2. Table of Contents
Confidentiality Statement
I. Executive Summary
Offering Summary
Offering Terms
Site Plan
II. Project Overview
Project Overview
Area Map
Aerial Map
Mixed-Use Community Site Plan
III. Site Improvements
On-Site Improvements
Common Off-Site Improvements and Cost Sharing
Brubacher Bid
Extension Deposit Agreement
IV. Market Overview
Market Overview
Demographic Report
New Housing Study
New Housing Starts Map
V. Appendix
Resolution of Final Approval
NPDES Permit
PNDI Search Results
Zoning Ordinance – List of Permitted Uses
3. Confidentiality Statement
The material contained in this Offering Memorandum is confidential, furnished solely
for the purpose of considering the acquisition of New Hanover Crossing (the “Project”)
and is not to be used for any other purpose or made available to any other person
without the express written consent of Heritage Building Group (“Seller”) or its
subsidiaries. The material is based in part upon information supplied by Seller from
sources it deems to be reliable. No warranty or representation, express or implied, is
made by Seller or any of their affiliates and/or assignees, as to the accuracy or
completeness of the information contained herein.
4. EXECUTIVE SUMMARY
New Hanover Crossing will feature 275,000 square feet
of prime retail space on approximately 36 acres.
Offering Summary
Heritage Building Group is pleased to present for sale New Hanover Crossing, a prime
shopping center development tract located at the to-be-signalized intersection of Route 73 and
Route 663 in New Hanover Township, Montgomery County, Pennsylvania (the “Township”).
This project will be sold fully-approved with all entitlements in place.
Situated on approximately 36 acres, New Hanover Crossing features 275,000 square feet of
retail space designed to accommodate a new supermarket, Big Box Retailer, five pad sites, and
in-line tenant spaces. Users will benefit from the site's highly-visible corner location with over
2,100 feet of frontage and ample parking.
The New Hanover Township market is experiencing a tremendous amount of residential and
commercial growth, with population totaling 195,000 within a 10-mile radius (projected to
double by 2015). Approximately 6,000 housing units have been recently developed or are in the
approvals process. This rapid growth is being driven by the market’s excellent location and the
recent completion of a sewer plant expansion that has unleashed pent-up demand.
5. Offering Terms
The project is being sold on a fully approved basis. The purchase price of Ten Million Five
Hundred Thousand Dollars ($10,500,000.00) will include the following:
The approved value of the shopping center. Seller anticipates that all permits and
approvals necessary to start the project will be obtained by October 2008.
The value of two adjacent out parcels located along the project's Route 663 frontage
obtained during the approvals process and not currently incorporated into the center.
The cost of previously constructed offsite water improvements totaling $185,000.
In addition to the purchase price, at closing the Buyer shall reimburse Seller for the
following:
The cost of 113 sanitary sewer EDUs previously purchased for $514,715.
A comprehensive site-improvement bid supplied by Brubacher Excavating Inc., has been
included herein for on-site construction costs. Prospective buyers are encouraged to conduct
their own site improvement estimate.
See Description of Common Off-Site Improvements and Cost Sharing Arrangement hereafter
for explanation of potential cost contributions and/or reimbursements for common off-site
improvements required for New Hanover Crossing and two contiguous projects.
At the time the final plans are recorded, Buyer shall be responsible for paying Traffic Impact
Fees in the amount of $921,258 and fees-in-lieu of recreation space totaling $206,981.
New Hanover Crossing is expected to be fully approved and permitted by October 2008. The
Project already has Final Approval from New Hanover Township. There are currently two
outstanding permits: PennDOT HOP and DEP Joint 105, which are anticipated to be received
within the next two-to-three months. The PennDOT HOP is a single permit covering roadway
improvements for New Hanover Crossing and two adjacent residential projects being
developed by Seller. Seller may elect to split the PennDOT HOP into three individual permits,
which may take an additional four-to-six months for approval.
6.
7. PROJECT OVERVIEW
New Hanover Crossing
Route 73 & Route 63
New Hanover Township, Montgomery County, PA
Street Address: 3141 N. Charlotte Street
Gilbertsville, PA 19525
Lot Size: Approximately 35.9 Net Acres
Approved SF: Approximately 275,000 SF Retail Space
Zoning: CB-1, Commercial Business
Allowable/Proposed
Building Coverage: Max Bldg. Coverage: 25% allowable (17.6% proposed)
Max Impervious Coverage: 75% allowable (66.17% proposed)
Parking Ratio: 4.6 spaces per 1,000 SF (1,260 spaces provided)
Wetlands: The current plans place storm water basins in the two wetland areas to
maximize total site coverage for the remainder of the site.
Status of Approvals: Final Land Development Approval received from the Township. Two
permits are currently being sought, PennDOT HOP and DEP Joint 105,
which should both be received within the next two-to-three months. In
the event Seller decides to split the PennDOT HOP, which covers the
roadway improvements for New Hanover Crossing and two adjacent
residential projects being developed by Seller, into 3 individual
permits, then the PennDOT HOP approval may take an additional four-
to-six months.
, PA
PennDOT Approvals: Road improvement and traffic signal approvals are in process. HOP
expected by Oct. 2008.
Traffic Light Status
Approval: Currently working on traffic light improvements with Township and
PennDOT. Signal permit expected by Oct. 2008.
Utilities Status: Project is served by Public Sewer and Public Water; 113 sewer EDUs
have been purchased for this project by Seller.
Permitted Uses: Most Retail Uses permitted. See attached zoning ordinance.
Housing Pipeline: Approximately 6,000 new housing units within New Hanover
Crossing’s trade area have been developed or are in the approvals
process. Pent-up housing demand is being absorbed rapidly due largely
to the recent completion of a new Sewer Treatment Plant expansion.
11. SITE IMPROVEMENTS
On-Site Improvements
The attached site improvement bid, prepared by Brubacher Excavating, Inc., ("Brubacher Bid")
is based on the land development plan set dated 10-23-02 last revised 1-25-06 by Bohler
Engineering, Inc. The Brubacher Bid is also based on revised grading incorporated by Seller
into the land development plan set dated 10-23-02 last revised 4-07-07 by Bohler Engineering,
Inc., ("Final Plan") and further assumes a benchmark adjustment of five-tenths of one foot to
balance the earthwork on the site. An electronic copy of the Final Plan is included in this
Offering Memorandum.
The Final Plan, with minor revisions, has received Final Approval from New Hanover
Township. Although the Brubacher Bid is comprehensive, prospective buyers should not
assume that the Brubacher Bid includes all costs necessary to construct the project. Prospective
buyers should therefore verify all quantities and unit costs, as well as perform their own due
diligence for the project.
Finally, the Brubacher Bid does not include the $172,908 cost for the New Hanover Crossing
water main, which shall be constructed by Superior Water Company. A draft Extension Deposit
Agreement with Superior is included in this Offering Memorandum.
12. Description of Common Off-site Improvements and Cost Sharing Arrangement
In addition to New Hanover Crossing, Heritage Building Group is developing two adjacent
projects: Hanover Glen - a 40 lot detached single family home community; and Hanover
Meadows - an 870 unit age restricted community. The development of these projects will
require the construction of certain common off-site improvements which include highway
improvements along Routes 73 and 663, off-site sewer lines, the extension of Miles Road, and a
gas line approach.
With respect to the Highway Improvements, in the event Seller decides to split the single
PennDOT HOP, which covers the roadway improvements for all three projects, into three
individual permits, then the three individual permits will have overlapping scope of work.
Heritage has developed cost estimates for these common off-site improvements and has
assigned contributions and reimbursements for each respective project to facilitate and insure
the necessary funding for the construction of the off-site improvements. The builder of New
Hanover Crossing will be responsible for the scope of work required by its respective Penn
DOT permit including posting required financial security and will receive a reimbursement for
the overlap work in the event New Hanover Crossing starts before either or both of the
contiguous projects. Likewise, in the event one or both of the contiguous projects starts before
New Hanover Crossing then the builder of New Hanover Crossing will make a contribution
for the cost of common off-site improvements constructed by the other builder(s).
For the New Hanover Crossing project, the assigned reimbursements and contributions for
common off-site improvements are as follows:
If New Hanover Crossing Starts First - The builder of New Hanover Crossing will receive a
total reimbursement of $842,500 consisting of $507,500 for the off-site sewer line, the
extension of Miles Road, and the gas line approach plus $335,000 for the Highway
Improvements. These reimbursements will be secured by a cash escrow to be posted by the
Seller at the closing of the sale of New Hanover Crossing. Each component of the
reimbursement will be paid in two stages, 50% will be funded when the work is 50% complete
and the balance of the reimbursement when the work is substantially complete.
If One or Both of the Other Contiguous Projects Starts Before New Hanover Crossing – The
builder of New Hanover Crossing will be responsible for a total potential contribution of
$1,469,000 for common off-site improvements or both of the other projects start prior to New
Hanover Crossing. The components of the $1,469,000 are $154,000 for the gas line approach
if either of the other projects starts first; $438,000 to the builder of Hanover Glen if Hanover
Glen starts prior to New Hanover Crossing for the construction of the off-site sewer line and
the extension of Miles Road; and up to $877,000 to the builders of Hanover Meadows
($335,000) and Hanover Glen ($542,000) if these projects start prior to New Hanover Crossing
for the overlap costs of Highway Improvements.
The purchaser of New Hanover Crossing will have to secure its total potential contribution of
$1,469,000 by providing acceptable financial security. Contribution amounts will be due only
in the event construction of common off-site improvements are commenced by another
builder(s) prior to the start of construction of New Hanover Crossing. The $1,469,000
contribution may be reduced depending on the order of each project starting.
13. In the event New Hanover Crossing starts before one or both of the other projects and the
buyer of New Hanover Crossing undertakes construction of the common off-site improvements
then the contribution/financial security amount will be modified or cancelled.
The contribution for each component of the common off-site improvements will be payable in
two stages, 50% will be funded when the work is 50% complete and the balance of the
reimbursement when the work is substantially complete.
The amounts of reimbursements and contributions are fixed amounts. The builder of each
project will be responsible for estimating the costs for off-site improvements which may be
required to be constructed at the start of each project but the reimbursement and contribution
amounts set forth above will be fixed amounts.
33. MARKET OVERVIEW
The New Hanover Township market is experiencing a
tremendous amount of residential and commercial growth,
with population projected to double by 2015
Please see the following documents:
A. Market Profile
B. Demographic Report
C. New Housing Study
D. New Housing Starts Map
34. MARKET OVERVIEW
Almost 900 new homes have been constructed in New
Hanover Township since 2000.
Market Profile
New Hanover Township is a growing residential community located in Western Montgomery
County. The township is bisected by Route 73-Skippack Pike (also called Big Road), a major
east-west route through Montgomery County. Swamp Pike, Route 663, is the major north-south
road through the municipality. New Hanover is also a short distance from the crossroads of
Route 422, a major east-west U.S. Route, and Route 100, a major north-south State Route.
While the northern and central parts of New Hanover are under-developed, the township has
been in the path of suburban growth as new development has expanded outward from the inner-
ring Philadelphia suburbs. New Hanover is a desirable area for new residential construction
because of the availability of undeveloped land and easy access to the Montgomery and Chester
County employment and commercial centers such as King of Prussia, Exton, Pottstown and
Collegeville.
Population
New Hanover experienced a 20% increase in population from 2000-2005 to over 8,800
residents, with an expectation that the population will double by 2015. The U.S. Census Bureau
estimates demonstrate the projected growth of New Hanover and the surrounding
municipalities in Western Montgomery County.
Municipality 2000 2005 2010 2015 % Change
2000 -2015
Douglass Township 9,104 10,217 11,300 12,120 33%
New Hanover Township 7,369 8,853 9,230 10,390 41%
Lower Pottsgrove Township 11,213 12,047 13,880 14,540 30%
Pottsgrove Borough 21,859 21,551 21,150 20,880 -4%
Upper Pottsgrove Township 4,102 4,926 4,900 5,750 40%
West Pottsgrove Township 3,815 3,833 3,820 3,760 -1%
Region Total 57,462 61,427 64,280 67,440 17%
35. Residential Construction
Between the years 2000 and 2007, an estimated 863 new homes were constructed. New home
permits (all single-family) peaked in 2003, but are anticipated to increase over the next year as
a result of several new projects currently in the approval pipeline. With the recent completion
of the Sewer Treatment Plant Expansion, many new residential projects finally have the means
to treat effluent, and therefore being construction. This has resulted in a dramatic increase in
new residential communities in the market, and a sharp increase in the number of new homes
being constructed.
Annual Authorized Housing Permits
Year Units
2000 43
2001 64
2002 131
2003 180
2004 148
2005 98
2006 64
2007 135
Total 863
Soruce: U.S. Census Bureau
Currently there are approximately 47 residential communities (totaling an estimated 4,167
residential units) that are either proposed, or under construction, or recently completed within
New Hanover Township (see Housing Study included herein).
Three of the most notable planned projects involve the redevelopment of the former New
Hanover airport site, the Hickory Valley Golf Course, and the 216 Acre property assembled
immediately adjacent to New Hanover Crossing. Upon their completion, these three
communities alone will provide an additional 1,766 new units into the New Hanover market.
The Village at Wynstone, currently under construction, is a mixed-use retail and residential
development by TH Properties on the site of the former New Hanover airport and adjacent land
bordering Douglass Township. Sales began in May 2008, with an astonishing 35 homes sold
within the first two months.
The Bart Golf Club Subdivision is a 134-home development planned for a portion of the
Hickory Valley Golf Course.
Hanover Meadows, immediately adjacent to New Hanover Crossing, is an approved 870-unit
Active Adult Retirement Community and Continuing Care Retirement Campus that is being
marketed by Heritage Building Group. This large-scale senior project, when fully completed, is
expected to bring up to 1,000 new residents to New Hanover Township and will result in
tremendous demand for the retail and commercial services at New Hanover Crossing.
36. Employment
The New Hanover area employment base is a diverse mix of manufacturing and service sector
companies and institutions. The region's large school districts account for the most significant
number of jobs. Regionally, there are several major developments that will enhance the
employment base over the next few years.
The Philadelphia Outlet Center at Limerick is a 430,000 square foot, 110-store complex under
development by Simon/Chelsea Property Group. This project was completed in Fall 2007; the
center provides 800 to 1,000 jobs.
Employer Location Employees
Wyeth Pharmaceuticals Collegeville 4,700
SEI Investment Oaks 1,600
Knoll, Inc. East Greenville 1,400
Pottstown Memorial Medical Center Pottstown 1,300
State Correctional Institution of Graterford Graterford 1,300
Boyertown Area School District Boyertown 1,219
Spring-Ford Area School District Collegeville 828
Brown Printing Company Collegeville 825
Montgomery County Geriatrics & Rehabilitation Royersford 725
Exelon Limerick Generating Station Sanatoga 720
National Penn Bank Boyertown 706
Owen J. Roberts School District Pottstown 650
Pottstown School District Pottstown 510
Perkiomen Valley School District Collegeville 478
Dana Corporation Pottstown 460
Cabot Supermetals Boyertown 450
Upper Perkioment School District East Greenville 391
Daniel Boone Area School District Boyertown 388
Pottsgrove School District Pottstown 381
Neapco, Inc. Pottstown 325
Wal-Mart #2263 Pottstown 315
Federal Mogul Boyertown 308
Superior Tube Company Collegeville 300
Source: Tri-County Chamber of Commerce
44. TOWNSHIP / PROJECT UNITS UNIT TYPE(S) BUILDER / DEVELOPER STATUS OF APPROVAL
New Hanover Township
2032 Hoffmansville Rd 4 Single Family Detached Trim Development N/A
2546 Swamp Pike 11 Single Family Detached RE/Max Achievers N/A
Autumn Brook 71 Single Family Detached Ryan Homes Sold Out
Bart Golf Club 135 Single Family Detached Bart Golf Club Preliminary Plan Approved
Bella Vista 213 Single Family Detached Sal Lapio Currently Selling
Briar Ridge Plan 56 Single Family Detached N/A N/A
Chris Yothers 4 Single Family Detached Chris Yothers Sketch Plan
Covered Bridge Estates 70 Single Family Detached N/A Sold Out
Flint Subdivision 6 Single Family Detached N/A N/A
Greiner Property 37 Single Family Detached Rouse Chamberlin Preliminary Plan Approved
Hanover Glen 40 Single Family Detached Heritage Building Group, Inc. Preliminary Plan Approved
Hanover Greene 8 Single Family Detached Heritage Building Group, Inc. Currently Selling
Hanover Meadows 617 SFD, Towns, Twins, Apts/Condos Heritage Building Group, Inc. Final Plan Approved
Hanover Meadows (Assisted Living) 254 Individual Care, Full Care Units Heritage Building Group, Inc. Conditional Use Approved
Hanover Ridge 18 Single Family Detached Heritage Building Group, Inc. Final Plan Submitted
Hanover Woods 47 Single Family Detached Heritage Building Group, Inc. Final Plan Approved
Hawthorne Estates 41 Single Family Detached TH Properties Currently Selling
Heather Estates 25 Single Family Detached Rotelle Builders Sold Out
James Carroll Subdivision 6 Single Family Detached N/A N/A
Kingston Hill 269 Single Family Detached TH Properties Sold Out
Kingston Hill (Phase 2) 61 Single Family Detached TH Properties Currently Selling
Lookout Point III 5 Single Family Detached N/A N/A
Mann Tract 9 Single Family Detached N/A N/A
McGee 40 Single Family Detached Gambone Sketch Plan
Mikelen LLC 33 Single Family Detached Michael Clemente, Esq. Preliminary Plan Approved
Minister Creek 81 Village Homes, Twins Kane Core Preliminary Plan Approved
Orff Subdivision 2 Single Family Detached N/A N/A
Renninger Property 71 Single Family Detached Gambone Sketch Plan
RMG Properties 12 Single Family Detached Rhoads Property, LLC Currently Selling
RMG Properties 2 4 Single Family Detached Rhoads Property, LLC Currently Selling
Rolling Meadows 68 Single Family Detached Stewart & Conti Sketch Plan
Rosenberry Ridge 15 Single Family Detached N/A N/A
Shaner Tract 12 Single Family Detached Clemens N/A
Shannon Rose Estates 33 Single Family Detached David Erb Preliminary Plan Approved
Spring Meadow 8 Single Family Detached Sturbridge Builders Currently Selling
Spring Ridge 54 Single Family Detached Gambone Currently Selling
Sterling Tract 10 Single Family Detached N/A Preliminary Plan Approved
Stone Acre Ridge 78 Single Family Detached TH Properties N/A
Stone Hill 39 Single Family Detached Heritage Building Group, Inc. Final Plan Approved
Trotters Gait 54 Townhouse Sapphire Development Preliminary Plan Approved
Village of Wynstone 760 SFD, Towns, Atrium, Multiplex TH Properties Currently Selling
Viola Tract 2 Single Family Detached Viola N/A
Wassmer 181 N/A Gambone Sketch Plan
Willow Woods 42 Single Family Detached Stewart & Conti Sold Out
Windlestrae 384 SFD, Towns Gambone Currently Selling
Windy Creek 50 Single Family Detached Beazer Homes Sold Out
Yerk Subdivision 2 Single Family Detached N/A N/A
Zavitsanos 122 Single Family Detached Heritage Building Group, Inc. Preliminary Plan Approved
Total Units: New Hanover Township 4164
Douglass Township
Berwind II/THP 59 Single Family Detached TH Properties Sketch Plan
Berwind Estates (Phase I) 57 Single Family Detached TH Properties Sold Out
Cleaver Road Tract 19 Townhouse A&B Development Sketch Plan
Clover Hill 12 Single Family Detached N/A Sold Out
Cobblestone Commons 19 Single Family Detached Stewart & Conti Sketch Plan
Cobblestone Crossing (Phase I & II) 165 Single Family Detached Stewart & Conti Currently Selling
Dienno Tract 24 Single Family Detached Kane Core Sketch Plan
Donnelly Tract 40 Single Family Detached Gambone Preliminary Plan Submitted
Estates of Warwick 99 Single Family Detached TH Properties Sold Out
Hallowell Tract 95 Single Family Detached Danny Jake Sketch Plan
Summer Hill 148 Single Family Detached Gambone Currently Selling
Total Units: Douglass Township 737
Upper Frederick Township
Edge Hill 300 Townhouse TH Properties Preliminary Plan Submitted
Buckman Subdivision 6 Single Family Detached Richard Buckman Sketch Plan
Clover Meadows 45 Single Family Detached Regent Valley Builders Sold Out
Forest Tract 8 Single Family Detached N/A Sketch Plan
Perkiomen Crossing 241 Townhouse Ryan Homes Sold Out
Scioto Village 94 Trim Development Preliminary Plan Approved
Total Units: Upper Frederick Township 694
N/A = Not Applicable
Township Units
New Hanover Township 3,294
Douglass Township 737
Upper Frederick Township 694
Total: 4,725
45.
46. Appendix
Please see the following documents:
A. Resolution of Final Approval
B. NPDES Permit
C. PNDI Search Results
D. Zoning Ordinance – List of Permitted Uses
