HomeMy WebLinkAbout20220144 Ver 1_More Info Received_20220330ADDITIONAL INFORMATION
CAROLINA SHORES SHOPPING CENTER
BRUNSWICK COUNTY, NC
MARCH 2O22
As requested by Gary Beecher with the USACE, below is additional information about the need
for the wetland impacts within Outparcel (OP) #5.
Every outparcel in this development is critical to the economic feasibility of this project. Grocery -
anchor tenants for these types of retail developments only pay a substandard
rent/square foot because they bring the highest volume of people into the shopping center. They
are essentially a subsidized lost leader meant to be offset by the rental income from the retail
shops and the outparcels. Because of the expanded demand for online shopping versus
storefront type tenants, the rental income generated from retail shops has increasingly become
a smaller percentage of these overall types of development. Therefore, Developers rely more
and more on outparcels to help underwrite the economics of a project this size.
The applicant only controls four outparcels within the development (OP #1, 3, 4 and 5 as shown
on the site plan). Both the existing CVS and OP #2 are under separate ownerships. However, all
of the Parcels associated w/ this project will be under one unified Development with shared
Access, Utilities and common, interconnected Stormwater Facilities.
The total cost of this project is approximately $23M, which includes land purchase, building hard
costs, engineering/architectural design/permitting/soft costs and extensive site development
costs (both onsite and offsite). Given the square footage of retail shops and the four Outparcels
controlled by the applicant (OP #1, 3, 4 and 5), this project just underwrites at a marginal 6%
return on cost. That is the absolute minimum that is viable for Developers and Lenders to
construct these types of Developments. Otherwise, there is just too much risk involved in trying
to make these projects a success.
In response to the projected use of the outparcel in question, the applicant expects that a sit-
down restaurant will be located in OP #5 since that is the only outparcel large enough to
accommodate that type of use.
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