albertsons at hillsboro promenade · portland hillsboro airport brockwood elementary imlay...

17
ALBERTSONS AT HILLSBORO PROMENADE Offering Memorandum

Upload: others

Post on 26-Aug-2020

5 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

ALBERTSONS AT HILLSBORO PROMENADE

Offering Memorandum

Page 2: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

EXCLUSIVELY L ISTED BY

NON-ENDORSEMENT AND DISCLAIMER NOTICE

CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NET LEASED DISCLAIMERMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. O F F I C E S N AT I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating

DISCLAIMER CONTINUED

a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

ACT ID ZAA0210254

BROKER OF RECORD: ADAM LEWIS, OR 201209561

Page 3: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

16

01 10

MARKET OVERVIEW & DEMOGRAPHICSSECTION 3• Portland-Vancouver Metro Overview• Hillsboro, Oregon• Demographics

EXECUTIVE SUMMARYSECTION 1 • Offering Highlights • Investment Overview • Investment Highlights • Close In Map• Area Grocers• Aerial• Area Employers

FINANCIAL ANALYSISSECTION 2 • Property Summary • Operating Data • Rent Roll Increases• Tenant Summary• The Hillsboro Promenade

TABLE OF CONTENTS

EXCLUSIVELY LISTED BY

ALBERTSONS AT HILLSBORO PROMENADEH I L L S B O R O , O R

Page 4: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID ZAA0210254

7

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

EXECUTIVESUMMARY

ALBERTSONS AT HILLSBORO PROMENADE

RARE PORTLAND MSA NET LEASED GROCERY STORE WITH PHARMACY

Page 5: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

8

OFFERING HIGHLIGHTS

7500 West Baseline Road • Hillsboro, OR 97123

OFFERING PRICE

$9,975,000CAP RATE

7.19%VITAL DATA

Price $9,975,000

Cap Rate 7.19%

Price/SF $181.14

Net Rentable Area (NRA) 55,068 SF

ALBERTSONS AT HILLSBORO PROMENADEH I L L S B O R O , O R E G O N

NEAR NIKE & INTEL

VEHICLES PER DAY84,808

SW Cornelius Pass Rd & SW Baseline Rd

$91,585

Avg. Household Income

Sources: © 2019 Experian and www.co.washington.or.us

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

9

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

9

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

Page 6: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

10

Marcus & Millichap has been selected to exclusively market for sale, the Albertsons grocery store in Hillsboro, Oregon. The subject property serves as the anchor tenant for Hillsboro Promenade, a popular neighborhood shopping center located in Hillsboro, ten miles west of Portland. Part of the “Silicon Forest,” Hillsboro is home to several major tech companies such as Intel and IBM and is close to nearby Nike World Headquarters in neighboring, Beaverton. The subject property is nearby the new Urban Growth Boundary expansion, which will add approximately 25,000 new residents in the immediate area

Built in 1998, the subject property has a triple-net (NNN) lease with approximately three and a half years remaining on the current 25-year term and six 5-year renewal options guaranteed by Albertsons LLC. The subject property consists of a single-level 55,068-square foot structure located on a 4.67-acre parcel within Hillsboro Promenade. It is a steel-framed building with an attractive exterior design, and is clad with split-faced concrete masonry units, EIFS, and decorative river rock stone highlights

This store is the anchor tenant for a beautiful and impeccably maintained 90,000-square foot neighborhood shopping center that was also constructed in 1998. In addition, the supermarket and shopping center have excellent accessibility, with a signalized entry from Southwest Baseline Road and direct access off Southwest Cornelius Pass Road (84,808 vehicles per day). In 2016 Cornelius Pass Road completed a widening project that improved the traffic counts as a primary north-south arterial connecting the Sunset Highway (US Hwy 26) to the Southwest Tualatin Valley Highway, the two primary east-west traffic routes between Portland and the Washington County suburbs.

► Albertsons is proving to be a tenant that is COVID-19 resistant. The four-week period ending April 25, showed a 21 percent gain over last year. See links below

► SupermarketNews.com

► RetailLeader.com

► Rare Pacific Northwest Single-Tenant NNN Leased Investment Opportunity

► Corporate Guaranteed by Albertsons LLC

► Approximately Three and a Half Years Remaining on the Primary Lease Term with Rent Increases at Renewal Options

► Anchor Tenant for an Approximately 90,000-square Foot Neighborhood Shopping Center with Several National Credit Tenants

► Excellent Accessibility Near the Signalized Intersection of Southwest Cornelius Pass Road and West Baseline Road (84,808 VPD)

► Frontage on Southwest Cornelius Pass Road, the primary north-south arterial connecting Highway 26 (135,000+ VPD) and Southwest Tualatin Valley Highway (40,000+ VPD)

► High Growth Area Supported by Intel’s Continuing Investment with a New 2019 Billion Dollar Development Less than Two Miles from the Subject Property and nearby the Urban Growth Boundary expansion

HIGHLIGHTSINVESTMENT OVERVIEW

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

11

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

11

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

10

Page 7: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

12

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

13

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

13

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

12

Page 8: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

1410

CLOSE IN MAP AREA GROCERS

84,808 VPDAt Intersection of SE Cornelius Pass Road and West Baseline Road/East Main Street A

LB

ER

TS

ON

S

AT

H

IL

LS

BO

RO

P

RO

ME

NA

DE

//

M

AR

KE

TI

NG

P

LA

N

15

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

15

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

14

Page 9: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

16

AERIAL AREA EMPLOYERS

f e d e r a l c r e d i t u n i o n

SUBJECT SUBJECT PROPERTYPROPERTY

TOP 10 HILLSBORO EMPLOYERS

Intel (20,000)

Kaiser Permanente (2,405)

Nike (2,000)

Wells Fargo (1,800)

Qorvo (715)

Tokyo Electron America (650)

First Tech Credit Union (630)

Genentech (606)

Standard Insurance (560)

*Source www.Hillsboro-Oregon.gov

PORTLAND PORTLAND HILLSBORO HILLSBORO

AIRPORTAIRPORT

BROCKWOOD BROCKWOOD ELEMENTARYELEMENTARY

IMLAYIMLAYELEMENTARYELEMENTARY

TOBIASTOBIASELEMENTARYELEMENTARY

R.A. MIDDLE R.A. MIDDLE SCHOOLSCHOOL

SUBJECT SUBJECT PROPERTYPROPERTY

AMBERGLEN 217-ACRE BUSINESS

CAMPUS

TANASBOURNE TOWN CENTERTANASBOURNE TOWN CENTER

DOWNTOWN PORTLAND 10 MILES

DOWNTOWN PORTLAND 10 MILES

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

EX

EC

UT

IV

E

SU

MM

AR

Y

16

Page 10: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

19

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

IN

G

PL

AN

MARKETINGPLAN

ALBERTSONS AT HILLSBORO PROMENADE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID ZAA0210254

19

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

FI

NA

NC

IA

L

AN

AL

YS

IS

FINANCIALANALYSIS

ALBERTSONS AT HILLSBORO PROMENADE

$9,975,000 7.19%SALE PRICE CAP RATE

Page 11: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

PROPERTY SUMMARY

THE OFFERING

PROPERTY ALBERTSONS AT HILLSBORO PROMENADE

Property Address 7500 W Baseline Road, Hillsboro, OR 97123

Price $9,975,000

Net Operating Income $716,985

CAP Rate 7.19%

Net Rentable Area (NRA) 55,068 SF

Lot Size 4.67 AC

Price per Square Foot $181.14

NOTE: Tenant Reimbursement for the Management Fee is limited to 10% of Albertson’s Prorata CAM Expenses.

ANNUALIZED OPERATING DATA

PERIOD ANNUALLY MONTHLY

Current Rent ($13.02 PSF) $716,985 $59,749

NET OPERATING INCOME $716,985 $59,749

Less Debt Service ($409,458) ($24,121.52)

CASH FLOW $307,527 $25,627

RENTAL INCREASES ANNUALLY MONTHLY

Option #1 (May 2023 – 2028) $752,834.63 $62,736.22

Option #2 (May 2028 - 2033) $790,476.36 $65,873.03

Option #3 (May 2033 - 2038) $830,000.18 $69,166.68

Option #4 (May 2038 - 2043) $871,500.19 $72,625.02

Option #5 (May 2043 - 2048) $915,075.20 $76,256.27

Option #6 (May 2048 - 2053) $960,828.96 $80,069.08

FINANCING

Loan (60% LTV) $5,985,000

Down Payment $3,990,000

Interest Rate 4.75%

Term5-Year Fixed with Additional 5-Year

Fixed for a 10-Year Maturity

Amortization 25 Years

Debt Recourse

Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative for more information.

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

FI

NA

NC

IA

L

AN

AL

YS

IS

21

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

FI

NA

NC

IA

L

AN

AL

YS

IS

20

Page 12: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

TENANT SUMMARY

Founded in 1939 and based in Boise, Idaho, Albertsons Companies, Inc. is the 2nd largest traditional grocer in the United States after Kroger serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating a best-in-class organization dedicated to bringing a better shopping ex-perience to customers across the country. The Company’s powerful combination of strong local presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences. As of February 2019, the Com-pany operated 2,269 stores across 35 states under 20 well-known banners with long oper-ating histories. Albertsons has grown strategically through a series of strategic acquisitions in recent years into a $2.7 billion adjusted EBITDA company as of fiscal year 2018 ended February 23, 2019, and in Q4 2018 the Company had generated $727 million in adjusted EBITDA. Albertsons maintains a corporate credit rating of B1 / B by Moody’s and S&P, respectively. Although Albertsons does not report on individual store sales, we are led to believe that sales have markedly increased since the beginning of the Covid-19 pandemic.

All stats as of the company’s second quarter ended 9/7/2019

THE HILLSBORO PROMENADE

Par t of Sale

Not Par t o f Sale

• Aloha Sewing and Vacuum• Choice Cleaners• Dede’s Lo t te r y Cafe

• Five Fr iends• Natura l Nai ls• Smoke 4U

*Inside grocery location

*Inside grocery location

TENANT SUMMARY

Tenant Albertsons LLC (subsidiary of Albertsons Companies, Inc.)

Ownership Private

Guarantor Corporate

Number of Locations 2,300+

Website www.albertsons.com

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible*

Original Lease Term 25 Years

Lease Commencement 2/13/1997

Lease Expiration 5/5/2023

Term Remaining 3+ Years

Increases At Option Periods

Options Six 5-Year Options

*Tenant is responsible for roof and structure through 2021. Landlord becomes responsible for all roof and structural maintenance and repairs for the final two years of the original 25 year term plus all option periods.

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

FI

NA

NC

IA

L

AN

AL

YS

IS

23

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

FI

NA

NC

IA

L

AN

AL

YS

IS

22

Page 13: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID ZAA0210254

25

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

MARKET OVERVIEW & DEMOGRAPHICS

ALBERTSONS AT HILLSBORO PROMENADE

STRONG DEMOGRAPHICSHIGH GROWTH AREA

Page 14: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

The Portland-Vancouver metro is located near the confluence of the Columbia and Willamette rivers and stretches across the Oregon border into Washington State. The region is composed of Multnomah, Clackamas, Columbia, Washington and Yamhill counties in Oregon, and Clark and Skamania counties in Washington.

Mount Hood and the Cascade Range stand to the east, and the Oregon Coast Mountain Range lies to the west. The metro contains approximately 2.5 million residents, with more than 656,000 people residing in Portland, the area’s most populous city and the seat of Multnomah County.

ECONOMY

► Lower land costs than other West Coast metros, a skilled labor pool and affordable, abundant power attract companies to the region. The favorable tax structure, with no state income taxes in Washington and no sales tax in Oregon, also lures businesses.

► The metro’s economy has shifted from timber to industries that include athletic and outdoor activities, clean tech, advanced manufacturing and software.

► A diverse group of companies based in the metro include Nike, Daimler, Vigor Industrial, Intel and IBM.

DEMOGRAPHICS

► The metro is expected to add nearly 163,200 people over the next five years, resulting in the formation of nearly 74,400 households.

► A median home price well above the U.S. level means 59 percent of households can afford to own their home, which is above the national rate of 57 percent.

► Of residents age 25 and older, 37 percent hold bachelor’s degrees, and 14 percent have also obtained a graduate or professional degree.

PORTLAND-VANCOUVER METRO

Big-Name Companies Create More High-Paying Jobs, Painting Bright Outlook for Portland Retail

Healthy economic indicators fuel retail expansions and repositioning efforts of vacated department stores. Confidence remains high in Portland’s retail sector as robust population growth, healthy job gains and strong buying power reinforce the market. Apple, Amazon, and Nike and its competitors keep growing and adding high-paying jobs in the metro, motivating recent lease signings by Hobby Lobby, Big Lots, Safeway and Gold’s Gym. While tenant demand has been strong, absorption in the first half of 2019 was impacted by multiple move-outs, though none was for more than 30,000 square feet. Several larger department store move-outs in earlier years have already been repositioned and spoken for as Live Nation will occupy a former Nordstrom and Regal Cinemas takes space at a former Sears. With a shrinking development pipeline, more demand will be funneled to existing space, encouraging repositioning efforts and supporting rent growth.

New retail supply concentrated in neighborhood centers and mixed-use complexes near employment nodes, major thoroughfares. Approximately 470,000 square feet is underway across the metro, headlined by Parkway Village South in Sherwood, which will total more than 110,000 square feet when fully finalized. Phase one of the neighborhood center is already operational, tenanted by Walmart, multiple quick-service restaurants, health-related services and more. Other major projects include Mercantile Village with 50,000 square feet of retail and Pioneer Village north of Portland in Ridgefield at roughly 80,000 square feet.

Sources: CoStar Group, Inc.; Real Capital Analytics

DEMOGRAPHIC HIGHLIGHTS

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

27

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

26

Page 15: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

SUNSET CORRIDOR

Portland Metro area’s Sunset Corridor is home to the largest concentration of Oregon high-tech firms including Intel, Tektronix, IBM, FEI and Planar Systems as well as large international brands like Columbia Sportswear, Nike and more. Named for Highway 26, the Sunset Highway, this corridor connects the larger tech and manufacturing campuses in the suburbs of Hillsboro and Beaverton to Downtown Portland approximately ten miles away. With so many employers setting up shop in the Sunset Corridor, the surrounding neighborhoods including Hillsboro make ideal places for employees to make their homes.

TECHNOLOGY CAMPUSES OF THE SILICON FOREST

Much of Washington County and Hillsboro’s growth has been a result of the presence and expansion of several major employers in the area, particularly semi-conductor and technology companies such as Intel which recently announced they plan to build a third phase of its massive D1X manufacturing complex at the Ronler Acres Campus located less than two miles north of the subject property. Devel-opment of the D1X factory began in 2010 and the first two phases were more than 1.1 million square feet. The third phase, beginning in 2019 and estimated in the billions, is anticipated to be one of the largest capital projects in Oregon’s history and is scheduled to increase D1X’s manufacturing space by about 50 percent. Intel is among Oregon’s largest economic engines and though headquartered in the Silicon Valley of California, the company has more than 20,000 workers in Washington County, which is more than anywhere else it operates and more than any other Oregon business. Due to the presence of Intel and several other major technology campuses, Wash-ington County is often referred to as the “Silicon Forest”. Other notable companies in the region include IBM, Genentech, Solarworld, Tektronix, Tau Science, FEI (Thermo Fisher Scientific) Qorvo, Planar Systems, and Lattice Semiconductor. Washington County also has a large cluster of sports apparel companies and the world headquarters for both Columbia Sportswear and Nike. Inc.

SOUTH HILLSBORO COMMUNITY PLAN

Corn

eliu

s Pa

ss R

d

SUBJECT PROPERTY

Hillsboro is the largest city in Washington County, the second most populous county in Oregon, and part of the Portland-Vancouver OR-WA Metropolitan Statistical Area, the 23rd largest metropolitan area in the United States with over 2.4 million people. Located only ten miles west of the Portland Central Business District, Hillsboro has been one of Oregon’s fastest growing cities over the last twenty years and its population has tripled to over 95,000 people during this time. Additional growth is expected with the South Hillsboro Community Plan. Adopted in 2014, the plan envisions long-term development over the next 20 years including approximately 8,000 residences of diverse types to help meet the needs of the City’s growing workforce and ultimately providing housing for nearly 20,000 residents. Cornelius Pass Road which bisects the planned development will be an essential arterial for South Hillsboro and could increase traffic counts at the subject property as development continues.

The Portland Metro Area and the City of Hillsboro, in particular, are known for their high quality of life. The area’s natural beauty, excellent local schools, responsible community planning and superior transportation access via major regional highways and the MAX Light Rail system have spurred the area’s rapid growth over the last twenty years, and will likely continue to attract new residents and major employers for the foreseeable future.

South Hillsboro is intended to meet a variety of housing needs for future residents. The scale, density, and type of housing will include a com-bination of executive, low-density, medium-densi-ty, high-density, and mid-rise residential uses, as well as mixed-use residential/commercial areas, consistent with current and future market de-mand in the area. The land use plan leverages op-portunities to develop a mix of housing types and price ranges for Hillsboro’s growing workforce, es-pecially for the forecasted number of employees within professional and business, retail, leisure, hospitality, and health services.

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

29

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

28

Page 16: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

Source: © 2019 Experian

DEMOGRAPHIC HIGHLIGHTS DEMOGRAPHIC SUMMARY

134,795POPULATION

IN 3-MILE RADIUS

TOTAL POPULATION 1 MILES 3 MILES 5 MILES

2024 Projection 24,855 145,558 300,539

2019 Estimate 23,039 134,795 281,079

2010 Census 20,273 118,188 250,002

2000 Census 15,038 93,109 205,746

2019 Daytime Population 17,617 127,127 267,132

TOTAL HOUSEHOLDS 1 MILES 3 MILES 5 MILES

2024 Projection 9,001 56,289 113,495

2019 Estimated Households 8,212 51,530 105,278

2019 Average Household Size 2.77 2.6 2.64

2010 Census 7,041 44,306 92,210

2000 Census 5,128 34,653 75,649

HOUSEHOLDS BY INCOME 1MILES 3 MILES 5 MILES

2019 Estimate$150,000 or More 11.01% 11.28% 15.11%$100,000 - $149,000 22.35% 20.31% 20.61%$75,000 - $99,999 22.04% 19.99% 17.93%

$50,000 - $74,999 19.63% 19.00% 17.12%

$35,000 - $49,999 10.17% 10.75% 10.43%Under $35,000 14.80% 18.66% 18.80%

Average Household Income $91,585 $89,680 $99,126 Median Household Income $81,038 $76,948 $80,026 Per Capita Income $32,669 $34,385 $37,281

POPULATION PROFILE 1 MILES 3 MILES 5 MILES

Population By Age 2019 Estimate Total Population 23,039 134,795 281,079Under 20 27.64% 25.97% 26.44%20 to 34 Years 23.48% 25.79% 23.19%35 to 39 Years 9.67% 9.27% 8.62%40 to 49 Years 15.67% 13.64% 14.20%50 to 64 Years 15.29% 15.22% 16.53%Age 65+ 8.26% 10.11% 11.03%Median Age 34.43 34.12 35.22

Population 25+ by Education Level 2019 Est. Population Age 25+ 15,257 91,294 189,708Elementary (0-8) 1.14% 2.86% 3.19%Some High School (9-11) 4.46% 4.95% 4.90%High School Graduate (12) 20.12% 19.22% 18.06%Some College (13-15) 24.41% 23.19% 22.21%Associate Degree Only 12.21% 10.29% 9.19%Bachelors Degree Only 23.85% 24.03% 25.66%Graduate Degree 12.33% 14.05% 15.36%

HOUSEHOLD EXPENDITURE 1 MILES 3 MILES 5 MILES

Total Avg Household Retail Expenditure $79,695 $75,771 $77,217 Consumer Expenditure Top 10 Categories

Housing $22,328 $21,237 $21,474 Transportation $14,583 $13,571 $14,015 Shelter $14,150 $13,459 $13,537 Food $8,642 $8,093 $8,218 Personal Insurance and Pensions $7,461 $6,867 $7,002 Health Care $4,778 $4,529 $4,716 Entertainment $3,651 $3,367 $3,459 Utilities $3,638 $3,486 $3,553 House Furnishings & Equipment $2,263 $2,131 $2,199 Cash Contributions $2,171 $2,186 $2,208

69%INCREASE OVER2000 CENSUS

PUBLIC SCHOOLS IN THE HILLSBORO DISTRICT

34

DAYTIME POPULATION IN 3-MILE RADIUS

127,127

1 MILES

3 MILES

5 MILES

AVG. HOUSEHOLD INCOMEIN 1-MILE RADIUS

$91,585

Albertsons/Safeway Grocers

All Other Grocers

SOUTH HILLSBORO

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

31

AL

BE

RT

SO

NS

A

T

HI

LL

SB

OR

O

PR

OM

EN

AD

E

//

MA

RK

ET

O

VE

RV

IE

W

30

Page 17: ALBERTSONS AT HILLSBORO PROMENADE · portland hillsboro airport brockwood elementary imlay elementary tobias elementary r.a. middle school subject property amberglen 217-acre business

E X C L U S I V E LY L I S T E D B Y:

ALBERTSONS AT HILLSBORO PROMENADEHILLSBORO, OR