Property Picture


Price: $25,000,000
Property Type: Retail
Status: Executed LOI
Address: 1876 Warrensville Center Road
                  South Euclid, OH  44118
CAP Rate: 6.9%
Square Feet: 116,356
Tenancy Type: National
Lease Type: NNN

Short Description:
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell Oakwood Commons, a brand-new development shadow anchored by Walmart Supercenter and Season’s Kosher Supermarket. The 116,356 S.F. retail complex is located in the densely populated Cleveland suburb of South Euclid, Ohio. The center is a class “A” retail development constructed with ecologically innovative and sustainable elements/design to give a modern curb appeal. The investment is being offered for $25,000,000, representing a 6.90% CAP Rate, expected year-1 cash-on-cash return of approximately 13.00% and will soon be 100% occupied. The property offers a great mix of tenants on long-term leases with popular retail and restaurant concepts: TJ Maxx/HomeGoods, Burlington Coat Factory, Steak N’ Shake, Famous Footwear, Sally Beauty, Payless, Foot Locker, Great Clips and Penn Station. Moe’s Southwest Grill just opened in the most recently constructed outlot building and ownership is finalizing leases for the building’s final additional tenants AT&T and national cell phone repair company, uBreakiFix. On the last pad site available, ownership is wrapping up a brand-new 15-year corporate ground lease for Valvoline, which would commence construction in the coming months. All tenants at Oakwood Commons are on a NNN structure, and the long-term leases from all the anchor tenants’ gives great stability to the rent roll. Furthermore many tenants reimburse for administrative and management fees and nearly all have rental increases during their current lease term, providing for even more future income growth.

Details
The property draws a tremendous flow of traffic from the Walmart Supercenter (corporately owned at this location). Walmart was previously located a couple miles away in a non-supercenter format and relocated to Oakwood Commons to become the first LEED certified supercenter in the nation and the only supercenter serving the entire eastern inner ring suburbs of Cleveland. The next closest supercenter is approximately 10 miles away, servicing an entirely different part of Greater Cleveland. The Oakwood Commons development is anticipated to soon gain even more traffic from the opening of Season’s Kosher Supermarket (also separately owned), which will be the only true full-size Kosher supermarket servicing the entire Cleveland Marketplace. The freestanding outlot just broke ground, and its highly anticipated opening will occur in the near future. News reports regarding the opening of the supermarket points to the real buzz being created by the Orthodox community, which is one of the largest concentrations in the United States, continuing to grow, and is located in close proximity between Green Road and Taylor Road, putting this location right in the middle of their neighborhood. Oakwood Commons is positioned in a major business district, along Warrensville Center Road between Cedar and Mayfield Roads – two of Eastern Cleveland’s most noted and heaviest traveled roadways. Traffic counts at the main intersection of Cedar and Warrensville Center Road show a total of 67,000 vehicles per day while at the intersection of Mayfield and Warrensville Center, traffic counts are approximately 74,000 vehicles per day. The featured property is also just 0.25 miles from complimentary developments that include a two-story Target, Macy’s, Whole Foods Market, PetSmart, Piada, Chipotle, Bob Evans, CVS, Dollar Tree, First Watch, Applebee's, GFS, Menchie’s and many more. The center has excellent visibility and access from Warrensville Center along with prominent monument signage. Additionally, Oakwood Commons is positioned in a densely populated area with more than 320,000 people within 5-miles and strong household incomes of near $90,000 within 3-miles. South Euclid is home to Notre Dame College, which is located 1-mile away and enrolls approximately 2,120 students. The adjacent community of University Heights is home to John Carroll University which is also approximately 1-mile away and has enrollment of approximately 3,861 students. The community just west of South Euclid is Cleveland Heights, home to another well-known school, Case Western University, which has enrollment of close to 10,500. Due to its strategic positioning, Oakwood Commons is the central point for all of these schools and the closest Walmart, TJ Maxx/Home Goods, and Burlington Coat locations servicing their needs. Furthermore, many people living in the surrounding east side community work at University Hospital and Cleveland Clinic's main campuses (over 75k combined employees), two of Cleveland's largest employers, making the center a logical stopping point as they commute to and from work, and is also positioned approximately two miles west of Interstate 271, the major highway serving the Eastern Cleveland Suburbs. Given the attributes including its strategic placement, proximity to employees, students and residents, diverse rent roll, and long-term leases; Oakwood Commons is positioned to be high-quality investment for many years to come.