Summary

North Hills Centre is a neighborhood shopping center with high visibility along Lonnie Abbott Road in Ada, OK.  Ada, OK is a small town 82 miles southeast of Oklahoma City and 138 miles north of Dallas. The population of Ada is 16,000 with a retail trade area of approximately 100,000 people. The center was 87% occupied at the time of acquisition. Lonnie Abbott Road has a daily traffic count of approximately 17,000 vehicles per day. 

Sixty-five percent of the occupancy is comprised of regional or national credits including Chili’s, Dunlap’s, Goody’s Family Clothing, Hastings Entertainment, Cinemark, Sears, Dollar Tree, Hibbett Sporting Goods, Maurice’s, The Cato Corp., Bath & Body Works, and GNC. The credit tenancy in the center has a common retailing strategy of targeting principally smaller markets.  By targeting smaller markets, these retailers believe they achieve significant strategic advantages, including numerous expansion opportunities, comparatively low operating costs, and a more limited competitive environment than is generally found in larger markets.

The investment opportunity resides in gaining exposure to a dominant local shopping center with a stable credit tenancy, cashing-out the majority of invested equity one year into the holding period upon the refinancing of a low-leverage mortgage being assumed as part of the acquisition, extracting additional value through the sale or leasing of two pad sites, and leasing the vacant space in the center.