Northgate Mall

An Exceptional Investment Opportunity
Northgate Mall
CincinNati, Ohio
Offered Exclusively by
Rockwood
Real Estate Advisors
Rockwood Real Estate Advisors LLC (“Rockwood”) has
been retained as exclusive agent and advisor for the disposition of the fee simple interest in a 544,111 square
foot portion of Northgate Mall (the “Mall” or “Property”)
- a strategically positioned, single-level enclosed superregional mall with a total gross leasable area of 927,433
square feet. The owned portion of the Property is situated on approximately 39 acres of land in the Northwest
quadrant of Cincinnati, Ohio, and is strategically located
along Colerain Avenue, a major north/south thoroughfare, and less than 1-mile south of Interstate 275.
Cru sad er Dr
Loralin da Dr
Ct
27
to
Aries Ct
Ln
w Ln
Darbi De
Gila Dr
Ren etta Ct
d
ma
rR
Pa
lo
Sunnyside Dr
Farbach-Werner
Nature Preserve
King
man
Dr
r
Approximate Owned Property Boundary
hli D
Stra
Lookover Dr
Brookside
Dr
mp
Co
d
nR
Libra Ln
Pippin Rd
Lillwood
Zoellner Dr
Cheviot Rd
thrush
Gibralter Dr
Ct
ton
Rd
Livingston
Wood
Dr
An ah eim
ding
Poole Rd
Miles
ola
sac
Pen
Dr
Fish
Hatchery
Lake
Atwater Dr
Tripo
li
Roun d
To p Rd
Dr
va
Sil
Bro ckt on Dr
Dr
Wilcox Dr
Axmin st
er
o
W
Eddystone
s
od
Dr
Vernier Dr
Erin Dr
Dr
Dr
Sagemeadow Dr
r
gD
on
Dr
Had
Ave
Springrock
Dr
Rip plegrove
St
rain
Thimbleglen
Dr
Mall
ent
Developml
Parce
JCP)
(Former
Dr
Ad air Ct
Herit ag
Niagara
Ainsworth
Cole
Ye llowood
r
Fernhaven Ct
Fairglen Dr
Rd
Cir
sD
Orangeburg Ct
Wardwood
Flat Top Dr
eway Dr
ale
gd
rin
Dr
Dr
Dunra ve n
Colleen Dr
Sp
oo
Desh ler Dr
ons
re
Dr
Wheatfield Dr
rw
d
m
Com
Ascot Ct
Ac
Ln
oll Dr
ry
us
h
Ma ple kn
er
bo
Yellowstone Dr
br
Susanna
Ne
wb
Ar
Marin o Dr
275
Dr
Dr
Dr
Newberry Wildlife
Sanctuary
ge
Al
Mo nte zuma
n
Sa
a
os
am
Cond or Dr
ta
Haverkos Ln
Dr
kin
ds
Re
Gle nkn oll Ct
Ct
cy
Dr
Ho
llis
Re
g
en
Challenger Way
ps
Ca
Pre chtel Rd
Manover Ln
PROPERTY OVERVIEW AND OFFERING HIGHLIGHTS
heel
Terra
ce
Bauerwoo
ds Dr
Mc Gill Rd
Donata Dr
> THE PROPERTY
126
k
Rd
Rona
Sovereign Dr
ld Rea
gan C
ross C
nty Hw
Oakmeadow
y
Northgate MallAshwas
constructed
in ou1971/72
and exLn
hill Ct
panded in 1992/93 with the addition of Macy’s and a
three-level parking garage. The Mall has undergone
numerous renovations and upgrades, with the most
recent improvements occurring in 2006/07 which included exterior and interior improvements, as well as
the removal of the former JC Penney anchor building.
The Property was last sold in 2005 and has been in
control of a receiver since February 2010.
Cogh ill Ln
oc
Woodhill Dr
Pavlova Dr
The Property consists of approximately 927,433 square
feet of retail space including three anchor tenant buildings, 263,143 square feet of in-line shop space, a
50,177 square foot major tenant and three outparcel
buildings consisting of 50,791 square feet. Two of the
anchor buildings are occupied by Macy’s and Sears,
and the third was vacated in late 2009 by Dillard’s. A
fourth anchor space was torn down in 2007, it consisted of 153,000 square feet and was occupied by JC
Penney. The Property’s Gross Leasable Area is configured as illustrated in the table to the right.
Beckys Ridge Dr
Cartw
Wexler Ct
Cranfield Ct
Russet Dr
sD
od
Joseph Rd
wo
ian
Ind
Rd
Wuest
r
Dr
Reg al Ln
COMPONENT
Ln
OWNED PORTION
Commodore
In-line
SF
% OF
TOTAL
SALES PSF
263,143
28.4%
$252
20,000
2.2%
N/A
2,600
0.3%
N/A
19,400
2.1%
N/A
TGI Friday’s
8,791
0.9%
N/A
SUBTOTAL
50,791
5.5%
$309
Famous Labels (New Tenant)
50,177
5.4%
N/A
SUBTOTAL
50,177
5.4%
N/A
OUTPARCEL
Vacant (Former Borders)
Burger King (Ground Lease)
Other In-Line
MAJORS
ANCHORS
Macy’s
180,000
19.4%
N/A
SUBTOTAL
180,000
19.4%
N/A
TOTAL OWNED
544,111
58.7%
$257
Sears
180,260
19.4%
N/A
Vacant (Former Dillard’s)
203,062
21.9%
N/A
UN-OWNED PORTION
ANCHORS
TOTAL UN-OWNED
TOTAL MALL
383,322
41.3%
N/A
927,433
100.0%
$257
PROPERTY OVERVIEW AND OFFERING HIGHLIGHTS
> RENEWED INTEREST IN NORThGATE MALL > CLEAR PATH TO STABILIZATION AND A
FROM LARGE USERS
DEFINED REDEVELOPMENT STRATEGY
IN-PLACE
The anchor and in-line tenant base at Northgate Mall is
ideally suited for the trade area, however the vacancies
that currently exist will permit a new owner to tap into
under serviced segments of the population by creating
a more unique and relevant shopping experience. A new
owner will be able to capitalize on the current renewed
interest in Northgate Mall, as evidenced by the recently
executed 50,177 square foot lease by Famous Labels,
and continued interest in both the vacant Dillard’s building and JC Penney parcel from large retailers and theatre operators. The periphery of the Property also offers
additional development opportunities for outparcel pads
along Springdale Road and Colerain Avenue.
> CENTRAL LOCATION CAPTURES
CINCINNATI’S LARGEST TRADE AREA
Given its location at the “Crossroads of Cincinnati”,
Northgate Mall is the logical choice for shoppers north
of the Ohio River and west of I-75, encompassing both
Southwest Ohio and Southeast Indiana - a trade area of
over 500,000 in population. Additionally, Northgate Mall
benefits from having no immediate mall competition to
the north and west, with the next nearest mall being over
50 miles away in Indianapolis. The proposed improvements to Colerain Avenue will enhance the Property’s already excellent accessibility, and shoppers traveling from
these regions will continue to favor Northgate Mall as a
result of its proximity and convenience compared to its
competition. With the right marketing strategy and tenant mix, the Property can be repositioned as a shopping,
entertainment and cultural destination.
For More Information Please Contact:
Northgate Mall does not fit into the typical distressed mall
category whereby investors question the sustainability of
the mall as a whole. Prior to the economic downturn,
the Mall was on a clear path to stabilization. A $30+ million renovation and redevelopment was in progress with
the prior ownership, which included a 14 screen stateof-the-art movie theatre complex to be built on the JC
Penney parcel. Over $8 million has already been spent on
various interior and exterior improvements. This strategy
continues to be achievable, as there is continued interest
in both the JC Penney parcel and most recently the vacant Dillard’s space. The JC Penney parcel is owned by
a related entity to the Property, and pre-liminary conversations have begun with respect to selling this parcel in
conjunction with the sale of the Property. The continued
success of the various new developments surrounding
Northgate Mall (Stone Creek Towne Center directly north
of the Property), and the Township’s support to help aid in
the transitioning of the Colerain Avenue retail corridor help
support moving forward with a redevelopment strategy.
IMPRESSIVE ALIGNMENT AND IMPROVING
> PERFORMANCE OF NATIONAL AND LOCAL
TENANTS
The in-line tenant roster consists primarily of national tenants, in addition to local/regional tenants who have been
operating at the Property for many years, and are well
supported by the local community. The strongest performing national tenants include Aeropostale, Bath and
Body Works, Victoria’s Secret, Finish Line, Foot Locker,
American Eagle Outfitters, New York & Co, and Express
to name a few. Additionally, a new lease with Famous
Labels was recently executed, taking 50,177 square feet
of space.
MARKET HIGHLIGHTS
> Local Government Committed to
Revitalizing Surrounding Area
> STRONG AND STABLE DEMOGRAPHICS
Cincinnati is one of the 25 largest MSAs in the nation,
with 2.2 million residents and is the 5th-largest MSA in
the Midwest, ranking 5th among the 10 largest Midwest
MSAs based on population growth this decade. Population growth in the Cincinnati metro has been relatively
stable. The 2000-2009 annual rate of growth was twice
as high as the rate for the Midwest region. The forecast
calls for growth at a 0.6 percent annual average rate over
the next five years, with the expected addition of another
63,000 residents by 2015. About 140,000 people live
within a 10-minute drive of Northgate Mall and an additional 420,000 people live within a 20-minute drive.
Northgate Mall benefits from being located at the nexus
of the Colerain Township retail corridor. Over the past
several years, the Township has implemented several
programs to improve Colerain Avenue’s retail corridor
and help promote it as the premier shopping destination for the Western half of the Cincinnati metro. This
includes the use of TIF financing for roadway improvements and aesthetic upgrades, and other financial incentives to promote the re-development of various
commercial buildings. Future plans call for a streetscape
atmosphere to be created with the entranceway beginning at the Northwestern corner of the Property. Local
officials acknowledge Northgate Mall is a key piece to
successfully achieving their plan, and as such, a new
owner will be able to capitalize on the Township’s support and desire to execute a revitalization plan.
Area
1990a
Population Level
2000a
2010e
2015f
1990-2000
Annual Growth
2000-2010
2010-2015
Northgate Mall: 0 min - 20 min
568,409
554,326
556,593
554,118
-0.3%
0.0%
-0.1%
Northgate Mall: 0 min - 10 min
130,482
133,711
137,498
138,156
0.2%
0.3%
0.1%
59,668,632
64,392,776
66,896,705
67,646,478
0.8%
0.4%
0.2%
1,844,917
2,009,632
2,177,460
2,240,244
0.9%
0.8%
0.6%
10,847,115
11,353,140
11,496,025
11,471,147
0.5%
0.1%
0.0%
248,709,873
281,421,906
309,038,974
321,675,005
1.2%
0.9%
0.8%
Midwest (12 States)
CincinnatiMSA
Ohio
The United States
Source: US Census, Nielsen Claritas
For More Information Please Contact:
Rockwood
Real Estate Advisors
555 Fifth Avenue, 5th Floor
New York, N.Y. 10017
DANIEL MCNULTY
Co-CEO and Co-Chairman
Rockwood Real Estate Advisors
T 212.286.5800 · F 212.286.5555 T 212.286.5800 · [email protected]
THOMAS E. DOBROWSKI
CAMERON PITTMAN
T 212.286.5800 · [email protected]
T 212.286.5800 · [email protected]
Managing Director
Rockwood Real Estate Advisors
Senior Associate
Rockwood Real Estate Advisors
NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND SAME IS
SUBMITTED SUBJECT TO OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITION, WITHOUT NOTICE, AND TO ANY LISTING CONDITIONS, IMPOSED BY THE OWNER