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.

Investment Highlights

BITE‑SIZED DEALS WITH LOW RENT - 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). These lower rent levels 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.

LEASE GUARANTEES - 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.

NO EXTENSION OPTIONS - The absence of tenant extension options, coupled with a relatively short weighted average remaining lease term of approximately four years, provides investors with meaningful control over the asset’s future cash flows.

PRIME LOCATION (PHILADELPHIA MSA) - The properties are positioned along Edgmont Avenue (13,800 VPD) and 23rd Street in Chester, Pennsylvania, just 10 miles southwest of Philadelphia. The property is just 2 miles north of the Commodore Barry Bridge which connects Chester to New Jersey and is part of the Philadelphia MSA that is home to a population of 6.33 million people and the 9th largest metro area in the United States.
CLOSE PROXIMITY TO MAJOR INTERSTATE HIGHWAYS (287,200 COMBINED VPD) - The properties sit under 1 mile from the on-ramp to Interstate 95, the main north-south interstate highway on the east coast of the United States that boasts 205,000 VPD and just over 1 mile from Interstate 476, an auxiliary Interstate Highway that boasts 82,200 VPD.

CLOSE PROXIMITY TO WIDENER UNIVERSITY (6,300 STUDENTS) - The property is a fifteen-minute walk from Widener University, a top-ranked private university in Chester that enrolls 6,300 students. Widener University was named a 2024 National College of Distinction (Colleges of Distinction).

DENSELY POPULATED, AFFLUENT AREA - The 5-mile area surrounding the property boasts excellent demographics with a population of 222,000 people and 87,000 households. Additionally, the average household income within 5 miles sits at $114,000 and $102,000 within 3 miles of the properties.

BUSTLING RETAIL CORRIDOR - The properties are surrounded by several national retailers along Edgmont Avenue including: Lowe’s Home Improvement, Giant, ShopRite, Aldi, CVS Pharmacy, Walgreens, Wells Fargo Bank, Citizens Bank, WSFS Bank, PetSmart, LA Fitness, Aspen Dental, AutoZone, Jiffy Lube, Pep Boys, Meineke, Dollar General, Dollar Tree, Family Dollar, Sherwin-Williams, Chili’s Grill & Bar, McDonald’s, Starbucks, Dunkin’, Wawa, Popeyes, Wendy’s, KFC, and Burger King, further demonstrating the strength of the retail corridor.

Brokerage Team

Marc Mandel

Marc Mandel

Managing Principal
Forged Real Estate
James Yi

James Yi

Director
Forged Real Estate
Marco DiPrinzio

Marco DiPrinzio

Steve Schrenk

Steve Schrenk