Property Type: Retail
Status: In Contract
Address: 1510-1598 Covington Avenue
Piqua, OH 45429
|CAP Rate: 7.56%|
Square Feet: 182,487
Tenancy Type: Mixed
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the 182,487 S.F., Kroger Grocery anchored center located in Piqua, Ohio. Market Place is being offered for $7,275,000, representing a 7.56% CAP and exceptionally low price point of under $40/SF. The offering provides an investor the opportunity to acquire a stable center that includes Kroger, a McDonald’s Ground Lease outlot and many other well-known national, regional and local tenants. In fact, over 80% of the center’s tenants are nationally recognized and nearly all are corporately backed.
The asset’s diverse tenant mix offers many recession proof retailers creating long-term stability. Additionally, the 89% occupied center has upside potential through lease-up of the remaining vacant units and below market rents. The current tenant roster includes most tenants on Triple Net (NNN) lease structures, many with mid-term rental increases and several tenants that reimburse both an administrative and management fees. Market Place’s tenants are a mix of tenured tenants, along with newly executed leases proving the desire to be located at the center and in the market.
The asset boasts a welcoming curb appeal with great visibility, excellent frontage and prominent pylon signage along one of Piqua’s most heavily traveled roadways, US 36 (Covington Avenue). Traffic counts surrounding the center are in upwards of 40,000 vehicles per day. The entire development has multiple points of ingress and egress with 2 signalized entrances creating easy access to Market Place. Market Place is positioned in a growing market surrounded by an abundance of rooftops while also being positioned near other complimentary retailers and directly adjacent to one of Piqua’s largest employers, Hartzell Propeller. The company employs over 265 employees which makes Market Place a convenient place to stop for groceries, lunch or dinner, as well as other necessary daily items.
The center also benefits from being located in a suburb to the densely populated City of Dayton (approximately 30 miles). Much of the residential base in Piqua commutes to Dayton via I-75, located just 2.5 miles from the property and also runs from Toledo to Cincinnati making Piqua an easy exit to stop at along the route. Dayton is home to Wright-Patterson Air Force Base, who is the largest single-site employer in Ohio with 25,000 military and civilian employees. The healthcare industry accounts for much of the Dayton area's economy. Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000, and a yearly economic impact of $6.8 billion. It is estimated that Premier Health Partners contributes more than $2 billion a year to the region through operating/employment/capital expenditures. Other major corporations such as Reynolds and Reynolds, CareSource, Cargill, NewPage Corporation, Huffy Bicycles, LexisNexis, Kettering Health Network, Premier Health Partners, Standard Register, Dayton Reliable Tool and Teradata all have their headquarters in Dayton. Recently Site Selection magazine ranked Dayton the “#1 Medium Sized Metropolitan Area in the U.S. for Economic Development” and according to Bloomberg Businessweek, Dayton was one of the best places in the U.S. for college graduates to find a job. Being positioned just outside Dayton with the diverse mix of uses, services and staggered lease terms; the asset is well insulated for possible shifts in consumer retail demands and trends and will be a quality asset for many years to come.
Full Offering Memorandum