Highlights

• Priced at $51 PSF - Well below replacement cost
• 11% Unleveraged and 19% Leveraged 10 Year IRR
• Value Add Through Leasing of 13,250 SF Vacancy

• Future Pad Potential Development Opportunity
• Low Rent PSF and Rent/Sales Ratios on Current Tenants

Description

Marcus & Millichap is pleased to offer for sale the South End Shopping Center in Hagerstown, Maryland for a purchase price of $7,184,000 or $52 per squarefoot. The shopping center is well established within this trade market and offers an immediate value add opportunity through leasing of the remaining vacant space and potential for future pad site development. The center is currently 91% occupied through a national and local tenant base with established long term businesses at this site. Most of the leases are triple net allowing for recapture of the taxes, insurance and common area costs. Aaron's rent and Save-A-Lot are on modified gross leases with recapture of operating expenses over a base year and Tuesday Morning is on a gross lease. These three leases offer additional upside moving forward as it provides the potentialto convert these tenant spaces to triple net leases upon expiration or renegotiation. All of the current tenants are paying approximately 15% to 35% below current market rent with many of the larger anchors paying $2 - $4 per square foot.

The South End Shopping Center is located along Maryland Avenue in Hagerstown, Washington County, Maryland. Hagerstown is the county seat of Washington County and is located in north western Maryland approximately 75 miles from Baltimore and Washington D.C and 180 miles west of Philadelphia. The South End Shopping Center is conveniently located within two miles of I-70 for convenient access to other local markets. I-70 was the first interstate highway project started in the United States and currently runs approximately 2,100 miles from Baltimore to Utah. The shopping center is highly visible and offers multiple points of ingress and egress to both traffic patterns along Maryland Ave. There is a raised pylon sign along Maryland Ave promoting the current tenant base to passing traffic. This is the only shopping center within a two mile stretch along Maryland Ave and services the households that surround the site. Local demographics support over 90,000 people within a five mile radius with an average household income in excess of $67,000.