Dominant, Grocery-Anchored Community Center.

Southgate is a well-established shopping center located in Lake Charles, Louisiana. Anchored by a 37,442 square foot Market Basket store with more than 40 years of tenancy, Southgate features 157,818 square feet of premier retail space with fourteen (14) tenants including Dollar Tree, Office Depot and Books-a-Million among others. Market Basket is the state’s dominant regional grocer with 31 full-service supermarket locations in Louisiana and Texas.

Value-Add Opportunity with Strong Placer.ai Rankings.

Currently 90.8% leased, Southgate is a popular and well-established retail center with four (4) existing vacancies totaling 14,530 square feet of prime, highly visible space. According to Placer.ai, there are more than 1.3 million annual customer visits to Southgate and three (3) existing anchor tenants with very compelling chain store rankings:

Market Basket: Top 73% (percentile) of stores statewide – 5th out of 15 stores

Books-A-Million:  Top 72% (percentile) of stores nationwide – 30th out of 107 stores

Dollar Tree:  Top 67% (percentile) of stores statewide – 58th out of 177 stores

Below-Market Rents and Compelling Rent Growth.

Over a 5-year hold period, the compound annual growth rate (CAGR) at Southgate exceeds 2.34% based on organic rent growth and using conservative market lease rate assumptions. Existing rents at Southgate average only $12.11/SF and are considered well-below market in the Lake Charles market. The weighted average remaining lease term or WALT is 5.1 years.

Major Landlord Capital Improvements.

In the aftermath of Hurricane Laura in 2020, Southgate was substantially rebuilt throughout 2021/2022 by the current ownership. More than $32 million of insurance proceeds were spent to replace and upgrade the center including all new roofs, HVAC units and materially upgraded facades supported by 360 tons of structural steel and structural concrete. All improvements are up to code and the shopping center has been refit to meet the new Class B 140 mph wind ratings.

Thriving Location with Key Access and Signage.

Southgate is located at the signalized, northeast corner of Ryan Street and W. Eighteenth Street with more than 25,547 vehicles passing by the center each day. The shopping center maintains ten (10) access points allowing convenient ingress/egress for shoppers and features two (2) prominent, multi-tenant pylon signs. Southgate is located less than one mile from Simon-owned Prien Lake Mall which features more than 848,000 square feet and 3.7 million customer visits per year.

Affluent/Growing Household Incomes and Dense Population.

Southgate is surrounded by affluent incomes and dense population. Within a 1-mile radius, there are more than 10,151 residents with average household incomes of $77,340 (2024) and $89,691 (2029). Within a 3-mile radius of the center, there are more than 63,160 residents with average household incomes exceeding $77,492 (2024) and $89,499 (2029).