We are closing on a 3rd asset for the Opportunities Fund on Tuesday. Northwest Crossing, a neighborhood shopping center located in the Dallas/Ft. Worth Metroplex. We are buying this property from a disinterested seller at a good price and plan on adding value through revitalizing the leasing strategy for the property. It is on a major thoroughfare in Dallas and is surrounded by a dense commercial and residential population. It cash flows quite nicely right now, yet at the same time, because of its location, is ripe for adding quality to its tenant base.
Leasing activity for the remaining 6,105 square foot vacant space remains steady and we are sending out direct marketing mailings to increase visibility. Prospective tenants include two firms looking for traditional office space and also a professional services firm. Another possible tenant requires 10,000 square feet and we have contemplated the option of building a 4,000 addition to the property. Chicago Franchise Systems has again expressed interest in adding an additional 2,000 sf to their existing space but has not yet pulled the trigger.
The shopping center’s three new tenants have had a lot of activity during the second quarter of 2015. Classical Martial Arts Academy opened in June and their new studio occupies 2,631 square feet. Westside Children’s Therapy has neared completion of building out their entire 7,958 square foot space. The build out of Minute Pharmacy continues in their 1,331 square feet and they are expected to occupy their space before September. We are attaching photos of the work that has been done on the new tenant spaces.
The current leasing activity for the remaining vacant 1871 square feet includes a financial/mortgage company and a personal trainer/fitness center. The Village has indicated a lack of interest in adding a drive thru on this “end cap” vacant space. Therefore Dunkin Donuts is no longer interested in the space. We are developing a rendering for a potential retail building on the outlot since we are now 92% leased to market to a Jimmy Johns, Dunkin Donuts or other drive thru retail/food tenants.
