Investment Overview

Marcus & Millichap, on behalf of ownership, is pleased to offer the unsubordinated ground-leased interest underlying Manassas Junction Shopping Center. The 67,022-square-foot retail center is anchored by H Mart, a leading international grocery chain with more than 97 locations across the United States. The property spans 9.26 acres and has H Mart in 73% of the GLA with the balance being 100% occupied small-shop space. Small shops tenants include Starbucks and several local chains, as well as a fuel station operated by Giant Food. Giant previously occupied the H Mart anchor space from 1981 to 2012. The property is located adjacent to an 84,080 square-foot Home Depot, which generates 801,000 annual visits providing complementary traffic via cross-access easements. This Offering represents a rare opportunity to acquire a ground lease with only 11 years of total remaining term and no further renewal options, creating a desirable reversionary opportunity for an investor. Upon lease expiration, ownership of all existing improvements will revert to the fee owner (the purchaser). While the ground lease does not provide for financial reporting from the current retailers, interested parties are encouraged to contact the listing team for insight into the tenant roster and store sales of H Mart. Conservative projections estimate that the net operating income of the shopping center at lease expiration will be more than 3 times the present net operating income from the ground lease. Notably, all in-place tenant leases and options are coterminous with the expiration of the ground lease, providing future ownership the opportunity to extend tenants, recapture spaces for re-tenanting at market, or full or partial redevelopment. Notably, Starbucks has expressed interest in relocating to a freestanding pad, which may be feasible given the site’s square parcel and favorable parking ratio of approximately 3.78/1,000.