50k sq ft neighbourhood retail centre
In 2017, Warren Private acquired a 50k sq ft grocery-anchored neighbourhood retail centre in Cohasset, Massachusetts, USA in conjunction with our US operating partner Crosspoint Associates.
Built in two phases in 1962 and 1978, and extensively renovated in 1998, the property is situated on a 7.7 acre site which also includes 274 surface car parking spaces. The property consists of 12 retail units arranged in a mix of stand‐alone and linear locations on the site. It is a well‐established dominant retail location anchored by a 9k sq ft CVS and a 14k sq ft Curtis Liquors. Both tenants have been in occupation for c.30 years and trade exceptionally well. Other tenants include Starbucks and a fitness gym.
The property enjoys a strong position in Cohasset, a highly affluent coastal town with a population of 8,000 located 20 miles south east of Boston. The Property is on the local Route 3A, which is the primary retail corridor for a number of shore-side communities such as Cohasset, Hingham and Scituate, which are very residential in nature and are regarded as residential suburbs of Boston. This area of Massachusetts features extremely high barriers to entry due to strenuous regulatory / planning constraints and a very limited amount of unrestricted buildable land which means that there is limited potential for additional development within the property’s catchment area.
Since acquisition, Crosspoint Associates have grown net operating income through re-lettings and effective cost management.
The investment period is seven to 10 years, and projected returns are strong at a pre-tax IRR of c.10% and a pre-tax profit of c.120% of investors’ original investment amount.
|Investment Period:||7-10 years|
|Projected Annual Distributions:||c.7%|
|Projected Profit on Investment:||c.120%|