Hay Creek Shops

Bismarck | North Dakota

Offering Summary

  • Status: just listed
  • Price: Request for Offers
  • Net Operating Income: $3,086,794
  • GLA: 250,605 SF
  • Net Operating Income: $3,086,794
  • Year(s) Built: 2015 | 2017 | 2018
  • Lot Size (Acres): 33.24
  • Major Tenants: HomeGoods, Sierra, Dick's Sporting Goods, Ross Dress for Less, O'Reilly Auto Parts, Michaels, Ulta Beauty
  • 250,605 Square-Foot Class-A Community Center in Bismarck, North Dakota | #1 Shopping Center Catering to Over 137k People | One of the Fastest Growing Small Cities in US
  • Premier Class-A Development Built in 2015/2018 | 8 Buildings and 24 Spaces Across 33.24 Acres | Numerous Development Sites for Future Strip Centers, Ground Leases, Build-to-Suits, and Junior Box Space
  • High-Yield Opportunity | Projected 5-Year CAGR of 5.47% and 7-Year CAGR of 4.35% | Returns Include Only Two Conservatively Underwritten Ground Leases, with 4 Additional Development Sites Excluded
  • Complementary, Diversified Tenant Mix Tailored to the Region | HomeGoods, Sierra, Ross, Michaels, Dick’s Sporting Goods, Dollar Tree, O’Reilly Auto Parts, Ulta Beauty, X-Golf, Pizza Ranch, Aspen Dental, Verizon, Sleep Number, T-Mobile, Tropical Smoothie Café, Mattress Firm, Maurices, Poke One, Panchero’s, Eyemart Express, Sleep Number, and AT&T
  • 97.61% Leased | Only 3 Vacancies: 7,000 SF Dark Kirkland’s, 5,000 SF, and 1,000 SF Units | Ample Additional Developable Land
  • Dominant Anchor Lineup: HomeGoods/Sierra, Dick’s Sporting Goods, Ross, Michaels, Ulta, and O’Reilly Auto Parts | 70.22% of GLA and 57% of Gross Income
  • Dick’s Sporting Goods | Original Tenant Recently Exercised 5-Year Option Through 2031 | Deep Commitment to Site | Well-Below-Market Rent of Only $6/SF— Roughly 50%  Below the Center’s Average Junior Box Rent | Future Option Upside
  • HomeGoods & Sierra | Dual-Concept Store with Brand-New 10-Year Lease | Investment-Grade “A” S&P Credit Rating | Top 6% Nationally for Foot Traffic per Placer.ai | Nearly Identical, Co-Terminus Leases
  • Recent Major-Tenant Commitments | New 15-Year O’Reilly Lease with Zero TIA | Ulta Exercised 10-Year Renewal | Ross Exercised First Option 6 Months Early | Michaels Extended for 5 Years | WALT = 6.1 Years
  • Reasonable, Consistent Rents | Junior Box Space Averages $11.93/SF NNN | Small Shop Space Averages $31.51/SF NNN
  • Landlord-Favorable Lease Structures | All Tenants on NNN Leases Reimbursing the Lion’s Share of Taxes, CAM, and Insurance | Healthy Reimbursement of Third-Party Management and Administrative Fees
  • Irreplaceable Real Estate Between Costco and Walmart—the Latter Ranking in the Top 23% Nationally for Foot Traffic | State Street Exposure to 16,709+ VPD
  • Strategic Development Located In Bismarck’s Rapidly Growing Region | Surrounded by Abundance of Master- Planned Communities, Affluent Neighborhoods, and Major Developments
  • Rapidly Growing, Affluent Demographics | 4,460 Residents Within 1 Mile (+211% Since 2000) | 42,764 Within 3 Miles (+68%) | 75,860 Within 5 Miles (+43%) | Average Household Income Exceeding $112,409
  • Top-Tier Retail Trade Area | Costco, Walmart, Menards, Cash Wise Grocery, Fleet Farm, Tractor Supply, Culver’s, Panda Express, McDonald’s, Arby’s, and Starbucks
  • Bismarck: North Dakota’s State Capital and Second-Largest City | Burleigh County Seat | Within 200 Miles of Minnesota, South Dakota, Montana, and Wyoming | Ranked America’s 7th Fastest-Growing Small City by Forbes
EXCLUSIVELY LISTED BY:

Zach Turner

Senior Director