Investment Highlights
Rare, High-Profile Stabilized Investment.
At 98% leased, Kimball Oaks presents an investor with a prime opportunity to acquire a new Class A multi-anchored community center in one of the most highly sought after retail markets in Texas. With 126,654 square feet, Kimball Oaks is anchored by Marshalls, PGA Tour Superstore (20 year ground lease), Tuesday Morning and BJ’s Restaurant (20 year ground lease) which have long term leases with compelling rent increases throughout the lease terms and renewal options.
Tremendous Demographic Profile.
Kimball Oaks is located within the 76092 zip code which is one of the most affluent in the country. The city of Southlake maintains median household incomes in excess of $186,000 (and per capita incomes exceeding $74,000) with average household incomes of more than $155,000 within a one-mile radius of Kimball Oaks. Southlake’s population growth has increased 12.7% from 2010 to 2015 with more than 112,900 residents and daytime population of 143,487 within a 5-mile radius of Kimball Oaks.
Powerful Retail Trade Area.
Kimball Oaks is strategically located at the southwest corner of Kimball Ave. and Southlake Blvd/FM 1709 in the highly coveted Southlake Retail District which spans approximately two miles along Southlake Blvd. This retail district showcases more than 3 million square feet of retail property including Southlake Town Square, one of the largest and most successful mixed-use developments in the southern U.S. with more than 1.5 million square feet of space. Kimball Oaks is located approximately one mile from Southlake Town Square and benefits directly from the open-air center’s tremendous super regional drawing power which pulls shoppers from more than 30 miles away.
Cash Flow Stability with Solid Rent Growth.
Kimball Oaks provides excellent cash flow with more than 70% of the available rental income generated from national credit tenants with an attractive addition of select regional/local retailers and restaurants. The majority of tenants at the center have long term leases and annual rental increases that compound on a year-over-year basis providing Kimball Oaks with a compound annual growth rate of 1.63% along with a weighted average remaining lease term of 12.2 years.
Preferred Operating Expense Structure.
Kimball Oaks’ tenant leases benefit an owner with a Fixed Common Area Maintenance (CAM) operating expense reimbursement structure with all tenants reimbursing operating income for CAM that substantially exceeds actual common area maintenance expenses incurred by the center. This Fixed CAM structure requires tenants to increase their CAM expense reimbursements by 3-4% annually throughout the term of the leases and renewal options.
Unencumbered Asset.
Kimball Oaks is being delivered to the marketplace free and clear of any existing debt thus allowing an investor to take advantage of today’s aggressive lending environment.
Site Plan
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Demographics
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