Arapaho Village

Investment Highlights

Exceptional Grocery-Anchored Center in Dallas/Ft. Worth.

Arapaho Village is a vibrant, neighborhood shopping center located in Richardson, Texas. Anchored by a 43,256 square foot Tom Thumb store, Arapaho Village features 101,507 square feet of premier retail space bound by three (3) thoroughfares. Operating at this location since 1990, Tom Thumb recently extended its lease through February 2030 and has completed over $600,000 in interior store improvements upon its early lease renewal. Tom Thumb's annual sales were $20.73 million in 2023 (year ending 6/30/23), representing a 9.5% increase over 2022 annual sales and a 32% increase over their annual sales in 2019. Tom Thumb’s annual rent increases over 14% in February 2025.

Tremendous Value-Add Opportunity.

Currently 91.9% leased, Arapaho Village is a popular and well-established retail center with twenty-two (22) existing tenants and four (4) small shop vacancies. WellMed Medical Management, wholly owned by United Healthcare Services Inc. (Fitch rating: AA¬-), recently leased a 9,422 square foot end cap vacancy (initial rent: $14/SF NNN) formerly occupied by Tuesday Morning. In June 2024, China Express’ lease expires with an at-market renewal option. This will allow an investor the opportunity to retenant and push rent materially higher for this prominent, end cap space. In addition to the existing shop vacancies, a prime .67 acre undeveloped pad site at the signalized hard corner of the shopping center is included with this offering.

Strong Demographics With Very Affluent and Dense Population.

Arapaho Village is surrounded by highly affluent incomes and dense population. Average household incomes (2023) exceed $141,014 within a 1-mile radius with more than 13,100 residents. Within a 3-mile radius of the center, there are more than 134,961 residents with average household incomes exceeding $127,732. Within a 5-mile radius, there are more than 396,786 residents with average household incomes of $120,944.

Below-Market Rents and Compelling Rent Growth.

Over a 5-year hold period, the compound annual growth rate (CAGR) at Arapaho Village exceeds 5.1% based on organic rent growth and using conservative market lease rate assumptions. Existing rents at Arapaho Village average $11.25/SF and are considered well-below market in the Richardson submarket. Approximately 72% of the existing tenants at Arapaho Village do not have renewal options or have FMV options, allowing an investor to materially increase existing shopping center rents.

Recent Landlord Capital Improvements.

Over 80% of the parking lot recently received a 2-inch asphalt overlay with striping. Additionally, the ownership has implemented a sign improvement program including a new multi-tenant pylon sign and monument signs.

Excellent Visibility and Access.

Arapaho Village is located at the signalized, southwest corner of Arapaho Rd. and West Shore Drive with more than 26,700 vehicles on Arapaho Rd. passing by the center each day. The shopping center maintains seven (7) access points allowing convenient ingress/egress for shoppers.