Jared The Galleria Of Jewelry
7381 McNight Road, Pittsburgh, Pennsylvania 15237
Total Price: $5,438,548
Cap Rate: 6.75%
Sterling Jewelers, Inc., conducting business under the trade name of Jared – The Galleria Of Jewelry, is the leading U.S. specialty jewelry retailer operating in freestanding locations.
7381 McNight Road, Pittsburgh, Pennsylvania 15237
Together with Signet Jewelers Limited, its parent company, they are the largest specialty retail jeweler in the world. The first Jared store opened in 1993 and has grown to 180 stores nationwide.
Sterling Jewelers, Inc., conducting business under the trade name of Jared – The Galleria Of Jewelry, is the leading U.S. specialty jewelry retailer operating in freestanding locations. Together with Signet Jewelers Limited, its parent company, they are the largest specialty retail jeweler in the world. The first Jared store opened in 1993 and has grown to 180 stores nationwide.
- Tenant: Sterling Jewelers, Inc.
- Cap Rate:6.75%
- Annual Rent:$367,102
- Gross Leasable Area: 5,780 sq. ft.
- Lease Type:NNN
- Year Built:2002
- Lot Size:55,244 sq. ft. (1.27 Acres)
- Lease Term:10/8/2002 – 1/31/2023
- Renewal Options:4 5-year options
- Rent Increases:10% every 5 years
- Minimum Investment: $150,000
- Sterling Jewelers is a subsidiary of Signet Jewelers – largest jeweler in the world
- NNN lease – tenant is responsible for taxes, insurance and maintenance associated with the property
- Excellent location – across from Pittsburgh’s premier mall
- $1.94 billion net worth*
- Net income of more than $200 million*
- 168,410 people live within a five mile radius
- 43,814 vehicles per day pass by this location
- 10% rent increase February 2013 (7.43% yield)
- 7.65% average yield over the remaining lease term**
The property is a free standing Jared – The Galleria Of Jewelry store located in Pittsburgh’s premier retail area. The property has direct access off McKnight Road, which is a major north/south commercial artery for the city of Pittsburgh. There are currently 43,814 vehicles a day that pass by this location. The property is across from the Simon owned Ross Park Mall, with over 150 upscale stores anchored by Macy’s, J.C. Penney, Sears and Nordstrom’s. The surrounding area is densely populated with a mix of residential and commercial properties. Other retailers in the area include Home Depot, David’s Bridal, Ross, North Hills Toyota, Bed Bath and Beyond, Pier 1, Jo-Ann Fabric and Craft Store, Chili’s and Bob Evans. As of 2010, the population within a five mile radius of the property is over 168,000 with an average household income of $70,806.
Pittsburgh, located in southwestern Pennsylvania, ranks 6th in the nation as home to Fortune 500 companies (Alcoa, Heinz, Mellon, PPG, US Steel and WESCO International) and more than 70 companies with $1 billion or more in sales. The Greater Pittsburgh Area had an estimated 2010 population of more than 2.3 million people. The city is within 500 miles of more than half the U.S. population and less than 90 minutes flying time from 20 states and Canada. While the city is historically known for its steel industry, today it is largely based on healthcare, education, technology, robotics, fashion, and financial services. The city has made great strides in redeveloping abandoned industrial sites with new housing, shopping centers and offices. While Pittsburgh faced economic troubles in the mid 1970s as the steel industry waned, modern Pittsburgh is economically strong. The housing market is relatively stable. Pittsburgh added jobs in 2008 even as the national economy entered a significant jobs recession. In 2007, Forbes magazine named Pittsburgh the 10th “Cleanest City,” and in 2008 Forbes listed Pittsburgh as the 13th “Best City for Young Professionals to Live.” The city is consistently ranked high in livability surveys. In 2007, Pittsburgh was named “America’s Most Livable City” by Places Rated Almanac.
Founded in 1970, AEI is one of America’s oldest sponsors of net lease real estate investment programs and a leader in the TIC- 1031 exchange industry. AEI is a national source of high quality, commercial real estate for property owners engaged in 1031 tax-deferred property exchanges. AEI has specialized in developing, evaluating and purchasing these types of properties for more than 35 years and offers a portfolio of name-brand, net leased commercial retail properties.
Why come to AEI for your TIC or 1031 properties?
Exceptional service. If this is your first 1031 property exchange or TIC purchase, we make every effort to ensure that you fully understand the transaction. Our experienced professionals are available to assist you at each step.
Stability and quality. AEI offers quality, single tenant properties – freestanding real estate occupied by creditworthy corporate tenants under long-term net leases.
Acquisition expertise. AEI has performed institutional-grade due diligence on every property we own. Acquiring property from AEI can reduce this time-consuming, labor-intensive aspect of your property selection process and provide a higher level of expertise than you may be able to provide yourself.
Post-purchase services. After your property purchase is complete, AEI can provide the following services:
- Accounting and distribution of rental income
- Year-end 1099 forms for tax reporting
- Assisting with any management concerns you may have about your property
- Monitoring lease compliance, tax and insurance payments, and property maintenance by the tenant