Stop & Shop - Westfield, MA
Generational Grocery Asset | Recent Lease Extension & Major Renovations | Below-Market Financing
Marketing description
Sands Investment Group is pleased to exclusively offer the 66,272 SF Stop & Shop located along the primary retail corridor connecting Main and Broad Streets. Stop & Shop has operated at this location for over 25 years and recently exercised an early lease extension, demonstrating long-term commitment. The lease has 4+ years remaining with 4 additional, 5-year options and is backed by a corporate guarantee from Ahold Delhaize (S&P: BBB+ / Moody’s: Baa1). The investment includes $0.50 PSF rent increases at each option period, proximity to Westfield State University, and attractive assumable financing with a below market 3.46% fully amortizing rate maturing in 2040. This offering provides stable, investment-grade income at a 6.75% CAP Rate.
Investment highlights
Proven Grocer with 25-Year Track Record: Stop & Shop has successfully operated at this location since 2000, making it a true generational grocery asset. As one of only three major grocery options serving Westfield, the store is a dominant anchor with deep roots in the community.
Recent Lease Extension: The tenant exercised its renewal option in 2024, extending the lease through September 2030. There are 4 additional, 5-year options remaining, with $0.50 increases each option, alluding to long-term occupancy and income durability.
Investment-Grade Credit Backing: The lease is corporately guaranteed by Ahold Delhaize (BBB+/Baa1), one of the largest grocery operators in the world. Investors benefit from true institutional-grade credit.
Premier Downtown Location: Positioned at the primary retail arterial connecting Main and Broad Streets. The site commands strong visibility in the heart of downtown Westfield. Immediate access to Route 20 and proximity to Westfield State University support consistent daily traffic and long-term demand drivers.
Significant Recent Capital Investment: Ownership has invested over $550,000 in major improvements, including a full roof replacement with a warranty in place until March 2040 and parking lot reconstruction. In addition, in 2024, the tenant recently completed a pharmacy remodel, reinforcing its long-term commitment to the location.
Strong Demographics Supporting Long-Term Stability: Westfield serves as a stable Springfield area community with over 40,000 residents and household incomes exceeding $100,000. The surrounding consumer base provides dependable grocery fundamentals and repeat traffic.
Attractive Below Market Assumable Financing Available: Existing fully amortizing loan with 3.76% interest rate, maturing in 2040.
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