offering tumwater center memorandum multi-tenant …
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TUMWATER CENTEROFFERING MEMORANDUM
Multi-Tenant Retail Center in Olympia MSA, WA
Table of Contents
Contact Information
The 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
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. Kidder Mathews 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, current or past tax payments, 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
Terry [email protected]
Rebecca Liddell, CCIM
Ryan O’[email protected]
kiddermathews.com
Property OverviewInvestment Summary
Quick Stats
Property Summary
Site Plan
Tenant Profiles
Recent Property Upgrades
Aerial Map
Nearby Retailers
Financial AnalysisIncome Capitalization
Rent Roll
Financial Quote
Area OverviewRegional Map
Location Overview
TUMWATER CENTER
01
02
03
Kidder Mathews | Offering Memorandum 3
Tumwater Center
Investment Summary
Offering Price $3,350,000
Cap Rate 6.57%
Price Per SF $276
NOI $219,944
Size 12,120 SF
100% Leased, NNN Investment
with annual escalations
HIGHLIGHTS
This highly visible and well-maintained 12,120 SF retail center across from Home Depot, Costco, WalMart and Fred Meyer is 100% leased and strategically positioned on a corner lot with access points from a signalized intersection along Littlerock Road. Just a short distance to Interstate 5 on and off ramps, and just a few minutes from the state capitol, major area employers, and one of the largest air force bases in the nation.
STRONG CREDIT TENANTS
Fully leased with a mix of nationally recognized, strong-credit tenants and long-term neighborhood owner/operator tenants for diversity of foot traffic and stability in the center. Mattress Firm has been at this location since original construction in 2004. The property generates an additional $5,562 annually with CPI escalations on a long-term parking lot lease to Twinstar Community Credit Union.
FULLY LEASED, NNN INVESTMENT
Passive income property with minimal Landlord responsibility. Stable operating income, recently signed leases and built-in escalations. Should Best Buffet, a month to month tenant, vacate, their large suite can be demised and leased at higher rates.
PROVEN LOCATION & PATH OF GROWTH
Tumwater Center’s proven location is strategically located along Littlerock Road, which sees an average of 15,500 vehicles per day. As an outlet from the I-5 Trosper Road Exit, and part of the dense retail landscape nearby, the site has excellent access and exposure to the area.
Kidder Mathews | Offering Memorandum 4
QUICK STATS
Tumwater Center
NOI: $219,944
2004 construction
48.13%
13.2%
38.37%
Specialty
Goods & Services
Restaurant
BuildingArea
12,120 SF
Annual Rent Escalations
Close to large national retailers
Urban Growth
Boundary
100% Leased
High Traffic Area &
Signalized Corner
TumwaterCenter
TENANT MIX
Kidder Mathews | Offering Memorandum 5
Tumwater Center
DEMOGRAPHICS
$AVERAGE
HH INCOME
$90,101
HOUSEHOLDS
17,140
ESTIMATED POPULATION
41,2303 mile radius
Property Address 5765 Littlerock Rd SW Tumwater, WA
Property Type Multi-Tenant Retail Strip
Year Built 2004
Building Size 12,120 SF
Land Area 55,321 SF (1.27 AC)
Floors One (1)
Occupancy 100%
Construction Metal and block - stone facade
Parking 5.07:1,000 surface spaces
Zoning GC, General Commercial
Parcel Number 8062-00-00200
PROPERTY SUMMARY
Kidder Mathews | Offering Memorandum 6
Tumwater Center
BEST BUFFET
SITE PLAN
Kidder Mathews | Offering Memorandum 7
TENANT PROFILES
Tumwater Center
Pizza Hut has been a staple American restaurant chain since 1958. With over 16,000 locations worldwide, in 2015 recently was acquired by one of the world’s largest restaurant companies, Yum! Brands, sharing the stage with fast-food heavy hitters such as KFC and Taco Bell.
Several rebrands since inception including expanding its dine-in restaurant format to fast-food, and delivery formats has made Pizza Hut a household name.
TENANT SINCE: 2012
GLA 11%
Cricket Wireless is a subsidiary of AT&T, acquired in 2013, as a prepaid wireless alternative to traditional cellular service companies.
Since inception, the wireless carrier has consistently expanded its presence to new cities, expanded service coverage areas, released brand-specific versions of popular devices including the Apple iPhone, and has become increasingly recognizable through creative marketing campaigns.
TENANT SINCE: 2016
GLA 11%
Games Workshop specializes in table-top fantasy games and figurines, primarily focused on Warhammer, a 28-year old battle game legendary among fantasy game hobbyists and featured in The Guardian online. It was awarded by reviewers 4 out of 5 stars and touted as being “an absorbing evening of combat.”
TENANT SINCE: 2017
GLA 13%
Family friendly Chinese buffet offering a rich selection of classic Chinese dishes and modern interpretations at a value-focused price for both lunch and dinner.
TENANT SINCE: 2004
GLA 37%
Based in Houston, Texas, Mattress Firm has the largest geographic footprint among multi-brand mattress retailers with 3,500+ stores nationwide.
This publicly traded company (NASDAQ: MFRM) includes Sleep Train and Sleepy’s, reported over 3.5 billion dollars in sales in 2015.
TENANT SINCE: 2004
GLA 27%
BEST BUFFET
Kidder Mathews | Offering Memorandum 8
RECENT PROPERTY UPGRADES
Tumwater Center
NEW HVAC
ROOF UPGRADES
LANDSCAPING UPGRADES
CROSS-PARKING EASEMENT
NEW LIGHTING FIXTURES
RECENTLY SIGNED LEASESGames Workshop, Cricket
Kidder Mathews | Offering Memorandum 9
Tumwater Center
Littlerock Rd SW
TUMWATER CENTER
MILLS & MILLS FUNERAL HOME
PELEGRINO EVENT CENTER
AERIAL MAP
Kidder Mathews | Offering Memorandum 10
NEARBY RETAILERS
Tumwater Center
85,000+ DAILY
FALLS POINTE APARTMENTS TUMWATER HIGH
SCHOOL
TUMWATER MIDDLE SCHOOL
ALIPINE VILLAGE APARTMENTS
VILLAS AT KENNEDY CREEK
Littlerock Rd SW
15,500+ DAILY
TUMWATER CENTER
OLYMPIA - 2.5 MILES
Tro
sper
Rd
SW
23,9
75+
DA
ILY
Kidder Mathews | Offering Memorandum 11
Tumwater CenterFINANCIAL ANALYSIS - Income Capitalization
CURRENT INCOME $/SF Annual
Gross Rental Income $19.16 $232,268
TwinStar Credit Union Parking Lease $5,562
Expense Reimbursements $4.89 $59,296
TOTAL INCOME $24.52 $297,126
Vacancy Factor @ 5% ($1.23) ($14,856)
EFFECTIVE GROSS INCOME $23.29 $282,269
OPERATING EXPENSES $/SF Annual
Property Tax $2.23 $27,017
Insurance $0.24 $2,941
Utilities $0.97 $11,811
Repairs & Maintenance $0.63 $7,647
Management Fee (3.5% EGI) $0.82 $9,879
Reserves for Replacement $0.25 $3,030
TOTAL OPERATING EXPENSES $5.14 $62,326
NET OPERATING INCOME $18.15 $219,944
CAP RATE 6.57%
ASKING PRICE: $3,350,000
Kidder Mathews | Offering Memorandum 12
RENT ROLL
Tenant Suite Lease Start Lease Expire SF % of Bldg Monthly RentTotal Annual Base Rent
$/SF/YR, NNN
Mattress Firm 103 Jun-04 Jun-19 3,290 27% $6,561 $78,727 $23.93
Games Workshop (dba Warhammer)
105 Jun-17 Sep-22 1,600 13% $2,533 $30,396 $19.00
Cricket Wireless 107 Oct-16 Apr-22 1,360 11% $2,267 $27,200 $20.00
Pizza Hut 109 May-12 May-21 1,370 11% $2,245 $26,945 $19.67
Best Buffet 113 MTM MTM 4,500 37% $5,750 $69,000 $15.33
Totals 12,120 100% $19,356 $232,268 $19.16
Tumwater CenterFINANCIAL ANALYSIS
Kidder Mathews | Offering Memorandum 13
Tumwater CenterFINANCIAL QUOTE
PRICE $3,350,000
Down Payment $1,172,500
Loan Amount $2,177,500
Interest Rate 5.15%
Amortization 25 years
Term 10 years
Loan to Value 65%
Annual Debt Service $155,046
Cash on Cash 5.54%
LOAN QUOTE
PROVIDED BY
Glenn Gioseffi Vice President
Debt & Equity Finance [email protected]
206.398.2291
Kidder Mathews | Offering Memorandum 14
REGIONAL MAP
Tumwater Center
1 MILE 3 MILES 5 MILES
2017 7,015 41,230 104,701
2022 7,408 43,910 111,312
POPULATION
1 MILE 3 MILES 5 MILES
2017 $68,463 $90,101 $84,619
2022 $76,707 $101,889 $96,060
AVERAGE HOUSEHOLD INCOME
1 MILE 3 MILES 5 MILES
2017 3,255 17,140 44,568
2022 3,436 18,198 47,269
HOUSEHOLDS
$
5 Miles
3 Miles
1 Mile
TUMWATER CENTER
TROSPER LAKE PARK
OLYMPIA REGIONAL AIRPORT
THE EVERGREEN STATE COLLEGE
WASHINGTON STATE CAPITOL CAMPUS
Olympia
Portland - 1.5 hours south
Seattle - 1 hour north
Lacey
Tumwater
Kidder Mathews | Offering Memorandum 15
Tumwater CenterLOCATION OVERVIEW The city of Tumwater is conveniently positioned at the junction of I-5 and Highway 101, connecting the heavily trafficked corridor of I-5 and Washington’s westernmost cities such as Aberdeen, Ocean Shores, and Port Angeles, as well as the gateway to Olympic National Forest, famous for its scenic hiking, camping, and unique and protected rainforests. The two major corridors see a combined average of 157,000 vehicles per day.
Just 2.5 miles south of the Washington state capitol, and 20 minutes from Joint Base Lewis-McChord military base (sixth largest military base in the nation), Tumwater is a popular suburb within the Olympia Urban Growth Boundary and the rapidly growing region of the Pacific Northwest. The 2017 population was 104,701, with a total daytime population of 122,733 people within a five-mile radius.
TOP 13 MAJOR EMPLOYERS OF THURSTON COUNTY
RANK COMPANY INDUSTRY EMPLOYEES
1North Thurston Public Schools
Education 2,000
2Providence Saint Peter Hospital
Health Care 1,600
3Walmart Supercenter (3 locations)
Retail 1,023
4 Safeway (5 locations) Retail 876
5South Puget Sound Community College
Education 780
6 Xerox Information Technology 750
7 Capital Medical Center Health Care 600
8 Macy’s Retail 600
9 Nisqually Red Wine Casino Gaming 600
10 Lucky Eagle Casino Gaming 600
11Weyerhaeuser Company (3 locations)
Industrial Goods 565
12 YMCA (2 locations) Non-Profit 551
13 Evergreen State College Education 550
Kidder Mathews | Offering Memorandum 16
Terry [email protected]
Rebecca Liddell, CCIM
Ryan O’[email protected]
Kidder MathewsOne SW Columbia Street, Suite 950Portland, OR 97258
kiddermathews.com