Gravois Plaza
125,839 SqFt
Marketing description
CBRE, Inc. is pleased to exclusively offer for sale the fee simple interest in Gravois Plaza, a 125,839 square foot Value-Add High-Performance Grocery Anchored retail center (the “Offering”). Originally developed in 1970 and renovated as recently as 2020, Gravois Plaza is situated on 13.07 acres in St Louis, MO (Top 23 MSA | Pop: 2.8 million). Currently 83% occupied, the Offering provides an incoming investor with a high-performance grocer, credit tenant base, WALT of 5.69-Years, tenured tenant base and upside potential.
Gravois Plaza has always been recognized as the dominant retail asset it’s in respective trade area. It is situated along Gravois Ave near its intersection with Grand, which carry a combined 40,000 VPD and provide seven points of ingress/egress including 3-fully signalized intersections. Generally considered to have a blue-collar demographic profile the asset is .75 miles from the iconic St Louis Tower Grove Park and the Botanical Gardens where home values exceed one million dollars. Other nearby attractions include Anheuser Busch Brewery located 2-miles to the east and Downtown St Louis only 3-miles away.
The property is strategically positioned in an under served trade area with a dense residential setting that includes nearly 30,000 people in a 1-mile radius with only 1 additional grocer. The competitively isolated environment has contributed to Aldi’s high performance at the subject property with 2024 Aldi sales exceeding $766/SF and resulting in a highly favorable health ratio of 1.55%. In addition, the immediate area very limited supply of small shop space. Within a 1.5-mile radius of the shopping center these is only one other retail asset with existing small shop space. This has resulted in strong historical occupancy at the subject property and tenant loyalty with 42% of existing in-line GLA tied to tenants possessing over 15-years of operational experience at the property. Aside from the anchor tenant’s performance the asset possesses a rent roll primarily composed of dominant national retailers (82% of Year-1 Rev), necessity based and e-commerce adverse retail, as well as a highly tenured in-line tenancy.
Investment highlights
UPSIDE POTENTIAL
Incoming investors can enhance their yield by leasing up 21,646 square feet thereby increasing total revenue by $404,933 a 22% increase over Year-1 revenue.
HIGH PERFORMANCE CREDIT GROCER
Aldi has reported sales of nearly $20.4 million ($766/SF) and a health ratio of 1.55%. Founded in 1961 ALDI operates over 10,000 stores throughout Europe, Australia and the US including approximately 2,400 stores across 39-States in the US. It is recognized as the United States No.1 leader in value within the grocery sector (Dunnhumby Retailer). The necessity-based retailer provides investors with exceptional credit profile, long-term lease commitment and ensures strong consumer traffic on a daily basis.
WALT
Gravois Plaza possesses a weighted average lease term (WALT) of 5.7-Years.
INFILL SUPPLY CONSTRAINED TRADE AREA
Gravois Plaza is a direct beneficiary of a supply constrained trade area surrounded by dense residential population that includes 155,220 people within a 3-mile radius providing a captive audience for the retailers within the Property. The infill nature of the trade area coupled with market rents and cost of construction make the likelihood of any future competitive development unlikely. Within 1-mile there is only one competing grocer and within 1.5-miles there is only one other retail asset that offers small-shop space.
HIGH PERFORMANCE TENANTS
The success of Gravois Plaza is best demonstrated through the success of its tenants. Several of the retailers within the center possess above average sales including Aldi ($766/SF+), Dollar Tree ($144/SF), Hollywood Beauty ($276/SF), America’s Best Top 57% Chain Ranking PlacerAI, Octapharma Top 73% Chain Ranking PlacerAI and City Gear is the #2 ranked store in the chain per PlacerAI.
TENURED TENANCY
Gravois Plaza features a tenancy that possesses a longstanding operational track record demonstrating the retailers’ success and commitment to the center. 6 out of the 12 in-line shop tenants comprising 32,908 sq. ft. of occupied shop space have over 15-Years of operational history at the property. These tenants represent 42% of the in-line occupied GLA & 44% of In-Line Year-1 In-Place Revenue.
STRONG LEASING MOMENTUM WITH LIMITED LEASE ROLL
Gravois Plaza features no lease expirations until November 2026. Furthermore, over the past 5-years ownership has renewed 9 tenants totaling 48,726 square feet and executed 2 new leases totaling 14,710 square feet. Collectively, this leasing momentum represents every existing tenant in the center with exception of Aldi, who signed a 15-year lease in 2019 and Octopharma who signed a 10-year lease in 2019. Combined with the tenure of the tenancy this demostrates the low risk profile and stability of cash flow that this asset provides.
NATIONAL TENANCY
82% of Year-1 In-Place Revenue is derived from category leading
national retailers.
NECESSITY BASED RETAIL
57% of Year-1 Revenue is derived from necessity-based retailers with a high resilience to the challenges of E-Commerce and global pandemics such as Covid-19.
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