1280 Central Park Blvd
Fredericksburg, VA 22401

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the ground leased interest in this Chuck E. Cheese’s located in Fredericksburg, Virginia, an affluent, rapidly growing Washington, D.C. suburb. Chuck E. Cheese’s has operated here successfully for the past eighteen years. Demonstrating its commitment to this location, Chuck E. Cheese’s recently executed a 10-year lease extension with a 10 percent rental increase every five years. Astute Investors will recognize that the tenant’s rental rate is below market, and economically favorable to the tenant. The rental rate is also below market for the Central Park submarket. Presently the tenant reports sales for the most recent FYE May 2018 of $1.45M which provides a health sales ratio of 7.3% in an especially high margin business line. Chuck E. Cheese’s is a chain of American family entertainment centers and restaurants, and the primary brand of CEC Entertainment, Inc. As of 2017, there are over 600 stores open in 47 states and 15 countries across the world. The lease is guaranteed by CEC Entertainment, Inc., which is a wholly-owned subsidiary of Apollo Global Management, rated “A-/Stable” by Standard & Poor’s. As of 2017, Apollo Global Management, LLC reported total revenue of $2.6 billion and net income of $615 million. The Property is located within Central Park, a 2.4 million square-foot retail complex that serves as one of Northern Virginia’s primary shopping destinations. The 10,578-square-foot Chuck E. Cheese’s is situated at the signalized corner of Central Park Boulevard and Trade Street for prominent visibility. The Tenant is positioned adjacent to Target and a Hobby Lobby, Party City and Barnes & Noble-anchored strip, and benefits from other neighboring retailers Wegman’s, Lowe’s, Best Buy, Petsmart, Bank of America and Starbucks among others. Central Park is uniquely positioned within the greater Fredericksburg retail market. It benefits from a prominent location adjacent to Interstate-95 midway between Washington, D.C. and Richmond, Virginia. As the largest retail power center on the East Coast, Central Park has maintained an average occupancy of over 95 percent for the past 10 years, and retailers have historically performed extremely well. With an anchor alignment comprised of national retailers including Best Buy, Kohl’s, PetSmart, Lowe’s Home Improvement, Target, Walmart, Hobby Lobby, DSW Shoe Warehouse, Ashley Furniture, Party City, Barnes & Noble, and Regal Cinemas, Central Park serves an affluent, rapidly growing trade area that includes four adjacent counties. In addition to locational exposure, the Property benefits from a 12-mile population of over 247,003 with an average household income in excess of $108,614. Further, a substantial portion of the employment in the trade area is attributed to the military, other government agencies, educational and medical employers, all of which represent recession resistant employment sectors.