Listed by CBRE - Orange County
$8,565,000
The Orchard Shopping Center
Details
APN 223-620-06-00-3, 223-620-03-00-4, 223-620-04-00-7, 223-620-01-00-8, 223-620-05-00-0
Property Type Retail
Sub Type Shopping Center
Square Footage 39,258
Net Rentable (SqFt) 39,258
Cap Rate 6.40%
NOI $548,168
Occupancy 86%
Tenancy Multi
Lease Type NNN
Pro-Forma Cap Rate 7.79%
Pro-Forma NOI $690,836
Price per SqFt $218
Year Built 2008
Acreage 4.200
Zoning C2
Parking Spaces 196 spaces
Parking per 1,000 SqFt 4.99
Investment Type Stabilized
Ground Lease No
Retail | 6.40% CAP | 39,258 SqFt
Marketing description
The Orchard is an ±86% occupied, ±39,258 SF retail center in the heart of Tehachapi's primary retail hub. Anchored by national tenants including Big 5 Sporting Goods and Goodwill, it serves a growing community with essential goods and services.
Benefiting from strong occupancy and complementary surrounding retail, the property offers stable in-place income and solid long-term growth potential.
Strategically located just off Tucker Rd, The Orchard is located within the primary retail hub of Tehachapi, benefiting from surrounding retailers including Walmart Supercenter, Albertsons, AutoZone Auto Parts, Dollar Tree, DG Market, Starbucks, Taco Bell, McDonald's, Jiffy Lube, Panda Express, Chipotle, and more.
Investment highlights
- High-Quality Retail Investment - The Orchard is an ±86% occupied, ±39,258 SF retail center in the heart of Tehachapi's primary retail hub. Anchored by national tenants including Big 5 Sporting Goods and Goodwill, it serves a growing community with essential goods and services
- Benefiting from strong occupancy and complementary surrounding retail, the property offers stable in-place income and solid long-term growth potential
- Stable Cash Flow with Near-Term Upside - The combination of the property's historical occupancy and strong performance provide stability, with near term upside through lease-up of vacant space (±5,666 SF) and embedded rental increases for in-place tenants
- NOI is projected to increase more than $142,000 (26%) upon stabilization in Year 3 and more than $310,000 (57%) over the anticipated 10-year hold period
- A Weighted Average Lease Term Remaining of 5.62 years provides additional stability and limits any near-term rollover risk
- Strong Tenant History and Retention - Approximately 48% (±18,782 SF) of the current tenants, notably Big 5 Sporting Goods, Subway, and AT&T Wireless, have operated at this location for at least ±16 years, demonstrating a recession-resistant asset with exceptional tenant commitment to this location
- Tonics Beauty recently renewed their lease for an additional 5 years (May 2031 expiration)
- Multiple Parcel "Spin Off" Opportunity - With its 5 parcels, The Orchard presents investors with the opportunity to spin-off portions in separate sales, potentially at lower cap rates to reduce basis and increase returns
- Internet Resistant Tenant Mix - The Orchard features a dynamic tenant roster, including national, regional, and local retailers offering a mix of food and beverage, retail, health, and service-focused businesses that are difficult to replicate online, generating strong "daily trip" traffic to the property
- Ideally Sized Tenant Suites - Excluding Goodwill and Big 5 Sporting Goods, the average suite size is ±1,819 SF, conducive to high occupancy, optimal rents, and low tenant improvement costs, keeping capital expenditures to a minimum year-to-year
- Tehachapi's Main Retail Location - Strategically located just off Tucker Rd, The Orchard is located within the primary retail hub of Tehachapi, benefiting from surrounding retailers including Walmart Supercenter, Albertsons, AutoZone Auto Parts, Dollar Tree, DG Market, Starbucks, Taco Bell, McDonald's, Jiffy Lube, Panda Express, Chipotle, and more
- Convenient Access with Significant Visibility - Unmatched visibility and accessibility from Tucker Rd (±15,490 CPD), which is the primary arterial exiting the CA State Route-58 (±29,900 CPD), providing convenient regional and local accessibility
- High Quality Acquisition - The Orchard has been professionally managed, leased, and maintained, providing the utmost care to the property and tenants
- Stable Tenancy with Upside - With strong historical occupancy and long-term NNN leases, the offering provides for a stable retail asset with immediate opportunity through lease up
- NNN + Admin Fees - All tenants feature NNN leases, with most administration fees and management fees recovered, resulting in few if any landlord capital responsibilities. Operating costs reside with the property's tenants, not the landlord
- Free and Clear of Existing Financing - The Orchard will be delivered free and clear of existing financing, permitting investors the opportunity to customize debt to achieve optimal returns
Listing Contacts
Listed by CBRE - Orange County
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$548,168.00
$45,680.67/mo
Valuation Metrics
0
DSCR
6.4%
Cap Rate
6.4%
ROI
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