Major Tenants: Home Depot, Forman Mills, Shoppers World, O'Reilly Auto Parts, Octapharma Plasma, Family Dollar, Dollar Tree, Aaron
Southgate USA – Dynamic 707K SF, 74-Acre Regional Shopping Center – Value-Add / Redevelopment / Parcelization Opportunities in Infill Cleveland Suburb
Offering Consists of 15 Separate-Parceled Multi-Tenant & Single Tenant Properties Comprising 711,758 SF on 73.6 Acres with 76.5% Occupancy
7 Multi-Tenant Retail Centers – 533,183 SF Leased to 70% Occupancy, Contributing 54% of In-Place NOI
8 Single-Tenant Propertites – 174,515 SF with 7 of 8 Buildings Leased, Contributing 46% of In-Place NOI
Strong In-Place Yield and Underlying Value Metrics
Pose Exceptional Opportunity for Long Runway & Low-Risk Speculation on Parcel Spin-Offs & Redevelopment
In-Place High-Yield Opportunity: 8.5% Cap Rate on $2.42M In-Place NOI
Priced Far Below Replacement Cost at $40/SF on Existing Building GLA
Covered Land-Play with Land Basis/Price of $387K/Acre; $232K/Acre for Four Specific Redevelopment-Conducive Tracts Totaling 43 Acres (4 – 25 Acres Each)
73.6 Acres of Irreplaceable Real Estate that has Successfully Operated as a Shopping Destination Since the 1950’s
Just 0.5-Mile from Two I-480 Exits (I-480 = 160,830 VPD)
Immediate Vicinity to the I-480 & I-271 Interchange – Busiest Interchange on Cleveland’s East Side
Within One of Cleveland’s Most Dense Infill Suburbs: 12K within 1-Mi; 81K within 3-Mi
55K+ VPD on Arterial Roadways – Two Major Intersections (Route 8 and Warrensville Center Road) Each See 25-30K VPD
Home Depot Anchored & Grocery Shadowed; Strong Community Draw with 3.7 Million Annual Customer Visits from Cleveland’s East Side Suburbs
Anchored by The Home Depot Ground Lease– Leased to NNN Terms thru January 2029; Separately-Parceled Freestanding Building
Shadow-Anchored by Giant Eagle Grocery Store (NAP) Drawing 800K Customer Visits to Southgate USA Annually
Co-Anchored by Shoppers World, Forman Mills, O’Reilly Auto, Dollar Tree, Family Dollar (x2), Octapharma Plasma
Strong Underlying Redevelopment Potential with Low Effective Prices Per Acre, Promoting Redevelopment Feasibility
Potential To Assemble Up to a 25.5-Acre Contiguous Site (2,200+ Feet of Corridor Frontage); Offered at $248K Per Acre
Three Additional Potential Redevelopment Sites with Low Offering Prices: 3.8 Acres ($432K/Acre), 5.39 Acres ($193K/Acre), and 8.11 Acres ($111/Acre), All with Potential to Further Subdivide
Substantial Industrial Demand in Area Indicated by Recent Nearby Developments – 855K Amazon Distribution (2018), 145K Amazon Distribution (2020), 302K SF Spec Industrial (2022), 145K Chick-fil-A Distribution (2022)
Wide Variety of Potential Redevelopment Demand – Healthcare, Industrial, Multi-Family Housing, Seniors Housing, Self-Storage, Single-Tenant Retail (QSR, Auto), etc.
Ability to Reduce Basis & Capitalize on Break-Up Value Arbitrage via Spin-Off Dispositions of Single-Tenant Properties & Multi-Tenant Strips:
All Properties Except Former Rite Aid are Separately Parceled (Allowing Immediate Spin-Off Disposition Opportunities)
Home Depot – $779K NOI (32% of Offering NOI) – Largest Opportunity to Reduce Basis & Largest Cap-Arbitrage $ Profit Potential
Chase Bank – Far Below-Market Rent at $34K Annually; Bite-Size Price, NNN, IG Credit, and No Options
KeyBank – 1.4-Acre Hard Corner (25K VPD) Parcel, Low $79K NOI ($14/SF); Nicer/Newer Building with Drive-Thru; IG Credit
Rally’s – Low $33K Annual Rent; Next to Brand-New Chipotle with $124K Annual Rent
Former Rite Aid – Prime 10,752 SF Recently Vacated All-Brick Building; Approx. 1.6-Acre (Not Separately Parceled) Prime Hard Corner Site with 30K VPD
Several Other STNL & Stabilized Shopping Strips Offer Opportunities for Spin-Off Dispos to Reduce Basis if Desired
Potential to Execute a Variety of Business Plans to Achieve Maximum Value-Add & Redevelopment Potential
Example 1: Retail Investor Acquires Property, Retains Key Retail Pieces Suitable for Investment/Hold Strategy, Sells Redevelopment Sites to Non-Retail Developers
Example 2: Non-Retail Developer/Operator Acquires Property, Re-Sells Stabilized Retail Investment Properties to Shopping Center & STNL Investors, Effectuates Large-Scale Non-Retail Development on Remaining Tracts