offering memorandum south hill village...a major economic driver for pierce county. a 2017 jblm...
TRANSCRIPT
OFFERING MEMORANDUM
South Hill Village
100% Leased Investment in Puyallup, Washington
Executive Summary
Kidder Mathews is pleased to present South Hill Village, a 141,707-square-foot retail center located 30 miles south of Seattle in Puyallup, Washington.
The Offering
This 100% occupied, four-tenant retail center is at a “main and main” location
within the area’s dominant retail trade corridor serving over 300,000 people.
It is less than a block from major freeway with over 95,000 passing cars each
day. The asset is shadow-anchored by Walmart and Home Depot and is directly
across the street from a 1.1 million square foot regional mall that includes a
Target, Dick’s Sports, Macy’s, JCP, DSW, and Regal Entertainment. South Hill
Village is well-constructed and in great condition. This investment offers stable
and passive income with minimal landlord responsibilities.
PRICE $25,850,000
NOI YEAR 1 $1,719,199
CAP RATE 6.65%
NOI YEAR 3 $1,767,414
CAP RATE 6.84%
PRICE / SF $182
OCCUPANCY 100%
TOTAL RENTABLE AREA 141,707 SF
TOTAL LAND AREA ±11.04 AC
WEBSITE SouthHillVillage.com
Investment Summary
STRONG REAL ESTATE FUNDAMENTALS
National tenants with a top tier line up of
surrounding tenants including shadow anchors
WalMart & Home Depot, and neighboring tenants
At Home, Target, McDonalds, 24 Hour Fitness,
Starbucks, Ross, Best Buy, Bed Bath Beyond, and
many others.
Sought after location and proven demand in
the trade area with recent new leases signed at
neighboring properties including At Home, 24 Hour
Fitness, Hobby Lobby, Grocery Outlet, and Harbor
Freight and Tools.
High visibility, high traffic, freeway accessible
location - South Hill Village is located on Meridian
Avenue, the primary thoroughfare in the trade area,
with traffic counts exceeding 45,000 cars per day.
The property is only a 1/2 block from SR 512 (over
95,000 cars per day) and easily accessible via 31st
Avenue SW.
At a list price of only $182/SF, the property will
trade well below land-inclusive replacement cost
estimated to be over $300/SF.
The property offers excellent tenant signage with
three prominent pylon signs and high curb appeal.
The site provides abundant parking and easy
access with five significant curb cut access points.
DOMINANT REGIONAL RETAIL TRADE AREA
The property is ideally located directly across the
street from the 1.1 million square foot regional retail
complex South Hill Mall and approximately 30 miles
south of Seattle.
Just 30 miles south of Seattle, the Puyallup South
Hill retail trade serves a trade area of over 300,000
people with average household incomes of over
$84,000 and/or management fees.
Puyallup is the second largest city in Pierce
County and is the 6th largest retail market in the
state of Washington.
The military is Pierce County’s largest employer and
a major economic driver for Pierce County. A 2017
JBLM regional economic impact study valued the
economic impact of the military at between
$8.3 billion to $9.2 billion and it could range as high
as $11.4 billion.
Investment Highlights
100% LEASED, PASSIVE INVESTMENT
Ease of management with four national tenants on
NNN leases. South Hill Village is shadow-anchored
by two of the biggest retailers in the United States,
Walmart (#1) and Home Depot (#4).
Tenants pay their share of common area
expenditures, making South Hill Village perfect
for passive investors. There are few landlord
responsibilities with virtually all of the operating
costs passed through to the tenants.
Turn key investment with professional management
in place and no deferred maintenance.
Landlord is responsible for roof and structure.
A new roof installed in 2016/2017 includes an
assignable roof warranty.
Scheduled rent increases within the next two years
provide near-term rent growth.
CAPTIVE & GROWING MARKET
Puyallup’s South Hill submarket is one of the fastest
growing areas of Pierce County. Over the past 15
years, the population in the three-mile area of South
Hill Village has grown 60%.
Forecasters expect Puyallup’s population to
continue growing with a 31% increase over the next
10 years.
Major nearby employers include Boeing, MultiCare
Medical Center, and Joint Base Lewis/McChord,
with 55,381 military and civilian employees.
The population is expected to increase by 31% over the next 10 years.
N
UNDERGOING TENANT IMPROVEMENTS
SOUTH HILL VILLAGE
SOUTH HILL MALL
PLEASE VISIT
SouthHillVillage.comfor access to the Virtual Deal Room
where the following files can be made available:
ALTA Survey
Argus Model
COREA & CC&Rs
Environmental Phase I Report
Financial Reports
Preliminary Title Commitment
Leases & Lease Abstracts
Warranties
South Hill Village
Erik SwansonVice President
206.296.9628
Mike King, CCIM
Vice President
206.296.9624
EXCLUSIVELY REPRESENTED BY
SouthHillVillage.com
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.