New Iberia Shopping Center

This New Iberia Shopping Center was purchased in 2022 for $12,388,000.  JRE sourced this asset off-market through one of its affiliates, who brought it directly to them.  This center sits on the most heavily trafficked corner in New Iberia, LA, and has excellent frontage on two of New Iberia’s main thoroughfares.  Formerly a K-Mart that closed in 2017, this property was immediately backfilled by Rouses Market in 2018.  With over 75 stores in the Gulf South and its corporate headquarters roughly 50 miles away in Thibodaux, LA, Rouses was the perfect anchor.  Hobby Lobby followed shortly after, opening in 2019, and by 2020, Ross Dress For Less was added as a build-to-suit end cap.  This activity is a testament to the excellent location of this asset.  JRE was also able to capitalize on some tax incentives, namely a PILOT lease which is essentially an abatement on property taxes for 10 years.  Each tenant, however, is still obligated to reimburse landlord for what would have been their tax bill, providing disproportionate cash flows.  This allowed JRE to budget for an amazing 12% cash return to its 32 investors.