon, investors have the flexibility to increase rental rates with existing or new tenants or redevelop Abingdon Shopping Center on a larger scale.
Roof Replacements – 100% of the roof area has been replaced and under warranty.
Value-Add Opportunity – 35% of tenants are on NNN leases but are not being charged for expense reimbursements. Additionally, Advance Auto annually pays percentage rent based on store sales.
Long Term Tenant History – 82% of the shopping center GLA has been in place for 10+ years with some of the National tenant anchors going back even further. Kroger 40 years, Advance Auto 25 years.
Recent Tenant Renewals – Aarons, Advance Auto, and Kroger all renewed in 2019.