Northgate Shopping Center
Shadow-Anchored Two Tenant Retail Center Leased to US Foods Chef'Store & Michaels
Marketing description
The Offering provides investors the rare combination of durable, long-term income and compelling basis, anchored by two established national tenants with proven operating history at the Property. Both Michaels and US Foods CHEF’STORE have occupied their respective spaces for more than 25 years. Michaels recently exercised a 5-year extension, and both leases run through 2030.
Tenant performance is supported by strong consumer demand, with US Foods CHEF’STORE ranking in the top 10 nationwide across all CHEF’STORE locations by annual visits (334K), with Michaels welcoming 261K annual visits, per Placer.ai.
The Property benefits from attractive in-place assumable financing at a 3.74% interest rate with a 25-year amortization and maturity of August 1, 2036, providing a going-in 7.83% cash-on-cash return. The Offering is priced at $193/SF, providing a meaningful discount to replacement cost of $500+/SF for comparable, newly constructed retail centers.
The Offering is situated within a larger retail center anchored by Grocery Outlet & Hobby Lobby (533K annual visits; 77th percentile nationwide), with the overall center recording 2.2M annual visits (79th percentile nationwide for shopping centers) and national co-tenancy including Aaron’s and Dollar Tree. Positioned with direct frontage on US-2, the Property captures daily exposure to 42,000+ vehicles and offers convenient access throughout the trade area. The surrounding customer base continues to expand, with the population within five miles growing more than 15% since 2010 and additional growth projected through 2030. Several residential communities are underway to meet demand, including Mead Works, a ~1,400-home master-planned development located just minutes north of the Property.
Investment highlights
LONG-TERM CREDIT TENANCY & STRONG STORE PERFORMANCE: Both tenants have occupied the property for 25+ years. Michaels recently extended its lease through 2030, and US Foods is leased through 2030. The CHEF’STORE ranks top 10 nationally in annual visits (334K).
ATTRACTIVE ASSUMABLE FINANCING & BELOW-REPLACEMENT BASIS: Assumable 3.74% financing with 25-year amortization, maturing 8/1/2036, delivers a 7.83% cash-on-cash return. Offered at $193/SF, well below the $500+/SF replacement cost.
STRONG ANCHOR TENANTS & RETAIL SYNERGY: Located within a center anchored by Grocery Outlet and Hobby Lobby, generating 768K annual visits. The broader center recorded 2.2M visits (79th percentile nationwide) and includes Aaron’s and Dollar Tree.
HIGH-VISIBILITY US-2 FRONTAGE: Direct frontage on US-2, a major regional corridor with over 42,000 vehicles per day.
ROBUST AREA POPULATION GROWTH: Population within 5 miles has grown 15%+ since 2010, with continued growth driven by nearby developments, including the 1,400-home Mead Works community.
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