Cascade Crossing flyer.indd - Mid

CASCADE CROSSING
Northeast Corner of I-75 and 3 Mile Road
Sault St. Marie, Michigan
For further information contact owner’s exclusive representatives.
Ben Wineman
(630) 954-7336
[email protected]
Carly Gallagher
(630) 261-6944
[email protected]
in cooperation with
Daniel Stern
(248) 855-6800
[email protected]
Cascade Crossing is a super-regional power center with significant upside potential
located in the international border crossing community of Sault Saint Marie, Michigan.
INVESTMENT CONSIDERATIONS
Mid-America Real Estate Corporation, in cooperation with Mid-America Real Estate – Michigan Inc. (hereinafter referred to as
“MAREC”), has been retained by the owner to sell the 100% fee simple interest in Cascade Crossing. The center is an excellent
quality asset and an attractive real estate investment based on the following attributes:
• Strong Big Box Tenant Line-Up – The center features a
strategic mix of national and regional retailers. Anchor tenants
include Kohl’s, TJ Maxx, Dollar Tree, Dunham’s, JC Penney,
and Jo-Ann Fabrics, which together comprise 65% of the GLA
and contribute 80% of the gross income.
• Limited Competition – The next closest locations of the
national and regional retailers at the center are on average 67
miles from Cascade Crossing, which will ensure their long-term
presence at the center. Additionally, the next closest retail hubs
in Petoskey and Gaylord, Michigan, are 90 miles and 110 miles
from Sault Ste. Marie, respectively.
• Excellent Visibility and Accessibility – Cascade Crossing is
extremely well positioned along 3 Mile Road at a full interchange
with I-75, making the center easily accessible to the residents
of the surrounding communities of Barbeau, Brimley, Dafter,
Kinross, and Rudyard. The International Bridge, which connects
I-75 in Sault Ste. Marie, Michigan, and Huron Street in Sault
Ste. Marie, Ontario, provides access to the center for the 80,000
nearby residents in Canada.
• Stable and Accretive Cash Flow – 57% of the GLA is leased
through 2019, and the overall average weighted remaining
lease term is 9.8 years.
• Leasing Velocity – Approximately 95,000 square feet has
been leased since 2013 to Kohl’s, Buffalo Wild Wings, Jo-Ann
Fabrics, Shoe Dept., and Superior Styling Salon, demonstrating
the desirability of the asset and the strength of the asset’s
position within the market.
• Value-Add Opportunity – Family Fare (Spartan Stores) plans
to vacate its 60,714 square foot store next year (2017) due to
the recent Walmart Supercenter and new Meijer (scheduled to
open in Spring 2017) grocery competition in the trade area. The
lease-up of the vacant box provides significant upside potential.
• Solid Sales Performance – The tenants at the center have
consistently experienced above average sales performance.
High sales volumes coupled with healthy occupancy ratios allow
the tenants to operate successfully and ensure tenant retention.
• Leveraged Yields – The property is being offered free and
clear of any existing debt, allowing a Purchaser to procure an
attractive market rate loan that could enhance yields on the
investment.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.
References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
LOCATION & MARKET
• Sault Ste. Marie is an important international border crossing community for both ships and cars. Sault Ste. Marie has a population
of approximately 14,000 people, and its twin city in Canada has a population of 80,000. The two cities are joined by the International
Bridge (5,400 VPD), which is 2.8 miles long and connects I-75 in Sault Ste. Marie, Michigan, and Huron Street in Sault Ste. Marie,
Ontario.
•Sault Ste. Marie is home to several key industries, including government, manufacturing, and tourism. The economy of the city
continues to diversify and expand; manufacturing jobs in Sault Ste. Marie have grown 45% since 1990 due to the ongoing efforts of
the Sault Ste. Marie Economic Development Corporation to support local job growth in the community.
•The Soo Locks are a set of parallel locks that enable ships to travel between Lake Superior and Lake Huron. The Locks pass an
average of 10,000 ships per year despite being closed during the winter from January through March when ice shuts down shipping
on the Great Lakes.
• As detailed in the following chart, the national and regional retailers at the center enjoy limited competition given the distances to the
retailers’ next closest locations.
Retailer
Kohl's
TJ Maxx
Jo-Ann Fabrics
Anytime Fitness
Dollar Tree
Bath & Body Works
Shoe Dept.
Maurices
JC Penney
Dunham's
GameStop
Domino's
Check N Go
Buffalo Wild Wings
Walmart Supercenter (Shadow)
Average
Next Closest Location
Gaylord, MI
Gaylord, MI
Petoskey, MI
Petoskey, MI
Sault Ste. Marie, ON
Gaylord, MI
Gaylord, MI
Sault Ste. Marie, ON
Petoskey, MI
Cheboygan, MI
Petoskey, MI
Sault Ste. Marie, ON
Sault Ste. Marie, MI
Petoskey, MI
Sault Ste. Marie, ON
Distance (Miles)
113
113
92
92
7
112
112
6
90
72
92
7
5
92
6
67
• The center serves a dynamic trade area that has almost one million square feet of retail and features a strong 96% occupancy rate.
Notable retailers in the trade area include Big Lots, Goodwill, Gordon Food Service, Kmart, Pet Supplies Plus, Save-A-Lot, and
Walgreens. Walmart’s relocation to a Supercenter and Meijer’s entry into Sault Ste. Marie (scheduled to open spring 2017) further
substantiates the strength of this center and trade area.
PROPERTY DESCRIPTION
• Built in 1993, Cascade Crossing is situated on 27.04 acres and has 266,439 square feet of gross leasable area.
•The property includes two single-story buildings with 18 total tenant suites. The main building has 254,419 square feet of gross
leasable area and is primarily dedicated to big-box tenant suites, while the outlot building has 12,020 square feet of gross leasable
area occupied by small shop tenants GameStop, Domino’s, Check N Go, and Pak N Ship Xpress.
• The property is accessible from two points of ingress and egress along Three Mile Road.
• There are 1,466 parking spaces (5.5 spaces per 1,000 square feet of gross leasable area), providing ample parking to the customers
of the shopping center.
TENANCY
• Cascade Crossing features strong national tenancy with an average weighted remaining lease term of 9.8 years, providing a
Purchaser with stable in-place cash flow.
• Anchor tenants Dollar Tree, Dunham’s, JC Penney, Jo-Ann Fabrics, Kohl’s, and TJ Maxx comprise 65% of the gross leasable
area and contribute 80% of the gross income.
• Other complimentary national retailers at the center include Anytime Fitness, Bath & Body Works, Buffalo Wild Wings, Check
N Go, Domino’s, GameStop, Maurices, and Shoe Dept. The chart below provides a snapshot of the tenants at the center:
Retailer
Kohl's
TJ Maxx
Jo-Ann Fabrics
Anytime Fitness
Dollar Tree
Bath & Body Works
Shoe Dept.
Maurices
JC Penney
Dunham's
Superior Styling Salon
GameStop
Domino's
Check N Go
Pak N Ship Xpress
Buffalo Wild Wings
Percentage of Occupied GLA
Number of Locations S&P Credit Rating
1,162
3,300
750
2,700
5,080
1,670
1,162
922
1,060
200
1
6,690
12,100
1,000
1
1,140
BBB
A+
N/A
N/A
BB
BB+
N/A
BB
CCC+
N/A
N/A
BB+
BBB+
N/A
N/A
N/A
Revenues
Public
$19.02B
$29.08B
$2.40B
$484.0M
$8.60B
$10.77B
N/A
$900.0M
$12.26B
$750.0M
N/A
$9.30B
$1.99B
N/A
N/A
$1.52B
X
X
Private
X
X
X
X
X
X
X
National Regional
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
74%
26%
Local
X
X
X
X
X
X
X
87%
11%
2%
•With Family Fare (Spartan Stores) planning to vacate the center by early 2017, the lease-up of the box suite could increase
the NOI by approximately 65%, greatly enhancing yields on the investment. The landlord and tenant have a mutual 120-day
termination right providing the flexibility to reconfigure this space when appropriate for a new tenant(s).
• Bath & Body Works, Check N Go, Dollar Tree, Dunham’s, JC Penney, Maurices, and Pak N Ship Xpress, which represent 31%
of the GLA, have operated at the center for over 10 years.
•94,888 square feet, or 36% of the gross leasable area, has been leased up since 2013 since Walmart departed for a new
Supercenter across the street. Overall, Cascade Crossing has experienced outstanding leasing velocity and renewals as the
dominant center in the market.
PRICING
Cascade Crossing offers a purchaser the opportunity to acquire the dominant regional center in the eastern UP of Michigan,
with significant upside potential through the lease up of the available box. The property is being offered free and clear of any
existing debt.
In-Place Net Operating Income: $1,249,364
In-Place Net Operating Income (excluding Family Fare): $1,011,258
Stabilized Net Operating Income:
$1,666,086
For further information contact owner’s
exclusive representatives.
Ben Wineman
(630) 954-7336
[email protected]
Carly Gallagher
(630) 261-6944
[email protected]
in cooperation with
Daniel Stern
(248) 855-6800
[email protected]
CLICK HERE to sign Confidentiality Agreement
Mid-America
Mid-America
Mid-America
Mid-America
Mid-America
Mid-America
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