Fully stabilized, fully rented, fully renovated strip mall at a 6.5% cap rate at list price, with great upside potential! The Hillside Center is a concrete slab, concrete block building with steel roof decking and trusses. 100% occupied, with very strong, upscale tenants that are tops of their industries. Building is NOT in a FEMA flood zone and had no adverse impacts from the storms of 2024. The building has the coveted CCS-1 zoning, which allows drive thru usage by right, along with by right usage as pet care, pharmacy, microbrewery, office, restaurant, bar, retail sales, studio, daycare, health club and more; the list of potential future uses for tenants is wide open. The plaza features an average daily traffic count of 27,000 vehicles, directly off an interstate exit entering Northeast St. Petersburg.
The plaza recently underwent a complete interior and exterior renovation of all units; there is no deferred maintenance whatsoever, on a building that is solidly built. This includes A/C units, new roof (2023), new exterior paint, new exterior lighting, new fencing, new landscaping and more. The pylon sign has been completely rewired with new lighting, and all panels have been replaced. Interior improvements include all 5 units being completely redone, to include lighting, flooring (restored terrazzo in a majority of units), ADA bathrooms, and more. All leases include annual escalations. Each unit has their own, dedicated, private outdoor space as well!
The tenant mix is highly desirable, and includes lifestyle tenants (aesthetician, hair care, florists) as well as a multi unit, statewide operator of iron infusion centers as a co anchor. The businesses within the plaza are some of the most popular in their field throughout the city, with loyal followings and strong organic marketing. All tenants have outstanding Google and Yelp reviews-all are 5 out 5 stars, with hundreds of reviews each!
Per the Wall Street Journal (10/30/23) strip malls are currently the hottest asset class in commercial real estate, with a less than 5% vacancy rate nationally. The Hillside Center presents a chance for an investor to purchase turnkey, fully rented and renovated, pride of ownership asset with excellent cash flow. Upside potential can be achieved through built in escalation of rents from all tenants, and renegotiations when leases are up. Half of the building is currently NNN; leases that are expiring can be transferred to NNN to achieve the most instantaneous NOI growth. Additionally, due to the rare CCS-1 zoning, there is the potential long term for redevelopment of the entire site.
