3 W Nine Mile Rd
Pensacola, FL 32534

Plaza North is an 81,774 square foot retail center located on a 7.63 acre site in Pensacola, Florida. The property is sandwiched between two of the busiest intersections in the market, with access points on three roads, and signage on every side. Thus, it has convenient access and visibility to over 60,000 cars daily. Plaza North is anchored by Tractor Supply Company, with other notable tenants being Citi Trends, Hibbett Sports, Anytime Fitness, and King Buffet. These tenants have a strong history in the center, with eighty percent of the leased square footage being here for 8 years or more, and sales reporting being strong and above average. Plaza North is bracketed by the area’s two top economic drivers: Navy Federal Credit Union and University of West Florida. Just a few miles west on W 9 Mile Road, Navy Federal is building its massive, $1bil Heritage Oaks campus which, when completed, will host 10,000 employees and have a $3.4bil economic impact. The new campus will draw high salaried talent, especially in the IT field, which has spurred a residential development “boom” in this area. There are multiple new residential projects underway surrounding the Navy Federal campus, totaling roughly 1,000 units. Plaza North is one of two anchored retail centers servicing this side of W. 9 Mile. The University of West Florida is located in the opposite direction, east down W 9 Mile Road. This campus is attended by roughly 12,000 students, generates more than $1.1bil in total annual sales for the regional economy, and supports over 11,000 jobs in the market. Lowe’s, Home Depot, and Walmart lie west or south of Plaza North ensuring that these university students must pass the center for some of their shopping. Plaza North is currently 76% occupied, with nearly 20,000sf available to lease. Furthermore, those tenants currently in the center, are almost all leased far below market. This is the result of the long-term occupancy of the current rent roll, combined with the significant economic improvements that have occurred after these leases were signed, and the property’s history of long distance, inattentive ownership. Average market rental rates for inline units are roughly $12-15/sf NNN. The rents increase upward to $25/sf in the newer properties. At Plaza North, 2500 sf units are leased for $7.20/sf and $8.50/sf, even as a new lease for 7500sf is at $10.75/sf NNN. The disparities in rental rates within the center, as well as the below market rental rates when compared to other centers in the market, imply Plaza North could far exceed its current performance with diligent ownership over time. By leasing the vacant units, bringing the center to a market occupancy of 90+ percent, and by bringing the current tenants to market rent as they renew, an investor can realize a substantial value enhancement.