North Plaza Shopping Center
Five Below & Dollar Tree Anchored Center | Covington, TN
Marketing description
Berkeley Capital Advisors is pleased to exclusively present the opportunity
to acquire North Plaza Shopping Center in Covington, TN. The 29,730 SF
shopping center is 100% occupied and anchored by Five Below (10,090 SF)
and Dollar Tree (8,800 SF), with Five Below committed through 2033 and
Dollar Tree through 2032, both with multiple renewal options. Located on
U.S. Highway 51 (26,800 VPD), the property sits 5 minutes from downtown
Covington and 50 minutes from Memphis. In-place rents average $10.60/SF
against a weighted average market rent of $13.18/SF, providing meaningful
upside upon renewal. Covington serves as the county seat of Tipton County
(62,000+ population, 20%+ growth since 2000) with major employers
including Unilever Manufacturing (1,000 employees) and Baptist Memorial
Hospital – Tipton.
Investment highlights
National Credit Anchors
Five Below and Dollar Tree anchor the center with a
combined 18,890 SF, representing 77% of the total
income. Five Below’s lease extends through July 2033
with three 5-year renewal options, while Dollar Tree
is committed through September 2032 with three
additional 5-year options. Both tenants provide strong
credit-backed cash flow and long-term occupancy
stability.
Below Market Rent's with Upside
Every tenant at North Plaza is leased below market
rent, with in-place rents averaging $10.60/SF against
a weighted average market rent of $13.18/SF — a 20%
discount to market. The greatest upside exists among
the shop tenants, where in-place rents average $6.94/
SF compared to market rents averaging $14.36/SF,
representing a 52% mark-to-market opportunity as
leases roll over the hold period.
Wide Trade Area
Over 50% of shoppers at North Plaza Shopping Center
live more than 5 miles away, drawing customers from
across Tipton County and surrounding communities.
The center’s position on U.S. Highway 51 captures
traffic from a broad regional trade area, reinforcing
tenant demand and reducing dependence on the
immediate local population base.
Strong NOI Growth Projection
Pro forma NOI of $266,302 is projected to grow to
$379,124 by Year 10, reflecting a 3.60% CAGR over
the hold period. This growth is driven by contractual
rent escalations and mark-to-market opportunities on
below-market leases.
Major Employer Demand Drivers
North Plaza is positioned on U.S. Highway 51, which
sees 26,800 vehicles per day. The property is located
5 minutes from downtown Covington and 50 minutes
from downtown Memphis. Adjacent retailers include
Tractor Supply Co., Bealls, and Goodwill, with Walmart
and Home Depot located less than 2 miles south along
the corridor.
Strategic Location on US HWY 51
Covington serves as the county seat of Tipton County
with 62,000+ residents and 20%+ population growth
since 2000. Major employers include Unilever
Manufacturing (1,000 employees), Charms Co. (275
employees, $98M expansion in 2026), and Baptist
Memorial Hospital – Tipton. The center is surrounded
by national retailers reinforcing the corridor’s strength
as Covington’s primary retail destination.
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