Central Shopping Center
Retail | 8.80% CAP | 197,686 SqFt
Marketing description
Central Shopping Center is a 197,686 SF retail shopping center located along South Waldron Road in Fort Smith, Arkansas, offering strong visibility and access in a prime Fort Smith retail corridor. The property features a diverse tenant mix anchored by Malco Theatres, Ollie's Bargain Outlet, Locke Supply, and Chuck E. Cheese's. Approximately 79% of leased GLA and 89% of rental revenue are generated by national and regional tenants, providing stable cash flow with embedded upside.
The property presents a compelling value-add opportunity with an average in-place rent of $8.49 PSF sitting meaningfully below market. Several leases were signed 15+ years ago, creating direct upside as renewals and rollovers occur. Four vacant suites totaling 14,933 SF offer immediate lease-up potential at market rents of $10-14 PSF. The property benefits from sticky tenancy and long-term anchor commitment, with Malco Theatres recently executing a 10-year lease extension through 2035 and investing $2,000,000 in interior renovations, reinforcing long-term confidence in the asset and trade area.
Fort Smith serves as the commercial hub for western Arkansas and eastern Oklahoma, with a diversified, stable employment base anchored by manufacturing, oil & gas, healthcare, logistics, education, and government. The market benefits from limited new retail supply and strong demographic fundamentals. The property offers an attractive yield profile with lender support at 60-65% leverage, supporting positive leverage and flexible capital structures.
Investment highlights
- Strong National & Regional Tenant Lineup - Approximately 79% of leased GLA and 89% of rental revenue are generated by national and regional tenants
- Malco Theatres is a top 10 performer compared to Theatres across the state (placer.ai)
- Sticky Tenancy & Long-Term Anchor Commitment - Malco Theatres has occupied the center for over 25 years and recently executed a 10-year lease extension through 2035
- Malco is investing $2,000,000 in interior renovations, reinforcing long-term confidence in the asset and trade area
- Embedded Mark-to-Market and Lease-Up Upside - Average in-place rent of $8.49 PSF sits meaningfully below market, with several leases signed 15+ years ago creating direct upside as renewals and rollovers occur
- 4 vacant suites totaling 14,933 SF offer immediate lease-up potential at market rents, with underwriting already reflecting $10-14 PSF on these spaces
- Attractive Yield Profile with Lender Support - In-place cash flow offers a compelling yield relative to fixed-income alternatives
- Lenders are actively underwriting the asset at 60-65% leverage, supporting positive leverage and flexible capital structures
- Prime Fort Smith Retail Corridor - Located along South Waldron Road with strong visibility and access
- Regional Draw - Fort Smith serves as the commercial hub for western Arkansas and eastern Oklahoma
- Diversified, Stable Employment Base - Anchored by manufacturing, oil & gas, healthcare, logistics, education, and government
- Limited New Retail Supply
- Over 100K SF of Renewals in the past 12 Months
- Over $650K Capital Improvements since 2024 (New Roofs, HVACs, Tenant Improvements, Painted of Entire Center)
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