SHOPPING PLAZA. Fairless Hills, Pennsylvania

Transcription

1 Fairless Hills, Pennsylvania

2 Executive Summary

3 The Opportunity Holliday Fenoglio Fowler, L.P. ( HFF ) has been retained to arrange the sale of Fairless Hills Shopping Plaza (the Property ), an 89,489 SF grocery-anchored retail center located within Bucks County, a major suburb of Philadelphia, Pennsylvania. The Property sits on the Lincoln Highway Retail Corridor, a high-density in-fill location and central retail artery in the Bucks County Submarket. Pathmark, Big Lots, Tuesday Morning, and Retro Fitness are some of the nationally recognized tenants that anchor Fairless Hills Shopping Plaza. With substantial in-place income, near term roll, and under market rents, Fairless Hills Shopping Plaza provides the investor with strong value-creation potential, and the opportunity to acquire a historically well performing asset in a market with significant barriers to entry. Property Summary Address 500 Lincoln Highway Route Fairless Hills, PA 9030 Total Leaseable Area 89,489 SF Total Land Area 5.34 Acres Year Built / Renovated 970 / 995 Percent Leased 97% Occupancy (Dark Macy s) 74% Total Parking 933 Parking Ratio 4.92 /,000 Major Tenants: Pathmark, Big Lots & Retro Fitness 3

4 WOODSIDE MAIN STREET Demographic Profile 29 LANGHORNE YARDLEY ROAD 95 STONY HILL ROAD MAKEFIELD ROAD PENNSYLVANIA AVENUE TRENTON AVENUE MORRISVILLE TRENTON BIG OAK ROAD $24,968 MEDIAN INCOME PENNSYLVANIA AVENUE OXFORD VALLEY OXFORD VALLEY ROAD Investment Highlights Diverse Income Demographics TRENTON ROAD $58,465 MEDIAN INCOME NEW FALLS ROAD PENN VALLEY ROAD FAIRLESS HILLS LEVITTOWN TYBURN ROAD On top of desirable demographics, the Lincoln Highway Retail Corridor offers retailers the ability to draw from two separate, but attractive income demographics on either side of Lincoln Highway. Directly north of Lincoln Highway in Yardley and Woodside, incomes range between $20,000 and $60,000 and to the south in Fairless Hills, incomes range between $40,000 and $60,000. This split-demographic allows the corridor to meet screening criteria for a wider pool of retailers than would normally exist in a more uniform area. 3 3 Strong Infill Location Fairless Hills Shopping Plaza benefits from a dense population in its immediate vicinity with approximately 97,236 residents within a 5-mile radius and 8,677 residents within a 3-mile radius. The Property sits on Lincoln Highway (US-) near the overlap of the Philadelphia Suburbs of Bucks County and the New Jersey boarder. The retail location benefits from strong, regional destination driven demand and daily commuter traffic that is driven by its proximity to the Philadelphia MSA and surrounding trade areas. Lincoln Highway is a major thoroughfare that runs throughout lower Bucks County and benefits from daily traffic generated by the surrounding, densely populated residential areas as well as from the key convergences of I-95, I-295, and US 3. Strong surrounding incomes, densely populated neighborhoods, and high home values support a quality consumer profile which attracts national retailers to the area. RADIUS Mile 3 Miles 5 Miles Population 3,667 8,667 97,236 Households 5,54 30,050 74,03 Median Income 64,898 68,774 64,584 Median Age

5 Investment Highlights Value-Add Potential Fairless Hills Shopping Plaza is perfectly structured to take advantage of an improved market by capitalizing on multiple opportunities that exist within the rent roll of the Property. The opportunities are: Macy s (Dark): Tenant is currently dark and is paying a below market rent of $3.6/SF. The current market rate is around $8/SF. Macy s has term until 209 giving the future owner ample time to maneuver to re-lease the space and more than double the revenue stream that is currently in place. Additionally, the retail corridor has a limited amount of large contiguous spaces, none of which having immediate frontage on Lincoln Highway. This dynamic, paired with the overall low vacancy of anchored space in the Buck s County Market highlights the supply constraints that exist in the market, adding to the desirability of the vacant Macy s space. Tuesday Morning: Currently paying a month-to-month (MTM) rent of $4.53/SF, the future owner has the option to re-lease the space at a competitive market rate while collecting MTM income from Tuesday Morning, or attempt to negotiate a long term renewal. 8,50 SF of Vacant Space: Located between Pathmark and Big Lots, this vacancy represents the most prominent space in the center benefitting from foot traffic generated by being located between the major anchors in the center. 5

6 Trenton Road Arleans Avenue Pennsylvania Avenue Lincoln Highway Investment Highlights A Proven Track Record of Location Fairless Hills Shopping Plaza has historically performed over time, and has maintained a nearly perfect level of leased square footage for the trailing 0 years and throughout the financial downturn. Between 2006 and 204, the lowest percentage of leased square footage at the Property was 95%, and the average percentage of square footage leased between 2006 and 204 was 97%. This strong operating history highlights historical tenant demand for this location. Historical Percent Leased: Q / 5 Barriers to Entry The Lincoln Highway Retail Corridor is a fully developed land area comprised of primarily retail properties and surrounded by dense housing developments. In addition to this, Bucks County is historically known to be a challenging area for retail development as only 250,000 square feet of completions were delivered between 2006 and 204, representing only a 3% increase in inventory during this period. In addition to limited past development there is only one developable land parcel available on the Lincoln Highway Retail Corridor that is zoned for a shopping center use, suggesting that future ground-up development on the corridor will be limited, adding to the Property s intrinsic land value. 96% 95% 95% 95% 96% 00% 00% 00% 99% 96% 6

7 Exclusive Marketing Advisors If you have any questions or require additional information, Please contact any of the individuals below. CHRIS MUNLEY JOSE CRUZ Managing Director Senior Managing Director T T cmunley@hfflp.com jcruz@hfflp.com HFF Philadelphia Eight Tower Bridge 6 Washington Street Suite 925 Conshohocken, PA 9428 hfflp.com MICHAEL DICOSIMO FRED BABARSKY Senior Real Estate Analyst Associate Director, REA T T mdicosimo@hfflp.com fbabarsky@hfflp.com Financing Contacts JAMES CONLEY RYAN ADE Managing Director Managing Director T T jdconley@hfflp.com rade@hfflp.com Holliday Fenoglio Fowler, L.P. ( HFF ) a Pennsylvania real estate broker. 205 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp. com or follow HFF on 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 we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.