MIRACLE MILE SHOPPING CENTER
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MIRACLE MILE SHOPPING CENTER MONROEVILLE (PITTSBURGH), PA | EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) is a Pennsylvania licensed real estate broker.
Transcript of MIRACLE MILE SHOPPING CENTER
M I R A C L E M I L E S H O P P I N G C E N T E RM O N R O E V I L L E ( P I T T S B U R G H ) , PA | E X E C U T I V E S U M M A R Y
Holliday Fenoglio Fowler, L.P. (“HFF”) is a Pennsylvania licensed real estate broker.
THE OFFERING
PROPERT Y OVERVIEWAddress: 4100 William Penn Highway
(Business US 22)Monroeville, PA 15146
Rentable Area: 298,694 SF
Year Built: 1954
Year Renovated: 2006
# of Stories: 1
Parking Spaces: 1,458 spaces
Parking Ratio: 4.9 spaces / 1,000 SF
% Leased: 100%
Major Tenants: LA Fitness (45,000 SF, Tenant Since 2008)Marshall’s (31,753 SF, Tenant Since 1996)Office Max (21,832 SF, Tenant Since 2006)PNC Bank (20,126 SF, Tenant Since 1993)DSW (20,000 SF, Tenant Since 2001)La-Z-Boy (20,000 SF, Tenant Since 2012)
Traffic Count: 28,188 vehicles per day
As exclusive advisor, HFF is pleased to offer the opportunity to acquire Miracle
Mile Shopping Center (the “Property” or “Miracle Mile”), a 100% leased 298,694
square foot market-leading retail center located in Monroeville, Pennsylvania,
approximately 12 miles east of Pittsburgh. Miracle Mile is anchored by a premier
lineup of national retailers including LA Fitness, Marshall’s, DSW Shoe Warehouse,
La-Z-Boy, PNC Bank, and more. Located within the William Penn Highway
Retail Corridor, the Property benefits from excellent access from several major
highways: Interstate-376, which connects Monroeville to Downtown Pittsburgh,
and the Pennsylvania Turnpike (I-76), which spans the entire state and is heavily
trafficked. The Property is located within 0.5 miles of the intersection of these two
highways, resulting in a traffic count of 28,000 vehicles per day at the Property.
An acquisition of the Property allows investors to take advantage of a
core offering with some upside opportunities, favorable capital markets,
a nationally top performing retail market, and a regionally dominating
established retail center.
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LEASING & EXPIRATION PLAN
LEGEND
2017 2018 2019 2020 2021+
Not Part of Collateral
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THE EYEGLASS STORE
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DOMINANT REGIONAL RE TAIL CENTER WITH PREMIER LOCATIONThe Property is the dominant retail center in the eastern suburbs of Pittsburgh,
due primarily to its location within the William Penn Highway Retail Corridor.
This corridor directly serves shoppers from Murrysville and Monroeville, which
are major suburbs of Pittsburgh that surround the Property. Additionally, two
major highways are directly accessible from the Property: Interstate-376 and
the Pennsylvania Turnpike (I-76). These two thoroughfares provide direct
access to the Property for shoppers traveling from the City of Pittsburgh and
all its eastern suburbs. The map at the upper left displays this accessibility.
The Property is situated on William Penn Highway, also known as
Business US 22, the location of significant retail and commercial
development through the Monroeville and Murrysville areas. Within this
William Penn Highway Retail Corridor, the Property, although the market
leader, competes with several properties as noted on the map to the
left. The occupancy of the Property’s competitive set is over 95%,
which is evidence of the strength of the submarket and retail corridor.
Furthermore, due to its accessibility, premier tenancy, and superior quality,
the Property is the premier retail center within its competitive set.
Population 3-Mile 5-Mile
2010 Census 44,560 135,2462016 Estimate 44,597 135,9792021 Projection 44,681 136,2425-Year Projected Growth 0.19% 0.19%
EDYSHIP
BRIGHTONHEIGHTS
ROSSTOWNSHIP
SHALERTOWNSHIP
EDYSHIP
BRIGHTONHEIGHTS
ROSSTOWNSHIP
SHALERTOWNSHIP
PITTSBURGHCBD
LAWRENCEVILLE
SQUIRRELHILL
SHADYSIDE
OAKLAND
SOUTHSIDE
CARRICK
BEECHVIEWGREENTREE
MT LEBANON
BETHEL PARK
WHITEHALL
BALDWIN
MILLVALE
HOMEWOOD
SWISSVALE
BRADDOCK
WILKINSTOWNSHIP MONROEVILLE
PITCAIN
NORTHVERSAILLES
WEST MIFFLIN
MUNHALL
LINCOLNPLACE
BRENTWOOD
GLENSHAW
O’HARATOWNSHIP FOX CHAPEL
CHAPELDOWNS
HARMARTOWNSHIP
ALLSION PARK
McCANDLESSTOWNSHIP
HAMPTONTOWNSHIP
BELLEVUE
AVALON
SWORTH
PERRYNORTH
MARSHALL-SHADELAND
CENTRALNORTHSIDE
CRAFTON
FAIRYWOOD
ELLIOTT
OAKWOOD
SHERADEN
CARNEGIE
SBURYAGE
BANKSVILLE
DORMONTSOUTHHILLS
PLEASANTHILLS
McKEESPORTDRAVOSBURG
LIBERTYGLASSPORT
WHITE OAK
VERSAILLES
LINCOLN HILLS
NORTHHUNTINGDON
ARDARA
TRAFFORD
LARIMER
MURRYSVILLE
HOLIDAY PARK
REGENCYPARK
PLUM RENTON
IRWIN
PENN HILLS
ALCOMA
FRANKLINPARK
RIDGE
INDIANOLA
CHESWICK
ORRVILLE
BARKING
CHURCHILLVALLEY
HARRISONCITY
NEWKENSINGTON
LOWERBURRELL
BRACKENRIDGE
TARENTUM
CREIGHTON
NATRONAHEIGHTS
RUSSELLTON
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EDYSHIP
BRIGHTONHEIGHTS
ROSSTOWNSHIP
SHALERTOWNSHIP
EDYSHIP
BRIGHTONHEIGHTS
ROSSTOWNSHIP
SHALERTOWNSHIP
PITTSBURGHCBD
LAWRENCEVILLE
SQUIRRELHILL
SHADYSIDE
OAKLAND
SOUTHSIDE
CARRICK
BEECHVIEWGREENTREE
MT LEBANON
BETHEL PARK
WHITEHALL
BALDWIN
MILLVALE
HOMEWOOD
SWISSVALE
BRADDOCK
WILKINSTOWNSHIP MONROEVILLE
PITCAIN
NORTHVERSAILLES
WEST MIFFLIN
MUNHALL
LINCOLNPLACE
BRENTWOOD
GLENSHAW
O’HARATOWNSHIP FOX CHAPEL
OAKMONTOAKMONT
CHAPELDOWNS
HARMARTOWNSHIP
ALLSION PARK
McCANDLESSTOWNSHIP
HAMPTONTOWNSHIP
BELLEVUE
AVALON
SWORTH
PERRYNORTH
MARSHALL-SHADELAND
CENTRALNORTHSIDE
CRAFTON
FAIRYWOOD
ELLIOTT
OAKWOOD
SHERADEN
CARNEGIE
SBURYAGE
BANKSVILLE
DORMONTSOUTHHILLS
PLEASANTHILLS
McKEESPORTDRAVOSBURG
LIBERTYGLASSPORT
WHITE OAK
VERSAILLES
LINCOLN HILLS
NORTHHUNTINGDON
ARDARA
TRAFFORD
LARIMER
MURRYSVILLE
DELMDELM
HOLIDAY PARK
REGENCYPARK
PLUM RENTON
IRWIN
PENN HILLS
ALCOMA
FRANKLINPARK
RIDGE
INDIANOLA
CHESWICK
ORRVILLE
BARKING
CHURCHILLVALLEY
HARRISONCITY
NEWKENSINGTON
LOWERBURRELL
BRACKENRIDGE
TARENTUM
CREIGHTON
NATRONAHEIGHTS
RUSSELLTON
VAN
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CCACBoyce Campus
Gateway SeniorHigh School
ForbesRegionalHospita l
L i feCareHospita ls
UPMCEast
Monroevi l leMal l
CCACBoyce Campus
Gateway SeniorHigh School
ForbesRegionalHospita l
L i feCareHospita ls
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INVESTMENT HIGHLIGHTS
# Property
Subject Miracle Mile Shopping Center
1 Jonnet Plaza
2 Holiday Center
3 Plaza on Mall Boulevard
4 Penn Center East
5 Monroeville Hills Shopping Center
6 Monroeville Mall* (enclosed regional mall)
*Monroeville Mall is not competitive with the Property.
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SECURE CASH FLOW FROM NATIONAL RE TAILERS AND CREDIT TENANTSThe Property is 100% leased to a diverse set of retailers, with a robust
weighted average lease term of 5.6 years. This is a result of the Property
having very little tenant rollover in the coming years; 89% of the square
footage is leased through December 2020. Furthermore, 93% of Miracle Mile
is leased to national retailers. The in-place cash flow from reputable tenants
and limited lease roll provides secure long-term cash flows and resulting
value appreciation.
SUPERIOR QUALIT Y ASSE TAND LONGSTANDING RE TAIL LOCATIONConsidered a local landmark, the Property was built in 1954 and more
recently renovated in 2006. Since its construction, Miracle Mile has been
maintained to institutional standards. While the Property benefits from its
Class A quality, it further benefits from its 63-year tenure as a retail location
and its premier visibility along William Penn Highway (Business US 22). The
images to the right show Miracle Mile at its inception in 1954 as compared
to its current state. As evidenced by these photographs, the Property has
continuously adapted to the changing retail environment, attracting major
national retailers and remaining a landmark retail location for Pittsburgh’s
eastern suburbs. Several recent tenant relocations from Monroeville Regional
Mall reflect the retailer preference for the open air well-established, well-
located Miracle Mile Shopping Center.
L ANDMARK RE TAIL LOCATION FOR 63 YE ARS
93% OF GL A LE ASED TO NATIONAL RE TAILERS
1 9 5 4
2 0 1 7
STRONG AND INCREASING TENANT SALESTenant sales at the Property have been robust, and in 2016 the average
occupancy cost ratio was 8.84% for all reporting tenants. Furthermore, over
each of the last five (5) years, comp sales have increased steadily. These
strong sale numbers and low occupancy costs will drive tenant retention and
increasing rents as leases roll.
Recent leasing activity has demonstrated this ability to increase rents and
retain tenants. The new leases and existing tenant renewals that have been
signed in the last few years, reflect rent increases averaging 9.4%.
PREMIER RE TAIL MARKE T WITH 2.7 % VACANCY AND HIGH DENSIT Y OF DE VELOPMENTThe Pittsburgh retail market is extremely competitive, with an overall vacancy
of 3.2% according to CoStar; the Monroeville submarket is even tighter with
a vacancy of 2.7%. Miracle Mile directly competes with the retail properties
that were displayed in the map on a previous page. The overall occupancy
of these competing properties is over 95%. Additionally, due to the unusual
topography of the Pittsburgh region serving as a strong barrier to entry, retail
development is dense and there is little opportunity for new supply. Within
the William Penn Highway Retail Corridor, there are no developable sites. This
nullifies the threat of new competition coming to the market.
William Penn Highway
Monroeville Blvd
Stroschein Road
Jonnet Plaza
GatewayMiddle School
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UPMC EAST: A MAJOR DEMAND DRIVER AND AT TRACTION TO MONROE VILLEWithin a quarter (0.25) mile east of the Property is UPMC East, a major
hospital facility and a part of the University of Pittsburgh Medical Center
(“UPMC”) medical network. Built in 2012, UPMC East features state of the
art medical services across a full spectrum of specialties and provides a
total of 156 private rooms, 140 medical-surgical beds, and 16 ICU beds. The
introduction of this facility has provided major enhancements to the economy
and desirability of Monroeville, and drives traffic flows and visitors to the
area. The Property has greatly benefited from UPMC East as it attracts new
visitors and workers to the immediate area, as well as enhancing the overall
aesthetic of the Monroeville area.
LOCATION WITHIN THE DYNAMICAND THRIVING PIT TSBURGH MSAOver the past three decades, the Pittsburgh region has undergone a dramatic
renaissance and it now stands as one of our nation’s largest and most
appealing locations to live, do business and own real estate. The region
supports an exceptionally strong market for all types of commercial real
estate. The foundation of the real estate market is Pittsburgh’s central location,
highly developed transportation system providing excellent connectivity, a
diverse and balanced economy, excellent universities, world renowned health
care, resurgence as an energy center, and progressive leadership.
ABUNDANT FREE PARKINGThe Property offers approximately 1,460 parking spaces which are available to
shoppers. This equates to a very strong parking ratio of 4.9 spaces per 1,000
SF. With the unusual topography of the Pittsburgh region, it is rare to have an
abundance of free parking available to shoppers – a significant strength for
attracting retailers and shoppers to Miracle Mile Shopping Center.
UNENCUMBERED OFFERINGThe Property will be sold free and clear of debt, providing investors the
opportunity to take advantage of historically low interest rates and a wide
range of financing options to best serve their individual needs.
UPMC E AST
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CONTACT INFORMATIONFor more information, please contact one of the individualizes listed below:
John Pelusi Claudia Steeb Nick Unkovic HFF PittsburghExecutive Managing [email protected]
Managing [email protected]
Real Estate [email protected]
One Oxford Centre301 Grant St | Suite 1100Pittsburgh, PA 15219hfflp.com
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Holliday Fenoglio Fowler, L.P. (“HFF”) is a Pennsylvania licensed real estate broker.
HFF has been engaged by the owner of the property to market it [them] for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
HFF, HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
