Marion 1370 Acquisition
During the second quarter, Sower expanded the Longview Fund II portfolio by acquiring Marion 1370, a retail property on Collins Road in Marion, Iowa, alongside an investor. The property includes approximately 29,800 square feet across two single-tenant retail buildings occupied by Petco and Dollar Tree, along with a digital billboard operated by Lamar Advertising.
The acquisition reflects our continued focus on acquiring well-located retail assets supported by national tenants, durable cash flow, and opportunities for long-term value creation. Marion 1370 is positioned directly across from Lindale Mall and adjacent to Collins Road Square, placing it within one of the most established retail corridors in Eastern Iowa. The surrounding trade area includes a broad concentration of national retailers, including TJ Maxx, Best Buy, Barnes & Noble, Kohl’s, Hobby Lobby, and HomeGoods, creating a strong retail ecosystem that continues to attract both consumers and businesses.
At acquisition, the property was 100% occupied and featured approximately 5.5 years of weighted average remaining lease term, providing stable cash flow from a tenant roster backed by nationally recognized brands. Petco has operated at the location for nearly three decades, demonstrating a long-standing commitment to the site and market, while Dollar Tree recently extended its lease through 2035.
Beyond the stability provided by the existing tenancy, Marion 1370 offers meaningful long-term upside potential. Current rental rates are estimated to be below comparable market rents within the corridor, creating opportunities for future value creation through lease renewals, re-tenanting activity, and continued market rent growth. This combination of current income and future appreciation potential aligns closely with our investment philosophy.
The Cedar Rapids-Marion metropolitan area remains one of Iowa’s most important economic centers and serves as a regional commercial hub for Eastern Iowa. The Collins Road corridor has benefited from ongoing retail investment and remains one of the area’s most active shopping destinations. We believe properties located within established retail corridors with strong tenant demand continue to offer attractive risk-adjusted opportunities, particularly when acquired through disciplined underwriting and conservative assumptions.
As we continue to grow the Longview Fund II portfolio, our focus remains on identifying assets that provide durable income, strong tenant credit, and opportunities to create value over time. Marion 1370 reflects this approach by combining stable in-place cash flow with future leasing upside in a location supported by strong market fundamentals.
We are pleased to welcome Marion 1370 to the portfolio and look forward to creating long-term value for our investors through thoughtful asset management and disciplined execution.
