Property Type: Retail
Address: 14025-14041 Puritas Avenue
Cleveland, OH 44135
|CAP Rate: 8.58%|
Square Feet: 84,053
Tenancy Type: Mixed
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the 84,053 S.F. Save-a-Lot and CVS anchored, Puritas Park Plaza located in Cleveland, Ohio. Offered for a reduced price of $4,660,000, representing an attractive 8.58% CAP; an investor has the opportunity to acquire a grocery anchored, value-add asset in residentially dense market. The asset is priced for an exceptionally low sales price of $55/S.F. with a 11.32% projected cash-on-cash return. With significant upside potential through lease-up of vacant units (26%); the property has vast income possibilities. In comparison to other retail locations in the area, the featured asset has low-end market rental rates making this an attractive location for perspective tenants and future additional upside to an investor.
The grocery anchored center is home to Save-a-Lot, who opened at the center in 1999 and executed an early extension. The grocer is one of the fastest growing grocery chains in the nation and currently has over 1,300 locations. Additionally, the center boasts CVS Pharmacy, who recently extended their lease for 15 years, now to 2033, proving their success in this market. Family Dollar (with strong sales), Best Cuts (Regis Corp.), a Chase Bank ATM and Pizza Hut, as well as others are also in place to accommodate demand in the market. Besides offering a diverse mix of tenants, there is low risk of any significant tenant loss in the near future as the anchor tenants have terms to 2022 and beyond. Furthermore, the plaza has experienced excellent leasing traction and has executed three new leases accounting for nearly 20% of the center.
Puritas Park Plaza has great visibility and frontage with a considerable amount of parking. One of the property’s most significant attributes is its position between two of Cleveland’s most traveled highways and its extremely close proximity to Cleveland Hopkins International Airport. Traffic counts along I-71, just 1 mile north of the property are approx. 105,000 VPD, while traffic counts along I-480 just south of the property exceed 127,000 VPD. Additionally, the center is positioned just 8 miles southwest of Downtown Cleveland and has access to the dense population of 340,700 people within a 5-mile radius of the property. The middle to upper class area also boasts average household incomes near $66,000 within 5-miles.
The property also draws traffic from its high-traffic generator shadow anchor, USPS, which is located in the development. Further, the area offers the property other complimentary retailers, including McDonald’s, U.S. Bank, AutoZone, Burger King and more. The plaza also draws traffic from Birchwood School of Hawken and a branch of the Cleveland Public Library positioned directly across the street. The area also benefits from its close proximity to one of Cleveland’s major employers, MetroHealth medical Center located 6 miles east and Baldwin Wallace University located just 6.5 miles from the property and boasts 4,177 students and 708 members of the faculty/staff. With the recent long-term extension from CVS, strong grocery anchor and location near major highways in an ideal community; the property gives an investor the opportunity to acquire an investment that is positioned to be a high-quality asset for many years to come.
Full Offering Memorandum