8.5% CAP RATE AS-IS YEAR 1 CAP RATE $83/PER SF $6.32/SF - LOW RENT STRONG STORE SALES RECENT RENEWAL PROVIDENCE HEALTH NEW LEASE STRONG CREDIT LONG TERM LEASE STRONG CREDIT PAUL SLEETH 206.518.9547 paul.sleeth@ngkf.com BILLY SLEETH 206.518.9567 billy.sleeth@ngkf.com
TERMS OF THE OFFERING YEAR 1 AS-IS CAP RATE 8.5% ASKING PRICE $4,422,000 Address 420 N. Wilbur Avenue, Walla Walla, WA 99362 Total Land Area 3.48 Acres Building SF 53,290 SF Zoning CH - Highway Commercial Occupancy 95% Financing Offered Free & Clear Year-1 NOI $375,857 Year-1 Cash-on-Cash 11.52% Price/SF $83 Compound Annual Growth Rate 3.66% Unlevered IRR 11.69% Levered IRR 19.83% 2
INVESTMENT HIGHLIGHTS ATTRACTIVE RETURNS 90% OF INCOME STREAM FROM NATIONAL TENANTS RECENT LEASES & RENEWALS LEASING UPSIDE LOW PRICE/SF LONG TERM LEASE WITH HARBOR FREIGHT TOOLS AVERAGE RENTS OF $7.50/SF/YR SHADOW ANCHORED BY ALBERTSONS AND BI-MART Attractive Returns: 8.5% Year-1 In-Place cap rate; 11.52% Year-1 Cash/ Cash Return; 3.66% CAGR; 11.69% Unlevered IRR; 19.83% Levered IRR. Low Price/SF: The offering price produces a price/sf of $83, well below replacement cost. Long-Term Lease with Harbor Freight Tools: Harbor Freight Tools has 9 years of lease term remaining, providing credit, term and stability to the offering. Staples: Staples reports this as a strong location. The tenant s sales at this location, coupled with the low rent of $6.32/sf/yr, provide a comfortable occupancy cost for Staples. 90% of Income Stream from National Tenants: Eastgate Marketplace benefits from a solid line-up of three national tenants. Average Rents of $7.50/SF/YR: The low rents provide future rental upside, specifically with the anchor rents of: Staples $6.32/sf/yr and Harbor Freight Tools $7.50/sf/yr. The rents coupled with leasing upside will contribute to continued NOI growth. Recent Leases and Renewals: Staples Renewal: In 2017, Staples exercised a 5-year option showing their success and commitment to this location. Recent Providence Health Lease: The Providence Health & Services lease adds credit, term, and leasing momentum to the offering. New Radiance Tanning Extension: Radiance Tanning just renewed their lease for 5-years. Leasing Upside: The 2,400 SF of available shop space provides future leasing upside. The current leasing momentum will help generate continued interest and momentum. Successful Albertsons: The offering is shadow anchored by a strong Albertsons grocer. Although not part of the offering, the grocery component and sales provide strong draw to the center. 3
SITE PLAN Common Corridor & Storage Space SUITE # 107 116 TENANT Harbor Freight Tools Staples SF 21,173 25,600 112 111 108 Providence Health & Services Available Radiance Tanning 1,540 2,400 2,577 TOTAL: 53,290 Melrose Street 111 108 Isaac Street POTENTIAL KIOSK PAD DRIVE THRU Wilbur Avenue 4
RETAIL AERIAL 12 experience the creativity 12 BLUE MOUNTAIN MALL WALLA WALLA 5
DEMOGRAPHICS Population 5 MILES 10 MILES 20 MILES 2018 Population 48,966 57,900 70,260 2023 Population 50,550 59,809 72,263 2010-2018 Annual Rate 0.66% 0.68% 0.58% 0.64% 0.65% 0.56% 2018 Male Population 51.2% 51.0% 50.9% 2018 Female Population 48.8% 49.0% 49.1% 2018 Median Age 36.6 37.5 37.7 Median Household Income 2018 Median Household Income $51,945 $52,543 $51,743 2023 Median Household Income $58,792 $59,956 $58,918 2.51% 2.68% 2.63% Average Household Income 2018 Average Household Income $70,334 $72,068 $70,914 2018 Average Household Income $81,569 $84,457 $83,453 3.01% 3.22% 3.31% Per Capita Income 2018 Per Capita Income $27,074 $27,540 $26,935 2023 Per Capita Income $31,200 $32,075 $31,519 2.88% 3.10% 3.19% 6
BILLY SLEETH Executive Managing Director 206.518.9567 billy.sleeth@ngkf.com PAUL SLEETH Executive Managing Director 206.518.9547 paul.sleeth@ngkf.com The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice. 17-0572.05/17