East Town Plaza

Madison, Wisconsin

Offering Summary

  • Status: closed
  • Price: $20,030,000
  • GLA: 216,732 SF
  • Net Operating Income: $1,861,314
  • Price/SF: $95.42
  • Year(s) Built: 1990-1998
  • Lot Size (Acres): 25.09
  • Major Tenants: Burlington, Marshalls, Ross Dress For Less, JO-ANN, DSW, Party City, Ulta Beauty, Kirkland's
  • 83% Occupied, 216,732 SF Shopping Center Offering in Madison, WI (State Capital, Home of University of Wisconsin – 45K Students)
  • Anchored by Marshalls, Ross Dress for Less, & Burlington – Combined 47% of GLA, All Long-Term Leases, S&P A/BBB/BB Credit Ratings
  • Value-Add Asset: 36,537 SF of Vacant Space (17% of GLA); Projected 12.45% Year 3 CAP at Occupancy Stabilization; 36.4% Year-4 Leveraged IRR
  • Additional Upside via Re-Leasing DSW Space – $3.82/SF NNN Existing Rent VS. Market Rent of $16/SF NNN ($195K NOI/Income, 93 bps CAP Rate Upside Opportunity)
  • Long Term Leases: 76% of Occupied GLA Leased into 2026 or Beyond; 47% of Occupied GLA Leased into 2029 or Beyond
  • 100% of Tenants Open/Paying – Strong Rent Collection Data/History During COVID
  • Home to the University of Wisconsin: 45,000+ Students; One of the 20 Largest Universities in the U.S.; $15+ Billion Annual Economic Impact to the State
  • All Tenants are National Retailers/Operators: Marshalls, Ross, Burlington, Jo-Ann, DSW, Party City, Ulta, Kirkland’s, American Red Cross, etc.
  • Opportunity to Induce Tenant Relocations from Neighboring CBL-Owned 800,000 SF East Towne Mall
  • Grocery-Shadowed by Global Market & Food Hall – Backfilling Former Babies “R” Us; Additionally Shadow-Anchored by At Home – Backfilling Former ShopKo
  • Dominant Center in Market Evidenced by Expedited Backfills of Babies “R” Us and Shopko and Coveted National Tenant Line-Up with Recent Commitments
  • East Town Plaza Saw +/- 2 Million Customer Visits in 2019 (Source: Placer.ai); Pulls from +/- 160 Square Mile Trade-Area
  • Marshalls & Jo-Ann Both Executed 5-Year Renewals During COVID-19 Pandemic – Marshalls with $0.50/SF Increase; Jo-Ann Early-Extended through 2030 with 4% Increase
  • Strong/Rebounding Post-COVID Tenant Sales: Joann’s Sales Up Significantly Since Re-Opening
  • State Capital Location: High Number of Gov’t Employees; 2.54% 2019 Unemployment Rate for Madison VS. 3.4% for Wisconsin & 3.7% Nationally
  • LOI In-Hand from Strong, National Retailer to Backfill Kirkland’s 10,000 SF Space: Higher Rent, 10-Year Lease, $1/SF Bumps Every 5 Years, Limited TILC Deal
  • Situated within Primary Retail Hub for Eastern Madison MSA: 2.3M SF of Retail and Prominent Non-Owned Traffic Drivers Including Home Depot, Target, Hy-Vee, Kohl’s, Hobby Lobby, Bed Bath & Beyond, Michaels, Best Buy, Bob’s Discount Furniture, Ashley HomeStore, Old Navy, PetSmart, and Aldi, along with Dozens of Restaurants and Several Hotels
  • Dense Demographics: 118,154 Residents with AHHI of $85K within a 5-Mile Radius; Madison Has Seen 10% Population Growth Since the 2010 Census
  • High-Traffic, Highway-Accessible Location: 1-Mi from I-90 (108,000 VPD); Located off of E Washington Ave (38,700 VPD)
  • Madison MSA – Home to a Population of 670,000 with Major Employers Including UW-Madison, WI State Gov’t, John Deere, Epic Systems, American Family Insurance, Sub-Zero, Lands’ End, and More
EXCLUSIVELY LISTED BY:

Scott Wiles

Senior Managing Director