Palomar Group has brokered the sale of Parkdale Commons, a 191,559-square-foot retail center located in Waco. An undisclosed buyer purchased the property for $15.4 million. Built in 1973, the center is anchored by Hobby Lobby. Other tenants include True Value, dd’s Discounts, Dicky’s Barbecue and Drug Emporium. Hobby Lobby and dd’s Discounts are on leases that extend through 2026, and True Value recently committed to a 10-year term. Drug Emporium also recently renewed for five years. Some more highlights include:

Hobby Lobby ‘21 sales of $12.7mm/ $222psf is in the upper percentile within the chain

89% of revenue is from National Tenants

Leases are staggered and expire incrementally through 2031

National and Regional tenants make up 80% of the gross leasable area

Opportunity for investor to acquire the asset at well below replacement cost

At or below market rents with limited supply within the market