Brooklyn NY, RESIDENTIAL DVLPMNT SITE - APPROVED for 300+ Units for SAL
NNN LEASED SUPERMARKET PLUS VALUE ADDED CONTINGENT
13 YEAR LEASE + 4 YEAR OPTION
TENANT: Tops Friendly Markets, a privately held company operating 176 stores in Upstate New York, Vermont and Pennsylvania. Gross income for the company was $2.5 billion in 2014.
ADDRESS: Erie, Pennsylvania
DESCRIPTION: A one story retail building operating as a supermarket with warehouse and office space. The building contains 77,000 square feet of area of which 54,000 is grocery store space and the balance is used for warehousing and office. 24 hour store.
The asset is on a site of 8.85 acres of which 2.14 acres can be developed as outparcels.
LEASE: The tenant has been occupying this location since 1995. A lease modification agreement was entered into during April 2014 which extended the lease until April 2029 + one 4 year option period. The rent as of 5/1/17 will be $46,970 per month. It is fully net. The lease calls for fixed yearly increases (please see below schedule) such that the monthly rent during the last year of the lease is $53,952 per month (not inclusive of option period).
NNN INCOME (Average from May 1, 2017 to April 30, 2029) $608,144
PRICE: $9,200,000 (6.6% average cap rate)
FINANCING: Assumable 1st mortgage—originally $5,698,995 for 10 years. Int @ 4.82%..30 year schedule (loan placed in 2015)
NOTE: 90,000 population in 3 mile radius
EXCELLENT VALUE ADD OPPORTUNITY, POTENTIAL FOR OUTPARCEL DEVELOPMENT