May 17, 2018— Holliday Fenoglio Fowler, L.P. (HFF), is marketing for sale Bethlehem Square, 389,450-square-foot, market-leading, grocery-anchored shopping center located in Bethlehem, Pennsylvania. The retail property for sale offers investors the opportunity to acquire a premier grocery-anchored shopping center within a growing demographic, promoting long-term income sustainability, anchored by proven, daily needs and internet-resistant retailers with executable value enhancement opportunities.
Currently 96.9 percent occupied, Bethlehem Square boasts a best-in-class roster of credit-rated, daily needs and value-oriented tenants, including The Home Depot, Walmart, GIANT and T.J. Maxx, all maintaining favorable health ratios while producing 70 percent of the gross income. GIANT recently completed an early 10-year extension, demonstrating success and showing commitment to the location. Additionally, the asset offers future growth potential through mark-to-market of rent opportunities on the in-line space.
Situated on 45.1 acres at 3926 Linden Street, Bethlehem Square is ideally positioned at a highly travelled intersection on Nazareth Pike, with ease of access and proximity from Route 22, which, with 66,000 vehicles per day is the dominant regional commuter corridor and promotes visibility to the local and regional consumer. Located within the Lehigh Valley, one of the fastest-growing economic regions in Pennsylvania, the retail property is supported by its proximity to the dense aggregation of office and medical space within the immediate trade area.
Retail Property for Sale Investment Highlights
- Optimal Credit Profile and Market-Leading Traffic-Driving Anchors Promote Stability and Growth: Anchored by some of the strongest-performing retailers today, including Home Depot, Walmart, GIANT and T.J. Maxx, anchor tenants comprise 70 percent of Bethlehem Square’s gross income. Further enhancing the property’s stability is the fact that all anchors have experienced recent corporate sales growth and maintain investment-grade credit ratings. With an average weighted tenure of nearly 23 years, ghe anchors have become embedded in the trade area, resulting in the retail property for sale being profiled as a leading consumer destination. The aggregation of credit-rated anchors with optimal gross health ratios, offering daily needs or value-oriented retail services combine to form an e-commerce resistant base of primary traffic drivers, creating long-term cash flow stability and opportunity for inline rental growth.
- Dominant Grocery Anchor: GIANT Food Stores is the leading grocer in Northampton County by total grocery locations, nearly double their closest competitor, which results in high brand recognition and market share supremacy. The GIANT brand is part of Ahold Delhaize, one of the world’s largest grocery operators with approximately 6,637 stores worldwide, sales of over €62.7 billion and a credit rating of Moody’s Baa1. Ahold Delhaize is focused on innovating the shopping experience and is using data analytics to develop digital loyalty programs and personalized offers and promotions, ultimately enhancing customer experience and driving increased store traffic. The merger of Ahold with the Delhaize Group in 2016 created a company which houses some of today’s most notable names in grocery, including GIANT Food Stores, GIANT of Carlisle, Stop & Shop, Martin’s, Food Lion and Hannaford Markets.
- Proximity to Employment Centers and Economic Demand Drivers Promotes Consumer Demand: Bethlehem Square is positioned within a significant aggregation of medical, office and residential clusters and benefits from one of the largest daytime populations in the Lehigh Valley. The property is positioned within two miles of approximately two million square feet of office space, featuring major employers such as Guardian Life Insurance, Kraft Foods and FedEx supporting an employment base of more than 80,000 within five miles. Additionally, the reatil property for sale is less than two miles from Northampton Community College, which has an enrollment of nearly 34,000 that further strengthens the consumer base. Bethlehem Square benefits from favorable positioning on the infrastructure grid, less than a quarter mile from Route 22 and direct frontage on Nazareth Pike, which has more than 27,000 vehicles per day, supporting a steady inflow of consumers.
- Strategically Positioned within the Path of Growth: Bethlehem is located within the Lehigh Valley, ranked one of the top five overall regions in the northeastern United States in terms of economic development for 2016, according to Site Selection Magazine. The Lehigh Valley market is one of the fastest growing economies in Pennsylvania, with a GDP of more than $39 billion in 2016, and its economy now ranks in the top 20 percent of the 382 largest metropolitan areas in the country, according to the Bureau of Labor and Statistics. The area benefits from its proximity to the major MSAs of Philadelphia (70 miles) and New York (85 miles) and has immediate access to major highways, providing convenience to its commuter population. Employment growth has been spurred through strategic incentive programs, such as the Neighborhood Improvement Zone (NIZ), which has resulted in more than $1 billion in recent development activity in nearby Allentown. Following suit, Bethlehem City created a Revitalization and Improvement Zone (CRIZ) incentive program, which designated 130 acres for economic development and job creation, setting the stage for future growth.
For more information on this commercial property for sale or other available retail properties, please contact Chris Munley, Michael DiCosimo or Jose Cruz in HFF’s Philadelphia and New Jersey offices.