Heritage Square
Closed7696 Hwy 72 NW, Madison, AL 35757
Property type
Retail
Price
$9,400,000
Building size
60,767 sf
Rentable area
60,767 SF
Year built
2008
Year renovated
Occupancy
Zoning code
Lot size
8.10 Acres
Sold/status
Sold · Date unknown
Sale price
$9400000
CAP
7.63%
Net Operating Income
$717,443
Property description
Franklin Street is pleased to present Heritage Square, a 60,767 SF TJ Maxx-anchored retail center in the booming Madison/Huntsville market. Huntsville, nicknamed The Rocket City, is by far the fastest growing metro in the state of Alabama and one of the fastest growing in the country as well. Among its many top rankings, it ranks as the #6 most affordable large city in the country. The Huntsville/Madison County community is the economic driver for the North Alabama Region, with a 16-county regional population of 1.3 million people. Huntsville’s most significant job sectors in Huntsville are Aerospace and defense, with NASA’s Marshall Space Flight Center and the U.S. Army’s Redstone Arsenal being two of the area’s largest employers. There are also many private sector opportunities for residents working in science, technology, engineering, and math, at companies including Boeing, SAIC, and Northrop Grumman. A Toyota manufacturing plant also provides many area jobs. Huntsville is considered the technology hub for the greater Southeast, a title that has contributed significantly to the city’s overwhelming growth rate. Huntsville’s population growth is driving unprecedented commercial, residential, and industrial construction totaling $1.5 billion. The retail sector in Huntsville has shown to be resilient. The metro’s vacancy rate, 2.8 percent, has been stable and is significantly lower than the 4.6 percent 10-year average. Rent growth has also improved steadily over the previous few quarters. Heritage Square is made up of a strong mixture of national and regional brands including TJ Maxx, Goldfish Swim, Plato's Closet, Styles Encore, Sola Salons, Amazing Lash, and others. The property is located on the heavily traveled east-west corridor Highway 72, which leads into downtown Huntsville. The tenants reporting sales at the property are each performing very well for their brands and have been growing every year. There is a mark to market opportunity as tenants leases rollover, as the submarkets rents have continued to increase with the addition of the Clift Farms development that includes 1,735 residential units, 400,000 SF of Publix-anchored retail, and 350,000 SF of office. The property is located at a lighted intersection and shares access with an Aldi, bringing additional daily traffic to the center. Major big box retailers located within a mile of the site include Home Depot, Kohl's, Hobby Lobby, Sprouts, Publix, Lowe's, Target, Ross, Academy Sports, Floor & Decor, Marshalls, Michaels, among many others. The property has been very well maintained since construction in 2008 and has minimal day 1 deferred maintenance.
Property highlights
- 60,767 SF TJ Maxx-Anchored Center With Strong Mixture of National Shop Tenants
- Located in the Booming Huntsville MSA (1.3M Residents)
- Heavily Trafficked Corridor: 51,669 VPD on Highway 72
- Affluent Submarket: $138,000+ Household Incomes
- Rapidly Growing Pocket of Huntsville: 12.5% Growth Expected Over Next 5 Years
- Strong NOI Growth Potential Through Scheduled Rental Increases and Mark to Market Opportunities
- Ability To Assume Low Leveraged Loan With a Below Market Rate (4.66%)
- Very Strong Performing TJ Maxx Operating at a 2.89% Occupancy Cost