Grocery-Anchored Central Pennsylvania Power Center for Sale

Thursday, October 27, 2016

On behalf of the owner, Holliday Fenoglio Fowler, L.P. (HFF) is pleased to market for sale Monroe Marketplace, a 372,806-square-foot, market-leading, grocery-anchored power center located in the Central Pennsylvania community of Selinsgrove. Monroe Marketplace is anchored by a premier lineup of national retailers, including GIANT Food Stores, T.J. Maxx, Dick’s Sporting Goods, Kohl’s, PetSmart, Ulta Beauty, and features a best-in-class shadow anchor with Target.

Monroe Marketplace offers investors the opportunity to acquire a best-in-class, dominant grocery-anchored retail power center, sustaining long-term income stability and proven success from a diverse national credit tenant lineup of market leaders within their respective fields. More than 17 percent of the gross income is attributed to Giant, while approximately 91 percent of the total gross income is generated by investment-grade credit tenants with an average remaining lease term of 6.5 years.

The center is positioned as a destination retail center, servicing a consumer base within a 15 to 20 mile radius and beyond. Prominently located on 35.1 acres at 110-490 Marketplace Boulevard at one of the most highly-traveled intersections within the market, Route 11/15, and adjacent to the 744,900-square-foot Susquehanna Valley Mall, the retail property for sale benefits from an ideal location at the heart of Selinsgrove’s primary retail node. The center’s mall-peripheral location commands exposure and visibility to more than 30,000 vehicles per day, and the center is strategically positioned off of all major interstate highways, accessible via Interstates 80, 81 and 180.

Retail Property for Sale Investment Benefits:

  • Market-Leading Consumer/Traffic Generator:  Monroe Marketplace is anchored by GIANT Food Stores (Baa2), a subsidiary of Netherlands-based Koninklijke Ahold N.V., an international grocery brand with more than 3,200 stores that generated revenues of more than €38.2 billion in 2015. GIANT is Central Pennsylvania’s leading grocer, maintaining a market share of 31 percent, more than its top three competitors combined. Monroe Marketplace is a mission critical location for AHOLD & the GIANT Brand within Central Pennsylvania due to its wide market reach. The location has proven to be profitable, generating 2015 sales of $27.6 million ($363/SF), equating to a health ratio of 3.5 percent with over 10 years of remaining term.
  • Optimal Tenant Line Up of Best-in-Class Retailers:  Target, combined with anchor and junior anchor tenants such as Dick’s Sporting Goods, T.J. Maxx, PetSmart and Kohl’s, make up nearly 300,000 square feet, creating a diverse, synergistic mix of core tenants and enabling the center to pull the maximum consumer audience in the market while promoting “cross-shopping.” Vitally important in today’s retail market, anchors and junior anchors are rightsized, leaving minimal risk of incurring future costs for tenant improvement work and/or landlord work to chop up existing box space. Furthermore, all in-place tenants are paying market level, or in some instances below market rents promoting a high likelihood of renewal probability. Recent tenant signings, including Ulta Beauty, Moe’s Southwest Grill, Buffalo Wild Wings and Sleepy’s, illustrate the property’s high level of desirability and wide-reaching consumer draw.
  • High Anchor-to-Shop Ratio:  Anchors and junior anchors at the center generate 75 percent of the gross income and promote favorable sales and positive health ratios. This aggregation of credit and tenure at the property makes Monroe Marketplace a leading destination for consumers in the Central Pennsylvania market. With an established presence in the market and nearly 12 years of term remaining, the two largest anchors, Giant and Kohl’s, present security and a high likelihood of renewal.
  • Destination Retail Location Accessible from all Major Roadways:  Monroe Marketplace is the foremost retail destination within Greater Snyder County, having the most concentrated retail aggregation within a 15- to 20-mile radius. The center is positioned along Route 11/15, the most highly trafficked north-south retail corridor in Central Pennsylvania, where traffic counts exceed 30,000 vehicles per day. This dense commercial concentration creates a powerful regional consumer draw and has consistently been able to extend its trade radius to five counties due to the lack of competition in the surrounding markets, compounded by ease of access to major highways that connect to Route 11/15. The property out-positions its main competition, the Susquehanna Valley Mall, through its premier line-up of best-in-class tenants combined with its superior functional layout. With both profitable tenant sales and continual upward trends on sales figures, the asset is, and will remain to be, profiled as the number one center for all major retailers.

Monroe Marketplace is a retail property for sale in Central Pennsylvania that features a dominant grocery anchor with more than 10 years remaining on its lease term, a diverse roster of investment-grade tenants along with a market-leading shadow-anchor tenant all in a strategic location that attracts a vast consumer audience. For more information on this commercial property for sale, please contact HFF Managing Director Chris Munley, Senior Managing Director Jose Cruz and Associate Directors Michael DiCosimo and James Conley.

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