210 E Pleasant Run Rd
DeSoto, TX 75115

Cushman & Wakefield is pleased to exclusively offer for sale the Center City Shopping Center (the “Property”), a high-quality, grocery-anchored shopping center located in DeSoto, Texas, a well-established submarket in the DFW Metroplex. Just 15 miles south of downtown Dallas, the Property has been anchored by Tom Thumb, one of DFW’s top tier grocery store operators, for over 24 years. Built in 1995, the Property has remained stable and historically well occupied by a highly internet resistant tenant line up with average tenancy of over 13 years. The Property is located at the dominant commercial intersection of Hampton Road and Pleasant Run Road, which boasts over 47,000 vehicles per day and is home to DeSoto City Hall. This intersection is a critical economic development engine for the City of DeSoto where the Economic Development Corporation is partnering with local business and property owners to provide funding and incentives for economic development and area improvements. Coupled with strong market momentum, the Center City Shopping Center offers investors the unique opportunity to purchase a newly renovated grocery-anchored center, with stable and predictable cash flow in one of the nation’s largest and fastest growing MSA’s. The Property has seen significant capital improvements over the last two years. In 2019, Tom Thumb early extended their lease with the Seller to November of 2026 in exchange for $200,000 worth of common area upgrades to the center. In addition, Tom Thumb has an agreement in place with the City of Desoto to receive a $250,000 grant in exchange for $1,000,000 worth of capital improvements to Tom Thumb’s Store. Tom Thumb has already completed Phase I of the improvements with the final Phase II to be completed in 2021. Tom Thumb is owned by Albertsons Companies, Inc. (NYSE:ACI), and is North America’s second largest supermarket chain. Albertsons recently went public with a valuation of $800 million and has a credit rating of S&P BB- / Moody’s Ba3. Albertsons owns many of the top grocery store brands in the United States including Jewel Osco, Safeway, Randalls, and Market Street. Tom Thumb’s lease, which includes a fuel station, currently represents 75% of the shopping center’s gross revenue. Sales have increased for the past 3 years and 2020 sales were $24.2 Million /$411 per square foot. This upward sales trend is expected to accelerate as Albertsons continues investing heavily in their DFW operations including in their interior renovation at Center City. DeSoto’s population is expected to increase 5% over the next 5 years to nearly 60,000 people and average household income is projected to reach approximately $92,000 by 2024. This positive momentum along with significant investment should play well into the future performance of the Property.