The Chetek Group of Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a 100% fee-simple interest in Palms Station, a 19,950 square-foot 6-tenant retail strip center (“The Property”), located in Destin, FL.
Palms Station is 100% leased to an e-commerce resistant, dining and service oriented tenant roster that benefits from the dominant location. Palms Station is strategically located on U.S. Highway 98, with excellent visibility and access to approximately 50,000 vehicles per day. U.S. Highway 98 serves as the main route along Florida’s Emerald Coast and connects Panama City to downtown Pensacola.
Built in 2003, the Property is situated on a 2.67-acre infill site. The Property is immediately shadow anchored by a high performing Target and the Winn-Dixie anchored 98 Palms shopping center to the West, which underwent a complete renovation in December of 2018. To the East, Palms Station is immediately adjacent to the Big Kahuna’s Water Park, home to over 40 water slides, rides, and attractions and is one of Destin’s most popular attractions, to both locals and tourists alike. To the North, the Property is located just 1.5-miles from the Destin Executive Airport.
The Property is being offered free and clear of debt at a 7% cap rate totaling $4,385,986.
“A” Location – Rare opportunity to purchase a 6-tenant 100% occupied, 19,950 SF, newer construction strip center within a dense, infill Destin Florida submarket.
Prime Location along Florida’s Emerald Coast – Palms Station features prominent frontage along U.S. Highway 98 which connects Destin to downtown Pensacola and is visited by approximately 4.5 million people per year.
Shadow anchored by high performing Target and Winn-Dixie anchored shopping centers. Immediately adjacent to the Big Kahuna’s Water Park, home to over 40 water slides, rides, and attractions and is one of Destin’s most popular attractions, to both locals and tourists alike.
Long Term Leases – The average weighted lease term remaining is over 5 years with staggered lease expirations limiting near-term leasing responsibility and associated capital costs.
Improving Returns – Due to embedded rental increases and below market rents the Net Operating Income is project to grow approximately 42% during an anticipated 10-year hold period.
NNN Leases – All tenants features NNN leases resulting in few if any landlord capital responsibilities – Operating costs reside with the property’s tenants, not the landlord.