SPRING VALLEY SHOPPES | TRUSTCO PLAZA
KOHLS SHADOW | 64K VPD | 7.36% Y2 PROFORMA
Marketing description
Marcus & Millichap’s TC Retail Group is pleased to present the opportunity to acquire Spring Valley Shoppes, a stabilized retail investment strategically positioned within one of Clermont’s dominant retail corridors directly off US Highway 27 with exposure to over 64,000 vehicles per day. The property benefits from exceptionally strong retail fundamentals, including 3.5% submarket vacancy according to CoStar and market rental rates averaging approximately $31.26 PSF compared to current submarket rents of $25.75 PSF, providing investors with the opportunity to add value through future rental growth and lease optimization.
The asset offers a compelling opportunity to further enhance cash flow through converting unit 101 lease to an NNN structure and pushing below-market rents toward market levels. Additional upside exists through converting Unit 106 to a full NNN lease structure with no expense caps, enhancing expense recoverability and reducing landlord exposure. Based on in-place operations, the property is projected to achieve an attractive 6.91% Year 1 cap rate with a projected Year 2 proforma cap rate of 7.36%.
Situated on a 1.28-acre parcel and improved with a well-maintained retail asset constructed in 2006, the center is shadow-anchored by Kohl’s and anchored by Trustco Bank, which features a drive-thru component and provides consistent daily traffic generation to the site. The property benefits from strong consumer traffic and established retail synergy within the immediate trade area.
Spring Valley Shoppes is surrounded by major national retailers including Walmart Supercenter, BJ’s Wholesale Club, Aldi, Planet Fitness, Sky Zone, Chick-fil-A, RaceTrac, TJ Maxx, Ross, Michaels, Dollar Tree, Bath & Body Works, Olive Garden, Buffalo Wild Wings, and JCPenney. The property also benefits from its proximity to the highly successful Cross Ridge Exchange development, where newly constructed retail buildings have achieved sales exceeding $600 PSF, highlighting the continued strength and investor demand within the immediate submarket.
Located in one of the fastest-growing cities in Central Florida, the property is supported by dense and affluent demographics, with more than 97,000 residents within a 5-mile radius and average household incomes exceeding $109,000.
Investment highlights
• Attractive 6.91% Year 1 cap rate based on in-place income with a projected Year 2 proforma cap of 7.36%
• Significant near-term opportunity to add value through converting unit 101 lease to an NNN structures, and pushing below-market rents to market levels
• Opportunity to convert Unit 106 to full NNN with no expense caps, enhancing expense recoverability and reducing landlord exposure
• Strong retail fundamentals with submarket vacancy at just 3.5% according to CoStar
• Market rental rates of approximately $31.26 PSF provide meaningful upside compared to current submarket rents of $25.75 PSF
• Kohl’s shadow-anchored retail center benefiting from strong consumer traffic and established retail synergy
• Trustco Bank serves as the anchor tenant and features a drive-thru component, creating consistent daily traffic generation
• Positioned within Clermont’s dominant retail corridor directly off US Highway 27 with exposure to over 64,000 vehicles per day
• Located near the highly successful Cross Ridge Exchange development, where newly constructed retail buildings have achieved sales exceeding $600 PSF
• Surrounded by major national retailers including Walmart Supercenter, BJ’s Wholesale Club, Aldi, Planet Fitness, Sky Zone, Chick-fil-A, RaceTrac, TJ Maxx, Ross, Michaels, Dollar Tree, Bath & Body Works, Olive Garden, Buffalo Wild Wings, JCPenney, and more
• Located in Clermont, one of the fastest-growing cities in Central Florida, with population growth exceeding 3.5% annually
• Dense and affluent demographics with more than 97,000 residents within a 5-mile radius and average household incomes exceeding $109,000
• 1.28-acre site improved with a well-maintained retail asset constructed in 2006
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