1233 Tenaha St - Storefront FOR SALE


Center, TX 75935
$3,822,585 USD
561-602-8390
1233 Tenaha St, Center, TX for Sale
$3,822,585 USD
Storefront - FOR SALE
1/6
null | 7.35% Cap Rate

1233 Tenaha St
Center, TX 75935


HIGHLIGHTS

  • 7.35 Cap Value add retail center with growth and leasing upside
  • Located in the tax free state of Texas, enhancing after tax cash flow
  • Tractor Supply and Goodwill recently extended their leases, confirming long term commitment
  • New roof completed in 2024, limiting near term capital expenditure risk
  • In-place rents are below market and replacement cost, providing long-term upside
  • Necessity based tenants generating stable daily traffic and durable cash flow

OVERVIEW

This is an exceptional opportunity to acquire a dominant, necessity based retail center anchored by Tractor Supply Company and Goodwill at a signalized intersection in the heart of Center, Texas. The property serves as the primary retail destination for the surrounding trade area, drawing consistent shopper traffic from across Shelby County and the broader East Texas market. Strong visibility, steady traffic counts, and limited competitive supply within the immediate trade area combine to give the asset a defensible, captive customer base that is difficult to replicate. New competing development is constrained by available sites, replacement cost economics, and the depth of the existing tenant lineup, all of which protect the center's market position over a long hold. The anchor tenancy is the story here. Tractor Supply Company carries a BBB investment grade rating from S&P Global and operates over 2,400 stores nationwide as the country's largest rural lifestyle retailer, with deep penetration into the farm, ranch, pet, and rural homeowner customer base that defines this trade area. Goodwill complements the merchandising mix as a recession resistant, high frequency traffic driver that pulls daily shopper visits across all demographic segments. Both Tractor Supply and Goodwill have recently extended their leases at this location, which is the clearest signal a tenant can send about store level performance and long term commitment. Recurring extensions of this nature meaningfully reduce retention risk and tell a sophisticated buyer that this is a producing store, not a marginal one. In place rents sit well below current market and well below replacement cost, creating embedded upside that flows directly to the next owner. As leases roll or options are exercised at market, the rent basis offers a natural pathway to growth without requiring re tenanting risk or speculative leasing assumptions. The replacement cost dynamic also functions as a competitive moat. New construction at today's hard cost and land basis simply does not pencil at the rents in place here, which insulates the center from competitive overbuilding for the foreseeable future and protects the income stream over a long term hold. Beyond the embedded growth in the anchor rents, the property offers a clear value add component through existing vacancy that the next owner can lease to market. The vacant space benefits directly from the traffic generated by Tractor Supply and Goodwill, which together drive consistent daily visits across a wide demographic and remove the single biggest obstacle to leasing inline retail space in a tertiary market. A new owner is not chasing tenants to a sleepy center, they are offering small shop and junior box users a position next to two of the most productive credit anchors in the rural retail category. The vacancy creates a true buy below stabilized value entry point, where a buyer captures attractive going in yield from the anchor income on day one and layers in incremental NOI through lease up at market rents, materially expanding cash on cash returns and driving a meaningful step up in residual value at exit. The property is located in Texas, one of the few remaining states with no personal state income tax, which materially enhances after tax returns for investors domiciled in high tax jurisdictions and adds incremental appeal for buyers structuring through a 1031 exchange. A new roof was completed in 2024, eliminating the single largest near term capital exposure on a retail property of this vintage and giving the next owner roughly two decades of remaining roof life. Combined with strong tenant covenants, recently extended leases, a below market rent basis, vacancy upside ready to lease, and minimal deferred capital, the asset offers an unusually clean investment profile: durable income today, embedded growth tomorrow, and a defensible competitive position in a market that rewards dominant locations.

FOR SALE DETAILS

PRICE

$3,822,585 USD

PRICE/SF

$63 USD /SF

CAP RATE

7.35%

% LEASED

-

TENANCY

Multiple

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

7.35 Cap Value Add Shopping Center - Texas

PROPERTY TYPE

Retail

PROPERTY SUBTYPE

Storefront

ADD'L SUBTYPES

Garden Center, Supermarket, Department Store

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

1978

SPRINKLERS

-

PARKING SPACES

485

LAND DETAILS

LAND ACRES

5.92 AC

LAND SF

257,875 SF

ZONING

Commercial

APN/PARCEL ID

R23240

ASK ABOUT THIS PROPERTY

Christopher TwistColliersMore Info
561-602-8390

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Christopher TwistColliersMore Info
561-602-8390

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.