JC Penney and Levin Furniture located in the dominant

CALL FOR OFFERS DATE:
TUESDAY, FEBRUARY 3RD
JC Penney and Levin Furniture located in the
dominant Fairlawn, Ohio retail corridor.
FAIRLAWN (AKRON), OHIO
MONTROSE
PLAZA
WEST MARKET
PLAZA
S H O P S AT FA I R L AW N
SHOPPING CENTER
SUMMIT MALL
Me
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i n a Ro
Roa
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W
ROSEMONT COMMONS
FUTURE
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FA I R L AW N T OW N C E N T E R
EXECUTIVE SUMMARY
Investment Summary
Price
$9,000,000
Occupancy
Year Two NOI (2016)
enclosed mall with retailers such as Dillard’s, Macy’s, Coach, and Apple. Other market
retailers include Walmart, Lowe’s, TJ Maxx, PetSmart, Giant Eagle, Barnes & Noble, Old
7.2%
Navy, DSW and others. The Fairlawn/Montrose retail corridor encompasses more than
$723,353
Year Two Cap Rate (2016)
8.0%
Leasehold interest* of 4.1293 acres including
165,150 SF of retail leased to JC Penney
(95,728 SF) and Levin Furniture (69,422 SF).
The Property is being offered free and clear of Debt.
4.2 million square feet and is nearly 97% occupied.
ɵ
Strong Retail Tenancy: Anchored by Levin Furniture and JC Penney and Shadow
anchored by The Home Depot and Dick’s Sporting Goods, The Market Square at
Montrose Shopping Center benefits from its diverse and expansive group of retail
4040 Medina Road
Fairlawn, Akron, OH 44333
* The Property is subject to a ground lease with an initial expiration date of 10/2027, with eight
additional 5-year renewal options (10/2067).
Prime Retail Location: Centrally located in the Akron-Canton MSA’s strongest
performing retail node, anchored by Summit Mall, a 770,000 square foot Super-Regional
$645,185
Year One Cap Rate (2015)
Location
ɵ
100%
Year One NOI (2015)
Description
Investment Highlights
tenants located in the heart of the Fairlawn retail corridor.
ɵ
Exceptional Sales Volume: JC Penney and Levin Furniture are established tenants
that have been in occupancy at the Property since 2005. As a result, the most recently
reported tenant sales were $131 PSF for JC Penney and $161 PSF for Levin Furniture.
ɵ
Excellent Access & Significant Traffic: The Property benefits from superior ingress
and egress facilitated by a fully-signaled intersection along Medina Road (Route 18).
Traffic counts along Medina Route are in excess of 42,000 cars daily and are in excess
of 82,000 cars daily along nearby Interstate 77, which travels into downtown Akron.
ɵ
Affluent Demographics: The Property is located amongst the most affluent residential
suburbs of Akron which continue to experience residential growth. Within a 3-mile
radius, the 2014 population totals almost 30,000 residents and is expected to
grow 2.4% by 2019. Furthermore, the average household income within 3 miles is
approximately $99,750.
2
EXECUTIVE SUMMARY
Property Summary
Site Area (Subject to Ground Lease)
Surface Parking Ratio:
Approximately 823 Spaces
4.98:1,000 SF
(Subject to Easement)
30A
25
41
25
10
15
Rentable Area:
Garden Center
35
30
Building Area Summary
5
3
40
42
4.1293 Acres
JCPenney
95,728 SF
Levin Furniture
69,422 SF
Total GLA
165,610 SF
1
SUITE
44
R o th ro
ck Rd
Springside Dr
48
54
72
Ro
o
thr
ck
L
p
oo
Medina Road
48
Regal Cinema
44
World Market
42
Sears Appliance & Hardware
40
Jenny Craig
41
Available, 2,400 SF (Storage)
35
Dick’s Sporting Goods
30
Staples
30A
LEGEND
COLLATERAL
AVAILABLE
LEASED
VALUE-ADD
OPPORTUNITY
TENANT
DXL Men’s Apparel
25
JCPenney
25
Levin Furniture
15
Yellow Tail
10
Home Depot
5
Spirit Halloween
3
Available, 1,269 SF
1
Lifeway Christian Store
72
Toys R Us / Babies R Us
54
Steak N Shake
3
L AKE ERIE
SOUTH
EUCLID
GATES
MILLS
CLEVELAND
LAKEWOOD
BEACHWOOD
AVON
FAIRVIEW
PARK
SHEFFIELD
CHAGRIN
FALLS
GARFIELD
HEIGHTS
NORTH
OLMSTED
BROOKPARK
NORTH
RIDGEVILLE
EXECUTIVE SUMMARY
PARMA
BAINBRIDGE
BEDFORD
ELYRIA
Area Overview
COLUMBIA
STATION
STRONGSVILLE
BROADVIEW
HEIGHTS
NORTHFIELD
AURORA
TWINSBURGH
The Akron-Canton MSA is located in central Ohio, south of Cleveland and
GRAFTON
encompasses approximately 1.1 million people. The MSA benefits from superior
BRUNSWICK
ANGE
HUDSON
RICHFIELD
access to both the Northeast and Midwest through several Interstates including
71, 77, 76, 80, 271 and 277.
LITCHFIELD
MONTROSEGHENT
MEDINA
FAIRLAWN
As a result of its significant transportation infrastructure, Northeast Ohio is a long-
TALLMADGE
NCER
established manufacturing center primarily known for its rubber production at
AKRON
CHIPPEWA
LAKE
Goodyear Tire & Rubber and Bridgestone/Firestone. Because of its concentrated
MOGADORE
LODI
manufacturing, Akron is often referred to as the “Rubber City”. More recently,
RAVENNA
KENT
CUYAHOGA
FALLS
WADSWORTH
manufacturing has diversified in the region and now includes plastics, chemicals,
metal fabrication, food and machinery. In fact, Akron is also considered the
The region’s largest employers continue to be the Education, Health Service,
“Polymer Center of the Americas” and is one of the largest manufacturers of
and Professional and Business Services industries. Institutions including
plastics-processing equipment.
Summa Health System, Akron General Health System, Akron General Medical
Center, Akron Children’s Hospital, Kent State University and the University of
The Akron-Canton economy has diversified beyond just manufacturing after the
Akron are consistently among the region’s top 10 employers.
last recession, bringing the area through the recovery phase and positioning it for
future growth. Utica Shale formations in Eastern Ohio are a key growth factor,
The Akron-Canton MSA offers residents a diverse set of cultural, educational
as Eastern Ohio now has more producing oil rigs than West Virginia and leasing
and recreational activities at an affordable cost. The Akron CBD boasts a ballet,
is still ongoing. Furthermore, a synergy among universities, hospitals and other
symphony, an impressive art museum and the National Inventors Hall of Fame.
medical providers has developed in the region. Many losses suffered during the
Sports fans enjoy Canal Park which is home to the Akron Aeros, the Cleveland
recession to traditional manufacturing jobs have been offset by the development
Indians AA baseball team. Canton offers both the Civic Opera and the Pro
of niche and high-tech industries supported by the area’s educational and
Football Hall of Fame, which attracts almost 200,000 visitors annually.
medical centers.
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G
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Sourek Rd
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EXECUTIVE SUMMARY
Ghent
Rd
Immediate Area Overview
N Cleveland Massillon Rd
Crystal Lake Rd
P
Smith Rd
Medina Rd
Smith Rd
SUMMIT
MALL
Fairlawn is an affluent suburb located five miles northwest of Akron’s central
W
business district. Easily accessible via Interstate 77, many people choose to
ar
ke
S a nd Ru
t
St
ROSEMONT
GOLF
COURSE
Rd
N Miller Rd
reside west of the city due to preference for larger residential home lots, newer
ill
on
construction and proximity to recreational amenities. The Fairlawn area is in close
Ma
ss
proximity to similar affluent suburbs including Montrose, Ghent, Copley, and
ela
nd
Bath. Because of its accessibility, Fairlawn serves as the commercial hub for areas
Cl
ev
west of Akron and features most major retailers, restaurants, and hotels along the
N
Medina Road/Market Street (Route 18) Corridor.
Fairlawn’s commercial corridor also features several major office complexes
M
Demographics
including three headquarter locations for Diebold, Inc. OMNOVA Solutions, and
3 MILES
5 MILES
7 MILES
2010 Census
28,963
61,495
126,148
2014 Estimate
29,620
61,788
125,704
2019 Projected
30,332
62,131
125,273
Projected Growth
2.40%
0.55%
-0.34%
2010 Census
11,563
25,988
53,580
2014 Estimate
11,728
26,092
53,662
2019 Projected
11,944
26,229
53,667
Sterling Jewelers. Diebold Inc. employs 7,000 worldwide but has 1,500 local
employees who live and shop in the region. Similarly, OMNOVA Solutions, a
technology-based manufacturer, employs 2,300 worldwide and occupies 50,000
square feet locally. Sterling Jewelers, the largest specialty jewelry retailer in the
country and part of Signet Jewelers Ltd., has over 2,000 employees at its Fairlawn
headquarters located just east of the Property.
Population
Households
Average Household Income
$99,756
$83,281
$67,960
Median Household Income
$69,934
$58,687
$47,314
$230,542
$185,591
$156,887
76.21%
72.82%
66.06%
Average Housing Value
Owner Occupied Homes
5
EXECUTIVE SUMMARY
Retail Market Overview
Due to its favorable demographic profile and accessibility to Ohio’s largest northeastern cities, most major
retailers, restaurants and hotel chains have a location within the Fairlawn/Montrose area.
Market Square at Montrose is located along Medina Road (Route 18), the main commercial corridor in Fairlawn
and strategically located between Summit Mall, the area’s dominant super-regional 770,000 SF enclosed mall
and Interstate 77. The Fairlawn/Montrose submarket (as categorized by CoStar) is one of the most highly
concentrated retail centers in the Akron/Canton MSA. As a result, the Fairlawn/Montrose Submarket has
historically achieved the highest rental rates and consistently averages around 97% total occupancy. Other
retail centers located in close proximity include Fairlawn Town Center, Montrose Plaza, Rosemont Commons,
West Market Plaza, and The Shops of Fairlawn, which are detailed on the following page.
6
EXECUTIVE SUMMARY
ɵ
ɵ
Market Square at Montrose (Subject), a 500,000+ square foot power center
ɵ
anchored by The Home Depot, JC Penney, Levin Furniture, Regal Cinemas, Dick’s
located on Medina Road approximately 0.5 miles east of the Property and
Sporting Goods, Staples, World Market, Ethan Allen, Toys R Us, and Babies R Us.
anchored by Wal-Mart, Sam’s Club and the area’s second Giant Eagle. Additional
big box retailers include Michaels, PetSmart, Bed Bath & Beyond, Famous
Summit Mall, a 770,000 square foot dominant enclosed regional mall owned by
Footwear and Guitar Center.
Simon Property Group, located 1.5 miles east of the Property and anchored by
Dillard’s and Macy’s. Other tenants include Swarovski, Coach, Coldwater Creek,
ɵ
ɵ
West Market Plaza, is a power center also located across Medina Road (adjacent
Eddie Bauer, J. Crew, Apple, Ann Taylor, Pandora, Victoria’s Secret, Jos. A Bank,
to Montrose Plaza) approximately 0.75 miles east of the Property. The shopping
P.F. Chang’s, Bravo! Cucina Italiana and many other national retailers.
center is anchored by T.J. Maxx, DSW, ULTA Beauty, Old Navy, Lane Bryant and
Bath & Body Works.
Fairlawn Town Center, a grocery-anchored power center located approximately
2 miles southeast from the Property along West Market Street (Route 18) and
anchored by Giant Eagle, Pet Supplies “Plus” and Panera Bread.
ɵ
Rosemont Commons, a 500,000+ square foot grocery-anchored power center
Montrose Plaza, a grocery-anchored power center located across Medina Road
from the Property and anchored by Acme Grocery and JoAnn Fabrics.
ɵ
Shops of Fairlawn Shopping Center is a specialty-grocery anchored shopping
center located adjacent to West Market Plaza approximately 1 mile east of
the Property. The shopping center features Earth Fare Market, Hobby Lobby,
Starbucks and FedEx among other neighborhood retail tenants.
Area Competition
Medin
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Additional Information
Questions can be directed to the following individuals:
One Oxford Centre | 301 Grant Street | Suite 1100 | Pittsburgh, PA 15219
Telephone: 412.281.8714 | Fax: 412.281.2792 | hfflp.com
CLAUDIA STEEB | Managing Director | csteeb@hfflp.com | 412.281.8714
Atlanta ɵ Austin ɵ Boston ɵ Charlotte ɵ Chicago ɵ Denver ɵ Dallas
BRANDI WYSKOCIL | Real Estate Analyst | bwyskocil@hfflp.com | 412.281.8714
Florham Park (NJ) ɵ Hartford ɵ Houston ɵ Indianapolis ɵ Los Angeles
CHRISTINE RINITI | Ohio Broker | 412.281.8714
Miami ɵ New York ɵ Orange County (CA) ɵ Orlando ɵ Philadelphia ɵ
PITTSBURGH
Portland (OR) ɵ San Diego ɵ San Francisco ɵ Tampa ɵ Washington, DC
Holliday Fenoglio Fowler, L.P. (“HFF”) an Ohio licensed real estate broker.
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HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] 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.