The Empire Shopping Center & Empire Crossings investment is a venture between Silverado Interest, and Dunhill Partners. Divided by the most prominent retail corridor in the area, Lone Tree Way, Empire Shopping Center and Empire Crossings are 122,742 sf and 22,113 sf respectively and benefit from excellent visibility and easy access to Highway 4. The centers are anchored by Old Navy, PetSmart, Office Depot, and Kirkland’s and are part of a larger development which includes retailers such as Target, Hobby Lobby, BevMo, and Sports Authority. This acquisition provides us with a highly stable income stream, 66% from national credit tenants, and significant rental growth potential through the lease up of 17,513 square feet of in‐line space and from in‐place contractual rental increases.
All major tenants have contractual term through at least 2020 and are currently reporting strong sales. The center benefits from affluent demographics with an average household income of $98,835 and $91,860 in the one and three mile radius respectively. We anticipate significant long term rental growth due to the strong historical population growth in the area and new planned and approved residential development and direct mass transit to San Francisco. We will be able to send out an immediate cash flow of 10% on your equity invested with additional cash flow available as soon as we lease up the remaining vacancy.