Marcus & Millichap is pleased to offer the opportunity to acquire a 73,316-square-foot, two-tenant retail center located in Waco, Texas. Tenants consist of Sky Zone Trampoline Park and Kart Park Karting. Sky Zone Trampoline Park is a leading indoor trampoline park with over 270 locations nationwide. Kart Park Karting is an entertainment venue offering go karts, games, and food options. Both tenants have signed new 10-year leases on triple-net terms and have renewal options with scheduled rent increases. The building was constructed in 1987 and situated on a large 5.36-acre lot with ample paved parking. Property upgrades include roof replacement in 2017 and new HVAC units in 2021, per Landlord reports.
The subject property is located in a dense retail trade area near the signalized intersection of West Waco Drive and Lake Air Drive, and benefits from multiple ingress and egress points from three roadways. Cumulative traffic counts exceed 56,000 vehicles per day. Richland Mall is in close proximity, a 708,249-square-foot regional shopping mall featuring approximately 95 stores and is anchored by JCPenney, Dick’s Sporting Goods, Dillard’s, Tilt Studio, and Shoe Dept. The center is located in a dense retail trade area, neighbored by numerous national and regional retailers, including Ollie’s Bargain Outlet, Olive Garden, BJ’s Restaurant & Brewhouse, The Home Depot, Barnes & Noble, Chuck E. Cheese’s, Academy Sports + Outdoors, Lowe’s Home Improvement, Walmart Supercenter and many more.
- FULLY STABILIZED ASSET
- The property is 100% leased with stable, long-term tenants. Both tenants have signed new 10-year leases with triple-net terms, providing strong cash flow and security. Both leases have scheduled rent increases.
- ENTERTAINMENT-BASED TENANT MIX
- The center is anchored by Sky Zone (59% of the gross leasable area), a well-established national entertainment venue with over 270 locations. Kart Park Karting leases the remaining gross leasable area.
- BUILDING UPGRADES INCLUDING NEWER ROOF AND HVAC UNITS
- Landlord reports a new roof was installed in 2017 with a warranty in place through May 2027. New HVAC units were installed in 2021. Recent tenant improvement and Landlord work are in excess of $6,500,000.
- HIGH-TRAFFIC LOCATION
- The property is situated in a high-traffic corridor with visibility from West Waco Drive and Franklin Avenue, with cumulative traffic counts exceeding 56,000 vehicles per day. Proximity to major traffic drivers such as The Home Depot and Richland Mall ensures strong customer traffic.
- PRIME RETAIL CORRIDOR POSITION
- Proximity to major traffic drivers such as The Home Depot, Richland Mall, Walmart, Academy Sports and Outdoors, Lowe’s, and more ensures strong customer traffic.
- LESS THAN FIVE MILES FROM BAYLOR UNIVERSITY
- Home to 19,850+ students and 5,700 faculty and staff, Baylor’s total conomic impact exceeds $2 billion annually, including direct spending, induced spending, visitor expenditures, research activity, and other contributions to the local economy.
