Rare Retail Opportunity For Sale/Lease Confidential ... · > PROPERTY OVERVIEW ... through PATCO...

840 W. LANCASTER AVENUE | OFFERING MEMORANDUM

Rare Retail OpportunityFor Sale/Lease

DEVON, PENNSYLVANIA

840 West Lancaster Avenue

Confidential Offering Memorandum


Table of Contents> PROPERTY OVERVIEW

Lease Summary .................................................................................................................. 3Property Summary .............................................................................................................. 4Local Map ............................................................................................................................ 5Aerial Photo ......................................................................................................................... 6Property Photos .................................................................................................................. 7Floor Plans .......................................................................................................................... 8Building Elevations .............................................................................................................. 10

> MARKET OVERVIEWMarket Analysis ................................................................................................................... 12 Demographic Analysis ......................................................................................................... 19

840 W. LANCASTER AVENUE | DISCLAIMER

Materials contained in this Investment Offering are confidential, furnished solely for the purpose of considering the “AS IS” acquisition of 840 W. Lancaster Avenue, Devon, PA described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Colliers International and Owner. No representations, expressed or implied are made as to the foregoing matters by Owner, Owner’s property management/ leasing agent, Colliers or any of their officers, employees, affiliates and/or agents. See page 33 for full confidentiality and disclaimer statement.

COLLIERS INTERNATIONALTen Penn Center1801 Market Street, Suite 500Philadelphia, PA 19103www.colliers.com/philadelphia

OFFERING PROCEDURE Offers may be submitted at any point during the marketing process, although a deadline for offers may be established at a later date. All submissions must be emailed to the listing agent. In addition to the terms of an offer, the Owner and Colliers nternational will give consideration to the demonstrated ability of the purchaser to complete the transaction. Offers should be in the form of a non-binding letter of intent specifying at least the following:

• Offered Price• Earnest Money Deposit(s)• Study Period (if any) • Contingencies (if any) • Time of Closing• References • List of Real Estate Owned• Sources of Funds (Equity and Debt)

CONTACT Inspections will be arranged by appointment only with the Exclusive Agents:

TODD SUSSMANSENIOR VICE PRESIDENT+1 215 928 [email protected]

JOHN WILSON VICE PRESIDENT | INVESTMENT +1 717 736 [email protected]

Property Overview

840 W. LANCASTER AVENUE | DEVON, PA | PROPERTY OVERVIEW

Lease Summary

Property Summary

Regional Map

Local Map

Aerial Photo

Property Photos

Floor Plans

Building Elevations

COLLIERS INTERNATIONAL P. 3

PROPERTY OVERVIEW

Lease Summary


UNIT MIX

UNIT COUNT UNIT TYPE AVG. SF AVG. RENTS/SF

SUITE COUNT TYPE TOTAL GLA CURRENT ASKING RENTS

4 Retail 27,650 $401 Office 3,600 $35

LARGEST EMPLOYERS - PHILADELPHIA

EMPLOYER # OF EMPLOYEES

Lockheed Martin Corporation 6,030

Sungard 3,153

Saint-Gobain Crystals 3,000

Mds Pharma Services (US), Inc. 2,871

Sunoco Partners LLC 2,250

S A Trinseo 2,179

Vanguard Group Inc. 2,021

Matrix Integrated Facility MGT 2,000

Villanova University 2,000

Main Line Hospitals Inc. 1,709

Gdi Services Inc. 1,700

Sap America Inc. 1,700

COMMERCIAL

Tenant Name Type Suite SF % Bldg Share

Vacant Salon/Spa Retail 1A 10,000 32.00%Vacant Restaurant Retail 1B 10,000 32.00%Vacant Restaurant Retail 1C 4,250 13.60%

Vacant Retail Retail 1D 3,400 10.88%Vacant Office Office 1E 3,600 11.52%

Subtotal Retail 27,650 88.48%Subtotal Office 3,600 11.52%

Total 31,250

1-MILE 3-MILES 5-MILES

2015 Estimate Population 9,992 47,660 124,745

2010 Census Population 9,830 47,138 123,190

2015 Estimate Households 4,052 18,032 47,969

2010 Census Households 3,979 17,750 47,163

Median Household Income $92,247 $109,143 $97,241

Per Capita Income $56,313 $62,738 $56,837

Average Household Income $138,707 $163,939 $145,579

DEMOGRAPHICS


PROPERTY OVERVIEW

Property OverviewColliers International is pleased to present for lease a free-standing retail/office property off of Lancaster Avenue (Route 30) in the heart of Devon, Pennsylvania. This offering is a rare opportunity for a user to occupy a freestanding building on the prestigious Main Line.

The building is 32,000 square feet on 1.89 acres of land. The property was built in 2001, originally on eight parcels of land combined into one by the property owner. The property boasts 128 parking spaces with parking available under the property. The property is zoned C-1 in Tredyffrin Town-ship, which allows building heights of up to 42 feet, this would allow another two stories to be added.

Both buildings are move-in ready with all restaurant, salon and spa fixtures and equipment included in the sale. The North building has an operating elevator with access to all floors including the lower level parking.

840 Lancaster Avenue sits on a hard signalized corner directly across from Devon Village, a Whole Foods anchored shopping center with more than 24,000 cars passing daily. The property’s cross streets are Lancaster Avenue (Route 30) and Berkley Road. Less than 0.3 miles East of the property is Devon Square, an Acme and K-Mart anchored shopping center. Also less than 0.3 miles from the property is The Courtyard Marriott of Devon, BMW of Devon, Home Properties of Devon Apartments - with over 630 apartments, and the Devon Horse Show & Country Fair an internationally recognized event in operation for over 120 years.

With less than a 1-mile walk to the Septa Train Station Paoli/Thorndale line, four bus stops - one at Lancaster Avenue/Berkley Road intersection - within walking distance, and easy access to I-76, I-476, the PA Turnpike/I-276, and Route 202 the property is highly benefited by public transportation.

Property Highlights• Rare Opportunity on the Main Line

• Located on a Hard Signalized Corner Directly Across from Devon Village - a Whole Foods Anchored Shopping Center - with Daily Traffic Counts of 24,000+

• Parking ratio of 4:1,000 Square Feet

• Retail Salon/Spa Space Includes Existing Equipment - Move-In Ready

• Retail Restaurant Space Includes Existing Restaurant Fixtures and Kitchen Equipment - Move-In Ready

• Average HH Income of $100,000 Within 1-Mile of the Property



PROPERTY OVERVIEW

Local Map



PROPERTY OVERVIEW

DEVON STATION

WAYNE STATION

STRAFFORD STATION

EAGLE VILLAGE SHOPS

LANCASTERCOUNTY

FARMERS MARKET

LANCASTER AVE

Aerial Photo

COLLIERS INTERNATIONAL P.6


PROPERTY OVERVIEWPROPERTY OVERVIEW



PROPERTY OVERVIEW

HIGHLIGHTED GROUND FLOOR PLAN

840 LANCASTER AVE

16

Ground Floor Plan



PROPERTY OVERVIEW

HIGHLIGHTED SECOND FLOOR PLAN

840 LANCASTER AVE

17

Second Floor Plan



PROPERTY OVERVIEW

BUILDING ELEVATIONS

840 LANCASTER AVE

18

Elevations


Market Overview

Market Analysis

Demographic Analysis

840 W. LANCASTER AVENUE | DEVON, PA | PROPERTY OVERVIEW


MARKET OVERVIEW

Philadelphia OverviewGeographyThe Philadelphia metro encompasses 11 counties in four states and covers nearly 5,000 square miles. The Delaware River bisects the metropolis from northeast to southwest and serves as the border between Pennsylvania and New Jersey. The Schuylkill River passes through the heart of Philadelphia, separating West Philadelphia from Center City.

Steady Job GrowthLocal employment is expected to expand by 1.3 percent annually through 2020.

Highly Educated WorkforcePhiladelphia has one of the highest concentrations of institutions of higher learning in the nation.

Expanding Health Sciences SectorThe metro is a major pharmaceutical, medical and biosciences center.



MARKET OVERVIEW

Philadelphia OverviewMetroThe Philadelphia metro contains more than 6 million residents and spans Philadelphia, Delaware, Bucks, Chester and Montgomery counties in Pennsylvania; Gloucester, Burlington, Camden and Salem counties in New Jersey; New Castle County in Delaware; and Cecil County in Maryland. Although the metro has more than 360 municipalities, few have more than 25,000 citizens.

InfrastructurePhiladelphians have access to a wide variety of transportation modes. Interstate 95 connects Philadelphia to both New York City and Washington, D.C., and Interstate 76 links the region to Pittsburgh and Cleveland and serves as the primary commuting artery between Center City and the northwestern suburbs. Interstates 276, 476, 495 and 295 form beltways and spurs around the metro.

Philadelphia International Airport’s $5.2 billion expansion to extend two runways, add a fifth runway, and overhaul its congested layout is underway. The airport connects to Center City and other major East Coast destinations via the SEPTA commuter rail. Other stations in the metro provide service through PATCO Speedline, AMTRAK and New Jersey Transit.

The Port of Philadelphia, located on the Delaware River, has been designated a Strategic Military Port, allowing it to handle military cargo. CSX and Norfolk Southern provide freight rail service.

The Philadelpha Metro Is:• 100 miles from New York City

• 150 miles from Washington, D.C.

• 300 miles from Pittsburgh

• 300 miles from Boston

Airports:• Philadelphia International Airport

• Northeast Philadelphia Airport

Major Roadways:• Interstates 76, 95, 276, 295, 476 and 495

Rail:• Freight – CSX and Norfolk Southern

• Passenger – Amtrak

• Commuter – PATCO Speedline, New Jersey Transit & SEPTA

Ports:• Port of Philadelphia

Largest Cities in Metro by Population

Philadelphia, PA 1,560,600Camden, NJ 78,000

Wilmington, DE 73,100Levittown, PA 53,100

Norristown, PA 35,000Chester, PA 34,500

*Forecast Sources: U.S. Census Bureau; Experian



MARKET OVERVIEW

Philadelphia OverviewEconomyPhiladelphia is home to nine Fortune 500 companies that operate across a broad spectrum of industries, including finance, petroleum, communications and packaging materials. The local economy is also increasingly supported by high-growth sectors such as life sciences and healthcare. The region is now an important pharmaceutical hub, and its rapidly expanding biotechnology segment will drive much of Philadelphia’s economic gains over the next 10 years.

Philadelphia is the home of the Federal Reserve’s third district, which, along with the U.S. Mint, the Philadelphia Stock Exchange and companies such as Lincoln Financial Group and Vanguard, helps shape a formidable financial sector.

Other drivers of the region’s economy include education, warehouse and transportation logistics, advanced manufacturing and telecommunications.

Philadelphia’s gross metropolitan product (GMP), retail sales and employment are all trending positively. Job gains will contribute to annual GMP growth of 3.5 percent this year. The metro’s retail sales are also rising, with a jump of 6.8 percent expected this year.

*ForecastSources: Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau; Fortune



MARKET OVERVIEW

Philadelphia OverviewLaborPhiladelphia employment is steadily expanding to include more than 2.8 million jobs. Local payrolls will grow by an average annual rate of 1.3 percent through the next five years, on par with the national average, with gains in most major employment sectors. The metro has a large concentration of health sciences, education, and professional and business services industries and, as such, will receive numerous benefits typically associated with a higher level of white-collar occupations, including higher incomes and increased consumer spending.

Aging baby boomers will continue to support Philadelphia’s healthcare industry, and the echo boomers, who are entering their higher-education years, will do the same for the education industry. Education and health services is the largest employment sector in the metro, accounting for 21 percent of total jobs. Employers in the sector will expand payrolls by an average of 1.5 percent per year in each of the next five years.

Philadelphia’s lower cost of doing business than many other East Coast markets is attracting professional and business services, and financial firms. Headcounts in these sectors are expected to move up by an average of 3.1 percent and 0.4 percent annually over the next five years, respectively. The professional and business services sector will lead job growth through 2020 with the addition of more than 75,000 workers, which bodes well for the local office market.

*ForecastSources: BLS; Moody’s Analytics



MARKET OVERVIEW

Philadelphia OverviewEmployersThe shift from an economy based on manufacturing to one rooted in the services and information sectors is evident in the metro’s list of Fortune 500 companies and the share of employment by industry. The trade, transportation and utilities, education and health services, and professional and business services sectors employ more than half of the workforce in the Philadelphia region. Manufacturing jobs now account for only 6 percent of total employment in the region.

One of the largest local employers is the University of Pennsylvania, which has tens of thousands of people on staff throughout the university and its health system and is a charter member of the Ivy League. The university

*ForecastSources: BLS; Moody’s Analytics

has plans for a number of construction projects, including the expansion of research and development facilities, the renovation and expansion of student housing, and the acquisition of properties adjacent to the Center City campus to accommodate future growth.

Many of Philadelphia’s largest employers are healthcare related, including Main Line Health, Catholic Health East and the Jefferson Health System. Merck & Co. is part of the growing pharmaceutical industry.

Major Employers

University of PennsylvaniaJefferson Health System

Merck & Co.Wal-Mart

Main Line HealthUPS

ComcastBank of America, Corp.

Catholic Health EastAramark



MARKET OVERVIEW

Philadelphia OverviewDemographicsPopulation growth in the Philadelphia metro remains below the national average, with increases of just 0.4 percent annually expected over the next five years. The strongest population gain is occurring in the northwest, where residents are more willing to swap shorter commutes for affordable housing. City leaders have worked to stem the outflow of in-city residents by building new housing to attract people who prefer to live in an urban environment.

The metro’s population is just slightly older than the nation, as the median age is 38.4 years compared with 37.5 years for the country. This trend will continue, as strong population gains are anticipated in the senior population as the baby boomer generation ages. Education is the strong suit of Philadelphia’s workforce; 33.5 percent of the area’s population age 25 or

*ForecastSources: Experian; AGS; Moody’s Analytics; U.S. Census Bureau

older have at least a bachelor’s degree, with more than 13 percent holding a graduate degree. Education attainment translates into higher salaries, as evidenced by a median annual household income of $66,900 per year, or $10,800 more than the U.S. median.

High incomes have afforded nearly 65 percent of households to own their home, compared with 64 percent for the nation. The median home price in Philadelphia is currently around $227,800. Over the next five years, household incomes are expected to increase at a slightly faster pace than home prices, which should increase homeownership rates.



MARKET OVERVIEW

Philadelphia OverviewQuality of LifePhiladelphia offers its residents an attractive package of economic, educational, cultural and recreational advantages. Its transformation from a manufacturing-based economy to one more reliant on information will continue to provide greater economic opportunities. In addition, the cost of living in Philadelphia is much less than in other major East Coast markets.

Cultural and recreational opportunities abound, both in and near the metro. As one of the country’s oldest cities and the home of Independence Hall, the Liberty Bell and numerous historic sites and battlefields, Philadelphia provides both visitors and locals with a wide array of destinations. Art and

*ForecastSources: National Association of Realtors®; Moody’s Analytics; U.S. Census Bureau

science museums are plentiful, and the restaurant and nightclub scene is alive in the Center City area.

The metro houses major professional sports teams, including the Eagles (NFL), 76ers (NBA), Phillies (MLB), Flyers (NHL) and Union (MLS) in addition to numerous golf courses, miles of bike paths, and water-related activities along the Delaware River. The Jersey Shore, Pocono Mountains, New York City and central Pennsylvania’s Amish Country all are also within a 90-minute drive of Philadelphia.



MARKET OVERVIEW

DemographicsPOPULATION 1 MILES 3 MILES 5 MILES

2020 PROJECTIONTotal Population 10,119 48,072 126,210

2015 ESTIMATETotal Population 9,992 47,660 124,745

2010 CENSUS Total Population 9,830 47,138 123,190

2000 CENSUSTotal Population 9,581 45,641 119,530DAYTIME POPULATION Total Population 13,137 82,457 215,865

HOUSEHOLDS 1 MILES 3 MILES 5 MILES

2020 PROJECTIONTotal Households 4,099 18,181 48,7602015 ESTIMATETotal Households 4,052 18,032 47,969Average (Mean) Household Size 2.47 2.51 2.432010 CENSUS Total Households 3,979 17,750 47,1632000 CENSUSTotal Households 3,984 17,788 46,564

HOUSEHOLD BY INCOME 1 MILES 3 MILES 5 MILES

2015 ESTIMATE$250,000 or More 10.26% 14.32% 11.44%$200,000-$249,999 7.52% 9.68% 7.18%$150,000-$199,000 10.50% 11.37% 10.51%$100,000-$149,000 18.05% 18.36% 19.55%$75,000-$99,999 12.69% 12.28% 12.73%$50,000-$74,999 13.07% 11.65% 13.84%$35,000-$49,999 8.74% 6.73% 7.89%$25,000-$34,999 5.47% 5.48% 5.85%$15,000-$24,999 5.92% 4.61% 5.34%Under $15,000 7.78% 5.53% 5.67%

Average Household Income $138,707 $163,939 $145,579Median Household Income $92,247 $109,143 $97,241Per Capita Income $56,313 $62,738 $56,837

Source: Experian



MARKET OVERVIEW

PopulationIn 2015, the population in your selected geography is 9,992. The population has changed by 4.29% since 2000. It is estimated that the population in your area will be 10,119.00 five years from now, which represents a change of 1.27% from the current year. The current population is 48.06% male and 51.94% female. The median age of the population in your area is 38.29, compare this to the US average which is 37.55. The population density in your area is 3,175.72 people per square mile.

HouseholdsThere are currently 4,052 households in your selected geography. The number of households has changed by 1.71% since 2000. It is estimated that the number of households in your area will be 4,099 five years from now, which represents a change of 1.16% from the current year. The average household size in your area is 2.47 persons.

IncomeIn 2015, the median household income for your selected geography is$92,247, compare this to the US average which is currently $54,148. The median household income for your area has changed by 30.51%since 2000. It is estimated that the median household income in your area will be $114,034 five years from now, which represents a change of 23.62% from the current year.

The current year per capita income in your area is $56,313, compare this to the US average, which is $29,638. The current year average household income in your area is $138,707, compare this to the US average which is $77,468.

Demographics

Race & EthnicityThe current year racial makeup of your selected area is as follows: 79.26% White, 3.56% Black, 0.04% Native American and 14.84%Asian/Pacific Islander. Compare these to US averages which are: 70.98% White, 12.77% Black, 0.19% Native American and 5.25%Asian/Pacific Islander. People of Hispanic origin are counted independently of race.

People of Hispanic origin make up 2.94% of the current year population in your selected area. Compare this to the US average of 17.53%.

HousingThe median housing value in your area was $464,406 in 2015, compare this to the US average of $185,104. In 2000, there were 2,416 owner occupied housing units in your area and there were 1,568 renter occupied housing units in your area. The median rent at the time was $848.

EmploymentIn 2015, there are 4,940 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 87.23% of employees are employed in white-collar occupations in this geography, and 12.61% are employed in blue-collar occupations. In 2015, unemployment in this area is 3.63%. In 2000, the average time traveled to work was 27.00 minutes.



CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of 840 Lancaster Avenue, Devon, PA. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 840 Lancaster Avenue, Devon, Pennsylvania or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONTACT Inspections will be arranged by appointment only with Exclusive Agent:

COLLIERS INTERNATIONALTen Penn Center1801 Market Street, Suite 500Philadelphia, PA 19103www.colliers.com/philadelphia

TODD SUSSMANSENIOR VICE PRESIDENT+1 215 928 [email protected]

JOHN WILSON VICE PRESIDENT | INVESTMENT +1 717 736 [email protected]

Rare Retail Opportunity For Sale/Lease Confidential ... · > PROPERTY OVERVIEW ... through PATCO...

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