FOURTH PLAIN CENTER VANCOUVER, WASHINGTON Nick Kassab, a licensed real estate broker in the state of Washington, along with Holliday Fenoglio Fowler, L.P. (collectively HFF ). 117,143 RSF Value-Add Shopping Center in the Portland MSA
2 The Opportunity As exclusive advisor, HFF is pleased to offer the opportunity to acquire Fourth Plain Center (the Property ) a 117,143 square-foot multi-tenant shopping center located in Vancouver, WA. Strategically positioned at the intersection of Fourth Plain Boulevard and Andresen Road in central Vancouver, the Property is anchored by Walgreens and 24 Hour Fitness. The Property benefits from its proximity to Vancouver s wealthiest neighborhoods, and convenient accessibility from Highway 500. Fourth Plain Center offers investors the chance to acquire a well-located, multitenant center with significant value enhancement opportunity through the lease up of a vacant anchor space formerly occupied by Office Depot. Property Summary 2903 NE Andresen Road 2913 NE 72nd Drive 2904 NE Burton Road Vancouver, WA ADDRESS 73% OCCUPANCY 117,143 RSF GLA 7.96 Acres 346,738 RSF SITE SIZE 454 spaces 3.8 per 1,000 PARKING 1964-2006 YEAR BUILT Best Offer PRICE
SIGNIFICANT VALUE CREATION OPTIONALITY Fourth Plain Center offers investors significant value creation optionality through lease up. With 32,136 RSF currently vacant, including a 20,000 RSF anchor space available, investors could pursue the following strategies. 3 INCREASE NATIONAL TENANT MIX With over 20% of Fourth Plain Center s in-line space rolling over the first four years of the analysis hold, ownership will have the ability to backfill spaces with national tenants, increasing the Property s national tenant mix and elevating the Property s profile. ADD TOP-PERFORMING GROCERY ANCHOR TENANT Originally anchored by local grocer Keil s Food Store, Fourth Plain Center was built as a grocery anchored retail center. After Keil s Food Store was sold to the Safeway franchise, Safeway occupied the location for years. With 20,000 RSF vacant, Fourth Plain Center offers users the ability to continue the center s legacy by adding a specialty grocer. A highly desirable specialty grocer will generate consistent traffic for the center and will cater well to the surrounding consumer demographic. ADD TOP-PERFORMING ANCHOR TENANT Just 73% occupied, with a large 20,000 square-foot vacancy, Fourth Plain Center offers investors the opportunity to immediately backfill the Office Depot space with a large non-grocer anchor concept. LEVERAGE 24 HOUR LEASE EXPIRATION IN 2022 24 Hour Fitness expires in December 2022. Ownership could have the ability to leverage 24 Hour Fitness s lease expiration with the potential to backfill the space with a traditional grocer or combine with the adjacent 20,000 square-foot box to attract a large format grocer.
4 DENSE AND EXPANDING TRADE AREA Fourth Plain Center boasts exceptional demographics with average incomes in excess of $68,458 within a five mile radius and a population of more than 253,353 within a five mile radius. Vancouver s high quality of life, lack of income tax, and affordable housing stock continue to attract new residents, making it one of the fastest growing communities in the Portland MSA as demonstrated by the population growth rate of 10.08% between 2010 and 2016. Housing costs are skyrocketing in the Portland core, driving cost sensitive households to Vancouver due to the lower cost of living. HIGH IDENTITY LOCATION WITH STRONG VISIBILITY & TRAFFIC COUNTS The Property features prominent frontage and visibility on NE Andresen Rd and Fourth Plain Boulevard, main thoroughfares that provide easy access to the surrounding neighborhoods that rank as some of Vancouver s wealthiest and most desirable.
5 DISCOUNT TO REPLACEMENT COST Fourth Plain Center offers an investor the opportunity to acquire a quality multi-tenant shopping center below replacement cost allowing an attractive entry point, limited downside risk, and the ability to compete effectively long-term in the leasing market. TENANT LONGEVITY Ten tenants, totaling over 32% of leased GLA, have occupied the center for over 10 years. This outstanding tenant longevity demonstrates the desirability and success of this location for retailers. UNENCUMBERED ASSET The Property is being delivered free and clear with no existing debt, providing the opportunity to take advantage of historically low interest rates and generate attractive leveraged returns.
6 Synergistic Tenant Mix The Property features a complementary mix of professional services, health and fitness, restaurant and retail tenants that are well-suited to meet the demands of the trade area and reinforce the traffic patterns already in place at the center. 2% Restaurant 14% Retail 11% Professional Services 45% Health & Fitness
Site Map 7 59,230 VPD on SR 500 76 Gas Station (NAP) NE FOURTH PLAIN BLVD Arby s (NAP) 17,906 VPD Spot Tavern (NAP) STE TENANT SIZE 1 Vacant 2,550 5 NW Missions Outreach Thrift Store 1,590 9 Mail & Business Center 900 11 Cupidone 492 13 Rainwater Insurance Inc. 1,098 15 Zenaptic Chiropractic Inc., P.S. 2,306 17 Sunrise Salon 2,613 19 Saigon Restaurant 2,100 21 Vancouver Dry Cleaners 2,550 35 Vacant 3,000 41 Liquor Store - JK Kang Corp 3,000 47 99 Cent Discount Mart 2,761 24,335 VPD NE ANDRESEN RD NE 72ND AVE 11 9 13 15 17 19 21 5 1 3009 35 41 47 53 100 103 105 NE BURTON RD 53 Sunshine Laundry 1,296 100 Vacant 5,000 103 CosmoProf 2,040 105 Vacant 1,586 110 Children's Village Daycare 7,887 3009 Vacant 20,000 A ROK Props, Inc. 2,572 B DBM 982 Walgreens 14,820 24 Hour Fitness 36,000 Total 117,143 110 Total Occupied 85,007 73% Total Vacant 32,136 27% Vacant Space NAP B A N
205 8 Vancouver Mall Royal Oaks Country Club Vancouver Plaza 500 Demographics 10% NE FOU RTH IN PLA 5 YEAR POPULATION GROWTH 1-MILE RADIUS 2010-2016 D BLV FOURTH PLAIN CENTER NE A NDR ESE NR D 253,353+ POPULATION 5-MILE RADIUS $68,458 EST. AVG. HOUSEHOLD INCOME 5-MILE RADIUS
Vancouver Overview Vancouver is the county seat for Clark County, one of the fastest growing counties in Washington State, posting an 82% population increase since 1990. As of 2015, the population in Clark County stood at 459,495. Vancouver combines the amenities of a larger metropolitan area with charm normally attributed to a small town. The city offers abundant recreational opportunities that include expansive park lands, waterfront trails, and recreational facilities. 9 Historically considered a bedroom community for Portland, Vancouver is becoming an urban destination in its own right. Currently underway are two significant projects in the downtown area: the $1.5 billion, twenty year plan to redevelop the 35 acre waterfront site north of I-5 into a mixed-use project and a public/private partnership for the Library Square project in downtown, featuring the new 83,000 square foot library, completed in 2011 and a planned development for a mix of Class A office space, luxury condominiums, retail and a boutique hotel. Vancouver benefits from Clark County s economic growth. The area has strong clusters in the semiconductor, high technology, and services industries; companies located in Clark County include Hewlett-Packard, Sharp Microelectronics, Linear Technology and WaferTech. Clark County offers businesses the advantages of a major metropolitan city combined with the business advantages of a favorable tax structure. The State of Washington does not impose a personal or corporate income tax, nor does it tax dividends interest, or capital gains. Approximately 60,000 workers commute from Clark County to Portland for work. In a recent transportation survey by the County, 79 percent of commuters would readily take a job in Clark County, if available, to reduce commute time and avoid the Oregon income tax (at an equal or lower salary).
26 205 COUVER AKE LUMBIA RIVER Fourth Plain Center 500 VANCOUVER 205 INVESTMENT ADVISORS NICK KASSAB Director 503.265.5083 nkassab@hfflp.com LOGAN GREER Real Estate Analyst 503.265.5096 lgreer@hfflp.com DEBT ADVISOR ERICA CHRISTENSEN Associate Director 503.417.5586 echristensen@hfflp.com TE RIVER 5 405 DOWNTOWN PORTLAND WASHINGTON OREGON 287 PORTLAND INTERNATIONAL AIRPORT 84 14 205 COLUMBIA RIVER GRESHAM 2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any TROUTDALE AIRPORT and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 84