Property Type: Retail
Status: In Contract
Address: 2789 East State Street
Salem, OH 44460
|CAP Rate: 8.29%|
Square Feet: 20,055
Tenancy Type: Mixed
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell Quaker Square, a 95% occupied two-building, 20,055 S.F. retail asset, shadow anchored by Walmart Supercenter and The Home Depot. The well-positioned centers are being offered for $3,285,000, representing an attractive 8.29% CAP Rate and generating near a high 15% projected year-1 cash-on-cash return.
Quaker Square is comprised of many well-known nationally recognized and regional tenants that have a strong customer base, including: Verizon, Berkshire Hathaway, Maurices, UPS, US Armed Forces along with many others that have been entrenched long-term in the community. The current owners are the original developers and in fact, almost 50% of the tenants have been in place since 2006-2007 when the asset was built. They have continuously exercised renewals, including over 75% in the past 18-months, demonstrating the success at the property. Most of the tenants are on NNN leases and all but one also reimburse for management, and the majority are “recession or e-Commerce proof”, providing services and products that cannot be purchased online. Quaker Square has been well-maintained and has recently completed a number of upgrades including the conversion to all LED lighting and both roofs are longer-lasting standing seem metal, leaving the properties with minimal near-term major maintenance responsibilities.
The property is located in a strong community with average household incomes near $83,000 within a 1-mile radius of the property. Positioned at the signalized corner of State Street (US-14) and Cunningham Road, the property has multiple points of ingress/egress with excellent access. The corner location offers highly visible and prominent pylon signage. Each center has excellent frontage sitting adjacent to the high-traffic generating Walmart Supercenter and directly across from The Home Depot, creating a constant flurry of nearby activity.
Salem is advantageously located between Cleveland and Pittsburgh with close proximity to Youngstown and Akron/Canton. American Standard Brands (2 miles, 311 employees), Fresh Mark, Inc. (804 employees), Ventra Salem (641 employees) MAC Trailer Manufacturing (332 employees) and several tool-and-die manufacturers are the main industrial companies in the city. The city’s largest employer, Salem Regional Medical Center is a general medical and surgical hospital serving the surrounding communities and located less than 1 mile west on State Street. The hospital has continuously grown over the years to accommodate the growing number of services and now has more than 875 employees. The region is also home to several colleges and universities that are within close proximity, making Salem a convenient place to live for faculty and individuals that work and go to school nearby. Some of the higher education options include: Kent State University Salem Campus (4 miles, 1,134+ students), University of Mount Union (14 miles, 2,167+ student) and Youngstown State University (25 miles, 10,872+ students).
Being situated just 20 miles southwest of Youngstown, and 25 miles east of Akron/Canton, the vast employment base offers the area’s residents a multitude of opportunities. Youngstown offers several major employers, including Infocision, Mercy Health, Trumbull County Government, Youngstown City Schools and Youngstown State University, whom all have over 1,000 employees. The former GM Lordstown plant has been one of the nation's largest auto productions plants and was recently sold (2019) to Lordstown Motors who has plans in 2021 to produce a new vehicle called Endurance, along with a new battery cell manufacturing division. The new products are expected to add 600 employees. The area also offers an AT&T call center, AVI Food Systems, Covelli Enterprises, Delphi Packard Electric Systems, Alcoa Engineered Products and many more companies all with well over 500 employees. Canton is home to the Timken Company and Timken Steel, Belden Brick Company, Daimler, Aultman Hospital with over 5,000 employees and Mercy Medical (2,500 employees), while Akron boasts Goodyear (3,000 employees), FirstEnergy (2,500 people), The University of Akron (26,500+ students, 2,500 academic employees), the headquarters to Sterling Jewelers and Spectrum. Given the property’s strategic placement and proximity to employees and residents; this asset is positioned with great potential to succeed for years to come.
Full Offering Memorandum