New Lebanon Plaza

New Lebanon | Ohio (Dayton MSA)

Offering Summary

  • Status: active
  • Price: $3,665,000
  • Offering Price Allocation – Shopping Center : $3,165,000
  • Offering Price Allocation – Former Rite Aid: $500,000
  • Net Operating Income: $284,827
  • Price/SF: $70.41
  • Year(s) Built: 1997
  • Lot Size (Acres): 5.583
  • Major Tenants: Groceryland Foods, Cassano’s The Pizza King, VIP Smoke Shop, Clark Family Dental, Kettering Health Primary Care
  • 72% Occupied, 52,049 SF Value-Add Grocery-Anchored Community Shopping Center in the Dayton, OH MSA
  • Anchored by Groceryland Foods – Tenant Since 1997 on NNN Lease with Recent 5-Year Renewal thru September 2030
    • Comprises 70.2% of Occupied GLA and Contributes 59.2% of In-Place Gross Income
    • Strong Groceyland sales with Healthy Rent to Sales Ratio – See Agent for Details
    • All-In Rent of $10.51/SF ($7.80/SF NNN)
    • Multi-Unit Operator with Several Grocery Stores in the Dayton & Columbus MSAs
    • Only Grocery Store in a 5-Mile Radius; Only Competition = Dollar General, Family Dollar, and Dollar Tree
  • 5.5 Years of Grocery Anchor Term Remaining and 4.8 Years WALT Across Shopping Center
  • Offering Includes Recently Vacated 11,345 SF Freestanding Former Rite Aid Building
    • Comprises 21.8% of Total GLA, Posing Strong Potential for Purchaser to Drive Massive NOI Growth via Lease-Up
    • 1997-Built Building with Drive-Thru; Highly Fungible GLA Appealing to a Variety of Uses
    • Shallow Setback with Direct Frontage & Visibility to Route 35
  • Offering Priced at 9.0% CAP Rate on the In-Place NOI, Plus an Additional $500K for the Freestanding Former Rite Aid Building
    • Former Rite Aid is Not Separately Parceled from Inline Shopping Center – All Unreimbursed Landlord Operating Expenses Associated  with Vacant Rite Aid Building, Totaling $46,000, are Underwritten into In-Place NOI
    • In-Place NOI Yields a 7.77% CAP Rate on Offering Price
    • Dollar-for-Dollar NOI Upside on Every Dollar of New Income for Former Rite Aid GLA (Gross Rent or NNN Rent) Secured by Purchaser
  • 11.5% Pro Forma CAP Rate if Former Rite Aid Building is Leased at $8/SF NNN
  • Additional Upside Potential via Lease-Up of One 3,215 SF Small-Shop Vacancy with Projected Market Rent of $13/SF NNN
  • Potential to Increase NOI by $54,000; +150 bps to CAP Rate
  • Six Small-Shop Tenants Comprise 29.8% of Occupied GLA and Contribute 40.8% of In-Place Gross Income
    • All Daily Needs Tenants – Dentist, Kettering Health Primary Care, Cassano’s Pizza, Edward Jones, Subway, and Smoke/Vape Shop
    • Kettering Health Primary Care (Alliance Physicians) – Major Dayton MSA Health System and Primary Care Group
    • Cassano’s Pizza – Non-Franchised Regional Pizza Chain with 30+ Units in Dayton MSA
  • Hard Corner Location with Excellent Visibility and 800 Feet of Frontage
  • Located Along Route 35 with 10,000 VPD – Highest Traffic Roadway in the Area
    • 8-Minute Drive from Dayton’s West-Side Outer Highway (Route 49/Route 35 in Drexel)
    • 18-Minute Drive on Route 35 Directly into Dayton’s CBD
  • Excellent Positioning as 1 of Only 2 Shopping Centers in a 5-Mile Radius, and Far Superior to the Only Competing Shopping Center
    • Competing Shopping Center is Located Across Street from Subject, is Class “C” Quality, has Substantial Small-Shop Vacancy, and is Only Occupied by Non-Retail Occupants (Church & Machine Shop)
  • 10,365/3-Mi Population and 163,959/5-Mi Population; AHHI of $76K in a 3-Mile Radius
  • New Lebanon – Semi-Rural Dayton, OH Exurb (Dayton MSA = 800,000 Population); Located in Montgomery County Just 9.5 Miles West of Downtown Dayton
EXCLUSIVELY LISTED BY:

Craig Fuller

Senior Managing Director