Gibraltar Lane. Retail Center investment Opportunity N Louisiana Street, Kennewick, WA [ ]

Transcription

1 Gibraltar Lane Kennewick, WA Retail Center investment Opportunity 1350 N Louisiana Street, Kennewick, WA [ ]

2 GIBRALTAR LANE IS A 9,898 SQUARE FOOT RETAIL CENTER ADJACENT TO COLUMBIA CENTER MALL IN KENNEWICK, WA. The offering provides an opportunity to acquire an established 86% occupied center adjacent to the largest regional mall in Southeast Washington. The Property s ingress/egress benefits from a signalized corner intersection off of West Gage Boulevard which boasts average daily traffic counts in excess of 28,550. Investment Highlights Gibraltar Lane shares access with a high performing Costco and is located on North Louisiana Street. The area is the retail hub of the Tri-City region, which has experienced 37% population growth over the last 15 years. PRICE: $2,090,000 CAP: 7.05% RENTABLE SF...9,898 SF LAND AREA...37,461 SF OCCUPANCY...86% PRICE PER SF...$211 LEASE TYPE NNN AVERAGE CURRENT RENTS...$18.28/SF YEAR BUILT PARKING...38 Spaces ADDRESS: 1350 N Louisiana Street, Kennewick, WA Disclosure: Seller is a licensed real estate agent in the State of Washington GIBRALTAR LANE 2

3 Investment Highlights PROXIMITY TO REGIONAL MALL Gibraltar Lane is adjacent to Columbia Center Mall; a 754,287 square foot regional mall anchored by JC Penney, Macy s, Sears, Barnes & Noble, Toys R Us and Regal Cinemas. COSTCO SHADOW ANCHOR shadow anchored by a HIGH PERFORMING COSTCO >> VIBRANT RETAIL TRADE AREA Shadow anchored by Costco, the Property is surrounded by national retailers most notably Target, Lowes, Kohl s, Value Village, TJ Maxx, Staples, ShopKo, Bed Bath and Beyond, Best Buy, Ross and PetSmart. HIGH GROWTH AREA Since 2000, the Tri-Cities region has grown by 37%. Within a 5 mile radius of the subject property, near term growth is projected at 12.5%. SOLID DEMOGRAPHICS The Property benefits from a nearby population of 126,427 people earning an average annual household income of $77,249 within a 5 mile radius. STABLE TENANCY All of the Tenants have occupied the center for 8+ years. Heritage Home Accents & Floral which occupies 57% of the center, has occupied Gibraltar Lane since construction in GIBRALTAR LANE 3

4 Aerial STRONG RETAIL LOCATION & HIGH TRAFFIC COUNTS 240 SEATTLE ,550 DAILY GIBRALTAR LANE W GAGE BLVD 16,626 DAILY COLUMBIA SQUARE W CANAL DR THE COLONNADE N CE NT ER PK W Y N STEPTOE ST COLUMBIA CENTER W GRAN DRIDGE BLVD N YOUNG ST SM DAILY TRI-CITIES CENTER N COLUMBIA CENTER BLVD Americas D r iv e In 39,238 DAILY 44,000 VISTA FIELD AIRPORT GIBRALTAR LANE 4

5 SM Site CLOSE PROXIMITY TO MAJOR RETAIL Gibraltar Lane is adjacent to Columbia Center Mall; a 754,287 SF regional mall anchored by JC Penney, Macy s, Sears, Barnes & Noble, Toys R Us and Regal Cinemas. Americas D r iv e In W GRANDRIDGE BLVD 28,550 DAILY 11,441 DAILY W GAGE BLVD N LOUISIANA ST GIBRALTAR LANE N CENTER PKWY 10,748 DAILY N COLUMBIA CENTER BLVD 39,238 DAILY COLUMBIA CENTER MALL GIBRALTAR LANE 5

6 Site Plan W GAGE BOULEVARD 28,550 DAILY SITE PLAN KEY PARCEL OUTLINE: LAND AREA: 37,461 SF BUILDING AREA: 9,898 SF INGRESS/EGRESS: LEASED: AVAILABLE: NOT A PART: N LOUISIANA ST N LOUISIANA ST N LOUISIANA ST Heritage Home Accents & Floral Men s Zone Sushi Nori Site Plan Not To Scale GIBRALTAR LANE 6

7 Photos GIBRALTAR LANE 7

8 Financial Summary PRICE $2,090,000 Capitalization Rate: 7.05% Price Per Foot: $211 NET OPERATING INCOME SUMMARY Plus: STABILIZED INCOME Per SF Scheduled Rent: 4/1/2015 $18.65 $158,282 Plus: Expense Reimbursement $4.46 $44,175 Equals: Scheduled Gross Income $20.48 $202,804 Current Vacancy 14% Equals: Effective Gross Income $20.48 $202,804 Less: OPERATING EXPENSES Per SF CAMS $2.40 $23,777 Property Taxes $2.25 $22,302 Insurance $0.22 $2,200 Management Fee 3.5% of EGI $0.72 $7,098 Total Operating Expenses $5.59 ($55,378) Equals: NET OPERATING INCOME $147,426 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. Buyer must verify the information and bears all risk for any inaccuracies. GIBRALTAR LANE 8

9 Rent Roll TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES OPTIONS Occupancy Lease Monthly Tenant Name Suite Size % of SF Rent/SF/YR Date Expiration Base Rent Heritage Home Accents & Floral A-D 5, % 10/26/04 2/29/16 $8,324 $17.66 comments: Monthly rent increases to $8,324 on on 3/1/2015. This is reflected in the rent roll. Available E 1, % Date of Increase Monthly Base Rent Additional Annual LEASE TYPE NNN Men's Zone F 1, % 9/15/05 9/30/16 $2,327 $ /1/15 $2,385 $347 NNN Sushi Nori G 1, % 2/15/06 2/28/16 $2,539 $21.50 comments: Monthly rent increases to $2,539 on on 3/1/2015. This is reflected in the rent roll. Totals: 9, % $13,190 $18.65 $347 Occupied 8,487 86% Leasable 1,414 14% 1-5 YR 180 days notice NNN 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. Buyer must verify the information and bears all risk for any inaccuracies. BETHEL GIBRALTAR JUNCTION LANE 9

10 Operating Expenses 2014 BUDGETED EXPENSES REIMBURSEMENTS Total /SF Comments CAMs $23,777 $ Budget $17,087 Property Taxes $22,302 $ Budget $19,117 Insurance $2,200 $ Budget $1,886 Management Fee $7,098 $0.72 Based on 3.5% of Effective Gross Income $6,084 Total Expenses $55,378 $5.59 $44,175 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. Buyer must verify the information and bears all risk for any inaccuracies. GIBRALTAR LANE 10

11 Reimbursements Tenant Name Pro Rata % CAMs Expense Total $23,777 $22,302 $2,200 $7,098 Property Taxes Insurance Management Admin % Admin Notes Tenant Totals Heritage Home Accents & Floral 57.13% $10,289 $12,740 $1,257 $4,055 1 $28,341 Available 14.28% $0 Men's Zone 14.28% $3,396 $3,185 $314 $1,014 $7,909 Sushi Nori 14.31% $3,403 $3,192 $315 $1,016 $7,925 TOTAL % $17,087 $19,117 $1,886 $6,084 $0 $44,175 Notes: 1) Tenant's reimbursements are capped at $5.00 per square foot for entirety the Lease term. 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. Buyer must verify the information and bears all risk for any inaccuracies. GIBRALTAR LANE 11

12 Location & Demos Kennewick, WA KENNEWICK/TRI-CITIES AREA OVERVIEW ECONOMIC GROWTH WA is a n income t ax free state Kennewick is the largest of the Tri-Cities Metropolitan Statistical Area (MSA) consisting of Richland, West Richland, Pasco and Kennewick located in Benton and Franklin Counties. With a population of 268,000, the Tri-Cities was the fastest growing MSA in the United States in 2010 and A thriving city, Kennewick continues to be at the forefront for statewide growth in almost every way. The area has grown into a regional retail hub, drawing consumers from Southeast Washington and portions of Idaho and Oregon. Nestled in the heart of Washington wine country, Kennewick boasts over 160 wineries within a 50 mile radius. Kennewick s location along the Columbia River provides a variety of recreational activities including world-class fishing, birding, bike trails and parks. The city benefits from a talented labor pool, steady job market and low cost of living. Business advantages in the Kennewick area include electric costs among the lowest in the nation, access to a state of the art communications network, an exceptional transportation network, and one-stop permitting from pro-business local governments. Tri-City s population is highly educated and enjoys the second highest per capita income levels in Washington State HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Median $44,532 $59,142 $55,317 Average $64,172 $79,123 $74,362 Seattle 3 Hours 180 Miles Moses Lake 1.5 Hours 100 Miles 90 Spokane TOP EMPLOYERS # Of Employer Battelle/Pacific NW National Laboratory Employees 3,984 ConAgra Foods 2,498 Bechtel National 2,244 Kadlec Regional Medical Center 2,227 POPULATION 3-Mile 5-Mile , , , , , , Hours 180 Miles Kennewick *Approximate GIBRALTAR LANE 12

13 A unique HUMAN RESULTS-DRIVEN client experience THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ ] SEAN TUFTS stufts@capitalpacific.com (206) SCOTT FRANK sfrank@capitalpacific.com (503) SEAN MACK smack@capitalpacific.com (503) KEVIN ADATTO kadatto@capitalpacific.com (503) MICHAEL HORWITZ mhorwitz@capitalpacific.com (503) PETER DUNN pdunn@capitalpacific.com (503) [ Copyright 2015 Capital Pacific LLC ]