Investment Offering
Los Angeles, CA - Shoe Palace
2324 E. Cesar E. Avenue | Los Angeles, CA 90033
$2,932,000
Price6%
Cap Rate$175,912
NOI4,496
± SF Offering GLADescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased, corporate signed, Shoe Palace investment property located in Los Angeles, California. The tenant, Shoe Palace Corporation, has over 5 years remaining on their current lease term with 2 (5-year) options to extend. The lease features 4% annual rental increases throughout the initial term and continuing into the option periods, steadily growing NOI and hedging against inflation. The lease is NNN with limited landlord responsibilities making it an ideal, low-management investment opportunity for a passive investor. This offering represents a rare opportunity to acquire a single tenant retail asset within a dense, infill trade area with high barriers for new development. Founded in 1993, Shoe Palace now has more than 160 outlets across the United States. In December 2020, UK fashion retailer JD Sports’ Genesis Holdings acquired Shoe Palace for a total cash consideration of $517 million. Upon JD Sports’ acquisition, the Mersho brothers became minority owners of Genesis Holdings, the US arm of the JD Sports corporate family. Genesis Holdings, or the Genesis Topco Inc, includes the operations of US athletic footwear and streetwear retailers Finish Line, Shoe Palace, and DTLR Villa.
Location
Shoe Palace is located near the signalized, hard corner intersection of E Cesar E Chavez Ave and N Soto St with a combined 47,900 vehicles passing by daily. E Cesar E Chavez Ave, is a major retail thoroughfare serving the city of Los Angeles. The asset is situated just a few blocks away from direct access to the Interstate 5 & 10, a major commuter thoroughfare serving an average of 241,000 VPD. In addition, Shoe Palace is located less than a mile east of U.S. Highway 101, a major north/south thoroughfare, which cuts through the heart of Los Angeles and averages 211,000 VPD. The property is in the center of a primary retail corridor with other nearby national/credit tenants including Walgreens, CVS Pharmacy, Superior Grocers, Food 4 Less, and more, further increasing consumer traffic to the site. Strong tenant synergy promotes crossover shopping to the subject property. The 5-mile local trade area is supported by a strong population of over 1,024,300 with an average household income of $72,713.
Documents & Links
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 Offering Memorandum |  |  |
Contact
Matthew Mousavi
Sr Managing Principal & Co-Head of National Net Lease
949.698.1116949.698.1116[email protected]CA #: 01732226
Patrick Luther, CCIM
Sr Managing Principal & Co-Head of National Net Lease
949.698.1115949.698.1115[email protected]CA #: 01912215