1. What I like about the deal is that it has several favorable aspects. First off, its prime location in
north Tampa—next to the University of South Florida and around by large hospitals—guarantees
a steady stream of patrons during the day, including a sizable number of students and residents. Strong traffic volumes on 30th Street and East Fowler Avenue improve accessibility and visibility even further. With an estimated 128,963 inhabitants and 60,140 daytime employees within a three-mile radius, the trade region also has excellent demographics. The overall allure of
this offer stems from the property's strong location in the retail submarket, which has few real competitors, and the presence of respectable tenants including Dollar Tree, Chili's, and Sweetbay.
2. What I don't like about the deal is Sweetbay. In the first quarter of 2013, they shuttered 34 stores. It is possible that these closures will have an effect on the property's stability and overall performance. Furthermore, there are concerns related to tenant retention and the ability to get new leases at advantageous rates when there is a substantial proportion of leased space that is scheduled to expire over time. It's a good idea to carefully look at the financial predictions to make sure they accurately represent the state of the market, paying particular attention to the assumptions made about rental rates, renewal probability, and expense inflation.
3. In the paper from April 15, 2013, there is some information missing. For a thorough assessment of how the property and surrounding market have changed, more current data would be helpful. The lease expiry section includes a graph showing the proportion of leased square footage that has expired over time, but it doesn't provide information on the exact lease expirations of each tenant. For a complete study of future revenue stability, it is necessary to know when the leases of the primary tenants expire. The letter also mentions Sweetbay's 34 shop
closures in the first quarter of 2013, yet it doesn't go into detail about how this affected the University Collection. It would be helpful to get data on this topic in order to evaluate the property's overall resiliency and tenant stability.
4. I like the location that the University Collection is in. It’s inside the University district in north
Tampa, about 7.5 miles north of downtown Tampa. Located next to the University of South Florida and 1.5 miles east of Interstate 275, the resort has a strong daily clientele of over 60,000 individuals, comprising both students and staff from surrounding hospitals and universities. The trading area has a heavily populated area, with an estimated 128,963 inhabitants within a three-
mile radius. With 23 centers, the retail submarket surrounding University Collection is now 89% occupied, positioning the property as the main strip mall in the trade region.
5. This opportunity is core since the property is in an area with a large daytime customer base, dense residential, student population, and proximity to major institutions like the University of South Florida and hospitals. The traffic counts and demographics indicate a strong market presence. I think the returns are adequate. The financial summary and return projections show positive cash flows, with IRR and Equity Multiple having positive numbers throughout the projected hold period.
6. The separate ownership of the grocer can be good and bad. It could be considered good if it allows for diverse management strategies and minimizes potential conflicts of interest. On the other hand, it might be viewed as bad if it hinders seamless integration and synergy between the grocer and the rest of the business. The unique aspect of the grocer in this particular deal is that
