offering tumwater center memorandum multi-tenant …

TUMWATER CENTEROFFERING MEMORANDUM

Multi-Tenant Retail Center in Olympia MSA, WA

Table of Contents

Contact Information

The 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

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. Kidder Mathews 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, current or past tax payments, 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Terry [email protected]

Rebecca Liddell, CCIM

[email protected]

Ryan O’[email protected]

kiddermathews.com

Property OverviewInvestment Summary

Quick Stats

Property Summary

Site Plan

Tenant Profiles

Recent Property Upgrades

Aerial Map

Nearby Retailers

Financial AnalysisIncome Capitalization

Rent Roll

Financial Quote

Area OverviewRegional Map

Location Overview

TUMWATER CENTER

01

02

03

Kidder Mathews | Offering Memorandum 3

Tumwater Center

Investment Summary

Offering Price $3,350,000

Cap Rate 6.57%

Price Per SF $276

NOI $219,944

Size 12,120 SF

100% Leased, NNN Investment

with annual escalations

HIGHLIGHTS

This highly visible and well-maintained 12,120 SF retail center across from Home Depot, Costco, WalMart and Fred Meyer is 100% leased and strategically positioned on a corner lot with access points from a signalized intersection along Littlerock Road. Just a short distance to Interstate 5 on and off ramps, and just a few minutes from the state capitol, major area employers, and one of the largest air force bases in the nation.

STRONG CREDIT TENANTS

Fully leased with a mix of nationally recognized, strong-credit tenants and long-term neighborhood owner/operator tenants for diversity of foot traffic and stability in the center. Mattress Firm has been at this location since original construction in 2004. The property generates an additional $5,562 annually with CPI escalations on a long-term parking lot lease to Twinstar Community Credit Union.

FULLY LEASED, NNN INVESTMENT

Passive income property with minimal Landlord responsibility. Stable operating income, recently signed leases and built-in escalations. Should Best Buffet, a month to month tenant, vacate, their large suite can be demised and leased at higher rates.

PROVEN LOCATION & PATH OF GROWTH

Tumwater Center’s proven location is strategically located along Littlerock Road, which sees an average of 15,500 vehicles per day. As an outlet from the I-5 Trosper Road Exit, and part of the dense retail landscape nearby, the site has excellent access and exposure to the area.


QUICK STATS

Tumwater Center

NOI: $219,944

2004 construction

48.13%

13.2%

38.37%

Specialty

Goods & Services

Restaurant

BuildingArea

12,120 SF

Annual Rent Escalations

Close to large national retailers

Urban Growth

Boundary

100% Leased

High Traffic Area &

Signalized Corner

TumwaterCenter

TENANT MIX


Tumwater Center

DEMOGRAPHICS

$AVERAGE

HH INCOME

$90,101

HOUSEHOLDS

17,140

ESTIMATED POPULATION

41,2303 mile radius

Property Address 5765 Littlerock Rd SW Tumwater, WA

Property Type Multi-Tenant Retail Strip

Year Built 2004

Building Size 12,120 SF

Land Area 55,321 SF (1.27 AC)

Floors One (1)

Occupancy 100%

Construction Metal and block - stone facade

Parking 5.07:1,000 surface spaces

Zoning GC, General Commercial

Parcel Number 8062-00-00200

PROPERTY SUMMARY


Tumwater Center

BEST BUFFET

SITE PLAN


TENANT PROFILES

Tumwater Center

Pizza Hut has been a staple American restaurant chain since 1958. With over 16,000 locations worldwide, in 2015 recently was acquired by one of the world’s largest restaurant companies, Yum! Brands, sharing the stage with fast-food heavy hitters such as KFC and Taco Bell.

Several rebrands since inception including expanding its dine-in restaurant format to fast-food, and delivery formats has made Pizza Hut a household name.

TENANT SINCE: 2012

GLA 11%

Cricket Wireless is a subsidiary of AT&T, acquired in 2013, as a prepaid wireless alternative to traditional cellular service companies.

Since inception, the wireless carrier has consistently expanded its presence to new cities, expanded service coverage areas, released brand-specific versions of popular devices including the Apple iPhone, and has become increasingly recognizable through creative marketing campaigns.

TENANT SINCE: 2016

GLA 11%

Games Workshop specializes in table-top fantasy games and figurines, primarily focused on Warhammer, a 28-year old battle game legendary among fantasy game hobbyists and featured in The Guardian online. It was awarded by reviewers 4 out of 5 stars and touted as being “an absorbing evening of combat.”

TENANT SINCE: 2017

GLA 13%

Family friendly Chinese buffet offering a rich selection of classic Chinese dishes and modern interpretations at a value-focused price for both lunch and dinner.

TENANT SINCE: 2004

GLA 37%

Based in Houston, Texas, Mattress Firm has the largest geographic footprint among multi-brand mattress retailers with 3,500+ stores nationwide.

This publicly traded company (NASDAQ: MFRM) includes Sleep Train and Sleepy’s, reported over 3.5 billion dollars in sales in 2015.

TENANT SINCE: 2004

GLA 27%

BEST BUFFET


RECENT PROPERTY UPGRADES

Tumwater Center

NEW HVAC

ROOF UPGRADES

LANDSCAPING UPGRADES

CROSS-PARKING EASEMENT

NEW LIGHTING FIXTURES

RECENTLY SIGNED LEASESGames Workshop, Cricket


Tumwater Center

Littlerock Rd SW

TUMWATER CENTER

MILLS & MILLS FUNERAL HOME

PELEGRINO EVENT CENTER

AERIAL MAP


NEARBY RETAILERS

Tumwater Center

85,000+ DAILY

FALLS POINTE APARTMENTS TUMWATER HIGH

SCHOOL

TUMWATER MIDDLE SCHOOL

ALIPINE VILLAGE APARTMENTS

VILLAS AT KENNEDY CREEK

Littlerock Rd SW

15,500+ DAILY

TUMWATER CENTER

OLYMPIA - 2.5 MILES

Tro

sper

Rd

SW

23,9

75+

DA

ILY


Tumwater CenterFINANCIAL ANALYSIS - Income Capitalization

CURRENT INCOME $/SF Annual

Gross Rental Income $19.16 $232,268

TwinStar Credit Union Parking Lease $5,562

Expense Reimbursements $4.89 $59,296

TOTAL INCOME $24.52 $297,126

Vacancy Factor @ 5% ($1.23) ($14,856)

EFFECTIVE GROSS INCOME $23.29 $282,269

OPERATING EXPENSES $/SF Annual

Property Tax $2.23 $27,017

Insurance $0.24 $2,941

Utilities $0.97 $11,811

Repairs & Maintenance $0.63 $7,647

Management Fee (3.5% EGI) $0.82 $9,879

Reserves for Replacement $0.25 $3,030

TOTAL OPERATING EXPENSES $5.14 $62,326

NET OPERATING INCOME $18.15 $219,944

CAP RATE 6.57%

ASKING PRICE: $3,350,000


RENT ROLL

Tenant Suite Lease Start Lease Expire SF % of Bldg Monthly RentTotal Annual Base Rent

$/SF/YR, NNN

Mattress Firm 103 Jun-04 Jun-19 3,290 27% $6,561 $78,727 $23.93

Games Workshop (dba Warhammer)

105 Jun-17 Sep-22 1,600 13% $2,533 $30,396 $19.00

Cricket Wireless 107 Oct-16 Apr-22 1,360 11% $2,267 $27,200 $20.00

Pizza Hut 109 May-12 May-21 1,370 11% $2,245 $26,945 $19.67

Best Buffet 113 MTM MTM 4,500 37% $5,750 $69,000 $15.33

Totals 12,120 100% $19,356 $232,268 $19.16

Tumwater CenterFINANCIAL ANALYSIS


Tumwater CenterFINANCIAL QUOTE

PRICE $3,350,000

Down Payment $1,172,500

Loan Amount $2,177,500

Interest Rate 5.15%

Amortization 25 years

Term 10 years

Loan to Value 65%

Annual Debt Service $155,046

Cash on Cash 5.54%

LOAN QUOTE

PROVIDED BY

Glenn Gioseffi Vice President

Debt & Equity Finance [email protected]

206.398.2291


REGIONAL MAP

Tumwater Center

1 MILE 3 MILES 5 MILES

2017 7,015 41,230 104,701

2022 7,408 43,910 111,312

POPULATION


2017 $68,463 $90,101 $84,619

2022 $76,707 $101,889 $96,060

AVERAGE HOUSEHOLD INCOME


2017 3,255 17,140 44,568

2022 3,436 18,198 47,269

HOUSEHOLDS

$

5 Miles

3 Miles

1 Mile

TUMWATER CENTER

TROSPER LAKE PARK

OLYMPIA REGIONAL AIRPORT

THE EVERGREEN STATE COLLEGE

WASHINGTON STATE CAPITOL CAMPUS

Olympia

Portland - 1.5 hours south

Seattle - 1 hour north

Lacey

Tumwater


Tumwater CenterLOCATION OVERVIEW The city of Tumwater is conveniently positioned at the junction of I-5 and Highway 101, connecting the heavily trafficked corridor of I-5 and Washington’s westernmost cities such as Aberdeen, Ocean Shores, and Port Angeles, as well as the gateway to Olympic National Forest, famous for its scenic hiking, camping, and unique and protected rainforests. The two major corridors see a combined average of 157,000 vehicles per day.

Just 2.5 miles south of the Washington state capitol, and 20 minutes from Joint Base Lewis-McChord military base (sixth largest military base in the nation), Tumwater is a popular suburb within the Olympia Urban Growth Boundary and the rapidly growing region of the Pacific Northwest. The 2017 population was 104,701, with a total daytime population of 122,733 people within a five-mile radius.

TOP 13 MAJOR EMPLOYERS OF THURSTON COUNTY

RANK COMPANY INDUSTRY EMPLOYEES

1North Thurston Public Schools

Education 2,000

2Providence Saint Peter Hospital

Health Care 1,600

3Walmart Supercenter (3 locations)

Retail 1,023

4 Safeway (5 locations) Retail 876

5South Puget Sound Community College

Education 780

6 Xerox Information Technology 750

7 Capital Medical Center Health Care 600

8 Macy’s Retail 600

9 Nisqually Red Wine Casino Gaming 600

10 Lucky Eagle Casino Gaming 600

11Weyerhaeuser Company (3 locations)

Industrial Goods 565

12 YMCA (2 locations) Non-Profit 551

13 Evergreen State College Education 550


Terry [email protected]

Rebecca Liddell, CCIM

[email protected]

Ryan O’[email protected]

Kidder MathewsOne SW Columbia Street, Suite 950Portland, OR 97258

kiddermathews.com

offering tumwater center memorandum multi-tenant …

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