Jantzen Beach CenterP ortland, Oregon Nick Kassab, a licensed real estate broker in the state of Oregon, along with Holliday Fenoglio Fowler, L.P. (collectively HFF ).
2 THE OFFERING Jantzen Beach is a Rare Core Retail Opportunity of Size and Scale in the Pacific Northwest HFF, as exclusive advisor, is pleased to present the rare and exciting opportunity to acquire the 100% fee simple interest in Jantzen Beach Center (the property or Jantzen Beach ), one of the largest retail centers in the State of Oregon. Jantzen Beach is the dominant shopping destination in Portland with a strong lineup of investment grade tenants, anchored by Target and Home Depot. Strategically located on the Oregon-Washington border, Jantzen Beach benefits from a burgeoning primary trade area that stretches +10 miles from the Portland CBD to Hazel Dell, drawing sales tax sensitive shoppers from the 9% sales tax state of Washington across the border to the no sales tax state of Oregon. Available for the first time since 1997, Jantzen Beach provides an investor the opportunity to acquire well-known and high-quality retail with scale in the Pacific Northwest. The Center presents a strong national retail mix, little competition, and significant leasing upside. PROPERTY SUMMARY 758,414 SF RENTABLE SQUARE FEET 4.3 per 1,000 PARKING RATIO 94% OCCUPIED 8.42 Years WEIGHTED AVERAGE LEASE TERM 1972/2011 YEAR BUILT/RENOVATED 97% LEASED TO NATIONAL RETAILERS 1405 Jantzen Beach Center Portland, OR 97217 PROPERTY ADDRESS 66.793 Acres LAND SIZE +$7 Million NOI
3 NATIONAL CREDIT 48% of Jantzen Beach s rentable square footage is leased to investment grade retailers with S&P ratings of BBB- or better. 75% of the Center s rentable square footage is leased to rated tenants. 97% of the Center s rentable square footage is leased to retailers with a national presence. S&P: B- S&P: BB+ S&P: A+ S&P: A S&P: A+ S&P: A- S&P: BBB- S&P: A S&P: A S&P: BB- S&P: A+ 5 128,400 Vehicles Per Day
4 JANTZEN BEACH CENTER PAST, PRESENT, & FUTURE FULLY REDEVELOPED RETAIL CENTER Over $40 million was invested in the Center to reestablish it as a dominant regional location. The interior mall was demolished and replaced with external facing shops and new architecture, opening up site lines, increasing efficiencies and activating the center. In conjunction with the redevelopment, TJ Maxx, DSW, HomeGoods, ULTA and Sierra Trading Post were added to complement the existing line up of national tenants. Finally, Target relocated from a dated twostory format into a prototype on a new pad location, solidifying their location through a new long term lease. This meticulous redevelopment delivered a brand-new core regional retail center, limiting future capital needs. BEFORE AFTER +$40 Million Overhaul BEFORE AFTER BEFORE AFTER
INVESTMENT HIGHLIGHTS 5 INVESTMENT SUMMARY Strong National Tenant Mix Irreplaceable Real Estate Limited Competition in Surrounding Area Vast Trade Area Stretching from Portland CBD to Hazel Dell Future Pad Development Potential Dominant Commuter- Oriented Location 2.60% CAGR Value Enhancement Opportunities through Addition of QSR, Grocer and/or Experiential Retail Upside Potential through Addition of Tesla Supercharger Station
NORTH CENTER AVENUE 6 SYNERGISTIC TENANT MIX Jantzen Beach benefits from an impressive list of high quality retailers with unparalleled synergies and great credit. The Center allows shoppers to comfortably extend their daily needs shopping to satisfy most retail and restaurant needs, a one-stop retail destination. A B C D E F G H I J K L M N O P Q R S T U V A B C D E F G H I J K L M N O P Q R S T U V 48% Investment Grade 75% Rated Tenants 97% National Retailers 6 6 7 7 8 8 9 9 10 10 1 2 3 4 5 11 12 13 14 15 1 2 3 4 5 11 12 13 14 15 1836 Retail ± 15,461 1838A 1838B 1840 1 2 1800 ± 65,881 Available 1798 ± 28,653 Pad Space Pad Space 1772 ± 42,967 N. STARLIGHT AVE. N. STARLIGHT AVE. 1766 1764 ± 22,609 SF ± 17,788 SF N. STARLIGHT AVE. N. STARLIGHT AVE. 1736D 1736C ± 107,011 sf 1760 ± 24,409 1752 ± 13,405 Total Building 1736B Area = ± 29,963 sf 1728 1736A 1730 R oss Expansion Area ± 4,000 SF 1744 ± 25,685 SF 140' 178' N. PAVILION AVE. N. PAVILION AVE. Future R estaurant 1 ± 6,000sf Future R estaurant 2 ± 6,000sf 1400 Total Building Area = ± 138,760 SF (10/12) 110.66' 205' Tenant Space ± 12,056 sf Retail ± 9,000 sf 90.66' ± 10,000 sf INTERNAL ACCESSWAY 75.66' L oading & Service 110' Dia. Truck Turn (Stock Room ± 20,463 SF) 1060 1110 254' L oading & Service ± 200' A B C D E F G H I J K L M N O P Q R S T U V N. PAVILION AVE. N. PAVILION AVE. Luxury Nail Bar NORTH HAYDEN ISLAND DRIVE (75' R.O.W.) INTERNAL ACCESSWAY NORTH TOMAHAWK ISLAND DRIVE (70' R.O.W.) L oading & Service ± 70,498 sf 1150 ± 25,000 sf ± 25,600 sf NORTH JANTZEN AVE A B C D E F G H I J K L M N O P Q R S T U V 2 1 1210 1000 990 980 970 930 920 910 900 1030 1200 1090 ± 125' 100 70' Shops 1165 ± 4,760 sf70 7,000 SF 167' 1180 1140 68' 150' N. N. PARKER PARKER AVE. AVE. N. PARKER AVE. N. PARKER AVE. 1400B NORTH CENTER AVENUE NORTH CENTER AVENUE 1440 ± 8,750sf 1450 PROPOSED BUS STOP Future 6,000 SF R estaurant Pad PRIM ENTRA PROPOSED BUS STOP DATE DATE PROJECT PROJECT # # 4-15-14 7-18-12 --- --- SHEET NO. DRAWN DRAWN BY BY SCALE SCALE Concept Site Plan Plan Jantzen Beach Beach SHEET NO. 2Z
7 PERFECTING THE CORE EXIT Jantzen Beach offers investors significant value creation opportunity through the strategies listed below. SIGNIFICANT MARK TO MARKET OPPORTUNITY Burlington Coat Factory currently occupies a 70,501 SF box and is paying a third of market rent. Burlington Coat Factory s expiration in 2022 provides a significant opportunity to energize the south end of the Center by: TESLA SUPERCHARGER STATION Placing a Tesla Supercharger Station on the undeveloped pad site between Burlington Coat Factory and Home Depot could generate 2,000 to 3,000 additional visits per month to the Center. DEVELOP PAD SITES Investors will have the opportunity to develop additional pad sites to further grow NOI and increase tenant synergy within the Center. Adding an experiential retail Acomponent to the Center. OR Backfilling the space with a national brand grocer to attract more visitors and transform Jantzen Beach into a one-stop Bshop lifestyle center. OR QUICK SERVICE RETAIL Backfilling smaller in-line spaces with popular quick service restaurants will help increase foot traffic and further activate the Center. Increasing Burlington Coat CFactory s rent 3x to 4x. 5
8 VAST TRADE AREA WITH LITTLE COMPETITION Jantzen Beach Center is the dominant shopping destination in Portland. The Center maintains a primary 10-mile radius trade area that stretches from the Portland CBD up into Washington State. Located on the Oregon-Washington border, the Center pulls customers from the 9% sales tax state of Washington into Oregon (no sales tax). It is estimated nearly $1.2 billion in taxable retail sales are lost in Clark County due to cross-the-border tax evasion each year. Jantzen Beach s secondary trade area uniquely extends 70-miles to Centralia, WA, drawing high-end good consumers shopping for TVs and laptops as well as bulk acquisitions like back-toschool shopping. LAKE 205 HAZEL DELL TOWNE CENTER Demographics 10-Mile Trade Area Current Population 907,970 Current Households 383,233 SAUVIE ISLAND VANCOUVER LAKE Jantzen Beach Center VANCOUVER MALL 2022 Projected Households 409,578 2022 Projected Population Growth Rate 6.46% 2017 Est. Median Age 38.5 2017 Est. Average Household Income $86,436 500 VANCOUVER PLAZA COLUMBIA RIVER VANCOUVER 205 10-MILE PRIMARY TRADE AREA 5 DELTA PARK CENTER 30 WILLAMETTE RIVER WASHINGTON OREGON 14 COLUMBIA RIVER 287 CASCADE STATION PORTLAND INTERNATIONAL AIRPORT TROUTDALE AIRPORT 405 LLOYD CENTER 84 LLSBORO 26 DOWNTOWN PORTLAND PIONEER PLACE 84 205 CLACKAMAS PROMENADE & CLACKAMAS STATION GRESHAM GRESHAM STATION SHOPPING CENTER BEAVERTON 26
9 DOMINANT COMMUTER- ORIENTED LOCATION WITH STRONG VISIBILITY Jantzen Beach is strategically located adjacent to I-5, on the Oregon- Washington border. The Center profits from excellent ingress/ egress with multiple access points and features more than 1,300 linear feet of frontage along I-5, providing unmatched prominence over competing centers in the trade area. LITTLE TO NO CO-TENANCY CONCERNS With Target s ground lease payments amounting to $50,000 per year with fixed options through 2073, the likelihood of Target ceasing operation is slim to none. With most tenants co-tenancy provisions hinging on Target s operation, the Center presents little co-tenancy exposure IRREPLACEABLE REAL ESTATE Due to its scale and dominant location, the Center cannot be replicated within the Portland MSA. There are no comparable sites within the Portland MSA. STRONG 2.60% CAGR Over the 10-year hold, the Center s NOI grows at a compounded annual growth rate of 2.60%. This growth is driven by marking tenants to market, leasing vacant spaces, pad site development and contractual bumps.
INVESTMENT SALES ADVISORS NICK KASSAB Director 503.265.5083 nkassab@hfflp.com NICK KUCHA Senior Managing Director 503.417.5585 nkucha@hfflp.com BRYAN LEY Managing Director 310.407.2120 bley@hfflp.com JAMES CHILDRESS Associate 503.417.5582 jchildress@hfflp.com LOGAN GREER Associate 503.265.5096 lgreer@hfflp.com JEFF HODSON Real Estate Analyst 503.417.5596 jhodson@hfflp.com KEVIN FREELS Real Estate Analyst 503.417.5583 kfreels@hfflp.com FINANCING ADVISOR CASEY DAVIDSON Managing Director 503.224.5566 cdavidson@hfflp.com 2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 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 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.