STONY POINT SHOPPING CENTER VALUE-ADD OPPORTUNITY VALUE-ADD RETAIL OPPORTUNITY WITH LEASING UPSIDE & INTERNET-RESISTANT TENANCY RICHMOND, VA

Transcription

1 VALUE-ADD OPPORTUNITY VALUE-ADD RETAIL OPPORTUNITY WITH LEASING UPSIDE & INTERNET-RESISTANT TENANCY STONY POINT SHOPPING CENTER RICHMOND, VA EXECUTIVE SUMMARY

2 Executive Summary Holliday Fenoglio Fowler, L.P. ( HFF ), as exclusive advisor, is pleased to offer for sale the 100% fee simple interest in Stony Point Shopping Center (the Property or Center ), a 114,47 square foot neighborhood shopping center located in the Bon Air area of Richmond, Virginia. The Property is 114,47 square feet, of which 74,287 square feet is inline shop space (67% leased) and the remaining 40,060 square feet was formerly occupied by Martin s grocery store (2015 sales of nearly $450 PSF) and is available to lease. Investors can significantly drive NOI through the lease up and repositioning of the Property. In addition to a strategic location on the going home side of a major commuter thoroughfare, the Property is the only shopping center on a heavily trafficked 5-mile stretch of Huguenot Road (6,000 VPD), which carries traffic from the residential communities of Midlothian directly into downtown Richmond. Furthermore, the Center is located in a high-end commercial and residential enclave, nestled among affluent residential communities and office parks and benefitting from a strong daytime population of 42,895 people (-miles). In addition, the Center is one mile from the regionally-dominant Stony Point Fashion Park, Chesterfield Towne Center, and Wegmans. The Center s retailers perform extraordinarily well with many tenants having seen significant sales growth over the past five years despite the loss of Martin s in Stony Point Shopping Centers offers investors cash flow stability in a thriving MSA along with tremendous upside potential through the lease up of 64,269 square feet. AVAILABLE LEASED S TONY POINT SHOPPING CENTER Suite Tenant Size (SF) 1 AVAILABLE 40,060 2A AVAILABLE 5,959 2B AVAILABLE,410 2C AVAILABLE 1,690 Gelati Celesti, LLC AVAILABLE 2,800 8 AVAILABLE Milby's Just Kids Stony Point Shoe Repair NEW PYLON SIGN OPTION (FULLY ENTITLED) W.HUGUENOT RD. (6,000 VPD) Suite Tenant Size (SF) 11 Look Salon AVAILABLE 2,100 1 Bikram Yoga, Southbound Storage 1, Invigorate LLC CottageCare Southbound, Toys That Teach, Pet Valu, Inc 4, B 2A 2C Suite Tenant Size (SF) 2 AVAILABLE, The Music Tree, LLC 2, Papeterie 2, Diva Nails 1, Frank's Pizzeria 2, Einstein Bros Bagels, Good Food Grocery, Inc. 7, AVAILABLE 2,100 9 Dr. Lilliam Purvis FORMER SITE OF STONY POINTRD. (7,100 VPD) Suite Tenant Size (SF) 40 Bottleworks, LLC 1, AVAILABLE 2, Edward Jones The Hair Cuttery Great Wall Chinese Restaurant 1, Nuevo Mexico Restaurante 5,500 TOTAL 114,47 2

3 64 Ashland Station SHORT PUMP Hanover GLEN County Municipal ALLEN Airport Staples Mill Station Reagan National Airport (106 Miles) 60 Washington Dulles International Airport (111 Miles) MECHANICSVILLE RICHMOND Main Street Station MIDLOTHIAN 76 Port of Richmond PROPERTY OVERVIEW Richmond International Airport 295 New Kent Airport Address Stony Point Road 95 Richmond, VA 225 GLA 76 % of GLA 150 Occupied 50, % Available In-Line 24, % 60 Available Anchor 40, % Total 114, % Built / Ren 1984 / Chesterfield County Airport 1 Port of Virginia (98 Miles) Site Size (Acres) Parking 5.1 Spaces per 1,000 SF Traffic Counts W. Huguenot Road 6,000 VPD In-Place NOI $640, CHESTER 95

4 Executive Summary TENANT SUMMARY Unit Occupied Size (SF) % of Total GLA Gelati Celesti, LLC % 9 Milby's Just Kids % 10 Stony Point Shoe Repair % 11 Look Salon % 1 Bikram Yoga, % INVESTMENT HIGHLIGHTS DESIRABLE VALUE ADD OPPORTUNITY WITH SIGNIFICANT NOI GROWTH POTENTIAL Stony Point Shopping Center is currently leased to a desirable line up of internet-resistant tenants providing cash flow stability and complementary merchandising synergies to the Property. In addition, there are currently nine inline vacancies totaling 24,209 square feet (approximately 21% of GLA) alongside the former Martin s box vacancy (40,060 square feet, 5% of GLA) providing the immediate opportunity to significantly increase revenue through lease-up. 14 Southbound Storage 1, % 15 Invigorate LLC % $2,00, YEAR CAGR: 11.4% 250% 16 CottageCare % Southbound,600.1% $2,100, Toys That Teach, % 21 Pet Valu, Inc 4,500.9% $1,900, % 24 The Music Tree, LLC 2, % Papeterie 2, % $1,700, Diva Nails 1,500 1.% 150% Frank's Pizzeria 2, % $1,500, Einstein Bros Bagels,750.% 2-6 Good Food Grocery, Inc. 7,50 6.4% $1,00,000 9 Dr. Lilliam Purvis % 100% 40 Bottleworks, LLC 1, % $1,100, Edward Jones % 4 The Hair Cuttery % 44 Great Wall Chinese Restaurant 1, % $900,000 50% 45 Nuevo Mexico Restaurante 5, % $700,000 Occupied (2) 50, % Available In-Line (9) 24, % Available Anchor (1) 40, % Total 114, % $500,000 In Place NOI NOI Growth % 4

5 THRIVING SECONDARY MARKET WITH VIBRANT REGIONAL ECONOMY Richmond s economy is diverse and thriving, with significant presence from state and local governments, finance, insurance, law, healthcare, agricultural, logistics and manufacturing firms. Richmond s status as a state capital combined with its low cost of doing business and strategic location on I-95 less than two hours from Washington, DC, has made it a preferred location for corporate headquarters (home to ten Fortune 1000 companies) and ancillary locations. As of December 2017, the Richmond metro area had an unemployment rate of only.6%. Additionally, Richmond continues to draw new, highly skilled residents with its high quality of life underscored by a low cost of living, excellent schools, and the second lowest commute time of all large East Coast cities. 1 Top 8 10 Most Popular American Cities to Visit this Summer - Business Journal 10 Best Places to Start a Business - Inc. Magazine 2015 Best Cities to Relocate in the US - Huffington Post Mid-Sized American Cities of the Future 2015/2016 for Economic Potential - Foreign Direct Investment Magazine Top Big City Job Markets - Zip Recruiter 2015 Top Cities for Millennial Entrepreneurs - Thumbtack 2015 EXTREMELY HIGH PERFORMING FORMER MARTIN S ANCHOR The former Martin s grocery store performed at a very high level in the Stony Point Shopping Center with 2015 sales volume of nearly $450 PSF proving out the viability of a high volume retailer in this location. As part of the Ahold Delhaize merger in 2016, the Federal Trade Commission mandated store closures due to anticompetitive concerns. In Richmond, this meant the closure of all Martin s stores. SIGNIFICANT LEASING MOMENTUM Retailers consider Stony Point Shopping Center to be a highly desirable location in the Midlothian West submarket. Over the past two years there has been substantial leasing activity at the Property totaling nearly 20,000 square feet despite Martin s vacating in 2016, as further outlined below. RECENT LEASING ACTIVTY Tenant Activity Size (SF) Bottleworks New Lease 1,200 Dr. Purvis Extension 900 Edward Jones Extension 900 Gelati Celesti Extension 800 Good Foods Grocery Extension 7,50 Hair Cuttery Extension 900 Invigorate New Lease 825 Look Salon New Lease 800 Papeterie Expansion 2,400 Toys That Teach Extension,000 Total Leasing Activity 19,075 UPWARD TRENDING SALES Reporting tenants at Stony Point Shopping Center demonstrate consistently strong sales performance and have seen significant growth over the past five years. In fact, tenant sales have grown nearly 10% since Martin s vacated in August

6 Executive Summary 6

7 NEARBY BOX TENANTS Tenant Address Distance GROCERS Aldi 719 Forest Hill Avenue, Richmond, VA 2 Miles Earth Fare 208 Monticello Avenue, Williamsburg, VA 60 Miles Food Lion 6815 Forest Hill Avenue, Richmond, VA Miles Kroger 001 Polo Parkway, Midlothian, VA Miles Lidl 111 Mall Drive, Bon Air, VA 4 Miles Publix 2250 John Rolfe Parkway, Henrico, VA 11 Miles Sprouts 9150 Baltimore Pike, Ellicott City, MD 150 Miles Trader Joes 111 W Broad Street, Richmond, VA 12 Miles Whole Foods 1117 W Broad Street, Richmond, VA 12 Miles DISCOUNT DEPARTMENT STORES Burlington Coat Factory Midlothian Turnpike, Richmond, VA 4 Miles Marshalls 9748 Midlothian Turnpike, Richmond, VA 4 Miles TJ Maxx 9125 W Broad Street, Richmond, VA 9 Miles MENS & WOMEN'S APPAREL STORES Old Navy Midlothian Turnpike, Richmond, VA 4 Miles Ross 110 Midlothian Turnpike, Richmond, VA 4 Miles SHOES DSW Shoe Warehouse 100 Huguenot Road, Richmond, VA 5 Miles HOME FURNISHINGS Bed Bath & Beyond Midlothian Turnpike, Richmond, VA 5 Miles HomeGoods Midlothian Turnpike, Richmond, VA 4 Miles Kirklands Midlothian Turnpike, Richmond, VA 4 Miles 150 Stony Point Fashion Center Downtown Richmond 147 Chesterfield Town Center LIMITED BOX VACANCY IN THE MIDLOTHIAN WEST SUBMARKET The Midlothian West submarket is one of the strongest-performing submarkets in the Richmond MSA. There are only two other box vacancies (0,000 contiguous square feet or greater), both with inferior locations, within the 7.2 million square foot submarket. 7

8 Executive Summary STRONG DEMOGRAPHICS Within three miles of the Property there are over 50,000 people, 50% of which have earned a college degree. The three-mile population has an average household income of nearly $110,000, has grown.2% since 2010, and is expected to grow an additional.0% over the next five years. Furthermore, Richmond has an unemployment rate of only.6%. DEMOGRAPHICS OVERVIEW 1-Mile Radius -Mile Radius 5-Mile Radius 2018 Population 6,277 50,4 168,95 Projected Growth %.2%.9% Average Household Income $115,406 $109,098 $107,94 % Bachelors Degree or Higher 60.0% 50.0% 48.7% AVG. H.H. INCOME ( MILES) NEARLY $110,000 COLLEGE DEGREE ( MILES) 50% OF POPULATION POPULATION ( MILES) OVER 5,000 POPULATION GROWTH ( MILES).2% OVER THE NEXT FIVE YEARS BALANCED MERCHANDISE MIX The Property features a dynamic tenant roster with a diverse merchandising mix of internet-resistant tenants spanning financial services, food and beverage, grocery, health and wellness, pet and service tenants. The Property s various offerings are well-suited to meet the needs of the surrounding residential and office consumers. Pet 9.0% Other 14.8% Food/Beverage 9.4% Grocery 14.7% Business/Finance 1.8% Service 10.8% Health/Wellness 9.6% 8

9 MATURE INFILL MARKET WITH REGIONAL ANCHORS Stony Point Shopping Center is located in the Midlothian West retail market within the Richmond MSA. This densely-populated submarket is less than 10 miles from the Richmond city center and is anchored by regionally dominant retail properties including the highend open-air shopping destination Stony Point Fashion Park, the 1.1 million square foot Chesterfield Towne Center, and Wegmans. UNEMCUMBERED ASSET The Property will be sold on a free and clear basis, which allows investors to take advantage of today s attractive capital markets to generate strong cash on cash returns. STONY POINT OFFICE PARK 10,000 Square Feet 94% Leased FORMER SITE OF STONY POINT ROAD (7,100 VPD) W HUGUENOT ROAD (6,000 VPD) 9

10 JOHN OWENDOFF Holliday Fenoglio Fowler, L.P. Managing Director Investment Advisors JORDAN LEX Holliday Fenoglio Fowler, L.P. Senior Director Financing DANIEL McINTYRE Holliday Fenoglio Fowler, L.P. Senior Director Pennsylvania Ave, NW 5th Floor Washington, DC hfflp.com Holliday Fenoglio Fowler, L.P. ( HFF ) a Virginia licensed real estate broker. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.