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SUM-MARY
LAKEWOOD SQUARE RETAIL CENTER
OFFERING MEMORANDUM
6010 Mount Tacoma Drive SW Lakewood, WA 98499
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N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from
Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has
been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no
warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and
square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal
regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions
to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;
however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential
buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc.
© 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any
corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates
or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information
about this listing to prospective customers.
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y.
OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
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OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
CHRISTOPHER R. SECRETO MARY KATE TORMEYSenior Vice President Investments Marketing Coordinator
Office: (206) 826-5748 Office: (206) 826-5760Cell: (206) 612-4399 Cell: (509) 954-6179
[email protected] [email protected]: WA 24660, ID SP 38004
LAKEWOOD SQUARE RETAIL CENTER
O F F E R E D B Y:
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LAKEWOOD SQUARE RETAIL CENTER
EXECUTIVESUMMARY
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INVESTMENTOVERVIEW
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LAKEWOOD SQUARE RETAIL CENTER
EXECUTIVE SUMMARY
6010 Mount Tacoma Drive SWLakewood, WA 98499
Rentable Square Feet 53,717
Number of Suites 12
Lot Size (Approximately) 4.05 AC
Year Built / Renovated / Expanded 1957 / 1964 / 1976 / 1978
PRICE: $4,750,000CAP RATE: 6.75%
Net Operating Income $320,843
Price per NRSF $88.43
Cash-on-Cash Return 6.15%
Cap Rate @ 90% Occupancy 8.46%
Cash-on-Cash Return @ 90% Occupancy 11.84%
Vital Data
Loan Amount $3,325,000
Interest Rate 5.00%
Amortization (Yrs) 25
Monthly Payment $19,437.62
DCSR 1.38
Financing Summary
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LAKEWOOD SQUARE RETAIL CENTER
SUMMARY OF TERMS Fee simple interest in Lakewood Square Retail Center, a 53,717 square-foot retail center located in Lakewood, WA.
TERMS OF THE SALELakewood Square Retail Center is offered at $4,750,000
based on a capitalization rate of 6.75%. The net operating income figures for the Property assume a fiscal year
starting September 1, 2018. Seller will respond to offers on a first-come, first-serve basis.
PROPERTY TOURS Seller desires to limit property tours. Property tours must be arranged with the Marcus & Millichap listing agents.
Please do not contact the tenants, on-site management or staff without prior approval.
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LAKEWOOD SQUARE RETAIL CENTER
Marcus & Millichap is pleased to offer for sale Lakewood Square Retail Center located in Lakewood, WA. The Property is offered at $4,750,000.
The Property is offered at a 6.75% cap rate against current income and expenses. At $88.43 per square foot, the Property is offered below replacement cost.
The Property consists of 53,717 square feet of leasable area of retail, office and warehouse space combined. It is comprised of three retail buildings, one flex warehouse/office building and one coffee kiosk building and is currently configured into 12 tenant suites.
The site is 4.05 acres and is accessible from Bridgeport Way, 59th Avenue SW, Mt Tacoma Drive SW and Lake Grove Street SW. It is in the Central Business District zoning district of Lakewood which is the primary retail, office, social, urban residential and government center of the City.
Current tenants include Goodwill Industries with a retail store and donation center who has been a tenant since 2004. The remaining tenants are primarily local small retail businesses.
The Property is 72% occupied by square feet. Tenants pay monthly rent plus reimbursements to the landlord for common area expenses including pro rata real estate taxes, insurance, utilities, landscaping, maintenance, HVAC and property
management.
Built in the 1960s, the buildings are single-story, wood-frame structures on
concrete slabs. Roofs are flat with primarily hot-tar protective membrane roofing
system. The three retail buildings are serviced by roof-top HVAC packs.
INVESTMENT OVERVIEW The site is fully-paved with asphalt. There are approximately 150
striped parking stalls making 3 stalls per 1,000 square feet of space.
The main retail building occupied by Goodwill is fire protected with
a fire sprinkler system as is the vacant suite adjacent to it. The
remaining buildings are protected with fire extinguishers.
The Property would appeal to an experienced retail investor who could
rehab, re-position and re-lease the space at higher average rents.
It would also appeal to a developer seeking a TOD opportunity. The
Property is located along main transit corridors near bus lines. It is
also within short walking distance to other residential and commercial
development and employment centers making it an attractive potential
mixed-use development.
• Multi-Tenant Retail Offering• Potential Transit Oriented Development (TOD)• Located in the Central Business District within the City of
Lakewood• Over 4 Acres Near the Intersection of Bridgeport Way and
Gravelly Lake Drive• Goodwill is the Anchor Tenant• 72% Occupied by GLA• Offered at $88 per SF• Value-Add Opportunity for Rehab, Re-Positioning, Re-Leasing • Seattle/Tacoma is the 14th Largest MSA with 3.8 Million Area
Residents
Highlights
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LAKEWOOD SQUARE RETAIL CENTER
PROPERTY INFRASTRUCTURE
FOUNDATIONCONCRETE
FRAMINGWOOD
EXTERIOR WALLS
WOOD PARKING
APPROX. 150 ROOF
FLAT, HOT TAR
Property Lakewood Square Retail Center
Property Address 6010 Mount Tacoma Drive SW, Lakewood, WA, 98499
Assessor’s Parcel #(s) 0219022226, 0219022077
Zoning
GLA 53,717
Type of Ownership Fee Simple
Number of Buildings 3 Retail, 1 Warehouse and 1 Coffee Kiosk
Number of Suites 12
Number of Stories 1
Street Frontage Bridgeport Way
Cross Street Mount Tacoma Dr
Land for Additional Development No
Climate Control HVAC
Fire Protection Main Bldg - Sprinklered, Other Bldgs - Fire Extinguishers
Elevators None
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LAKEWOOD SQUARE RETAIL CENTER
MT TACOMA DR SW
GRAVELLY LAKE DR SW
2017 5-MILE POPULATIONOVER 220,000
AERIAL MAP
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S U B J E CTTOTAL SITE SF : 176,221
18,276 CARS PER DAY
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TENANT MAP
G = Goodwill
P = Life Northwest
V = Vacant
Warehouse = Classic Reflection Coachworks
Balloon Masters
A / B = Musead Gaid
C / D = Issac Ethers
Coffee = Anna Eskins
E = Vacant
F = Issac Ethers
Vacant
A / B / C / D / E / F
(Apartment Building Coming Soon)
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LAKEWOOD SQUARE RETAIL CENTER
PROPERTY PHOTOS
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FINANCIALANALYSIS
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LAKEWOOD SQUARE RETAIL CENTER
RENT ROLL
UNIT TENANT UNIT SIZE
PRO RATA SHARE
BASE RENT RENT/SF ESTATE TAXES
INSURANCE CAM TOTAL REIMB.
REIMB. / SF
EFFECTIVE TOTAL RENT
MONTHLY RENT/SF
ANNUAL RENT/SF
RENT ESCALATION
START DATE
EXPIRATION DATE
A / B Musaed Gaid2,400 4.47% $1,950.00 $0.81 $0.00 $0.00 $364.50 $364.50 $0.15 $2,314.50 $0.96 $11.57 W 2/1/2017 2/28/2022
C / D Salon Mairead2,340 4.36% $1,867.00 $0.80 $0.00 $0.00 $496.67 $496.67 $0.21 $2,363.67 $1.01 $12.12 11/1/2018 11/1/2017 11/30/2022
Coffee Anna Eskins250 0.47% $1,750.00 $7.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,750.00 $7.00 $84.00 7/5/2016 7/31/2021
E Vacant5,054 9.41% $3,850.00 $0.76 $0.00 $0.00 $0.00 $0.00 $0.00 $3,850.00 $0.76 $9.14
F Isaac Gethers4,200 7.82% $4,200.00 $1.00 $0.00 $0.00 $1,088.75 $1,088.75 $0.26 $5,288.75 $1.26 $15.11 6/7/2016 6/30/2019
G Goodwill20,817 38.75% $21,888.14 $1.05 $0.00 $0.00 $4,900.00 $4,900.00 $0.24 $26,788.14 $1.29 $15.44 7/1/2004 6/30/2019
P Life Northwest1,696 3.16% $1,200.00 $0.71 $0.00 $0.00 $342.00 $342.00 $0.20 $1,542.00 $0.91 $10.91 12/31/2018
V Vacant9,760 18.17% $5,500.00 $0.56 $0.00 $0.00 $0.00 $0.00 $0.00 $5,500.00 $0.56 $6.76
Warehouse Classic 3,600 6.70% $750.00 $0.21 $0.00 $0.00 $0.00 $0.00 $0.00 $750.00 $0.21 $2.50 4/1/2009 MTM
Balloon Masters3,600 6.70% $935.43 $0.26 $0.00 $0.00 $280.00 $280.00 $0.08 $1,215.43 $0.34 $4.05 8/1/2014 MTM
12 53,717 100% $43,890.57 $0.00 $0.00 $7,471.92 $7,471.92 $0.14 $51,362.49 $0.96 $11.47
Expense (CAM) Recapture
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LAKEWOOD SQUARE RETAIL CENTER
OPERATING STATEMENTS
Income Current Analysis Pro Forma Analysis
Gross Potential Rent $526,687 $526,687
Less Vacancy Deductions $112,184 $52,669
Other Income $95,000 $120,000
Effective Gross Income $509,503 $594,018
Operating Expenses $188,660 $192,040
Net Operating Income $320,843 $401,978
Annualized Operating Data
Expenses Current Analysis Pro Forma Analysis
General & Administrative $5,000 $5,000
Insurance $17,000 $17,000
Management/Legal/Accounting $20,380 $23,761
Repairs & Maintenance / Supplies $53,717 $53,717
Property Taxes $60,563 $60,563
Utilities $32,000 $32,000
Total Operating Expenses $188,660 $192,040
Operating Expenses
Income
1. Current Effective Gross Income (EGI) based on 21% actual economic vacancy as of July 1, 2018. Gross Potential Rent based on Unit Mix and Asking Rents Effective July 1, 2018.
3. Pro Forma rental income based on 12-month forward lease flow.
4. Pro Forma rental income based on 10% economic vacancy.
Expenses
1. G&A budgeted at $5,000 per year.
2. Insurance based on 2017 actuals.
3. Management fee = 4% of EGI.
4. R&M and supplies budgeted at $1.00 per NRSF.
5. 2019 Assessed Value = $4,564,300. Real estate taxes adjusted upon sale to 85% of list
price x 1.5%.
6. Utilities based on 2016-2018 actuals.
2. 2017 Actual EGI = $503,861
2016 Actual EGI = $429,924
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SALES COMPARABLES
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LAKEWOOD SQUARE RETAIL CENTER
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I N S E R T R E N T C O M PA R A B L E S M A P H E R E
L A K E W O O D S Q U A R E
R E T A I L C E N T E R
SALES COMPARABLES MAP
L A K E W O O D S Q U A R E R E T A I L C E N T E R 6010 Mount Tacoma Drive // Lakewood, WA 98499
OUTBACK PLAZA 3121 S 38th St reet - Bu i ld ing B / / Tacoma, WA 98409
JAMES CENTER NORTH 1610 - 1618 S Mi ldred St reet / / Tacoma, WA 98465
PACIFIC AVENUE CENTER9820 - 9830 Pac i f ic Avenue / / Tacoma, WA 98444
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L A K E W O O D S Q U A R E R E T A I L C E N T E R 6010 Mount Tacoma Drive // Lakewood, WA 98499
List Price $4,750,000
Year Built / Expanded / Renovated 1957 / 1964 / 1976 / 1978
NRSF 53,717
Price per SF $88.43
Cap Rate 6.75%
LAKEWOOD SQUARE RETAIL CENTER
OUTBACK PLAZA 3121 S 38th St reet - Bu i ld ing B / / Tacoma, WA 98409
Sale Price $5,250,000
Sale Date June 2018
Year Built 1972
NRSF 46,246
Price per SF $113.52
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LAKEWOOD SQUARE RETAIL CENTER
JAMES CENTER NORTH 1610 - 1618 S Mi ldred St reet / / Tacoma, WA 98465
Sale Price $5,950,000
Sale Date October 2017
Year Built 1986
NRSF 61,033
Price per SF $97.49
2 PACIFIC AVENUE CENTER9820 - 9830 Pac i f ic Avenue / / Tacoma, WA 98444
Sale Price $5,600,000
Sale Date February 2018
Year Built 1966
NRSF 40,546
Price per SF $138.11
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LAKEWOOD SQUARE RETAIL CENTER
MARKETOVERVIEW
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DEMOGRAPHICS
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The Property is located in Lakewood, WA, which had a population of approximately 58,163 at the 2010 U.S. Census.
Lakewood is located just 9 miles southwest of Tacoma, 22 miles northeast of the state capitol Olympia and 40 miles southwest of Seattle. It is also 34 miles southwest of the Seattle-Tacoma International Airport.
Lakewood is in Pierce County and a part of the Seattle-Tacoma-Bellevue Metropolitan Statistical Area, which is the 14th largest MSA in the United States, with slightly more than half of Washington’s population. Pierce County is the second-most populous county in Washington behind King County. Pierce County is notable for being home to Mount Rainier, the tallest mountain peak in the Cascade Range.
Education, healthcare and government are the biggest industries in Pierce County, which also benefits from its economic ties to King County. For instance, Amazon recently opened fulfillment centers in Pierce County cities Dupont and Sumner, creating hundreds of jobs for the area.
Lakewood’s economy is dependent on the military bases in the area. Joint Base Lewis-McChord, a U.S. military installation, sits just 3.6 miles outside of Lakewood. JBLM is the largest joint base on the West Coast and one of the largest in the U.S. It has also remained the largest employer in Pierce County for several years.
The city of Lakewood was only just officially incorporated in 1996. Throughout the 20th century, Lakewood took on an identity of its own, with the addition of Joint Base Lewis-McChord, hospitals, its own fire district and other amenities. When the city was officially incorporated in the late 1990s, it was the seventh largest city in the state and the second largest in Pierce County. A rich history and historic treasures, several beautiful lakes, proximity to other major Washington cities and a diverse community make Lakewood stand out as an attractive place to visit and live.
Throughout the 20th century, Lakewood continued to take on an identity of its
LOCATION OVERVIEW
Historic Lakewood Treasure: Famous Thornewood Castle
Tacoma Golf & Country Club | 1st Golf Club West of the Mississippi
Joint Base Lewis McChord - Largest Employer in Pierce County
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The Seattle-Tacoma MSA is ranked in the top 14 by size with over 3.8 million residents. It is home to the world headquarters of Fortune 500 companies such as Amazon, Microsoft, Costco, Starbucks, Nordstrom, Weyerhaeuser, Paccar and Expeditors International. The majority of The Boeing Company’s operations are still based in Seattle even though its HQ was moved to Chicago in 2001.
Seattle is benefiting from surging economic and employment growth, a highly-educated workforce, growing population and increasing international trade. As a key international shipping and transportation hub, Seattle plays an important role in world trade.
Throughout the 20th century, Lakewood continued to take on an identity of its own, with the addition of Joint Base Lewis-McChord, hospitals, its own fire district and other amenities. The subject property sits in an area that was incorporated in 1958 as the Villa Plaza Shopping Center. It was later redeveloped in 1989, and again in 2001 to make way for the Lakewood Towne Center as it is today. When the city was officially incorporated in the late 1990s, it was the seventh largest city in the state and the second largest in Pierce County. A rich history and historic treasures, several beautiful lakes, proximity to other major Washington cities and a diverse community make Lakewood stand out as an attractive place to visit and live.
SEATTLE-TACOMA MSA
TOTAL MSA POPULATION
3,867,046
14th LARGEST MSA IN
THE UNITED STATES
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LAKEWOOD SQUARE RETAIL CENTER
AREA TRADE MAP
L A K E W O O D T O W N E C E N T E R
GRAVELLY LAKE DR SW
S T E I L A C O O M L A K E
S U B J E C T
L A K E W O O D H I S T O R I C A L S O C I E T Y
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LAKEWOOD SQUARE RETAIL CENTER
DEMOGRAPHICS
LAKEWOOD, WA
5-MILE LOCAL DEMOGRAPHIC HIGHLIGHTS
POPULATION GROWTHSINCE 2000
9.1%
TOTAL POPULATION
221,652 $66,911
AVG. HOUSEHOLD INCOME
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LAKEWOOD SQUARE RETAIL CENTER
DEMOGRAPHICS
DEMOGRAPHICSPOPULATION PROFILE 1 M i le 3 M i les 5 M i les
Population By Age
12.70 to 4 Years 8.7% 8.1% 7.7%
5 to 14 Years 11.5% 12.7% 12.7%
15 to 19 Years 4.9% 5.4% 5.8%
20 to 24 Years 8.6% 8.5% 8.8%
25 to 34 Years 18.5% 17.5% 17.2%
35 to 44 Years 11.0% 11.1% 11.6%
45 to 54 Years 11.6% 11.6% 11.9%
55 to 64 Years 11.7% 11.6% 11.4%
65 to 74 Years 7.2% 7.5% 7.2%
75 to 84 Years 4.6% 4.3% 4.0%
Age 85+ 1.7% 1.7% 1.7%
Median Age 33.5 33.5 33.5
Population 25+ by Education Level
2017 Estimate Population Age 25+ 7,841 62,321 144,005
Elementary (0-8) 1.0% 2.8% 2.6%
Some High School (9-11) 7.0% 7.5% 7.9%
High School Graduate (12) 26.4% 28.4% 29.5%
Some College (13-15) 32.5% 26.8% 26.9%
Associate Degree Only 10.1% 10.6% 10.5%
Bachelors Degree Only 14.6% 15.2% 14.4%
Graduate Degree 6.9% 7.2% 7.0%
No Schooling Completed 1.5% 1.4% 1.2%
POPULATION 1 M i le 3 M i les 5 M i les
2022 Projection 11,306 95,291 223,530
2017 Estimate 11,282 95,387 221,652
2010 Census 10,718 91,309 211,224
2000 Census 10,757 90,723 203,052
TOTAL HOUSEHOLDS 1 M i le 3 M i les 5 M i les
2022 Projection 4,925 38,824 88,765
2017 Estimate 4,837 38,045 85,205
2010 Census 4,587 36,429 82,139
2000 Census 4,639 35,739 78,835
HOUSEHOLDS BY INCOME 1 M i le 3 M i les 5 M i les
2017 Estimate
$0 - $15,000 13.1% 12.8% 12.4%
$15,000 - $24,999 9.6% 10.9% 10.5%
$25,000 - $34,999 14.1% 11.6% 11.3%
$35,000 - $49,999 16.4% 14.8% 15.1%
$50,000 - $74,999 23.1% 19.8% 20.4%
$75,000 - $99,999 12.1% 12.8% 12.9%
$100,000 - $149,999 8.1% 11.0% 11.6%
$150,000 + 3.7% 6.3% 5.8%
Average Household Income $60,855 $67,623 $66,911
Median Household Income $45,957 $49,961 $50,797
Per Capita Income $26,169 $27,266 $26,372
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OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
CHRISTOPHER R. SECRETO MARY KATE TORMEYSenior Vice President Investments Marketing Coordinator
Office: (206) 826-5748 Office: (206) 826-5760Cell: (206) 612-4399 Cell: (509) 954-6179
[email protected] [email protected]: WA 24660, ID SP 38004
O F F E R E D B Y:
LAKEWOOD SQUARE RETAIL CENTER