Eastgate Crossing

Cincinnati, Ohio

Offering Summary

  • Status: just listed
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  • NOI: $1,698,770
  • GLA: 174,816 SF
  • Net Operating Income: $1,698,770
  • Major Tenants: Kroger, Marshall's, JoAnn, Ross Dress For Less, Dollar Tree

Institutional Property Advisors, on behalf of ownership as its exclusive advisor, is pleased to bring to market Eastgate Crossing, a dominant Kroger-anchored regional shopping center located in the Cincinnati MSA.

  • Kroger Recent 5-Year Renewal | $52mm in Sales | 1.4% Occupancy Cost
  • Kroger Added Fuel Station | Invested Significant Capital into Store in Recent Years
  • 75% of GLA Occupied by Investment Grade Credit Tenants | Below Market Anchor Rents
  • High Tenant Retention and Strong Leasing Demand | 7 Renewals and 2 New Leases
  • Strategic Retail Location | Top 6% Nationally in Shopping Center Foot Traffic

Kroger Recent 5-Year Renewal | $52mm in Sales | 1.4% Occupancy Cost

  • Kroger recently exercised their 5-year option extending term through May 2028. This is a high-performing store with sales of $52mm ($788/sf) and a low occupancy cost of 1.4%. Kroger has operated at Eastgate Crossing since 1991 and added a fuel station in 2009
  • The next closest location is nearly 5 miles away, or a 10-minute drive, resulting in little to no overlap in customer base.
  • Below market rent of only $7.70 NNN with options through 2043

75% of GLA Occupied by Investment Grade Credit Tenants | WALT of 5 Years

  • Eastgate Crossing benefits from 75% of the GLA occupied by investment-grade national tenants including Kroger (BBB, S&P), Marshalls (A2, Moody’s), Ross (A2, Moody’s), and Dollar Tree (BBB, Moody’s). These investment-grade tenants operate at below-market rents with a weighted average base rent of $9 NNN and a weighted average lease term of 5+ years providing surety of cash flow.

Low Rent Basis Anchors | Strong Sales Volumes and Low Occupancy Costs

  • Kroger is operating a base rent of $7.70 NNN with recent sales of $52.7mm. These sales are 19% above pre-pandemic volumes and equate to an occupancy cost that is less than 1.4%.
  • Marshalls is operating at a base rent of $8.50 NNN with recent sales of $9.7mm. These sales are 17% above pre-pandemic volumes and equate to an occupancy cost of 4.4%
  • JoAnn is operating at a base rent of $9.75 NNN with 2021 sales of $2.1mm. These sales are 8% above pre-pandemic volumes and equate to an occupancy cost of 8.3%

High Tenant Retention and Strong Leasing Demand | 7 Renewals and 2 New Leases

  • Eastgate Crossing has a high tenant retention rate with 7 renewals the past 2 years including Kroger, MarshallsJoAnn, and others.
  • Ownership recently executed a new lease with Ross Dress For Less at a 35% positive rent spread and minimal associated downtime. This is a prime example of national retailer demand for the center and the ability to mark to market existing below-market rents should space come available.

Strategic Retail Location | Top 6% Nationally in Shopping Center Foot Traffic

  • Eastgate Crossing ranks in the top 6% of shopping centers nationally per Placer.AI foot traffic statistics, confirming the strategic location within the dominant retail trade area that serves Cincinnati’s Eastern Suburbs. The property is situated just over 1/2 mile from the major I-275/route 32 interchange (combined 122,100 VPD) leading to over 2 million visits to the shopping center annually. Within a 15-mile radius, Eastgate crossing ranks 3rd out of 18 shopping centers in annual visits.
EXCLUSIVELY LISTED BY:

Erin Patton

Senior Managing Director