Richland Square
Listing Highlights
- •Value-add retail center with 57,301 SF.
- •82% Occupied with Triple-Net leases.
- •Below market rents with upside leasing potential.
- •Prime location at the intersection of Walnut Street and Audelia Road.
Philip Levy
Levy Retail Group
Investment Highlights
- Strategic Dallas location at high-traffic intersection of Walnut Street and Audelia Road
- Significant value-add opportunity with 17.6% vacancy and below-market rents
- Specialized Asian retail tenant mix with strong community ties and low competition
- Stable tenant base with 5.16-year weighted average lease term
- Triple-net lease structure with expense reimbursements
- Current 6.9% cap rate with 9.33% stabilized potential
Risk Factors
- Moderate near-term lease rollover risk with 36.8% of occupied space on MTM or expiring within 3 years
- Non-credit tenant base increases default risk and limits financing options
- Property age (40+ years) may require ongoing capital improvements
- Specialized Asian retail focus may limit future tenant pool if market dynamics change
- Execution risk on achieving projected market rents and occupancy levels
Feature Tags
Underwriting Insights
Key assumptions include achieving 95% stabilized occupancy and $17.19/SF average market rents for vacant/rolling space. Current NOI of $621K grows to projected $840K stabilized, representing 35% NOI upside. Conservative 5% expense increase assumed for higher occupancy. Market rent estimates based on recent lease comparables within the center ranging from $15-22/SF.
Analyst Notes
This represents a classic light value-add retail opportunity with clear, executable upside through strategic leasing. The Asian retail focus is both a strength (community ties, reduced competition) and potential constraint (limited tenant pool). The significant rent spread between current effective rents ($14.38/SF) and recent lease comparables ($17-22/SF) suggests meaningful pricing power. Property age requires consideration for capital planning, but the strong tenant relationships and established business community provide operational stability during lease-up execution.