2045 Fort Worth Ave
Dallas, TX 75208
Elrod's Cost-Plus Redevelopment · Retail Property For Sale

Marcus & Millichap is pleased to present Elrod’s Cost-Plus Redevelopment, a 26,758-square foot retail asset located at 2045 Fort Worth Avenue in Dallas, Texas. The subject property is situated on approximately 2.13 acres (92,740-square feet) and is strongly positioned between national credit tenants AutoZone and 7-Eleven/Shell, joining several other national credit tenants along the highly active Fort Worth Avenue corridor. New developments in the area include Lincoln Property Company’s Lincoln Kessler Park mixed-use development and Centre Living Homes’ 56 new townhome development, both located one block West from the subject property. Elrod’s Cost-Plus is a local grocery chain with five locations in the Dallas-Fort Worth metroplex. The tenant has just over two years remaining on their lease and is generating approximately $127,000 in net operating income, with an annual rent bumps on January 1, 2020-2021, with lease expiration on December 31, 2021. This current rate of $4.75 NNN is well below market, according to Costar.com rents in this immediate market average $12.00-15.00 NNN per square foot, with less than 5% vacancy. A new development investor has the opportunity to collect this income while planning to reposition or completely redevelop the property and capture the rising rents in this market. Additionally, according to the lease agreement, a new owner has the ability to terminate the lease with a 180-day notice for a more rapid turnaround time. The subject property is located along a high traffic retail and restaurant corridor, with over 35,000 vehicles per day on Fort Worth Avenue and over 32,000 vehicles per day on Hampton Road. With 145 feet of frontage on Fort Worth Avenue and 88 free surface parking spaces (3.29/1,000 ratio), the subject property has tremendous visibility and the ability to fulfill the parking requirements for several different uses. The subject property also allows for easy access to Interstate-30 which connects Dallas to the city of Fort Worth with over 135,000 vehicles per day. Overall, Elrod’s Cost-Plus Redevelopment allows a new owner the ability to add significant value to this well-positioned infill asset and the opportunity to provide tremendous returns over time.