Property Type: Retail
Status: In Contract
Address: 581-967 Howe Avenue
Cuyahoga Falls, OH 44221
|CAP Rate: 8.65%|
Square Feet: 84,758
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 Target and Home Depot shadow anchored center, Shoppes at Chapel Hill. The featured asset is located in the thriving retail market of Cuyahoga Falls, a suburb outside of Akron, Ohio. The property offers a very attractive assumable non-recourse loan at 4.25% interest rate, approximately 6 years of term remaining, 30-year amortization and interest only payments through the entire term of the loan (November, 2024). The high-quality investment is being offered for $11,675,195, representing an 8.65% CAP Rate and high 14.13% projected year-1 cash-on-cash return.
The center is comprised of three portions, an inline center featuring Panera Bread, Staples, Weight Watchers, Aaron’s, Jimmy John’s and more while Michael’s, and Brick House Tavern + Tap have their own freestanding outparcel buildings. The 100% occupied Shoppes at Chapel Hill has 97% nationally-named tenants and is positioned in an extremely high barrier to entry market. Many of the tenants are original to the center and have exercised renewals term after term proving their commitment and dedication to the center and market. Upside potential is still achievable through rents that are considered below market.
The property draws a tremendous flow of traffic from the entire development that hosts the other top-named retailers, including Target, Best Buy, Home Depot, PetSmart and Five Below, while being directly across from Dick’s Sporting Goods, Giant Eagle, JoAnn, TJ Maxx, Burlington and many other complimentary retailers. The one-block dominant corridor is close to 100% occupancy drawing a constant flow of traffic to this retail Mecca. The high-quality construction has a pleasing and modern curb appeal that attracts customers to the popular, high-traffic retailers and service providers. Additionally, in 2017 the center received a complete roof replacement, which includes a 20-year transferrable warranty.
The Shoppes at Chapel Hill is positioned along Howe Avenue, one of the most heavily traveled roadways in the region. Traffic counts along Howe Avenue are 56,000 VPD, while just west traffic counts along Route 8 (0.5 miles) are over 101,000 VPD. The property also has excellent visibility due to its multiple locations of prominent monument signage along the main road, signalized entrance and shared access with the entire development, creating impressive synergy. The immediate area boasts a strong residential community with average household incomes approximately $71,000 and draws from a dense population of over 463,385 people within a 10-mile radius. The area known as Chapel Hill is known throughout Northeast Ohio and provides easy access via Route 8, which connects to I-76, I-77 and Route 18 in Akron and I-80 (the Ohio Turnpike) just north. A major feature of the corridor is visitors can easily access the property from main roadways, Route 91, Route 43 and Route 59.
Being located as a suburb of Akron, the area is flourishing with employers. Akron is known as the "Rubber Capital of the World". Goodyear Tires (NASDAQ: GT), America's largest tire manufacturer and the 4th-largest private employer in Summit County, with approximately 3,000 employees, recently built a new world headquarters in the city. Additionally, Akron is home to Fortune 500 company, FirstEnergy, who employs nearly 2,500 people. The city is the headquarters to a number of other notable companies such as, Signet Jewelers (NYSE: SIG, Kay Jewelers/Jared Jewelers, 2,870 employees) and Spectrum (2,095 employees). Western Reserve Hospital is located just 3 miles from the property in Cuyahoga Falls and is comprised of more than 890 employees, which include more than 400 physicians and 220 nurses. Furthermore, the area is supported by the faculty, staff and students of The University of Akron (5 Miles, 25,865 students/2,573 employees) and Kent State University (7 miles, 39,365 students/9,445 employees). Akron is also known for its biomedical downtown corridor with Summa Health System (approx. 5,956 employees) and world-renowned Cleveland Clinic’s Akron General (approx. 3,840 employees). With the property’s strategic placement, solid construction, excellent visibility and frontage along main roadway packaged with its proximity to area employees, students and residents; the asset is positioned for years to come.
Full Offering Memorandum