LBX Investments

PORTFOLIO - old

Southeastern Neighborhood Shopping Centers

Investors have been largely running from retail. The relentless rise of Amazon, combined with doomsday headlines and retailer bankruptcies, has led to chaos within the sector. In 2015 we rolled up our sleeves and began studying the industry, and our findings have been inconsistent with the larger, negative narrative played out in the media. Discounters, some grocers, and service providers compete well with e-commerce and have shown significant growth and stability through multiple market cycles. Additionally, many Southeastern markets - such as Nashville, Atlanta, and Charlotte - are attracting employers and growing at a faster rate than global gateway cities such as New York and San Francisco. Real estate valuations in these Southeastern markets are also favorable, on a relative basis, to those larger markets. Since early 2016, pursuing this strategy of acquiring well-located assets in these markets, principals of LBX have acquired 18 shopping centers, comprising more than 2.7 million square feet and approximately $232.8 million in current market value.   

 

 

Status: Active (Acquired on 2/15/2019)

 
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OAKWOOD COMMONS

Oakwood Commons is a Class B, 276,448 square foot Publix-anchored power center in Hermitage (Nashville MSA), TN

Key Attributes:
  • Property is located in a growing submarket of Nashville, one of the most dynamic markets in the country.
  • Anchored by Publix and Ross, two investment grade credit tenants
  • Investment offers both shop space lease-up and outparcel monetization opportunities


  • Status:
  • Targeted Holding Period: 5 Years
  • Total Required Equity: $9,710,000
  • Targeted Annual Avg. Cash-on-Cash Returns to LPs: 14.3%
  • Projected IRR to LPs: 19.0%
  • Target Equity Multiple: 1.94x
  • Status: Active
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    Status: Active (Acquired on 2/15/2019)

     
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    COLONY PLAZA

    Colony Plaza is a Class B, 216,693 square foot grocery-anchored shopping center in South Augusta, GA

    Key Attributes:
  • Strong credit at anchors (Food Lion and Sitel) with significant remaining lease term
  • Acquired at approximately 50% of replacement cost
  • Three potential outparcel monetization opportunities


  • Status:
  • Targeted Holding Period: 7 Years
  • Total Required Equity: ~$3,840,000
  • Targeted Annual Avg. Cash-on-Cash Returns to LPs: 18.4%
  • Projected IRR to LPs: 22.1%
  • Target Equity Multiple: 3.02x
  • Status: Active
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    Status: Active (Acquired on 6/28/2019)

     
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    NORTH RIVERS TOWNE CENTER

    North Rivers Towne Center is a Class B, 141,463 square foot Target shadow-anchored power center in North Charleston, SC

    Key Attributes:
  • Has strong Target (shadow) and Ross anchor co-tenancy
  • Based in the commercial hub of North Charleston, which is characterized by a robust daytime population, significant traffic counts and growing demographics, with numerous large employers (including Boeing, Volvo, Mercedes Benz, Charleston International Airport, etc.), a technical college, and a hospital nearby
  • Opportunities to reduce basis by selling multi-tenant outparcels in the front of the center


  • Status:
  • Targeted Holding Period: 6 Years
  • Total Required Equity: $7,710,000
  • Targeted Annual Avg. Cash-on-Cash Returns to LPs: 10.1% (from operations)
  • Projected IRR to LPs: 18.0 %
  • Target Equity Multiple: 1.68x
  • Status: Active
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    Status: Active (Acquired on 8/15/2019)

     
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    PROMENADE FULTONDALE

    Promenade Fultondale is a Class B, 208,568 square foot Target shadow-anchored power center in Birmingham, AL

    Key Attributes:
  • Has a strong Target shadow anchor and a diverse national tenant roster with Ross Dress for Less, Books-A-Million, Five Below, and Encore Shoes.
  • Highly visible from I-65, a major north-south thoroughfare in and out of Birmingham that sees almost 90,000 vehicles per day
  • J.C. Penney presents a potential value-add opportunity due to its corporate risk, large footprint (83,675 SF, or 40.1% of GLA), and sharply below market rent ($3.82/SF)


  • Status:
  • Targeted Holding Period: 6 Years
  • Total Required Equity: $9,850,000
  • Targeted Annual Avg. Cash-on-Cash Returns to LPs: 12.4%
  • Projected IRR to LPs: 19.5%
  • Target Equity Multiple: 2.11x
  • Status: Active
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    Status: Active (Acquired on 8/23/2019)

     
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    OAKBROOK STATION

    Oakbrook Station is a partially renovated Class A/B, 138,166 square foot grocery-anchored shopping center in Summerville, SC

    Key Attributes:
  • High quality supermarket anchor in newly developed store with 18 years of remaining lease term
  • Well-located, highly visible real estate with high traffic counts
  • Significant upside embedded in current leases, including the US Post Office, whose rent equates to ~$1.75/SF net, far below current market rents of $16-25/SF


  • Status:
  • Targeted Holding Period: 5 Years
  • Total Required Equity: ~$6,115,000
  • Targeted Annual Avg. Cash-on-Cash Returns to LPs: 9.3%
  • Projected IRR to LPs: 16.7%
  • Target Equity Multiple: 1.94x
  • Status: Active
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    Status: Active (Acquired on 4/8/19)

     
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    TERRACES AT UNIVERSITY PLACE

    Terraces at University Place is a Class B, 65,112 square foot neighborhood shopping center located in Charlotte, NC.

    Key Attributes:
  • 96%+ occupied
  • Located across the street from University of North Carolina Charlotte’s main campus
  • Well-diversified mix of local and regional retailers


  • Status:
  • Targeted Holding Period: 5 Years
  • Total Required Equity: $4,630,000
  • Annual Avg. Cash-on-Cash Returns to LPs: 9.2%
  • Projected IRR to LPs: 15.0%
  • Target Equity Multiple: 1.79x
  • Status: Active
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    Status: Active (Acquired on 4/1/19)

     
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    VILLAGE AT CHAPEL HILL

    Village at Chapel Hill is a Class B+, 17,719 square foot strip center located in suburban Atlanta, GA.

    Key Attributes:
  • Shadow-anchored by a 45,000 SF LA Fitness (part of the original acquisition and sold at close), and Aldi
  • Well-located asset in primary retail corridor


  • Status:
  • Targeted Holding Period: 2 Years
  • Total Required Equity: No LPs
  • Annual Avg. Cash-on-Cash Returns to LPs: No LPs
  • Projected IRR to LPs: No LPs
  • Target Equity Multiple: No LPs
  • Status: Active
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    Status: Active (Acquired on 9/24/18)

     
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    HARBISON CENTER

    Harbison Center is a Class B, 187,974 square foot community shopping center located in Columbia, SC

    Key Attributes:
  • One of the best-positioned centers in the top retail node in the Columbia submarket
  • Located directly across the street from an institutionally owned mall
  • On a hard corner with average daily traffic counts exceeding 40,000 VPD
  • Multiple strategic opportunities to improve the center over time


  • Status:
  • Targeted Holding Period: 6 Years
  • Total Required Equity: $8,447,625
  • Annual Avg. Cash-on-Cash Returns to LPs: 11.0%
  • Projected IRR to LPs: 17.9%
  • Target Equity Multiple: 2.12x
  • Status: Active
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    Status: Active (Acquired on 6/28/18)

     
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    ALAFAYA COMMONS

    Alafaya Commons is a recently redeveloped Class B, 130,811 square foot neighborhood shopping center located in Orlando, FL

    Key Attributes:
  • One mile away from the second largest university in the country, University of Central Florida (67,000+ population as of 2018)
  • Opportunities to beautify center and improve occupancy
  • On a hard corner with average daily traffic counts exceeding 100,000 VPD


  • Status:
  • Targeted Holding Period: 4 Years
  • Total Required Equity: $7,745,532
  • Annual Avg. Cash-on-Cash Returns to LPs: 12.3%
  • Projected IRR to LPs: 18.1%
  • Target Equity Multiple: 1.72x
  • Status: Active
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