Description
Salisbury Plaza presents a rare opportunity for an investor to purchase a destination grocery-anchored center with immediate upside through leasing, converting gross leases to triple net leases, and building two pad sites. Currently, the center is 55% occupied and anchored by Save A Lot Grocery, Family Dollar, and Powerhouse Gym. Although Save A Lot's lease expires in July 2006, the tenant has expressed interest in remaining at this location. The Property is very well maintained and has benefited from many recent capital improvements over the past two years. A new roof and the parking lot, a new 25' pylon sign was erected, new facade with banners, and many of the HVAC units were replaced. Shopping centers in the immediate area are typically 100% occupied with little to no turnover and average between $10-$12 in rent. Salisbury Plaza, well positioned for its market, averages about $6 per square foot in rent. In addition, due to prior management, many of the leases signed within the last few years are gross leases. Through leasing of the center and the pad sites, a new owner, on a very conservative approach, can earn approximately a 12% unleveraged return within the next 18 months.
Salisbury Plaza is located on Route 50, one half mile west of the intersection with U.S. Route 13. Route 50 is the major east-west thoroughfare carrying traffic from the Baltimore, Washington, and Annapolis areas to all of Maryland's ocean front communities. U.S. Route 13 is the major north-south highway along the Eastern Shore, connecting to the Chesapeake Bay Bridge and Norfolk-Virginia beach areas. According to the State Highway Administration of Maryland, annual average daily traffic along Route 50 by Salisbury Plaza is between 29,950 and 30,450 vehicles. Salisbury is the largest city onn the Delmarva Peninsula of Maryland, Delaware, and Virginia and home of Salisbury State University with enrollment of 6,000. The city and county populations are growing steadily, having increased 25% between 1980 and 1990. Most of the recent residential growth in Salisbury has been along the west side of the city, where Salisbury Plaza is located.