The Villages at Kiln Creek

Investment Highlights

45K SF UNANCHORED MEDICAL & RETAIL STRIP CENTER
• The Villages at Kiln Creek is a 45,000 SF unanchored convenience retail strip center
• Strong Medical Presence | 40% of GLA
• Medical paired with E-commerce-resistant retail tenant mix
• All service, restaurant, or destination/experience tenants
• Seasoned Tenant Lineup | Avg. Tenure 8+ years (excl. new leases)
• Leasing Momentum | 8 New leases and renewals in the last 2 years

ORGANIC NOI GROWTH | MARK TO MARKET OPPORTUNITIES
• All tenants have annual increases in rent | All option periods for tenants have annual increases in rent
• Only 2 Tenants have Options | 88% of GLA expire with no option periods
• This creates a major opportunity to increase rents to market

BELOW MARKET RENTS
• Average rental rate in Center: $16.12/SF
• Market Rent: $26/SF | 1-Mile Radius via Co-Star

SEPARATELY PARCELED | UNANCHORED RETAIL STRIP CENTER
• The Villages at Kiln Creek Center is on positioned on two separate parcels.
• Presenting future owners with opportunities to spin off a parcel to lower their basis.

40% OF GLA OCCUPIED BY CREDIT MEDICAL TENANTS
• 23% of the GLA in the center is occupied by Riverside Primary Care, which Riverside Medical Group guarantees; a major healthcare provider that generates $3.6B+ in annual revenues
• Riverside Medical Group is one of the region’s largest networks of primary care physicians and advanced practice providers, with more than 25 primary care practice locations and five MD Express urgent care locations
• In October of 2023, S&P Global Ratings assigned an A- long-term rating to Riverside Health System’s series 2023 tax-exempt bonds, indicating a strong capacity to meet financial commitments
• Riverside recently confirmed its long-term commitment to this location by executing a 5-year renewal
• 11.49% of the GLA is occupied by Smile Doctors, the largest orthodontic support organization in the United States, with 550 locations across 36 states. The company was valued at $3.6B in 2021
• 5.30% of GLA is occupied by Smiles of Kiln Creek, a dental network that has 5 locations across Virginia

SEASONED TENANTS E-COMMERCE RESISTANT RETAIL LINEUP
• Kiln Creek boasts a veteran tenant lineup, with an average tenant age of 8+ years (excl. new leases)
• 48% of the center is occupied by restaurants, service-oriented businesses, and entertainment tenants, further hedging against E-Commerce risk
• The remaining 7.46% of the GLA is Guitar Center, which boasts excellent sales here and pays a consistent additional % rent
• They have been a tenant in this location since 2004 and recently reconfirmed their long-term commitment to the location by executing a fresh 10-year renewal
• Guitar Center Sales:
     2023-2024: $1,781,572 $14,078
     2022-2023: $1,612,975 $5,649