Marcus & Millichap is pleased to offer the opportunity to acquire a Walmart shadow-anchored multi-tenant retail center in Peñitas, Texas. The 30,000-square foot building is currently 90 percent
occupied with 33 percent of the gross leasable area having triple-net leases, providing significant upside potential. Anchored by Melrose department store, other tenants include First Cash and Pawn, Cricket Wireless, Subway, La Joya Dental, Rocking Horse Rehab, Domino’s Pizza, and Jones & Crane attorneys. The building was constructed in 2004 and sits on 3.82 acres.
The subject property is located on the north side of Expressway 83, the major east-west thoroughfare in the city. Traffic counts are approximately 31,000 vehicles per day in front of the property. Walmart Supercenter is directly north of the property, and other neighboring retailers include Dollar Tree, Sally Beauty Supply, Wingstop, Boost Mobile, BBVA Bank, Dollar General, United States Postal Service, and more. John F Kennedy Elementary School is located across from Walmart and has an enrollment of around 900 elementary students.
Peñitas is a city in Hidalgo County near the United States border with Mexico. The city is 14 miles from McAllen and 26 miles from Rio Grande City. It is part of the McAllen–Edinburg–Mission and Reynosa–McAllen metropolitan areas. The city is served by the La Joya Independent School District, and the South Texas Independent School District operates magnet schools that also serve the community.
SALE HIGHLIGHTS
- Walmart Shadow-Anchored Multi-Tenant Retail Center
- 90% Occupied | 33% of the Gross Leasable Area has Triple-Net Leases
- Priced at $90 per Square Foot, Below Replacement Cost
- Upside Potential | Pro Forma Cap Rate is 11.88%
- Anchored by Melrose Department Store
- 72% of the Gross Leasable Area has Credit Tenants
- Expressway Location on the City’s Major East-West Thoroughfare | Traffic Counts are Approximately 31,000 Thousand Vehicles per Day
- Near John F Kennedy Elementary School with Approximately 900 Students
- Peñitas is Part of the McAllen–Edinburg–Mission and Reynosa–McAllen Metropolitan Areas
ECONOMIC DEVELOPMENT
- A National Casual Dining Chain is Slated to Begin Construction on the Eastern Pad Site Adjacent to the Subject Property, with an Access Easement/Curb Between Penitas Plaza and the Pad Site
- A Nationally Recognized K-12th Grade Educational Facility is Awaiting Announcement of the Diamond/83 Project, with the School Opening in Fall 2021
- Housing Market Continues to Grow | The 2016 through 2018 Certified Ad Valorem Tax Values Indicate Single Family Residences have Increased from $127,426,000 to $146,119,856 and Include 102 Additional Residences
- City Sales Tax has Improved by 2.7% in 2016, .005% in 2017, and 13.8% Year-to-Date for 2018
INFRASTRUCTURE IMPROVEMENTS
- The City has $300 Million of Road, Drainage, and other Infrastructure Improvements Either Currently or Soon to be Under Contruction , Including the Liberty Boulevard, Diamond/83 Loop, Penitas Drainage, and La Joya Bypass Projects
- The Department of Transportation Recently Approved an Advanced Funding Agreement for the Extension of Liberty Boulevard from U.S. 83 to Mile 3 Road | Project will Begin in Early 2019 and Finished by Early 2021, Extending Liberty’s Current Five Lanes to Mile 3 Road
- Penitas has the Only Planned Hidalgo County Drainage District Lateral in the Western Area of the County | The Drainage Lateral Project is Integrated into the Liberty Boulevard and La Joya Loop Projects
- The La Joya Loop Bypass Project has Completed Land Acquisition and Should be Completed by Late 2022
