Shawnee Marketplace was a to-be-built 130,000 square foot retail development on a 21 acre site located on the southwest quadrant of I-40 and Kickapoo Street in Shawnee, Ok. Hunt Properties, Inc. (HPI) exchanged into the property from the Commissioners of Land Office (CLO).
The City of Shawnee resides in Pottawatomie County and is located 35 miles southeast of Oklahoma City. Shawnee is positioned on the south of I-40, and therefore is influenced by the economic benefits of a location along major interstate traffic arterial. Population within the city is approximately 30,000 people, but draws from a trade area of approximately 180,000 people. Reports specify that unemployment within the County is about 4.8% and the major business sectors present in Shawnee are industrial and manufacturing. Major employers include Tinker Air Force Base (20 miles west), Firelake Casino, TDK Ferrites Corp., and Exxon-Mobil Company. Shawnee is also home to two Universities (Oklahoma Baptist University and St. Gregory’s College) as well as St. Anthony’s Hospital.
The major retail center in Shawnee is the Shawnee Mall, which was constructed in 1989 and is approximately 450,000 square feet. The Mall is located on the northeast quadrant of I-40 and Kickapoo Street and the anchors include JCPenny, Dillard’s, Ross and Kohl’s. In addition to the mall, Shawnee has other national big box retailers such as Wal-Mart Superstore, Lowe’s, Staples etc.
HPI signed letters of intent, received corporate approval and were in the final rounds of lease comments with the following users: Hobby Lobby, TJ Maxx, PetSmart, Ulta, Famous Footwear and Aldi. The project was approximately 95% preleased to national credit tenants and had four out parcels available on Kickapoo Street in the prime retail corridor of Shawnee. The project also has the potential for additional phases.
Both the city and county were supportive of the project and agreed to enter into an agreement with HPI to offset infrastructure and public improvement costs associated with the development. The county will pay $1,250,000 in an escrow account that will be used to reimburse HPI for incurred construction costs on a monthly basis. The City will reimburse HPI with a portion of sales tax revenue derived from the center paid out monthly until HPI has been reimbursed $3,750,000. The total incentive amount of $5,000,000 significantly improves the financial performance of Shawnee Marketplace.