Investment Overview

Marcus & Millichap is pleased to present, Heartland Dental & Dunkin’s Diamonds, a Class-A strip center located in Lancaster, Ohio (Columbus-MSA). The subject property measures 9,000 square-feet and is situated on 1.09 acres of prime hard-corner real estate. The site was originally constructed as a build-to-suit for Pier-1 Imports and was heavily renovated in 2022 to accommodate the high-end needs of Heartland Dental & Dunkin’s Diamonds. As a catalyst to redevelopment/retenanting, both tenants signed long-term 10-year leases, which run through 12/31/2032 and 9/30/2034 respectively. Heartland Dental - doing business as Fairfield Family Dental - moved into the property in 2023 and is a relocation site for the well-established brand. Fairfield Dental teamed up with the Heartland Dental Brand in recent years and has a corporately backed/guaranteed lease from Heartland Dental. Heartland Dental currently has over 1,700 locations, 2,800 dentists, and has grown to become arguably the top national dental brand in the county. This location is paying $27.69/SF, which is well below-market rent relative to Heartland Dental’s national fleet. The national average rent for Heartland Dental is currently around $40-45/SF, while newer sites are averaging higher – showing the subject Heartland has a +46 percent discount in rent relative to the brands fleet. The below-market rent and relocation aspect sets this site up for high probability of success, stable long-term cash-flow, tangible future upside, as well a hedge against inflation with significant rent bumps every five years. Accompanying Heartland is Dunkin’s Diamonds, a long-standing, family owned jewelry store, with roots dating back decades. Dunkin’s currently operates nine locations in Ohio and Florida, and is headquartered in Heath, Ohio. The company has grown to become one of the most prominent fine jewelry boutiques in the region, and a staple in many communities. Dunkin’s Diamonds is occupying 5,100 square-feet, which amounts to 57 percent of GLA, and 62.5 percent of base rent. Over the last 12-months Placer.Ai indicates that Dunkin’s Diamonds has seen over 23,600 visits, ranking it in the top 72nd percentile in the nation for fashion accessory brands. Both tenants are encumbered by triple-net leases which fully reimburses Tax, CAM, and Insurance expenses, as well as 3rd party management fees, leaving very little landlord responsibilities. Heartland Dental & Dunkin’s Diamonds is located along Memorial Dr, which is Lancaster’s busiest throughway, seeing over 29,142 vehicles per day. The subject property was strategically developed at the signalized hard-corner intersection which amplifies visibility and exposure. The site also benefits from shared access with the entrance of the prominent mall, Target, and Kroger Marketplace anchored shopping centers. Major tenants in the surrounding area include Target, Hobby Lobby, Kroger, TJ Maxx, Five Below, Dollar Tree, Ulta, Dick’s Sporting Goods, Best Buy, Big Sandy Superstore, Lowe’s, Walmart, Menards, Giant Eagle, Meijer, an abundance of small shops/restaurants which includes Raising Cane’s, Olive Garden, Applebee’s, Taco Bell, Ihop, Starbucks, McDonald’s, Sherwin Williams, AT&T, T-Mobile, Panera, and many more. In addition to being situated in the main retail corridor, Heartland Dental & Dunkin’s Diamonds also abuts the main residential district for the region. Immediate demographics are dense & mature, with population counts of 7,951 within one mile, 39,303 within three miles, and 51,684 within five miles. Lancaster is a prominent town just outside of Columbus, Ohio, and is the county seat of Fairfield County. The Columbus-MSA is ranked the 32nd largest MSA in the United States with a population count of over 2.18m. Columbus is the capital of Ohio and has massive growth since 2000. Major corporations and economic drivers include Ohio State University, JPMorgan Chase, Intel (developing $28b chip plant), L Brands, Nationwide Insurance, Worthington Industries, and the State of Ohio Government.