All Tenants Current on Rent Throughout COVID Pandemic with No Deferrals or Abatements, Showing Resiliency of Tenant Mix
Palm Gate Plaza offers an investor a highly visible, well-designed neighborhood center, located on a major commercial artery in an established and densely populated trade area of West Palm Beach. West Palm Beach is the largest city in Palm Beach county, with 113,749 residents and projected 7.2% Population Growth Expected in a 10-mile Radius over the Next 5 Years. Palm Gate Plaza presents a rare, generational opportunity to purchase a shopping center of significant scale that has not traded since 1994, providing stable cashflow, a secure income stream with tremendous future upside.
This low hassle/low management center features all NNN leases, making an ideal 1031 exchange. Property-wide in-place rents average only $16.29 PSF, approx. 30% below prevailing market rates, enhancing tenant stability and competitiveness. These rents can easily be replaced as leases roll, providing an opportunity to drive NOI.
Projected NOI Growth of approximately $517,379 (+63%) over an anticipated 10-Year hold period provides outstanding income growth through a combination of scheduled rent increases, bringing rents to market and out parcel development.
Long Term, Investment-Grade Anchor, Dollar General, secures 20% of the GLA and has 8+ years remaining with 2, 5-Year options with 10% increases. Dollar General early renewed their first option showing their commitment to the location. This is reportedly one of the top performing locations in the county.
Palm Gate Plaza is comprised of a complementary and diverse tenant mix of “daily needs” discount retail, food & beverage, medical, professional & community services. These tenants demonstrate internet and recession resistance, which cannot be replaced online, providing a barrier to internet competition.
Dollar General’s sales skyrocketed while Retail dominated by “mom and pop” type tenants endured particularly strongly during the COVID pandemic. The fact that all rents remained current and required no abatements or deferrals is a testament to the strength and resiliency of the tenant profile at Palm Gate Plaza.
Florida is the 2nd Fastest Growing State in the Nation. An Estimated 601,611 People Relocated to Florida in 2019. The South Florida Region is Projected to Increase By More Than 12% For Each of the Next 3 Decades, according to the US Census Bureau.