MUD BAY CONCORDIA NE Killingsworth Street, Portland, OR

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1 MUD BAY CONCORDIA 3275 NE Killingsworth Street, Portland, OR

2 The Offering The offering is a newly constructed single-tenant Mud Bay in Portland s urban and perennially popular Concordia neighborhood. It is a fee simple NNN lease with 10 years on the primary term and two 5-year options to renew, with 10% rental escalations every five years. The property consists of a 4,850 SF high quality, single story building situated on a 12,500 SF rectangular parcel on a highly visible hard corner, and is equipped with ample parking. Mud Bay Concordia offers investors the chance to acquire a sought-after West Coast investment that is paired with a stable long-term lease, pride of ownership improvements and a corporately backed lease with a great Northwest tenant. Investment Summary Price Cap Rate $3,395, % Base Lease Term Guarantee Lease Type Year Built 10 years Corporate NNN 2018 Kidder Mathews Offering Memorandum 2

3 Investment Highlights 10-year triple net corporate lease provides very low management responsibility Brand new high quality construction and architecture with new Mud Bay build-out Signalized corner location across from very high-performing Walgreens and New Seasons Market Located on NE 33rd Ave and NE Killingsworth Street, two main arterials in Portland carrying more than 25,000 VPD Rare new construction in established and dense Concordia neighborhood Infill location with replaceable rent, functional layout and monument signage Average household income within 1-mile: $103,201 Best Pet Shop Kidder Mathews Offering Memorandum 3

4 Property Summary Address 3275 NE Killingsworth St, Portland, OR Tenant Mud Bay, Inc. Price $3,395,000 Lease Commencement September 1, 2018 Cap Rate 5.00% Lease Expiration August 31, 2028 Annual Rent $169,750 Escalations 10% every 5 through base term & options Lease Term 10 Years Site Size 12,500 SF Renewal Options 2 x 5-Years Zoning CM2, Commercial Mixed Use 2 Lease Structure NNN (Landlord responsible for roof & structure) County Multnomah Lease Guarantee Corporate Signage Monument sign on signalized corner Kidder Mathews Offering Memorandum 4

5 About the Tenant Mud Bay is the Pacific Northwest s premier independent pet retail chain, and Pet Business 2015 Retailer of the Year. Mud Bay attracts customers looking for the best selection of natural and solution-based foods and supplies for their dogs and cats at everyday low prices. The $75M privately-held company started as a family business and recently extended ownership to their 400 employees who are reputed to be the best-trained staff in the pet industry. Mud Bay currently operates 50 locations in Washington and Oregon and has a very loyal customer base and outstanding ratings online. They draw a steady stream of both new and returning customers. The company has a CAGR of 26% ( ) and has never closed a location #LOCATIONS 300+ SALES DOUBLED #EMPLOYEES 2011 TO 2015 LOW RISK PUGET SOUND WASHINGTON HOOVER S D+B PROFILE HEADQUARTERS Kidder Mathews Offering Memorandum 5

6 Site Plan NE 33rd Ave NE Killingsworth St Kidder Mathews Offering Memorandum 6

7 Close to Walgreens & New Seasons NE Killingsworth St NE 33rd Ave Kidder Mathews Offering Memorandum 7

8 Retail Aerial 12,390+ DAILY NE Simpson St FERNHILL PARK NE 30th Ave NE Jarrett St NE 33rd Ave KENNEDY SCHOOL NE 37th Ave NE Killingsworth St 10,890+ DAILY CANNON S RIB EXPRESS NE Emerson St NE Emerson St Kidder Mathews Offering Memorandum 8

9 Regional Map POPULATION JANTZEN BEACH SHOPPING CENTER Vancouver 1 MILE 3 MILES 5 MILES , , , , , ,974 STREETS OF TANASBOURNE PORTLAND JAPANESE GARDEN 1 mile 3 miles LLOYD CENTER MALL 5 miles HOUSEHOLDS 1 MILE 3 MILES 5 MILES CEDAR HILLS CROSSING Portland ,238 64, , ,781 68, ,829 Beaverton AVERAGE HOUSEHOLD INCOME WASHINGTON SQUARE MALL Milwaukie $ 1 MILE 3 MILES 5 MILES 2018 $103,201 $94,465 $88,497 Tigard Lake Oswego BRIDGEPORT VILLAGE Tualatin West Linn Oregon City Kidder Mathews Offering Memorandum 9

10 Kidder Mathews Offering Memorandum 10

11 Ryan O Leary roleary@kiddermathews.com Rebecca Liddell, CCIM, MAI rliddell@kiddermathews.com Kevin Murphy kmurphy@kiddermathews.com Kidder Mathews 101 SW Main Street Suite 1200 Portland, OR kiddermathews.com Kidder Mathews Offering Memorandum 11