100% Leased - 14,000 SF Nazareth Crossing Strip Center
Easton, PA
The Opportunity
Summary
- Price: $5,491,000
- Cap Rate: 7.35%
- NOI: $403,583
- Ownership Interest: Fee Simple Condominium
- Year Built: 2009
- Parcel Size: 1.66 Acres
- Building Size: 14,041 SF
- Occupancy: 100%
- Average Lease Term Remaining: 7 Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple condominium interest in a multi-tenant strip center, (the “Property”) in Easton, Pennsylvania, the county seat of Northampton County. Located 50 miles north of Philadelphia, the strip center is occupied by three national tenants including Mattress Warehouse, T-Mobile, and The UPS Store. The property benefits from excellent visibility along Easton Nazareth Highway, a main thoroughfare in the area boasting 18,000 VPD and sits just off State Route 33, a freeway that boasts 63,000 VPD. All tenants within the strip center operate on triple-net (NNN) leases, three of which include a guarantor. With an average of 7 years of term remaining and feature rental increases throughout, the strip center offers the security of term with rental upside through each Tenant’s base term.
Easton Nazareth Highway contains some of the top performing retailers within their chain. In addition to Beyond / Hello ranking as the top performing location within their chain in Pennsylvania and in the top 86th percentile of their chain in the country, Walmart Supercenter and Kohl’s rank in the top 93rd percentile of their respective chains in the United States. Surrounding QSRs including Starbucks (82nd percentile in US), McDonald’s (80th percentile in PA), and Chick-Fil-A (75th percentile in PA) also perform well. Target and Wegmans are located seconds from the property just off of Easton Nazareth Highway.
In addition to the strong retail presence, the 5-mile area surrounding the Property exhibits excellent demographics with a population of over 128,000 and over 47,000 households and is expect to continue growing through 2029. Additionally, the average household income within that same area sits at over $118,000. Just over 1-mile north on State Route 33, there are multiple new and on-going commercial developments including Park 33 at Lehigh Valley East which contains 2 buildings totaling over 645,000 square feet of Class A distribution space and phase II of the Carson 33 development that will bring 5 industrial buildings to the area that total over 1.14 million square feet of space. 3 of the 5 Carson 33 development buildings are expected to be completed by the end of 2025.
Investment Highlights:
Tenants
Beyond Hello Snapshot:
Ownership: Public - SUBSIDIARY OF JUSHI HOLDINGS INC. (OTCMKTS: JUSHF)
Credit Rating: N/R
Headquarters: BRISTOL, CT
# of Locations: 35 (#36 - Future Location in Peoria, IL)
Originally opened in 2019, Beyond / Hello is a national brand of cannabis dispensaries with locations serving Pennsylvania, Illinois, California, Massachusetts, Virginia and Nevada. They offer items such as flower, extract, tincture, ingestibles, vape, and more. Beyond / Hello emphasizes the company’s interest in what happens after you walk in their store and they greet. They are interested in your growth, your comfort, your health, and your healing. Beyond / Hello offers a smooth customer experience that allows for online and phone pre-ordering as well as in-store and curbside pickup.
Jushi Holdings, Inc. Snapshot:
Ownership: PUBLIC (OTCMKTS: JUSHF)
Credit Rating: N/R
Headquarters: BOCA RATON, FL
Jushi Holdings Inc. is a national, multi-state cannabis company that develops and operates high end retail locations, premium brands and state-of-the-art cultivation, processing and manufacturing facilities. The Company is focused on building a diverse portfolio of cannabis assets through opportunistic investments, acquisitions, and pursuing application opportunities in attractive limited license markets. Jushi’s operates within 7 markets and the company consists of nearly 1,200 employees. The company also boasts an industry leading digital platform that facilitates online ordering, dispensary discover, and customer engagement. As of the second quarter of 2024, total revenue was $64.6 million with a gross profit of $32.6 million and a gross profit margin of $50.4 million.
Mattress Warehouse Snapshot:
Ownership: PRIVATE
Credit Rating: N/R
Headquarters: FREDERICK, MD
# of Locations: 300+
Mattress Warehouse opened its first store in November 1989 in Frederick, Maryland. For the past thirty years, Mattress Warehouse has made it their mission to improve the lives of their customers through quality sleep. Offering the largest selection of quality brand bedding, Mattress Warehouse carries quality names including TEMPUR-Pedic, Casper, Serta, Sealy, Stearns, & Foster, and more. In addition to mattresses, they carry a wide variety of pillows, sheets, mattress protectors, to help their customers get the best sleep possible.
T-Mobile Snapshot:
Ownership: PUBLIC (NASDAQ: TMUS)
Credit Rating: BBB+ (FITCH)
Headquarters: BELLVUE, WA
# of Locations: 6,500+
T-Mobile was founded in 1994 as VoiceStream Wireless PCS and in 2002 became the T-Mobile USA it is known as today. A telecommunications company and one of the largest wireless network operators in the United States, T-Mobile provides wireless voice, messaging, and data services to millions of customers. They are the first & largest nationwide 5G network with coverage bigger than AT&T and Verizon’s combined. In Q2 2024, T-Mobile’s net income grew 32% year-over-year to $2.9 billion and their service revenues grew 4% year-over-year to $16.4 billion, the best in industry growth.
The UPS Store Snapshot:
Ownership: SUBSIDIARY OF UPS (NYSE: UPS)
Headquarters: SAN DIEGO, CA
# of Locations: ~5,700 (As of 8/12/2024) ~5,700 (As of 8/12/2024)
The UPS Store® concept was introduced in 1980 as Mail Boxes Etc.® - a convenient alternative to the post office. The UPS Store is a locally owned franchise offering a range of products and services designed specifically to help support small business owners in local communities. In addition to packaging and shipping, they offer printing services, a real street address for mailboxes, package notifications and even direct mail services. In 2024, The UPS Store ranked #1 in Entrepreneur magazine’s Franchise 500 list within the category of “Postal, Business, Printing, and Communication Services” for the 34th consecutive year and #4 overall. Additionally, The UPS Store ranked #1 in the 2024 edition of Franchise Direct’s list of Top 100 Franchises.
