Rocky River Strip Center Portfolio 21802-21808 CENTER RIDGE ROAD | 21190 CENTER RIDGE ROAD ROCKY RIVER, OH (CLEVELAND MSA) OFFERING MEMORANDUM LISTED BY JONAH YULISH ROB GOLDBERG Associate Associate Direct +1 216 503 3610 Direct +1 216 503 3609 Mobile +1 216 973 1882 Mobile +1 216 470 1464 [email protected] [email protected] Lic #2018004451 (OH) Lic #2018005194 (OH) ZACK BATES BEN SNYDER BROKER OF RECORD Associate Vice President EVP & National Director Kyle Matthews Direct +1 216 503 3608 Direct +1 216 503 3607 Lic # BRK.2019005179 (OH) Mobile +1 440 708 3416 Mobile +1 614 975 8822 [email protected] [email protected] Lic #2018002393 (OH) Lic #2018002569 (OH) TABLE OF CONTENTS 03 EXECUTIVE OVERVIEW 06 PORTFOLIO OVERVIEW 08 21802-21808 CENTER RIDGE RD 13 21190 CENTER RIDGE RD 22 AREA OVERVIEW 2 EXECUTIVE OVERVIEW THE OFFERING Matthews Real Estate Investment ServicesTM is pleased to provide the following offering memorandum pertaining to the exclusive marketing and sale of 21808 Center Ridge Road + 21190 Center Ridge Road (the “Property”), Located in Rocky River, Ohio (Cleveland MSA). The two centers consist of 18,219 square feet of retail and office space in the heart of the Center Ridge Road retail corridor seeing +/- 20,000 VPD with strong visibility and access to the center. The offering provides an Investor with the unique opportunity to own great real estate in the upscale Rocky River market, stabilized below replacement cost with immediate opportunity to raise rents, solidify current tenant leases and allow an investor to continue to cash- flow at an attractive rate. This outstanding investment opportunity is offered free and clear of existing financing. The properties are also available as a portfolio or separate purchases. INVESTMENT HIGHLIGHTS • Value Add Opportunity via Under Market Rents or Redevelopment • Properties are located with Close Proximity to Major Retailers including Home Depot, Giant Eagle, AMC, Aldi, Target, Lowe’s, Kohl’s and many other national tenants • Location Provides Great Access and Visibility to ±12,000 Vehicles Per Day Along Center Ridge Road • Highly Sought-after Submarket Featuring Dense and Affluent Demographics - ±90,000 Residents in 3-Miles, ±200,000 Residents in 5-Miles, Average Household Income of ±$88,000 • Extremely Long-Standing Operating History from 80%+ of Tenants • Priced Below Replacement Cost • Shadow Anchored by Market Dominant Grocer in Giant Eagle • Prime Location in Heart of Robust Retail Corridor 3 21190 Center Ridge Rd WAGAR RD ± 10,000 VPD 21802-21808 Center Ridge Rd CENTER RIDGE RD ± 12,000 VPD 4 5 portfolio valuation summary 6 PORTFOLIO VALUATION SUMMARY $2,218,000 $121.74 9.38% $208,382 ±18,219 SF LIST PRICE PRICE PER SF CAP RATE YEAR 1 NOI GLA 21802-08 CENTER RIDGE RD - VALUATION SUMMARY 21190 CENTER RIDGE RD - VALUATION SUMMARY LIST PRICE LIST PRICE Pricing Summary: Pricing Summary: List Price $902,000 List Price $1,316,000 Price PSF ($) $131 Price PSF ($) $116 Returns Summary: Returns Summary: In Place Cap Rate 9.25% In Place Cap Rate 9.50% Financial: Financial: Year 1 NOI $83,369 Year 1 NOI $125,014 Gross Leasable Area ±6,880 Gross Leasable Area +/-11,339 In Place Occupancy 100.0% In Place Occupancy 100.0% 7 21802-21808 Center Ridge Rd Rocky River, OH 8 PHYSICAL DESCRIPTION PROPERTY GROSS TOTAL CURRENT AVERAGE TERM APN PARKING SPACES ADDRESS LEASABLE AREA TENANTS OCCUPANCY REMAINING 21802-21808 Center Ridge Rd ± 6,880 SF 4 100% ±1.5 YEARS 30321002 26 Rocky River, OH PARCEL MAP CENTER RIDGE RD ±12,000 VPD 9 SITE PLAN TENANT ROSTER SUITE TENANT SQFT CIGARS FOOT DRY SPA CLEANERS 1 Cigars Cigars 2,830 2 Hawaiian Foot Spa 1,000 RIVER OAKS DR RIVER OAKS Sherry's Dry 3 1,500 Cleaning 4 Little Caesars 1,550 Totals 4 Suites 6,880 SF CENTER RIDGE ROAD 10 FINANCIAL OVERVIEW YEAR 1 TOTAL $ PSF Income Rental Income $86,700 $12.60 Expense Reimbursements $24,345 $3.54 Effective Gross Revenue $111,045 $16.14 Expenses Real Estate Taxes $14,713 $2.14 Insurance $1,376 $0.20 CAM $8,256 $1.20 Management (3% of EGR) $3,331 $0.48 Total Operating Expenses $27,677 $4.02 Net Operating Income $83,369 $12.12 11 RENT ROLL LEASE LEASE % OF CONTRACT RENTAL RATE RENT $ PSF RENT INCREASES RECOVERY SUITE TENANT SQFT OPTIONS START END GLA YEAR MONTH $ PSF/YR $PSF/MO DATE $ PSF/YR $ PSF/MO STRUCTURE 2x1 Years: 1 Cigars Cigars May-19 MTM 2,830 41.1% $22,200 $1,850 $ 7. 8 4 $0.65 - - - NNN (1) FMV. (2) FMV. 2x1 Years: 2 Hawaiian Foot Spa May-18 MTM 1,000 14.5% $18,900 $1,575 $18.90 $1.58 - - - NNN (1) FMV. (2) FMV. Sherry's Dry 1x3 Years: 3 May-17 Mar-21 1,500 21.8% $18,000 $1,500 $12.00 $1.00 - - - NNN Cleaning (1) FMV. 2x5 Years: (1) $19.74 Little PSF with 4 Oct-17 Sep-22 1,550 22.5% $27,600 $2,300 $ 17. 8 1 $1.48 Oct-20 $20.90 $1.74 NNN Caesars 2% annual increases. (2) FMV. OCCUPIED TOTALS - IN PLACE 6,880 100.0% $86,700 $7, 225 $12.60 $1.05 VACANT TOTALS 0 0.0% $0 $0 $0.00 $0.00 TOTALS 6,880 100.0% $86,700 $7, 225 $12.60 $1.05 12 21190 Center Ridge Road Rocky River, OH 13 PHYSICAL DESCRIPTION PROPERTY GROSS TOTAL CURRENT APN PARKING SPACES ADDRESS LEASABLE AREA TENANTS OCCUPANCY 21190 Center Ridge Rd ± 11,339 SF 9 100% 30323002 30 Rocky River, OH PARCEL MAP CENTER RIDGE RD ±12,000 VPD 14 SITE PLAN TENANT ROSTER PLYMOUTH AVE. SUITE TENANT SQFT 1 Floors 2U 2,250 2 Remnants 300 3 Wine and Design 1,600 4 Brazilian Jiu Jutzsu 2,564 5 West 50 375 SUBJECT 6 Keith Settle Photography 750 PROPERTY 7 Weiss Realty 750 8 Weiss Law 250 9 Synergy 2,500 Totals 9 Suites 11,339 SF CENTER RIDGE ROAD 15 FINANCIAL OVERVIEW YEAR 1 TOTAL $ PSF Income Rental Income $131,700 $11.61 Expense Reimbursements $36,298 $3.20 Effective Gross Revenue $167,998 $14.82 Expenses Real Estate Taxes $18,668 $1.65 Insurance $2,268 $0.20 CAM $17,009 $1.50 Management (3% of EGR) $5,040 $0.44 Total Operating Expense $42,984 $3.79 Net Operating Income $125,014 $11.03 16 RENT ROLL ANNUAL LEASE LEASE % OF CONTRACT RENTAL RATE RENT $ PSF RECOVERY SUITE TENANT SQFT RECOVERY OPTIONS START END GLA STRUCTURE YEAR MONTH $ PSF/YR $PSF/MO DATE 1 Floors 2U Jun-05 MTM 2,250 19.8% $36,000 $3,000 $16.00 $1.33 $ 7, 52 9 - - 2 Remnants Jun-05 MTM 300 2.6% $4,800 $400 $16.00 $1.33 $1,004 - - 3x2 Years: (1) FMV. 3 Wine and Design Jun-17 May-20 1,600 14.1% $24,000 $2,000 $15.00 $1.25 $5,354 NNN (2) FMV. (3) FMV. Brazilian Jui 2x2 Years: (1) FMV. 4 Dec-16 Jan-21 2,564 22.6% $28,200 $2,350 $11.00 $0.92 $8,580 NNN Jutzsu (2) FMV. 5 West 50 Jul-05 MTM 375 3.3% $5,100 $425 $13.60 $1.13 $1,255 - - Keith Settle Pho- 6 Aug-16 Jul-20 750 6.6% $4,800 $400 $6.40 $0.53 $2,510 NNN 1x2 Years: (1) FMV tography 7 Weiss Realty Jan-17 Feb-22 750 6.6% $9,600 $800 $12.80 $1.07 $1,275 NN - 8 Weiss Law Jan-17 Feb-22 250 2.2% $4,800 $400 $19.20 $1.60 $425 NN - 9 Synergy Jan-16 MTM 2,500 22.0% $14,400 $1,200 $5.76 $0.48 $8,366 NNN 1x2 Years: (1) FMV. OCCUPIED TOTALS - IN PLACE 11,339 100.0% $131,700 $10,975 $11.61 $0.97 VACANT TOTALS 0 0.0% $0 $0 $0.00 $0.00 TOTALS 11,339 100.0% $131,700 $10,975 $11.61 $0.97 17 CENTER RIDGE RD ± 12,000 VPD 21190 Center Ridge Rd 21802-21808 18 Center Ridge Rd Less than 1 mile away CENTER RIDGE RD ± 12,000 VPD 21190 Center Ridge Rd 21802-21808 Center Ridge19 Rd CLEVELAND CENTER RIDGE RD ± 12,000 VPD 20 21 Area Overview 22 ROCKY RIVER, OHIO (CLEVELAND MSA) Rocky River is a city in western Cuyahoga County, Ohio. A suburb of Cleveland, it is located along the shore of Lake Erie approximately 9 miles west of downtown Cleveland. The city is named for the Rocky River that forms its eastern border. A small strip of Cleveland itself also borders Rocky River; however, the two cities are not directly connected via road. On Rocky River's western border are the cities of Bay Village to the northwest and Westlake to the southwest. The Rocky River City School District serves the entire city of Rocky River and a small portion of the city Fairview Park. Currently, the Rocky River City Schools serve 2,640 students in 4 buildings. Rocky River is located close to Lakewood, Ohio. Lakewood is one of Cleveland's historical streetcar suburbs and part of the Greater Cleveland Metropolitan Area. Lakewood is home to a young and diverse population and has the highest population of any city in Ohio and is roughly comparable to that of Washington, D.C. DEMOGRAPHICS LOCATION MAP POPULATION 1 Mile 3 Mile 5 Mile 14,874 95,320 212,659 ROCKY 2025 Projection RIVER 2020 Estimate 14,925 96,322 214,834 2010 Census 15,209 99,697 222,255 HOUSEHOLD 1 Mile 3 Mile 5 Mile 2025 Projection 7,576 43,988 97,759 2020 Estimate 7,519 44,095 97,964 2010 Census 7,411 44,498 98,780 INCOME 1 Mile 3 Mile 5 Mile Average Household Income $90,877 $93,232 $82,149 23 AREA OVERVIEW Cleveland OHIO Cleveland is based on the southern shore of Lake Erie near the mouth of the Cuyahoga River.