Somerset Plaza
Strip Center with Upside // Growing Area of Montgomery
Marketing description
Somerset Plaza is strategically positioned along Atlanta Highway, one of Montgomery’s primary retail corridors, benefiting from approximately 22,436 vehicles per day and strong visibility within the city’s dominant east retail submarket. The corridor serves as a central commercial artery, connecting established residential neighborhoods with major shopping centers, dining destinations, and service-oriented businesses.
The surrounding trade area is supported by nearly 90,000 residents within a five-mile radius and average household incomes exceeding $93,000, providing a stable and affluent consumer base. East Montgomery is widely regarded as one of the city’s most desirable residential areas, characterized by quality housing, consistent population density, and proximity to everyday retail conveniences.
Montgomery’s economy is diverse and resilient, anchored by major employers such as Maxwell-Gunter Air Force Base and Hyundai Motor Manufacturing Alabama, in addition to a strong presence in government, healthcare, and higher education. This broad employment base provides long-term economic stability and sustained demand for neighborhood-serving retail, reinforcing the property’s position within a proven and established corridor.
The center benefits from nnn lease structures, limited landlord expense exposure, and embedded rental growth within select leases. With 2,500 square feet currently vacant and average in-place rents below modeled market assumptions, the offering presents both stable income and measurable upside potential.
Located within a dense retail and residential corridor, the property is supported by 89,373 residents within a five-mile radius and average household incomes exceeding $93,000.
Investment highlights
- Attractive 7.50% going-in cap rate providing strong day-one yield supported by $294,725 in in-place net operating income.
- High-performing multi-tenant strip center totaling 27,250 rsf and currently 85.33% occupied, delivering stable and diversified cash flow.
- Strategic location along atlanta highway (22,436 vpd), montgomery’s primary east retail corridor with strong daily commuter traffic and established retail synergy.
- Affluent and dense trade area, supported by 89,373 residents within five miles and average household incomes exceeding $93,000.
- Nnn lease structure with minimal landlord responsibilities and a manageable 24.6% expense ratio, enhancing income durability.
- Embedded growth and upside potential through 4,000 sf vacancy comprised of the centers two end cap units and contractual rent increases, offering opportunity to drive noi through lease-up and mark-to-market strategies.
- Well-maintained 2003 construction situated on a sizable 7.86-acre parcel with ample surface parking and strong visibility.
- Compelling basis at $144 psf, below recent strip retail sale averages in comparable alabama markets.
- Diversified tenant mix reducing reliance on any single operator and limiting concentration risk.
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