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Southpointe on High

Columbus, OH

Co-Manager

Jimena Companies

Asset/Strategy Type

Suburban Retail / Lease Up

Minimum Investment

$50,000

Additional

Information *

Express Interest

Targeted Returns:
Download Offering Memorandum to View Returns

Targeted Hold Period:
5 years

* There is no guarantee that targeted returns will be achieved or that preferred return payments will be made.

Spin Class at Planet Fitness – Fairway America
Fairway America Management Group IV, LLC (“Fairway”) and Jimena Companies (“Jimena”) (collectively, the “Co-Managers”) intend to acquire a 38,962 square foot neighborhood retail center in suburban Columbus, Ohio (the “Project”). The business plan includes leasing the vacant spaces, renewing in place tenants, and professionalizing operations at the center. Upon execution of the business plan, the Co-Managers intend to sell the Property by year five.

Investment Summary

The Property, originally built in 1975, was fully renovated in 2006. Due to its location on a major corridor between downtown Columbus and nearby submarkets, the Property has performed well during COVID.

  • Compelling Basis: This opportunity is compelling from a price per square foot ($158/SF) and going-in yield (6.7%) basis relative to nearby competitors like Derby Square ($310/SF, 6.5% yield).1
  • Attractive Cash-on-Cash Return with Durable NOI: The Co-Managers are obtaining favorable lending terms in a rising rate environment and expect to produce strong risk-adjusted returns characterized by high average annual cash yield. The in-place retail rent roll performed well during COVID, with only Saturday’s salon closing and Planet Fitness deferring two months of rent (that has since been repaid).
  • Pricing Dislocation of Retail Asset Class: Fears of e-commerce, COVID, and oversupply nationwide have reduced investor appetite for retail, causing a cap rate discount relative to other asset classes. Per Real Capital Analytics, retail cap rates have remained attractive even as warehouse/distribution and residential apartment cap rates have become more expensive through 2021.2 We believe this opens opportunities for specific kinds of well-located retail to outperform other asset classes.
  • Internet Resistant & Durable Tenants: The tenant mix at the center serves mostly daily needs, including takeout pizza (Little Caesar’s), job recruitment (Army & Marines), cell phones and service (Boost Mobile), and medical (First Choice Chiropractor).
  • Mismanaged Property: The current owner has no prior retail experience and has neglected both the existing tenants as well as the current vacancies, thus generating opportunities for improved tenant relations, property operations, and leasing outcomes.

The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, lack of diversification, and capital call risks. This opportunity is unsuitable for investors who are not prepared to hold their ownership position indefinitely and who cannot afford a complete loss of capital.

1 CoStar Sales Comparable Data, accessed April 18, 2022.
2 https://www.irr.com/news/just-released-viewpoint-2022-17837 

Property & Renovation Summary

Address
3463-3489 South High Street
City / State
Columbus, OH
Year Built
1975
Renovated
2006
Rentable SF
38,962
Occupancy
82.3%
Parking
118 (3.03 per 1,000 RSF)
Expected Hold Period
5 years
Total All-In Cost
$6,564,819
Southpointe 0003 Southpointe on high – Fairway America
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Southpointe 0001 DJI 0655 – Fairway America