STILL UNDER CONSTRUCTION. Mildred Street Athletic Center TACOMA, WASHINGTON

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1 STILL UNDER CONSTRUCTION Mildred Street Athletic Center TACOMA, WASHINGTON

2 Overview Mildred Street Athletic Center 1680 SOUTH MILDRED ST., TACOMA, WA REP CIRCUSTRIX INTERIOR STILL UNDER CONSTRUCTION

3 PAGE 3 Investment Summary LEASEABLE SF 69,734 SF LAND AREA 133,630 SF LEASE TYPE NNN PRICE PER SF $109 AVG CURRENT RENTS $7.35/SF TENANTS USTA CircusTrix $7,590,000 PRICE 6.75% CAP THE MILDRED STREET ATHLETIC CENTER is a 70,000 square foot infill asset with new long term leases by nationally recognized brands with strong financial strength. The Property has undergone a near full remodel converting a former gym to accommodate two new tenants, CircusTrix and the Pacific NW Chapter of the U.S. Tennis Association. The Property is located across from Tacoma Community College, benefiting from flexible zoning that will allow a longer term development at a higher and better use. The Property is offered with low base rents and a low price per square foot. Overview

4 Site 16 EDGEWORKS CLIMBING TOWER LANES ENTERTAINMENT CENTER MORGAN FAMILY S 12TH STREET 13,434 VPD MILDRED STREET ATHLETIC CENTER S MILDRED STREET 17,280 VPD 16 JAMES CENTER 26,895 VPD S 19TH STREET NARROWS PLAZA BOWL ROLLIN 253 SKATE & COMMUNITY CENTER

5 PAGE 5 Top 150 Community College Aspen Institute College Excellence Program THE PROPERTY IS LOCATED ACROSS THE STREET FROM TACOMA COMMUNITY COLLEGE. Largely a commuter school, TCC enrolls approximately 11,000 students annually. The 150-acre college is a staple in the city of Tacoma and enhances an already dense demographic area with a large daytime population. 11,000 STUDENT 1965 FOUNDED ENROLLMENT Site

6 Investment Highlights The Highlights NEW 15 & 10 YEAR LEASES COMMENCING IN THE FALL OF FULLY REPURPOSED BUILDING TO FIT THE ATHLETIC AND ENTERTAINMENT USES. LOW RENT CORPORATE LEASE FOR THE USTA PROVIDES LONG TERM STABILITY AND UPSIDE. CIRCUSTRIX IS BACKED BY A SIGNIFICANT PERSONAL GUARANTEE WITH 2% ANNUAL RENT INCREASES. DENSE DEMOGRAPHIC WITH NEARLY 250,000 RESIDENTS WITHIN A FIVE-MILE RADIUS.

7 PAGE 7 FULLY REPURPOSED BUILDING STILL UNDER CONSTRUCTION ACROSS FROM TACOMA COMMUNITY COLLEGE ENHANCING THE LARGE DAYTIME POPULATION. ADJACENT PROPERTY IN PLANNING PHASES FOR UP TO A 300-UNIT MIXED-USE DEVELOPMENT. THE PROPERTY IS SURROUNDED BY JAMES CENTER, ANCHORED BY A SUCCESSFUL FRED MEYER. ZONING ALLOWS FOR INCREASED HEIGHT LIMITS UP TO 75 FEET AND DENSITY IN THE FUTURE. Investment Highlights

8 About the Tenants USTA PACIFIC NORTHWEST SECTION THE PACIFIC NORTHWEST SECTION OF THE USTA is one of 17 sections and covers the geographic area of Alaska, Washington, Oregon and Northern Idaho. The USTA is the national governing body for the sport of tennis and the leader in promoting and developing the sport s growth on every level in the United States. The USTA is a diverse not-for-profit organization whose volunteers, professional staff and financial resources support a single mission: to promote and develop the growth of tennis. The USTA is the largest tennis organization in the world, with 17 geographical sections, more than 680,000 individual members and more than 7,000 organization members. MEMBERS 25, ACROSS FOUNDED THE PNW 680,000 MEMBERS NATIONWIDE

9 CIRCUSTRIX PAGE 9 CIRCUSTRIX is one of the world s leading companies in the increasingly relevant Experience Economy. With a growing network of over 300 facilities worldwide including brands like Sky Zone, Superfly, Rockin Jump and Ryze. CircusTrix is the largest developer, operator and franchisor of trampoline parks in the world. CircusTrix operates over 300 indoor trampoline parks in the United States, Europe, and Asia. Most parks consist of dozens of interconnected trampolines, American Ninja Warrior-style obstacle courses, soft foam pits, trapezes, and slacklines. Parks also contain special dodge ball and basketball courts along with aerial skills and parkour sections. LEASE TYPE: FRANCHISE GUARANTY: PERSONAL, 5 YEAR #1 LARGEST TRAMPOLINE PARK OPERATOR IN THE WORLD 300+ LOCATIONS 16,000 EMPLOYEES WORLDWIDE REP CIRCUSTRIX INTERIOR STILL UNDER CONSTRUCTION

10 Surrounding Amenities Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 680 3,413 9,265 Employees 6,490 34, ,340 Population 12, , ,517 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Big 5 Sporting Goods Cost Plus World Market Costco Dollar Tree Famous Footwear Fred Meyer Grocery Outlet Hobby Lobby TACOMA MALL Bath & Body Works Chipotle Dick s Sporting Goods Forever 21 GAP SPORTS & ENTERTAINMENT Allenmore Golf Course Cheney Stadium Edgeworks Climbing Home Depot Lowe s McDonald s Mudbay Office Depot Panda Express Petco REI Rite Aid GameStop GNC H&M JC Penney Macy s MOD Pizza Fircrest Golf Club LA Fitness Morgan Family YMCA Narrow Plaza Bowl Planet Fitness Safeway Starbucks Taco Bell Target TJ Maxx Trader Joe s Value Village Walmart Supercenter Whole Foods Nordstrom Old Navy Panera Bread Payless Sears Sephora Rollin 253 Skate & Community Center Simply Hot Yoga Tacoma Firs Golf Center Tower Lanes Entertainment Center

11 16 MILDRED STREET ATHLETIC CENTER PAGE 11 13,434 VPD S 12TH STREET 26,895 VPD S MILDRED STREET S 19TH STREET CHENEY STADIUM FIRCREST GOLF CLUB ALLENMORE GOLF COURSE 16 17,280 VPD TACOMA MALL A SIMON MALL Surrounding Amenities

12 Area Developments POINT RUSTON JAMES CENTER NORTH MILDRED STREET ATHLETIC CENTER VILLAGE AT CHAMBERS BAY TACOMA TOWN CENTER

13 PAGE 13 THE TACOMA HOUSING AUTHORITY recently bought seven acres of James Center North adjacent to the Subject Property and is planning to redevelop over the next few years into a mixed-use center with more than 300 residential units. MORE INFO Several other large scale commercial developments are ongoing in Tacoma and represent the continued growth within the city limits. Just a few are named below: UPCOMING DEVELOPMENTS Several other large scale commercial developments are ongoing in Tacoma and represent the continued growth within the city limits. Just a few are named below: TACOMA TOWN CENTER $125 million mixed-use development in downtown Tacoma set to open in The project will consist of 500+ residential units and more than 200,000 square feet of retail. MORE INFO POINT RUSTON A mixed-use master planned community on the Tacoma waterfront that is currently operational will have more than 1,200 residential units and over 105,000 square feet of retail when the project is fully completed. MORE INFO THE VILLAGE AT CHAMBERS BAY The Whole Foods anchored 400,000 square foot mixed-use village including retail, multi-family public offices. The phased project still has several retail buildings under construction that will bring the total to more than 140,000 square feet of retail when complete, to go along with more than 150 residential units and additional office and library space. Area Developments

14 Site Plan JAMES CENTER NORTH Proposed 300- unit Mixed Use Development 17,280 VPD MILDRED STREET 69,734 LEASEABLE SF 3.07 ACRES 2018 FULL REMODEL 100% OCCUPANCY

15 PAGE 15 ENTRANCE FROM JAMES CENTER NORTH MILDRED STREET ATHLETIC CENTER ENTRANCE FROM JAMES CENTER NORTH SITE PLAN NOT TO SCALE Site Plan

16 Zoning CCX - COMMUNITY COMMERCIAL MIXED-USE The core commercial location of the Property benefits from a flexible zoning code that gives the asset tremendous versatility in the future. The pedestrian-oriented zone provides the ability to develop office, retail, multi-family, student housing, self-storage or a variety of other uses. To provide for commercial and retail businesses intended to serve many nearby neighborhoods and draw people from throughout the City. These areas are envisioned as evolving from traditional suburban development to higher density urban districts. Walking and transit use are facilitated through designs which decrease walking distances and increase pedestrian safety. Uses include shopping centers with a wide variety of commercial establishments, commercial recreation, and business, personal, and financial services. Residential uses are encouraged in CCX Districts as integrated development components. HEIGHT LIMIT: 75 Feet after incentives BASE HEIGHT LIMIT: 60 feet MINIMUM DENSITY: 40 units per acre MAXIMUM DENSITY: No maximum as long as parking requirements are met. PARKING REQUIREMENT: 1 space per multi-family unit STILL UNDER CONSTRUCTION

17 PAGE 17 REP CIRCUSTRIX INTERIOR STILL UNDER CONSTRUCTION PERMITTED USES Multi-Family Retail Office Self-Storage Student Housing School Theater Single Family Dwellings Hospital Retirement and extended care facilities Animal Sales and Service Brewpub Commercial Parking Facility Commercial Recreation and Entertainment Craft Production Daycare Drive-thru permitted with any use Restaurant Gas Station Funeral Home Lodging Facility Marijuana Retailer Communication Facility Nursery Park/Recreation Space Personal Services Public Service Facilities Church Facilities Repair Services Automobile Service/Repair/Rental/Sales Zoning

18 Financial Summary PRICE $7,590,000 CAPITALIZATION RATE 6.75% PRICE PER FOOT $109 CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 1/1/ /31/2019 $7.35 $512,427 Total Effective Gross Income (EGI) $7.35 $512,427 OPERATING EXPENSES Per SF CAMS Property Taxes Insurance Total Operating Expenses NNN NNN NNN NNN NET OPERATING INCOME $7.35 $512,427 LOW PRICE PER SQUARE FOOT 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.

19 Rent roll PAGE 19 USTA Lease Term: Size (SF): 9/4/ /30/ ,459 Pro-Rata: 58.02% RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF 9/4/18 $14,000 $168,000 $ /1/23 $15, % $184,800 $ /1/28 $16, % $203,280 $5.02 OPTIONS 2, 10-YR FMR Comments: Lease is on a NNN expense structure. Tenant shall provide annual sales and financial reports. CIRCUSTRIX Lease Term: Size (SF): 8/1/ /31/ ,275 Pro-Rata: 41.98% RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF 11/1/18 $28,702 $344,427 $ /1/19 $29,276 2% $351,316 $ /1/20 $29,862 2% $358,342 $ /1/21 $30,459 2% $365,509 $ /1/22 $31,068 2% $372,819 $ /1/23 $31,690 2% $380,275 $ /1/24 $32,323 2% $387,881 $ /1/25 $32,970 2% $395,638 $ /1/26 $33,629 2% $403,551 $ /1/27 $34,302 2% $411,622 $14.06 OPTIONS 3, 5-YR 2% ANNUAL INCREASES Comments: Lease is Absolute Net and personally guaranteed for the first 5 years. Option rent is increased to Fair Market Rent, but no less than prior rent and followed by 2% annual increases. TOTAL SF TOTAL RENT/MONTH 69,734 OCCUPIED % $42,702 Financial Summary

20 Featured Photography INTERIOR PHOTOGRAPHY - USTA

21 PAGE 21 Featured Photography

22 Questions & Answers Q: ARE TENANTS REQUIRED TO FURNISH FINANCIALS? A: USTA shall be required to furnish sales and financials to the Landlord annually. Circus Trix is not required to furnish financial statements. Q: DOES THE CIRCUSTRIX LEASE HAVE A GUARANTY? A: Yes, the financial backers for CircusTrix from Peely Partners have personally guaranteed the lease for the first five years. Contact Capital Pacific for more information. STILL UNDER CONSTRUCTION

23 PAGE 23 Q & A Q: ARE THERE ANY EASEMENTS OR RESTRICTIONS IN PLACE AT THE PROPERTY? A: An easement for reciprocal parking is in place with the adjacent James Center North, but no restrictions or operating covenants are in place between the parcels. REP CIRCUS TRIX INTERIOR Questions & Answers

24 Location Tacoma, Washington TACOMA is located on the Puget Sound, and serves as the center of business activity for the South Sound region. Just south of Seattle, Tacoma is the third largest city in the state of Washington.

25 Employment Growth PAGE 25 TOP EMPLOYERS IN TACOMA are primarily government operations and health care providers, which account for the top five employers. Although these employers are driving the local economy, the driving force behind the population growth lies heavily on the city s affordability. Comparable to the neighboring Seattle market, Tacoma s average home price of $241,000, is less than 40% of the average home price in Seattle. Affordable housing and a strong job growth rate of 23% over the last 20 years has allowed Tacoma to attract more residents and a larger labor force. EMPLOYER # OF EMPLOYEES Joint Base Lewis-McChord 56,624 Top 5 Employers Local Public School District 13,352 MultiCare Health System 6,547 Washington State Employees 6,488 Franciscan Health System 5,709 Highly Connected EFFECTIVE TRANSPORTATION has allowed residents to take advantage of the affordable housing in the South Puget Sound. The Sounder train allows commuters to travel from Tacoma to Seattle in just 59 minutes. Approximately 4.2 Million passengers use the Sounder yearly. The city also has effective bus transit to Seattle, and around Tacoma, as well as the Tacoma Link light rail that transports passengers within Tacoma city limits. Location

26 Demographics KEY 5 MINS 10 MINS 15 MINS Distance to Seattle, Washington Olympia, Washington 37 MILES 45 MINS 31 MILES 36 MINS

27 PAGE 27 Drive time POPULATION 5 MINS 10 MINS 15 MINS , , , , , , , , , HH INCOME 5 MINS 10 MINS 15 MINS Average $81,630 $81,930 $79,091 Median $58,146 $59,282 $56, ,954 PIERCE COUNTY POPULATION (ESTIMATED) Demographics

28 Contact Us

29 We d love to hear from you. SEAN TUFTS stufts@capitalpacific.com PH: DAVID GELLNER dgellner@capitalpacific.com PH: The information in this Executive Summary 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. All rights reserved to Capital Pacific, LLC. Contact Us

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