Property Type: Retail
Address: 3462 Paxton Street
Harrisburg, PA 17111
|CAP Rate: 6.5%|
Square Feet: 10,664
Tenancy Type: National
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in Paxton Street Commons, an A+ trophy center located in Harrisburg, Pennsylvania. The high-quality asset is being offered for $4,340,000, representing a 6.50% CAP Rate.
The 100% occupied property features Starbucks with a drive-thru (NASDAQ: SBUX/S&P “A-”/Moody’s “A2”), who recently executed a 10-year extension including a mid-term rental increase and NO early termination rights. Starbucks, one of the most popular retailers now has close to 27,000 locations and continues to grow rapidly. The center also includes FedEx (NYSE: FDX/S&P “BBB”/Moody’s “Baa2”), Hertz (NYSE: HTZ/S&P “B+”/Moody’s “B2”), Cycle Gear and Qdoba Mexican Grill (NASDAQ: JACK) whom have mostly all recently renewed as well. In fact, Cycle Gear is in the process of signing a 6-year extension to their lease vs. the shorter 5-year option they already had available, further emphasizing success of the tenants at this location
The center is in the heart of the retail corridor in an irreplaceable location across from Harrisburg’s largest mall that anchors the heavy-traffic Bass Pro Shops, Macy’s and Regal Great Escape Theatres. Paxton Commons and Harrisburg Mall are strategically located right off Interstate 83 at Exit 45. The mall offers over 1 million sq. ft. of retail shopping on two levels with over 70 tenants. The area hosts 4,000 daytime employees within a 1/4 mile of the featured property and 7,500 within 1-mile. The center is positioned at a signalized entrance directly across from the mall along Paxton Street with 20,000 VPD, while the back of the center can be seen from I-83 which boasts over 79,000 VPD. The I-83, Paxton Street, I-283 is less than 1/2-mile east of the property which provides easy access to the diverse tenant mix. The Paxton Street corridor draws from a large population base with over 377,000 people within a 10-mile radius on the center. The area also includes a strong residential community with average household incomes over $68,000 within 5-miles. The featured asset also has excellent visibility due to its modern curb appeal with excellent frontage and prominent pylon signage.
The Paxton Street Commons’ dominant trade area offers best-in-class retailers and steady high volumes of traffic in the corridor, which makes this a destination point for all surrounding communities and with the number of employees in the Harrisburg area, Paxton Street Commons continues to be a hit for commuters. The Harrisburg economy has more than 45,000 businesses as well accompanies the dominant government field, inherent to being the state's capital. The largest employers, the federal and state governments employ approximately 40,000 employees providing unwavering stability to the region. The area also offers a number of large employers to support the city, including Giant Food Stores with 8,902 employees, Penn State Hershey Medical Center with 8,849 employees, Hershey Entertainment and Resort (amusement park) with 7,500 employees, Hershey Foods with 6,500 employees, Highmark Health Insurance with 5,200 employees, TE Connectivity with 4,700 employees and UPMC Pinnacle, which includes Harrisburg Hospital and Polyclinic Medical Center with nearly 4,000 employees. These tenants ensure consistent traffic flow making this location unrivaled. With the strategic placement, solid 2007 construction, dominant quality tenants and proximity to employees, and residents; the asset is positioned as a high-quality investment for many years to come.