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38-42 S. 52nd Street Philadelphia, PA 19139
OFFERINGMEMORANDUM
INVESTMENT SALES
TABLE OF CONTENTS
2
3 Investment Summary/Highlights
4 Aerials
5 Map
6 Philadelphia Overview
7 Demographics
8 Zoning
9 Tenant Overview & Rent Roll
10 Lease Overview & Rent Roll
JOHN P. COLUSSIVice President, Investment [email protected]
JACOB COOPERPartner & Managing [email protected]
The information contained in this proposal has been obtained from sources deemed reliable. MSC Retail cannot verify it and makes no guarantee, warranty or representation about its accuracy. Any projections, opinions, assumptions or estimates provided by MSC Retail are for discussion purposes
only and do not represent the current or future performance of a property, location or market.
INVESTMENT SUMMARY / HIGHLIGHTS
MSC Retail is proud to exclusively present 38 South 52nd Street in Philadelphia, Pennsylvania. The offering is a 7,495 square foot single story retail building currently occupied by Foot Locker (NYSE: FL; Moody’s: Ba1). Foot Locker has an upcoming lease expiration in January 2024. This provides a new investor with the opportunity to control an income producing site that could continue to be utilized as a retail property, or the site could be redeveloped given the property’s Commercial Mixed Use, CMX-4 zoning.
52nd Street is on the western boarder of University City, one of the most dynamic areas in Philadelphia. Resident demand for housing options within close proximity to this growing neighborhood have caused an increase in demand for West Philadelphia housing. According to CoStar.com, the average rent within 0.5 miles of 38 S 52nd Street is $1,010 and the available inventory is 95% occupied. Since 2009, the market sales price per unit in this area has grown from $60,683/unit to $153,554/unit, a 153% increase in 10 years. Further, this site benefits from close proximity to the Market Frankford subway station at 52nd Street, approximately 2 blocks away.
With more than four years of remaining term from a credit rated tenant, there is ample time to develop a strategy for what this site could look like in the future. Commercial Mixed Use zoning, specifically CMX-4 is one of the most flexible designations available in Philadelphia. It allows for a large array of uses with the ability to add significant vertical density given a maximum floor area ratio of 500%. 38 S. 52nd Street offers a unique opportunity to control an income producing property along a burgeoning commercial corridor with significant future development potential.
7,495 square foot single story retail building with frontage along 52nd Street and Chestnut Street
Leased to Foot Locker(NYSE: FL; Moody’s: Ba1) until January-2024
Highly desirable CMX-4 zoning which allows for vertical development and a multitude of commercial and residential uses
Strong demand for residential properties reflected by the 153% increase in market sales price per unit within 0.5 miles of the site since 2009 (CoStar.com)
Located 2 blocks from the 52nd street Market Frankford Subway Station
$1.8MPrice
145,600NOI
8.09%Cap
AERIAL - 52ND STREET, PHILADELPHIA PA
CHESTNUT STREET
18,986 VPD
S. 52
ND ST
REET
8,02
7 VPD
50 feet
48
feet
MAPWEST PHILADELPHIA - GROWING RESIDENTIAL DEMAND
• 95% occupied market
• 153% increase in market sales price per unit 2009-2019
• Growing Millenial Demographic given the lower cost of living compared to University City and Center City
PHILADELPHIA OVERVIEW
GREATER PHILADELPHIAPhiladelphia is the largest city in the state of Pennsylvania and the sixth-most populous US city, with an estimated population of over 1,580,000 as of 2017. The greater Philadelphia area, known as the Delaware Valley, is the eight largest combined statistical area in the United States, with a population of 7.2 million. Located between New York City and Washington DC, Philadelphia is at the core of the country’s wealthiest and most densely populated region – 46 million people live within a 200-mile radius with a combined income of $1.46 trillion. 40% of the US pop-ulation lives within a day’s drive of Philadelphia, and 60% of the population is within a two-hour flight. The desirability of Philadelphia is further highlighted by its low cost of living compared to other large metropolitan statistical areas including New York, DC and Boston. These factors, along with Philadelphia’s incredible global access,deep talent pool and attractive cost of doing business have helped key industries to thrive in the region.
$432 BILLIONGross Regional Product
7.2 MILLION8th Largest MSA Population
40% US POPULATIONWithin a Day’s Drive
#1Millenial Growth Rate Over the
Nation’s 30 Largest CitiesHousing Value & Opportunity
(National Association of Builders)
#1City for Culture
(Travel & Leisure Magazine)
#1104
Colleges & Universities
36%Population Under 25 with Bachelor’s Degree, Compared to 30% Nationally
$2.93 BILLIONPhiladelphia School Capital Projects
Over Next 5 Years
DEMOGRAPHICS
1 Miles 2 Miles 3 Miles2019 Est. Population 78,638 225,597 411,575
Average HH Income $46,001 $45,317 $61,816
2019 Est. Households 33,649 89,294 172,978
Total Businesses 1,648 7,521 14,102
Total Employees 13,031 86,117 176,413
ZONING ANALYSIS
*Data from Philadelphia City Planning Commission - “Philadelphia Zoning Code Information Manual: Quick Guide”
52ND STREET - 48 FEET OF FRONTAGE
CHESTNUT STREET - 50 FEET OF FRONTAGE
Center City commercial mixed use
Uses permitted as of right: Household Living; Group Living; Recreation; Day Care; Educational Facilities; Fraternal Organization; Hospital; Libraries and Cultural Exhibits; Religious Assembly; Safety Services; Transit Station; Utilities and Services, Basic; Wireless Service Facility; Office; Building Supplies and Equipment; Consumer Goods (except Drug Paraphernalia and Guns); Food, Beverages, and Groceries; Pets and Pet Supplies; Sundries, Pharmaceuticals, and Convenient Sales; Wearing Apparel and Accessories; Animal Services; Assembly and Entertainment (except Amusement Arcade, Casino, and Pool or Billiards Room); Building Services; Business Supportl Prepared Food Shop; Take-Out Restaturant; Sit Down Restaurant; Financial Services (except Personal Credit Establishments); Funeral and Mortuary Services; Maintenance and Repair of Consumer Goods; NonAccessory Underground Parking; Personal Services (except Body Art Services); Radio, Television, and Recording Services; Visitor Accommodations; Personal Vehicle Repair and Main-tenance; Personal Vehicle Repair Sales and Rental; Gasoline Station; Vehicle Equipment and Supplies Sales and Rental; Moving and Storage Facilities; Artist Studios and Artisan Industrial; Research and Development; Community Garden
Uses requiring special exception approval: Non-Accessory Above-ground Structured Parking
Max Occupied Area:
Min Side Yard Width:
Max Floor Area Ratio:
Buildings <5 stories with 1 or more dwelling units 90%; Others 100%
If used: Buildings <4 stories with three of fewer dwelling units = 5 ft.; Others = 8 ft.
500%; up to an additional 700% with bonuses
TENANT OVERVIEW
NYSE:FL
3,200Locations
NEW YORK, NYHeadquarters
$7.9B2018 Sales
Ba1 32,175Moody’s Credit
RatingEmployees
(2017)
Foot Locker, Inc. (NYSE:FL) is a leading global retailer of athletically inspired shoes and apparel.
Headquartered in New York City, the company operates approximately 3,200 athletic retail stores in 27 countries, as well as websites and mobile apps, under the brand names Foot Locker, Champs Sports, Eastbay, Kids Foot Locker, Footaction, Lady Foot Locker, Runners Point, and Sidestep.
With its various marketing channels and experiences across North America, Europe, Asia, Australia, and New Zealand, the Company’s purpose is to inspire and empower youth culture around the world, by fueling a shared passion for self-expression and creating unrivaled experiences at the heart of the sport and sneaker communities.
LEASE OVERVIEW & RENT ROLL
Offering Price $1,800,000
Cap Rate 8.09%
Annual Rent $145,600
Lease Type Fee Simple
Lot Size 7,629 Square Feet
Building Size 7,495 Square Feet
Year Built 1925
Term 4 years
Anticipated Rent Commencement June-2002
Options One Five-Year Option
Option Notice Period Notice delivered to Landlord by January 31, 2023
Guarantor Corporate
Maintenance and Repairs
Tenant responsible to repair and maintain the premises, make repairs and replacements to the sidewalks and curbs, remove snow, ice, dirt and rubbish. Tenant maintains in good order and repair all water, gas and oil lines. Landlord responsible for roof and structure
Taxes Tenant pays 100% of taxes
Insurance Tenant pays their own liability insurance and reimburses landlord for property insurance
Term Annual Rent Monthly Rent
Current- 1/1/2024 $145,600 $12,133.33
Option 1 $162,037 $13,503.08
HVAC Tenant is responsible to maintain, repair and replace
CONFIDENTIALITY AGREEMENT
This is a confidential brochure intended solely for your limited use and benefit in determining whether you desire to express any further interest in the purchase of the herein referenced “Property”.
This brochure was prepared by MSC Retail, Inc., and has been reviewed by representatives of the owners of the property (“Owner”). It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information which prospective purchasers may desire. It should be noted that all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of MSC Retail, Inc. or Owner and, therefore, are subject to material variation. Additional information and an opportunity to inspect the Property and plans will be made available to interested and qualified investors. Neither Owner, MSC Retail, Inc. nor any of their respective officers nor employees, have made any representation or warranty, expressed or implied, as to the accuracy or completeness of this brochure or any of its contents, and no legal commitments or obligations shall arise by reason of this brochure or any of its contents. All square footage measurements must be independently verified.
Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any person or entity at any time with or without notice. Owner shall have no legal commitment or obligation to any person or entity reviewing this brochure or making an offer to purchase the Property unless and until a written agreement satisfactory to Owner has been fully executed, delivered, and approved by Owner and any conditions to Owner obligations thereunder have been satisfied or waived. By receipt of this brochure, you agree that this brochure and its contents are of a confidential nature, that you hold and treat it in the strictest confidence, and that you will not disclose this brochure or any of its contents to any other entity without the prior written authorization of Owner nor will you use this brochure or any of its contents in any fashion or manner detrimental to the interest of Owner or MSC Retail, Inc.
It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors on real estate. MSC does not conduct investigations or analysis of environmental matters and, accordingly, urges its clients to retain qualified environmental professionals to determine
whether hazardous or toxic wastes or substances (such as asbestos, PCB’s and other contaminants or petrochemical products stored in under-ground tanks) or other undesirable materials or conditions, are present at the Property and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of buildings or may be present as a result of previous activities at the Property.
Various laws and regulations have been enacted at the federal, state and local levels dealing with the use, storage, handling, removal, transport and disposal of toxic or hazardous wastes and substances. Depending upon past, current and proposed uses of the Property, it may be prudent to retain an environmental expert to conduct a site investigation and/or building inspection. If such substances exist or are contemplated to be used at the Property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials may be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present. While this brochure contains physical description information, there are no references to condition. Neither Owner nor MSC Retail, Inc. make any representation as to the physical condition of the Property. Prospective purchasers should conduct their own independent engineering report to verify property condition.
In this brochure, certain documents, including leases and other materials, are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to review independently all relevant documents. The terms and conditions stated in this section will relate to all of the sections of the brochure as if stated independently therein. If, after reviewing this brochure, you have no further interest in purchasing the Property at this time, kindly return this brochure to MSC Retail, Inc. at your earliest possible convenience.
Photocopying or other duplication is not authorized. This brochure shall not be deemed an indication of the state of affairs of Owner, nor constitute an indication that there has been no change in the business or affairs of Owner since the date of preparation of this brochure.
All zoning information, including but not limited to, use and buildable footage must be independently verified.
INVESTMENT SALES
For more information about MSC Investment Sales:
JP Colussi | Vice President, Investment Sales
[email protected] | 215.883.7372
Jacob Cooper | Partner & Managing Director
[email protected] | 215.883.7402
MSCretail.com
MSC Retail | PHL NYC LA
@MSC_Retail
