Grocery-Anchored Center, Northeast Region

Property Description

Grocery-Anchored Center. Off-Market and Immediately Deliverable. Outstanding retail investment opportunity located in a Major Metropolitan Statistical Area. Built in 1997, the property is a 46,600 square foot grocery-anchored community shopping center. Grocery anchor with astronomical sales is anchored by Food Lion, the largest subsidiary of Delhaize America, and one of the leading grocery store chains in the Mid-Atlantic and Southeast regions.

Historically, tenants have produced exceptional sales number for example in 2012: Food Lion $16.5M, Pharmacy $6.3M. This center boasts a complementary lineup of national, regional, and local tenants. Credit tenants compose approximately 60% of the property's income. These well-known chain retailers, coupled with an assortment of local specialty tenants, including a pharmacy, provide this center with a strong and secure income stream.

Situated on one of the main east-west arteries into the area. Less than three miles west of the property, A major US Route intersects with another major US Route, a north-south thoroughfare that connects this town with an Interstate only ten miles to the north. With over 500 feet of frontage and approximately 20,000 vehicles passing the property on the US Route daily, this center boasts excellent visibility and a central location that provides area residents with easy access to the center.

Since the year 2000, the area surrounding this center has experienced an explosive rate of growth, with population increasing by over 28% within one mile, and over 25% within five miles of the property. Area income is similarly strong, with average household income estimated at $69,949 within a one-mile area, increasing to $72,293 within a five-mile area of this center. This phenomenal growth is expected to continue, with population growing an additional 11 - 12% over the next five years. The center is situated in the midst of this development, and is strategically positioned to capture the increased retail demand that will accompany the population growth in the area.

This center is an exceptional grocery-anchored community center in a thriving trade area. The soaring sales rate achieved by the Food Lion anchor, Pharmacy is a testament to the strength of this property. Its prime location on a US Route places this center in a strategic position to capture new retail business as population, incomes, and demand grow in this flourishing market.

As of the first quarter of 2013, quality centers like this center are trading between 5.50% to 7.00% cap rate. This center with a cash flow of $504k is fairly yet firmly priced at $6.7M. We will provide the rent roll and historical income statement. This center is not a distressed sale or REO. The owners of the center typically hold assets for five years and divest, but can hold for longer periods of time, depending upon market conditions.

Currently, the center has two vacancies. One locat tenant broke their lease and is in collections. A second video tenant vacated at the end of November 2012. The owner will master both leases, if needed. There is leasing activity on both spaces and the aim is to deliver this center 100% occupied to the Buyer.

This center has $4.4M of debt that can be assumed by the Buyer. The debt does not have to be assumed. 30 year am, 6% interest. It's just a plain local bank loan and there would be zero fees to eliminate the loan, if buyer chooses

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