Redwood Village Shopping Center

Key Features

• Potential Pad Site – As a possible value-add opportunity, the center includes a potential pad site for future development (see site plan).
• Occupancy and WALT – With average in place rents of approximately $15.25 psf (in-line tenants) and $9.75 psf (anchor tenants), the center is positioned as the low cost provider in the trade area and therefore provides a significant value add opportunity to increase rents. All the anchor stores (51,219 sf, 54% of total occupancy) have been tenants at the center for approximately 15 years or greater. This has helped increase foot-traffic and maintain stable occupancy over time. The property boasts 98% occupancy with 2.5 years of WALT remaining as of 8/1/2023. This provides stable and consistent yield with the ability to strategically implement new tenancy and increase net operating income over time.
• Dynamic Retail Location – The center is located just 17 minutes from downtown Salt Lake City and 16 minutes from Salt Lake City International Airport, which is completing its $5.1B expansion and renovation. This asset is situated on Redwood Road which is a main traffic boulevard running north and south and features seamless connectivity to both I-15 and I-215. There are two grocers within a one-block radius, Smith’s Foods and Lucky Stores, both of which generate considerable traffic for the trade area.
• Strong Area Demographics – This asset is strategically positioned within 5 miles of 139,557 households with a total population of 405,243 residents that feature strong average household incomes of $99,608. Within a one-mile radius there are 5,866 households with average household incomes of $106,007. Redwood Road and 7000 South serve as the main transportation corridors for these residents with 42,400 vehicles per day on Redwood Road and 26,920 vehicles per day on 7000 South.
• Retail Market Resilience – Even in the face of economic challenges, the American consumer has shown resilience. In July 2023, retail sales increased by 0.7% compared to June, and they saw a 3.2% rise from July 2022. On the commercial real estate side, the national retail vacancy rate tightened to 5.4% in Q2 2023. The Salt Lake City retail market’s vacancy stands at 3.9%, among the nation lowest. Meanwhile, asking rents experienced a growth of 4.7% over the past year, reaching $23.47 per square foot.