TWO SINGLE TENANT FULLY OCCUPIED BUILDINGS
PHILADELPHIA MSA
The Opportunity
Summary
- ADDRESS: 2240 & 2242 Edgmont Ave Chester, PA
- TENANTS: King's Dollar & Variety Store Inc and Carter's Open Arms, LLC
- PORTFOLIO PRICE: $1,741,000
- COMBINED NOI: $159,266
- CAP RATE: 9.15%
- LEASE TYPE: Fee Simple: NN
Dollar Magic and Carter’s Open Arms Child Care Center, (the “Properties”) located in Chester, Pennsylvania, just 10 miles southwest of Philadelphia. Both tenants operate on fee simple: NN leases with limited Landlord responsibility. The fee simple form of ownership allows for the property to be depreciated; an incentive not offered in a ground lease. Dollar Magic has 6.5 years of term remaining while Carter’s Open Arms Child Care Center has under 2 years of term remaining. Dollar Magic currently has a NOI of $87,266 annually ($10.15 PSF), while Carter’s Open Arms Child Care Center pays $72,000 annually ($15.65 PSF). The lower rents reduce occupancy cost pressure on the tenants, improving long‑term lease sustainability and decreasing default risk. The modest rental commitments also provide room for future rent growth. The absence of tenant extension options, coupled with a relatively short average remaining lease term of approximately four years, provides investors with meaningful control over the asset’s future cash flows. Both Dollar Magic and Carter’s Open Arms Child Care Center boast personal lease guarantees, enhancing income security by providing an additional layer of recourse.
The properties are positioned along Edgmont Avenue (13,800 VPD) and 23rd Street in Chester, Pennsylvania. They benefit from excellent regional connectivity, located approximately 2 miles north of the Commodore Barry Bridge, which links Chester to New Jersey. The properties fall within the broader Philadelphia MSA, home to 6.33 million residents and ranked as the 8th largest metropolitan area in the United States. The site is highly accessible, situated less than one mile from the on-ramp to Interstate 95, the primary north-south corridor on the East Coast with traffic counts of around 205,000 VPD, and just over one mile from Interstate 476, which carries roughly 82,200 VPD. Additionally, the properties are within a fifteen-minute walk of Widener University, a top-ranked private institution with an enrollment of approximately 6,300 students and recognized as a 2024 National College of Distinction. Surrounding demographics are strong, with approximately 222,000 residents and 87,000 households within a five-mile radius, supported by an average household income of $114,000 within five miles and $102,000 within three miles.


