5301 Simpson Ferry Rd
Mechanicsburg, PA 17050
Giant | Dominant Grocer in Central PA · Retail Property For Sale

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the fee simple interest in this Giant grocery store in Mechanicsburg, Pennsylvania, a mature suburb of Harrisburg. The tenant leases an attractive 51,500 - square-foot freestanding building with gas station situated upon 6.61 acres. The Tenant, Giant Food Stores, LLC, is subject to an absolute NNN lease with more than six years of base term remaining and eight, five-year options with increases of three percent and four percent every five years. The lease is corporately guaranteed by Koninklijk Ahold, N.V., a subsidiary of Netherland-based Royal Ahold, which operates approximately 1,000 supermarkets throughout the United States and 3,206 locations globally. Koninklijk Ahold N.V. was most recently upgraded from BAA2 to BAA1 by Moody’s Investors Service and is publicly traded under the ticket “AH”. Store sales are not reported at this location, however, Giant is the dominant grocer in the central Pennsylvania market determined by a Food World study for the year ending March 31, 2017. Presently, there are 44 Giant stores in Central Pennsylvania which generate $1.7 Billion in sales and control a whopping 49 percent of market share. The subject location is long-established as the Tenant has operated here for over 30 years; many years prior to the construction of the current building. An older, smaller store was demolished around 2004 and a new modern and enlarged store was constructed on the same site. While store sales are not reported, a robust whisper number is available from the listing team. It is also noteworthy that the Tenant sublets approximately 3,600 square-feet of space to a Pennsylvania State Liquor store. That store reported sales over $4 Million in 2016-17 placing it in the top third of all liquor stores in the state. All signs indicate that the Giant will remain in this location long term. This Giant store is positioned along Simpson Ferry Road, a popular local road with average daily traffic counts in excess of 16,000 vehicles. The Tenant has prominent frontage and five means of ingress/egress including an aligning curb cut with the neighboring Rite Aid pharmacy. Rite Aid relocated to this corner into its newest prototype in 2006. Giant also benefits from notable neighboring retailers Advance Auto Parts, United States Postal Service, Santander Bank, Pizza Hut, and others making this the quintessential “neighborhood grocery store”. Located 9 miles west of Harrisburg, the capital city of the commonwealth, Mechanicsburg is a dense submarket that boasts strong demographics. There are more than 49,859 people with an average household income of $86,244 within three miles of the subject property. Population has grown by 17 percent since 2000 and is projected to increase an additional five percent by 2022.