8801-8821 Centreville Rd
Manassas, VA 20110
Ground Leased H Mart Center · Retail Property For Sale

A Rare, High Residual Offering
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.
Rare Ground Lease Opportunity
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.
Market Rental Rate Intelligence
As the anchor tenant occupying more than 73% of the GLA, H Mart is a focal point of this investment. Comparable anchor boxes in the Manassas trade area are currently leasing in the range of $15–$18 per square-foot, net, depending on concessions. H Mart has operated successfully at this location since April 2015, and a third-party retail study by Matthew P. Casey & Associates (2019) cited annual sales in the range of $24 million, suggesting this is a high-performing store. H Mart is not required to report sales at this location. An extrapolation of H Mart’s actual reported 2018 store sales, Placer.ai, and Mathew P. Casey’s 2019 report conclude that store sales for H Mart are in the wide range of $16M to $28M. Investors that visit the location will see robust store traffic that supports these conclusions. Inline shop rents in the submarket are currently quoted at $30+ per square foot net, with endcap space exceeding $35 per square foot. Pages 5 and 6 show the calculation to arrive at the approximate present net operating income of the center using market rate rents.
On a per-acre basis, comparable fee simple properties in the Manassas trade area have recently traded on average for $3M per acre, underscoring the compelling land value and inherent residual in this offering. The property is offered for sale at approximately $1.2M per acre.
The site’s B4 zoning designation allows for General Commercial, which is targeted to provide a wide array of retail, office, service, and institutional uses. This allows for multiple exit strategies for investors.
Professional Management & Capital Improvements-
The current lessor is an entity affiliated with Giant Food, which previously operated the anchor box. The ground lease imposes defined maintenance obligations, which Giant’s management agent, KeyPoint, has diligently upheld over the years. Overall, the improvements have been well maintained, and the property reflects a high standard of care consistent with institutional ownership and management. It has undergone recent capital improvements, including LED retrofit and replacement of H Mart’s roof (2022), landscape renovation (2022), mill & pave (2019, 2020, 2021, 2022), façade painting (2018), replacement of all inline shop roofs (2010), and installation of a four-pump Giant Food fuel station and repaving of the parking field at a cost of $400,000 (2010). Going forward, Giant Food continues to collect a significant rental income from the retailers, and its’ investment in the physical plant is not only contractually required by lease, but occurred historically.