investment summary for: coventry mall - real capital · pdf fileinvestment summary for:...

Investment Summary for:

Coventry Mall 351 West Schuylkill Road; 551-567 West Schuylkill Road; 650 West Schuylkill Road | Pottstown, PA 19465

C-III Realty Services LLC, is pleased to exclusively offer the opportunity to purchase Coventry Mall (the “Mall” or “Property”) located in Pottstown, Pennsylvania. Coventry Mall is a +/- 796,869 square foot retail destination consisting of an enclosed regional mall and four additional outparcel developments, all of which are owned in fee and included in this offering. The enclosed portion of the Property consists of 684,660 square feet that was originally constructed in 1966 and is anchored by Boscov’s (190,712 square feet), Kohl’s (88,311 square feet), and Dick’s Sporting Goods (45,000 square feet). The outparcel developments include Coventry Square, a 74,916 square foot retail shopping center anchored by Jo-Ann; a new 12,677 square foot CVS Pharmacy that is under construction and scheduled to open in November 2015 with a 25-year firm term lease; a 3,150 square foot outparcel fully-occupied by First National Bank of Pennsylvania; and a 21,466 square foot theatre building that is available for lease at this time.

Coventry Mall Pottstown, PA

Coventry Mall represents an opportunity to acquire a property within one of the fastest growing regions of the greater Philadelphia metropolitan area. Given the Mall’s current operating fundamentals and local market conditions, the Property represents an appealing re-tenanting and/or repositioning opportunity with sufficient scale to support a variety of uses and formats.

Property Summary

Total GLA 796,869

Site Area 68.74 acres

Occupancy 72.4% (as of 10/1/2015)

Year Built 1966

Zoning PC (Planned Commercial)

Parking Ratio 3,095 spaces (4.93 / 1,000 RSF)

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PROPERTY HIGHLIGHTS Anchor Tenancy The Property is anchored by three national retailers including Boscov’s, Kohl’s and Dick’s Sporting Goods. All three of these anchors are owned in fee and hold terms that extend as far as 2026 with renewal options beyond the current expiration. Originally established in 1914, Boscov’s has served as one of the dominant department store chains in the state of Pennsylvania for over 100 years and provides a strong brand awareness and identity within the Property’s trade area. Furthermore, Boscov’s corporate headquarters are located in Reading, Pennsylvania, which is approximately 20 miles northeast of Pottstown. The Boscov’s store at Coventry Mall has reported increased sales over the last three years. All three of the Mall’s anchor tenants provide strong support for the Mall and are able to function in both enclosed mall and open-air retail formats should an investor choose to reposition the Property. Excellent Location Located at the center of the tri-county region along the Route 422 corridor, Coventry Mall is ideally situated in one of the fastest growing regions in the greater Philadelphia metropolitan area. The region is benefitting from continued outmigration from Philadelphia and the Main Line suburbs as young professionals and families are priced out of the area. The Mall draws shoppers from three of Metro-Philadelphia’s nine counties. Furthermore, the area includes nationally ranked public and private colleges, including Penn State’s regional campus locations in Reading and Great Valley, Ursinus College, and Albright College. Improved and expanded roadways, new housing developments, upward demographic trends and a high-quality educational system signal a growing affluence and prosperity in the trade area. The total population within a 10 mile radius of the Property exceeds 200,000 people and is projected to grow by 2.2% over the next five years. In addition, the average household income within a 10 mile radius of the Property is approximately $93,000, which is significantly above the national average and indicative of growing affluence in the trade area.


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PROPERTY HIGHLIGHTS (CONTINUED) New CVS Development CVS is constructing a new freestanding building at the Property, which is scheduled to open in November 2015, representing a significant investment in and commitment to this retail location. The outparcel is subject to a 25-year Ground Lease, which generates $250,000 of annual income from a national, credit tenant. Additional terms of the Ground Lease include the Tenant’s reimbursement for its’ proportionate share of exterior common area maintenance and real estate taxes. An investor could potentially sell the CVS to a third party as a net lease investment, at a significant cap rate arbitrage, and reduce its overall basis in the Property. Access and Exposure The Property benefits from its location in North Coventry Township along Routes 422, 724, and 100, which sees over 86,900 in daily combined vehicular traffic. In addition to providing excellent visibility, these highly trafficked thoroughfares facilitate easy accessibility to the Property. National Credit Tenant Mix In addition to the Mall’s strong anchor stores, the Enclosed Mall includes a strong core group of inline retailers including Bath & Body Works, Victoria’s Secret, GNC, Kay Jewelers, Pearle Vision, and Zale's Jewelers, among others. Healthy Occupancy Costs Tenant occupancy costs at the Property have been very healthy and are well-below industry standards.


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Church Street Marketplace, Burlington, VT

Portsmouth Historic Waterfront


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Pottstown, PA Coventry Mall is located in Pottstown, Pennsylvania, which is part of the Philadelphia-Camden-Wilmington MSA. Pottstown is situated in Montgomery County approximately 35 miles northwest of Philadelphia and 15 miles southeast of Reading. Montgomery County contains many business parks including Blue Bell, Lansdale, Fort Washington, Horsham, and King of Prussia, which draw thousands of professionals from all over the region. The strong job base and taxes generated by those jobs have resulted in Montgomery County receiving the highest credit rating of ‘AAA’ from Standard & Poor. The County consists of more than 777,000 inhabitants, making it the largest suburban county in the metropolitan statistical area. The Property is located just south of US Route 422 / Benjamin Franklin Highway along West Schuylkill Road and Pottstown Pike. Within ten miles of the Property, the average household income is $93,000, which is well above the national average and is generated by a population of over 200,000. Retail Coventry Mall is situated in the Exton / Whitelands submarket within the Suburban Philadelphia retail market, as defined by CoStar. The submarket is comprised of 659 buildings totaling over 12 million square feet of retail space. As of the second quarter 2015, the submarket reported an overall vacancy rate of 7.0% and quoted rental rates of $14.25 triple net for all retail space. The Exton / Whitelands market consists of two major retail centers including Coventry Mall and Upland Square, which together total more than 1.7 million square feet of retail premises.


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For additional information please contact:

Arthur Milston Managing Director

C-III Realty Services 212.705.5158 Office [email protected]

Kevin Michels Vice President


Danielle Alvarez Senior Associate


Debt Contact: Bill Leifeste

Managing Director C-III Realty Services 972.868.5359 Office [email protected]

investment summary for: coventry mall - real capital · pdf fileinvestment summary for:...

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