Overview

Southgate Shopping Center is a 166,325-square-foot, grocery-anchored retail center located in Lake Charles, Louisiana, currently 90.8% leased and anchored by Market Basket, a regional grocer with over 40 years at the property. Supported by a strong lineup of essential and service-oriented tenants like Office Depot, Dollar Tree, Books-A-Million, and Oak Street Health, the center benefits from consistent foot traffic and tenant stability, with average tenant tenure exceeding 25 years. Following Hurricane Laura, over $32 million was invested in capital improvements—including new roofs, HVAC systems, and facade upgrades—bringing the center to Class B standards and reducing near-term CapEx needs. In-place rents average $12.11/SF, well below the market range of $16–$24/SF, creating significant upside potential through re-leasing and rollovers. The investment offers a 5-year hold with projected returns including a 12% IRR, 8% average cash-on-cash, and a 1.7x equity multiple. Southgate is being offered free and clear of debt, providing capital flexibility for new investors. With a strong local economy, proximity to high-traffic anchors like Prien Lake Mall (3.7M annual visits), and household income expected to grow nearly 15% in the trade area by 2029, the asset is well-positioned for both stability and NOI growth. Investment is available through direct syndication ($250K minimum) or via RockStep’s diversified HomeTown America Fund I ($100K minimum).