Whispering Pines Shopping Center
Whispering Pines is a 107,786 SF shopping center located in Manchester TN, just outside of Nashville. The shopping center is a second generation center, originally constructed for Walmart and Food Lion. Walmart relocated about 3 miles away into a supercenter, and the Food Lion closed.
When purchased, the center was 30% vacant, and had tenants such as Family Dollar, Hibbett Sports, Auto Zone and A Plus Rentals.
The center was purchased for $5,465,000 which was a 9% cap rate on NOI of $487,266.
Immediately upon closing, we began to negotiate with Tractor Supply to occupy 20,000 SF of vacant space. In order to accommodate Tractor Supply, we had to relocate two additional tenants, and make the following improvements to the center:
- Replace all canopy lights and parking lot lights with LED fixtures
- Replace the roof of the entire shopping center
- Re-stripe the entire parking lot, and repave certain areas
- Initial equity investment: $1,639,500
- CAPEX required by Tractor Supply for shopping center: $355,351
- Refinanced center
- New appraised price: $6,350,000
- Return of capital from refinance event: $802,000
- Current cash on cash return to investors (based upon original investment): 14%