709-719 Hebron Rd
Heath, OH 43056
Five Guys & Great Clips w/ 10-Year Leases · Retail Property For Sale

Marcus & Millichap, on behalf of ownership, is pleased to present Five Guys & Great Clips located in Heath, Ohio. The subject property is a 4,040-square-foot, 100 percent occupied two-tenant retail center that was constructed in 2000 and renovated in 2017. Five Guys & Great Clips is an outparcel to Southgate Shopping Center, which is anchored by Hobby Lobby and Best Buy. Five Guys is a new corporate location, and is subject to a new 10-year triple-net lease and paying 10 percent administrative fees on the pro rata share of common area maintenance. Five Guys has a ten percent rent increase in year five of their base term, as well as ten percent rent increases in their two, five-year options. Great Clips is operated by a local multi-unit franchisee, who has operated successfully for several years at the location, relocating to their newly renovated unit with a new 10-year lease in 2017. Great Clips is also leased to triple-net terms, reimbursing for management fees as well as paying 20 percent administrative fees on common area maintenance. Great Clips has a ten percent rent increase in year five of their lease and zero renewal options. The prospective purchaser is benefitted by the minimal deferred maintenance due to the 2017 exterior renovations and interior build-outs, ease of management with only two triple-net tenants, and mid-term rent increases for both tenants that will provide significant net operating income growth over the hold period. Five Guys & Great Clips is situated in the middle of a vibrant retail corridor along Hebron Road (Ohio State Route 79), which the primary north-south commercial thoroughfare for the Heath & Newark markets with 34,350 cars per day. The subject property is less than one-half mile from Indian Mound Mall, a 556,573-square-foot Washington Primeowned regional mall anchored by Dick’s Sporting Goods, AMC Theatres, Elder-Beerman, JCPenney, Sears, and Big Sandy Superstore. The mall underwent a cosmetic remodel in 2013 which led to the opening of Dick’s, AMC Theatres, and ULTA, and local hotspot Massey’s Pizza Sports Bar and Grill. Over the past 3 years, approximately 25 percent of the mall’s gross leasable area has been leased to new tenants or remodeled for existing tenants. Demographics in the surrounding area are strong, with 44,658 residents within three miles and 67,995 residents within five miles. The area is home to a mix of white collar and blue collar middle-income families, with average household income of $63,945 within five miles. Prominent national retailers in the immediate vicinity include Walmart Supercenter, Target, Lowe’s, Kroger, Rural King, Giant Eagle, T.J. Maxx, Jo-Ann Fabrics, Aldi, Big Lots, Petco, Dunham’s Sports, Staples, Party City, and dozens of smaller national retailers and restaurants. The Hebron Road retail corridor pulls from a geographically large trade area with a population of more than 120,000, encompassing the neighboring cities of Newark, Granville, Hebron, Buckeye Lake, Millersport, and several smaller communities. Heath is approximately 35 minutes east of Downtown Columbus and is part of the Columbus metropolitan area, which is one of the fastest growing in the Midwest with a population of over 2 million.