DISCOUNT DRUG MART PLAZA - 24485-24569 LORAIN ROAD NORTH OLMSTEAD, OH
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PAGE HEADER | Section Name
DISCOUNT DRUG MART PLAZA
24485-24569 LORAIN ROAD Luttner • Passov • 1
NORTH OLMSTEAD, OH
DISCOUNT DRUG MART PLAZA NORTH OLMSTEAD, OH CONFIDENTIALITY/DISCLAIMER
Luttner Passov Investment Group (“LP”) has been retained as the exclusive Broker regarding the sale of this property. LP advises all prospective Buyer’s as follows:
The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering
Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity
(except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization
of LP, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of LP.
The Offering Memorandum has been prepared by LP and does not purport to provide an accurate summary of the property, nor does it purport to be all-inclusive or to contain all of the information which the Buyer may need
or desire. The Offering Memorandum is not a substitute for Buyer’s thorough due diligence investigation of this property. Verification and Analysis of the information contained in the Offering Memorandum are solely the
responsibility of the Buyer. Although the information contained herein is believed to be accurate, LP and its employees disclaim any responsibility for inaccuracies and expect Buyer to exercise independent due diligence in
verifying all such information. LP has not verified any of this information, nor has LP conducted any investigation regarding these matters. LP makes no guarantee, warranty or representation whatsoever about the accuracy
or completeness of any information contained herein or otherwise provided to Buyer by LP. Further, LP and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained
in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no
change in the business or affairs of the property or its Tenant(s) since the date of preparation of the Offering Memorandum.
All projections, opinions, assumptions or estimates used in this Offering Memorandum are for example only and do not represent the current or future performance of this property and nothing contained herein or
otherwise provided to Buyer by LP shall be relied on as a promise or representation as to the future performance of the property. While tenant(s) past performance is an important consideration, it is not a guarantee
of future success. Similarly, lease rates may be set based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area. Returns are not guaranteed; the tenant(s) and
any guarantor(s) may fail to pay the lease rent, property taxes, or may fail to comply with other material terms of the lease. Cash flow may be interrupted in part or in whole due to market, economic, environmental or
other conditions. Regardless of tenant(s) history and lease guarantee(s), Buyer is responsible for conducting their own investigation of all matters affecting the intrinsic value of the property, including the likelihood of
locating a replacement tenant(s) if the current tenant(s) should default or abandon the property, the lease terms that Buyer may be able to negotiate with a potential replacement tenant(s), and Buyer’s legal ability to
make alternate use of the property.
Like all real estate investments, this property investment carries significant risk and it is the sole responsibility of the Buyer to independently confirm the accuracy and completeness of all material information before
completing any purchase. LP expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Buyer and Buyer’s tax, financial, legal, and construction advisors must conduct a
careful, independent investigation of this property to determine if the property is suitable for the Buyer’s needs.
Buyer agrees to indemnify, defend, protect and hold LP and any affiliate of LP harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney
fees) arising, directly or indirectly from any actions or omissions of LP, its employees, officers, directors or agents.
Buyer agrees to indemnify and hold LP harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to
any claims for other real estate commissions, broker fees or finder fees in relation to or in connection with the Property to the extent claimed.
The Owner expressly reserves the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any Buyer at any time with or without notice.
The Owner shall have no legal commitment or obligations to any Buyer reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property
has been fully executed, delivered, and approved by the Owner and its legal counsel, and any conditions to the Owner obligation thereunder have been satisfied or waived.
No employee of the Owner is to be contacted without the written approval of LP and doing so would be a violation of this confidentiality agreement. Buyer agrees not to contact the tenants, their employees or customers
of any business on the Property without prior permission from the Owner.
By accepting this Offering Memorandum, Buyer agrees to release and hold Broker harmless from any claim, cost, expense, or liability arising out of Buyer’s investigation and/or purchase of this property.
FOR MORE INFORMATION, CONTACT: 216.464.4060
Mark Luttner / mark@luttnerpassov.com
TABLE OF CONTENTS
Executive Summary 4
Financial Analysis 11
Market Overview 14
INVESTMENT ADVISOR
Mark Luttner
216.464.4060 WWW.LUTTNERPASSOV.COM
mark@luttnerpassov.com
TABLE OF CONTENTS EXECUTIVE SUMMARY Luttner • Passov • 4
TENANT OVERVIEW | Executive Summary TABLE OF CONTENTS
TENANT OVERVIEW CONT.
foods, school & office supplies, and seasonal merchandise, Drug Mart has it all!
Customers can rent videos, and at our Courtesy Center, pay utility bills send
packages UPS or USPS, purchase postage stamps, play the lottery, and buy state
hunting or fishing licenses 7 days a week!
Drug Mart’s pharmacies have the latest customized computer system and electronic
prescription transfer. Pharmacists also offer disease management and various
testing and screening services. Our dedicated and friendly pharmacists fill over 5.3
TENANT INFORMATION
million prescriptions a year.
Tenant Trade Name Discount Drug Mart
Lessee Discount Drug Mart, Inc. (Corporate)
# of DDM Locations 76
2016 Revenues/Net Income $667M / $15M
2015 Revenues/Net Income $618M / $14M
Headquarters Medina, OH
Website https://discount-drugmart.com/
TENANT OVERVIEW
Discount Drug Mart, Inc. is a privately held Ohio based drug store chain that
opened its first store in 1969. Since that time, Discount Drug Mart has established
stores in over 20 Ohio counties and currently operates 76 stores throughout Ohio
and recorded revenues in 2016 of $667 Million up from $618 Million in 2015. The
company continues to expand throughout Ohio.
Low prices, outstanding customer service and broad based product lines are at the
heart of Drug Mart’s growth and success. The company slogan says it all: “Discount
Drug Mart Saves You the Runaround...We Have Everything You Need.”
The 25,000+ square foot stores stock more than 40,000 items. From health and
beauty aides to household merchandise; small appliances, paint, hardware and
auto accessories; magazines, greeting cards, paper products,groceries, frozen
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 5
Mark Luttner / mark@luttnerpassov.com
PROPERTY AERIAL | Executive Summary TABLE OF CONTENTS
SITE - DISCOUNT DRUG MART
WAXMAN’S
CARPET & RUG
COL
UMB
IA R
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KATHY WILHELMY FLOWERS
CHEAP TOBACCO TRAVELER’S
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9 V
2,67
2
BUCKEYE
N RD LANES
I
ORA
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FOR MORE INFORMATION, CONTACT: 216.464.4060
Mark Luttner / mark@luttnerpassov.com
LOCATION MAP | Market Overview TABLE OF CONTENTS
MI LAKE ERIE
90
Toledo Cleveland
90
SITE 271
80
Akron
76
Youngstown
PA
75
Canton
Lima
71
77
IN Columbus
70
Dayton
OH
71
75
Cincinnati
CLICK TO VIEW
WV
KY
FOR MORE INFORMATION, CONTACT: 216.464.4060
Mark Luttner / mark@luttnerpassov.com
OFFERING TERMS | Executive Summary TABLE OF CONTENTS
OFFERING TERMS
Price: $4,220,000
2020 Proforma NOI $339,574
Cap Rate 8.05%
GLA 39,984 SF
Price/ SF $105
Loan Assumptions Free & Clear
INVESTMENT ADVISOR
Mark Luttner
216.464.4060
mark@luttnerpassov.com
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 8
Mark Luttner / mark@luttnerpassov.com
OFFERING OVERVIEW | Executive Summary TABLE OF CONTENTS
PROPERTY SUMMARY Luttner Passov Investment Group has been exclusively retained by Ownership to sell the 100% interest
in this 39,984 square foot Discount Drug Mart anchored shopping plaza located in North Olmsted, Ohio
(Cleveland MSA). Discount Drug Mart signed a new ten (10) year lease in 2018 that extends through
24485-24569 Lorain Road,
Address: 2/28/2028 with a rare 7.45% rent increase on 3/2023. Discount Drug Mart accounts for 62% of the total
North Olmsted, OH 44070
income of the plaza. The remaining tenants include a mix of Amazon proof retailers include Great Clips,
GLA: 39,984 SF
a Nail Salon, Cookies by Design, a Sushi Restaurant, Small Studio Art Supplies and Complete Glass and
Occupancy: 100%
Mirror Window Installation.
Anchor Tenant: The property is located at the intersection of the highly trafficked Lorain Road and Columbia Road in
North Olmsted with daily traffic counts exceeding 22,000 vehicles. On the direct corner is a freestanding
Site Area: 4.596 Acres Fat Heads Brewery and a freestanding Dairy Queen (both not included). North Olmsted is a city in
237-01-001 Cuyahoga County, Ohio. As of the 2010 Census, the city population was 32,718. North Olmsted is a
PPN:
237-01-009 west side suburb of Cleveland, Ohio, and is the 8th most populated city within Cuyahoga County.
Two (2) on Lorain Road
Access:
One (1) on Columbia Road
Discount Drug Mart, Inc. is a privately held Ohio based drug store chain that opened its first store in
Discount Drug Mart Roof
Replaced in 2019, Remain- 1969. Since that time, Discount Drug Mart has established stores in over 20 Ohio counties and currently
Roof Condition
ing portion replaced in 2013 operates 74 stores throughout Ohio and recorded revenues in 2016 of $667 Million up from $618 Million
(Transferable Warranties)
in 2015. The company continues to expand throughout Ohio.
OFFERING HIGHLIGHTS
• Discount Drug Mart Anchored
Shopping Plaza
• New 10-Year Lease with Discount
Drug Mart (7.45% Rent Increase in 2023)
• Discount Drug Mart Accounts for 62% of
the Total Income
• 100% Occupied
• 22,000 Vehicles Per Day on Lorain Road
• Intersection of Lorain Road and
Columbia Road
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 9
Mark Luttner / mark@luttnerpassov.com
SITE PLAN | Executive Summary TABLE OF CONTENTS
RD
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MBIA
RD
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 10
Mark Luttner / mark@luttnerpassov.comTABLE OF CONTENTS
FINANCIAL
ANALYSIS
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 11
Mark Luttner / mark@luttnerpassov.comRENT ROLL | Financial Analysis TABLE OF CONTENTS
RECENT
TENANT LEASE 2019 MIN. RENT 2019 MIN. RENT CHANGES CHANGES OPTION OPTION
TENANT GLA % OF GLA LEASE RENT/SF
SINCE END MONTHLY ANNUALLY ON TO PERIODS RENT PSF
START
$9.12
$9.54
Discount Drug Mart (1) 27,254 68.16% 1970’s 3/1/2018 2/28/2028 $8.51 $19,333 $232,000 3/1/2023 $9.15 (4) 5-Yr
$9.95
$10.37
Great Clips 1,260 3.15% 2005 5/1/2019 4/30/24 $16.00 $1,680 $20,160
Deluxe Nails 1,420 3.55% 2008 8/1/2018 7/31/2023 $14.00 $1,657 $19,880 8/1/2020 $15.00
2/1/2020 $10.00
Small Studio Productions 1,645 4.11% 2017 2/1/2017 1/31/2022 $9.50 $1,302 $15,627 (1) 5-Yr +$.50 PSF/Yr
2/1/2021 $10.50
Ohashi Sushi 1,850 4.63% 2004 11/1/2014 10/31/2024 $14.00 $2,158 $25,900 (1) 5-Yr TBD
J&J Asian Mart 2,055 5.14% 2006 8/1/2016 7/31/2021 $11.68 $2,000 $24,000
Complete Glass & Mirror (2) 3,000 7.50% 2012 6/1/2019 5/31/2021 $6.65 $1,663 $19,950 (1) 2-Yr $7.03
Cookies by Design (3) 1,500 3.75% 1990’s 12/1/2019 11/30/2024 $9.40 $1,175 $14,100 Annually +$0.20 PSF
Total(s) 39,984 100.00% $9.29 $30,968 $371,617
VACANT(S) 0 0.00%
(1) 22,600 SQ. FT. OF RETAIL SPACE; 1,770 SQ. FT. OF STOCK SPACE; 2,884 SQ. FT. OF STORAGE SPACE; MIN. RENT ON RETAIL SPACE IS $18,833.33/MO THRU 2/28/23 AND MIN. RENT ON STORAGE SPACE IS $500/MO. THRU
2/28/23. MIN. RENT ON RETAIL SPACE INCREASES TO $19,775/MO. ON 3/1/23 AND MIN. RENT ON STORAGE SPACE INCREASES TO $1,000/MO ON 3/1/23.
(2) 1,500 SQ. FT. OF RETAIL SPACE AND 1,500 SQ. FT. OF STORAGE SPACE; MINIMUM RENT OF $1,062.50/MO. FOR RETAIL AND $600/MO. FOR STORAGE.
(3) AFTER 12/1/2020, TENANT MAY TERMINATE WITH SIX (6) MONTHS NOTICE.
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 12
Mark Luttner / mark@luttnerpassov.com2020 PROFORMA INCOME & EXPENSES | Financial Analysis TABLE OF CONTENTS
SQUARE FEET: 39,984 2020 PROFORMA PSF SQUARE FEET: 39,984 2020 PROFORMA PSF
INCOME: OPERATING EXPENSES:
Base Rental Income $371,617 $9.29 Real Estate Taxes $108,255 $2.71
Real Estate Taxes $108,255 $2.71 Insurance $8,200 $0.21
Insurance $8,200 $0.21 CAM
CAM $48,380 $1.21 Water/Sewer $9,600 $0.24
GROSS POTENTIAL INCOME $536,452 $13.42 Trash Removal $5,280 $0.13
Vacancy Allowance (5.0%)*(1) ($9,605) $(0.24) Snow Removal $15,000 $0.38
EFFECTIVE GROSS INCOME $526,847 $13.18 Landscaping $6,000 $0.15
(1) EXCLUDES DISCOUNT DRUG MART Parking Lot Electric $6,000 $0.15
Maint. & Repairs $6,500 $0.16
TOTAL CAM $48,380 $1.21
Management Fee (3.5% of EGI) $18,440 $0.46
Structural Reserve $3,998 $0.10
TOTAL OPERATING EXPENSES $187,273 $4.68
NET OPERATING INCOME $339,574 $8.49
FOOTNOTES:
LANDLORD SPECIFIC EXPENSES SUCH AS PROFESSIONAL FEES AND LEGAL FEES ARE EXCLUDED.
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 13
Mark Luttner / mark@luttnerpassov.comTABLE OF CONTENTS MARKET OVERVIEW Luttner • Passov • 14
TRADE AERIAL | Market Overview TABLE OF CONTENTS
LA’ SAJ SPA & SALON
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GREAT NORTHERN MALL
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IN
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BROOKLOR SHOPPING CENTER
NORTH OLMSTED
MBIA
TOWN CENTER
GREAT NORTHERN BLVD
RD
480
D
VP
0
,98
81
18,952 VPD BROOKPARK RD
GREAT NORTHERN
PLAZAS
FOR MORE INFORMATION, CONTACT: 216.464.4060
Mark Luttner / mark@luttnerpassov.comNORTH OLMSTED OVERVIEW | Market Overview TABLE OF CONTENTS
ECONOMIC HIGHLIGHTS North Olmsted, Ohio
North Olmsted is a city in Cuyahoga County, Ohio. As of the 2010 Census, the city population
Headquarters for Moen Inc. 600+ employees was 32,718. North Olmsted is a west side suburb of Cleveland, Ohio, and is the 8th most
populated city within Cuyahoga County.
Minutes from Great Northern Mall, 1.2 M SF The subject property is located at the intersection of the highly trafficked Lorain Road and
regional mall Columbia Road in North Olmsted with daily traffic counts exceeding 22,000 vehicles. On
the direct corner is a freestanding Fat Heads Brewery and a freestanding Dairy Queen (Not
Headquarters for CommutAir included). Great Northern Mall is 1-mile from the property. Anchored by Dillard’s, Macy’s,
(200+ employees) JCPenney, Sears, Dick’s Sporting Goods, and a 10-screen Regal Cinemas & RPX, Great
https://www.north-olmsted.com/department-of-planning-and-devel-
Northern Mall also features 125 quality retailers. Destination brands include Cleveland’s only
opment/economic-development/
Disney Store, Cleveland’s largest Forever 21, PINK and Victoria’s Secret stores, Pandora, and
Bath & Body Works.
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 16
Mark Luttner / mark@luttnerpassov.comDEMOGRAPHIC DETAIL BY DISTANCE | Market Overview TABLE OF CONTENTS
SUMMARY PROFILE
2000-2010 Census, 2019 Estimates with 2024 Projections
Calculated using Weighted Block Centroid from Block Groups
Lat/Lon: 41.4263/-81.8928
RS1
24485 Lorain Rd
5 min
1 mi radius 2 mi radius 3 mi radius
drivetime
North Olmsted, OH 44070
This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty.
2019 Estimated Population 11,567 34,735 63,315 27,710
2024 Projected Population 11,251 33,782 61,300 26,905
POPULATION
2010 Census Population 11,839 36,106 65,838 28,734
2000 Census Population 12,316 37,149 68,436 29,490
Projected Annual Growth 2019 to 2024 -0.5% -0.5% -0.6% -0.6%
Historical Annual Growth 2000 to 2019 -0.3% -0.3% -0.4% -0.3%
2019 Median Age 40.8 42.5 44.4 42.6
2019 Estimated Households 5,232 15,524 28,771 12,373
HOUSEHOLDS
2024 Projected Households 5,111 15,172 27,973 12,069
2010 Census Households 5,039 15,177 28,135 12,060
2000 Census Households 5,107 15,169 28,337 12,010
Projected Annual Growth 2019 to 2024 -0.5% -0.5% -0.6% -0.5%
Historical Annual Growth 2000 to 2019 0.1% 0.1% - 0.2%
2019 Estimated White 88.4% 89.1% 89.4% 88.9%
2019 Estimated Black or African American 3.6% 3.3% 3.4% 3.3%
RACE AND
ETHNICITY
2019 Estimated Asian or Pacific Islander 4.2% 4.3% 4.1% 4.6%
2019 Estimated American Indian or Native Alaskan 0.1% 0.1% 0.1% 0.1%
2019 Estimated Other Races 3.6% 3.2% 3.0% 3.1%
2019 Estimated Hispanic 5.4% 4.7% 4.2% 4.4%
2019 Estimated Average Household Income $75,386 $87,116 $92,052 $90,218
INCOME
2019 Estimated Median Household Income $66,267 $74,304 $73,387 $75,643
2019 Estimated Per Capita Income $34,208 $38,993 $41,915 $40,342
2019 Estimated Elementary (Grade Level 0 to 8) 2.8% 2.3% 2.1% 2.2%
2019 Estimated Some High School (Grade Level 9 to 11) 3.9% 3.8% 3.9% 3.7%
EDUCATION
28.7% 26.4% 25.1% 25.6%
(AGE 25+)
2019 Estimated High School Graduate
2019 Estimated Some College 24.7% 21.6% 20.8% 22.4%
2019 Estimated Associates Degree Only 9.5% 9.6% 8.8% 9.8%
2019 Estimated Bachelors Degree Only 21.5% 23.7% 24.4% 23.9%
2019 Estimated Graduate Degree 8.9% 12.6% 14.9% 12.4%
2019 Estimated Total Businesses 480 1,268 2,775 1,218
BUSINESS
2019 Estimated Total Employees 5,173 15,198 40,801 13,249
2019 Estimated Employee Population per Business 10.8 12.0 14.7 10.9
2019 Estimated Residential Population per Business 24.1 27.4 22.8 22.8
©2020, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 10/2019, TIGER Geography
FOR MORE INFORMATION, CONTACT: 216.464.4060 Luttner • Passov • 17
Mark Luttner / mark@luttnerpassov.comTABLE OF CONTENTS INVESTMENT ADVISOR Mark Luttner 216.464.4060 WWW.LUTTNERPASSOV.COM mark@luttnerpassov.com
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