Mays Crossing Shopping Center
Listing Highlights
- •Anchored by a new seven-year lease with Los Campeones Gym
- •Fully stabilized and 100% leased with triple-net leases
- •New roof installed in 2022 with a 15-year warranty
- •High traffic counts of approximately 197,000 vehicles per day
- •Adjacent to future multifamily development (244 units)
Philip Levy
Levy Retail Group
Investment Highlights
- Fully stabilized and 100% leased with established tenant base
- Prime I-35 frontage location with 197,000 vehicles per day traffic count
- Recent capital improvements including new roof (2022) with 15-year warranty
- Strong anchor tenant Los Campeones Gym with 7-year lease term covering 47% of GLA
- Triple net lease structure with full expense pass-through to tenants
- Located in high-growth Round Rock submarket with strong demographics
- Adjacent to planned 244-unit multifamily development enhancing trade area density
Risk Factors
- Month-to-month tenant represents 5.2% of GLA with immediate rollover risk
- Significant lease rollover exposure with 21% of GLA expiring by 2027
- Tenant concentration risk with anchor tenant representing 47% of total rent
- Mixed tenant credit quality with several local/non-credit tenants
- Specialty tenants (axe throwing, gaming lounge) may face challenging lease-up if vacated
- Economic sensitivity of discretionary spending tenants during downturns
Feature Tags
Underwriting Insights
Current 7.21% cap rate reflects stabilized operations with full NNN lease structure effectively passing through all operating expenses to tenants. Key sensitivity lies in lease rollover assumptions and market rent growth projections. Strong demographic trends support rent growth potential, but tenant rollover timing requires careful management to maintain occupancy levels.
Analyst Notes
This represents a solid core-plus retail investment in a strong secondary market with good fundamentals. The 7.21% cap rate appears reasonable for the risk profile, though lease rollover management will be critical to maintaining performance. The property benefits from excellent location and recent improvements but requires active asset management given upcoming lease expirations. Strong demographic tailwinds in Round Rock should support long-term performance, making this suitable for investors seeking stable cash flow with moderate value creation potential through lease management.