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WINDMILL WAREHOUSE PARK2624 112th St S • Lakewood, WA 98499
OFFERING MEMORANDUM
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c
Confidentiality and DisclaimerThe 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 pros-pects 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 servicemark of Marcus & Millichap Real Estate Investment Services, Inc.© 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & 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 orname 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.
Windwill Warehouse ParkLakewood, WAACT ID ZAA0110618
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
**DO NOT DISTURB TENANTS**
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2624 112th St S • Lakewood, WA 98499
PRICE: $5,900,000
CAP RATE: 4.75%
PRO FORMA CAP RATE: 7.93%
RENTABLE SF: 59,400
PRICE PER SF: $99.33
OCCUPANCY: 100.0%
YEAR BUILT: 1997 & 1999
LOT SIZE: 4.06 Acres
THE OPPORTUNITY
Windmill Warehouse Park | Lakewood WA 3
INVESTMENT OVERVIEW
Marcus & Millichap has been selected to exclusively market for sale Windmill Warehouse Park in Lakewood, Washington. Built in 1997, the multi-tenant industrial property consists of five insulated metal structures totaling 59,400 square feet, situated on a single, four-acre parcel. Located adjacent to the Joint Base Lewis-McChord Airfield, the subject benefits from immediate access to Interstate-5 and Highway 512.
Each building consists of spaces ranging from 2,400-4,800 square feet, and there are currently 14 tenants and one available 2,400 square foot space. Over half of the tenants have called the subject home for 5+ years, and all tenants are leased on a triple net basis. With rents substantially lower than the market rate, the short-term nature of the leases in place allow for an investor to implement a value-add investment strategy with little to no additional capital expenditure.
• Multi-Tenant Industrial Park in Seattle MSA
• Excellent Location With Immediate Access To Major Freeways
• Low In-Place Rents And Short-Term Leases
• Low Vacancy Submarket at 5.3%*
*Per CoStar Data 2019 for industrial property in the city of Lakewood, WA
Windmill Warehouse Park | Lakewood WA 4
PROPERTY OVERVIEW
Year Built 1997 & 1999
Construction Insulated Metal
Foundation Concrete Slab
Roof Low-Pitched Metal Frame Roof
Ceiling Height 20 Feet
Bay Height 14 Feet
Grade Level Bays 21
Sewer City Sewer
Electricity Separately Metered
HVAC Suspended Gas Heaters
Plumbing Each Unit Has At Least One Restroom
Sprinklers None
Parking Asphalt
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SITE PLAN
Parcel Number: 0319071009
Lot Size: 4.06 Acres (176,670 SF)
Lot Coverage: 33.6%
Parking: 3 per 1,000 (approx.)Zoning: Clear Zone (CZ)
PARCEL & LAND
Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA 6
NORTH CLEAR ZONE PROJECT OVERVIEW
During 2016 and 2017, the South Sound Military and Communities Partnership (SSMCP) developed a plan of action to bring the McChord Field North Clear Zone (NCZ) into compliance with federal guidelines for public and air safety. The NCZ, as shown in Figure 1 (right), is a federally-designated 3,000-by3,000-foot safety area adjacent to the north end of the McChord Field runway. It is partly within Joint Base Lewis-McChord (JBLM) and partly within the City of Lakewood. The part in Lakewood includes many light industrial business uses on privately-held properties. Based on federal guidelines, these uses pose public and flight safety risks and are incompatible with runway operations. Some of these uses are currently allowed under Lakewood’s zoning code, and some are nonconforming uses. The businesses are valued community members and contribute to Lakewood’s economy. SSMCP recently completed the JBLM Joint Land Use Study (JLUS). The JLUS was a collaborative process designed to create a collective regional dialogue around the sometimes complex issues of balancing military operational demands and mission changes with the region’s and local communities’ land use plans, economic development and infrastructure needs, and goals for environmental sustainability. The JLUS was completed in 2015. One of the highest priority recommendations to come out of the JLUS was to develop a strategy and plan for addressing land use incompatibilities in the NCZ.
Windmill Warehouse Park | Lakewood WA
Project Files
Visit the following for more information:
https://cityoflakewood.us/south-sound-military-and-communities-partnership/jblm-north-clear-zone/
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Subject Property
LOCAL MAP
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Joint Base Lewis-
McChord
DowntownTacoma
Sea-Tac International
Airport
Seattle
OlympiaSubject Property
PUGET SOUND REGION
Destination Distance Drive Time
Seattle 40 mi 50 min
SeaTac 31 mi 40 min
Downtown Tacoma 9 mi 15 min
Olympia 24 mi 28 min
Joint Base Lewis-McChord Adjacent
Bellevue
9
LEASE COMPARABLES MAP
Windmill Warehouse Park | Lakewood WA
Windmill Warehouse Park
2000 S 109th St
10735 A St S Unit D
3419 Chapel St S
10713 A St S
11306 Steele St S
8016 Durango St SW
2710 104th St Ct S
2
3
4
1
5
6
3
6
5
2
1
4
7
7
4
10
LEASE COMPARABLES$1.00
$0.92
$0.83
$0.75
$0.67
$0.58
$0.50
Market Rent Asking Rent
Market Rent Per SF Per Month
Availability & Vacancy Rate
Availability Vacancy
30%
25%
20%
15%
10%
5%
0%
Windmill Warehouse Park | Lakewood WA
Re
nt/
SF
/M
o.
2000 S 109th St
10735 A St S Unit
D
3419 Chapel
St S
10713 A St S
11306 Steele St S
8016 Durango
St SW
2710 104th St
Ct S
2 3 4 5 61 7
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
Windmill Warehouse
Park
Avg. $0.70
Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data.
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Rentable SF 59,400
Avg. Rent/SF $0.42
Year Built 1997
Lease Type NNN
Rentable SF 12,205
Avalable SF 3,600
Rent/SF $0.59
Year Built 1999
Lease Type NNN
Rentable SF 15,000
Available SF 9,512
Rent/SF $0.89
Year Built 1985
Lease Type NNN
WINDMILL WAREHOUSE PARK 2624 112th St S, Tacoma, WA 98499
2000 S 109TH ST 2000 S 109th St, Tacoma, WA 98444
10735 A ST S UNIT D10735 A St S Unit D, Tacoma, WA 98444
SUBJECT 21
LEASE COMPARABLES
Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA
Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data. 12
LEASE COMPARABLES
Rentable SF 11,200
Avallable SF 4,480
Rent/SF $0.75
Year Built 1999
Lease Type NNN
Rentable SF 5,760
Available SF 5,760
Rent/SF $0.65
Year Built 1976
Lease Type NNN
Rentable SF 15,000
Available SF 2,234
Rent/SF $0.65
Year Built 1984
Lease Type NNN
3419 CHAPEL ST S - BLDG 3419 3419 Chapel St S Bldg 3419, Tacoma, WA 98499
10713 A ST S 10713 A St S, Tacoma, WA 98444
STEELE ST BUS PK BLDG A 11306 Steele St S, Lakewood, WA 98499
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Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA
Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data. 13
LEASE COMPARABLES
Rentable SF 15,260
Available SF 7,500
Asking Rent/SF $0.60
Year Built 2009
Lease Type NNN
Rentable SF 30,496
Available SF 1,600
Asking Rent/SF $0.85
Year Built 1963
Lease Type NNN
8016 DURANGO ST SW 8016 Durango St SW, Lakewood, WA 98499
2710 104TH ST CT S 2710 104th St Ct S, Lakewood, WA 98499
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Windmill Warehouse Park | Lakewood WA
Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data.
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MARKET OVERVIEWTACOMA/PIERCE COUNTY, WASHINGTON
Located roughly 30 miles south of Seattle, the Tacoma metro comprises all of Pierce County. Joint Base Lewis-McChord, an amalgamation of the U.S. Army’s Fort Lewis and the U.S. Air Force’s McChord Air Force Base, is a major driver of the economy. Port operations, global companies and tourism attractions also fuel economic activity in the county. As a more affordable option to nearby Seattle, the metro is drawing residents and businesses.
METRO HIGHLIGHTS• JOINT BASE LEWIS-MCCHORD The U.S. military installation employs more than 66,000 civilian and military personnel and is the largest employer in the county.
• AIRCRAFT MANUFACTURING The composite vertical fin for the 777X jet is constructed in Frederickson, where Boeing employs more than 1,600 workers. • PORT OF TACOMA Marine cargo operations at the port of Tacoma generate more than 29,000 jobs and nearly $3 billion in economic activity.
• A number of higher-education institutions are located in Pierce County, including Pacific Lutheran University, University of Puget Sound, and a branch at the University of Washington. A highly educated workforce, roughly 30 percent of the population have achieved a bachelor’s degree or greater.
• Deep-water terminals at the Port of Tacoma are equipped with modern cargo-handling equipment. The port merged with Seattle’s seaport in 2014 to gain a competitive advantage against other growing ports.
• Points of interest include Mount Rainier National Park, Puget Sound, the Museum of Glass, Washington State History Museum, America’s Car Museum and Point Defiance Zoo & Aquarium. These facilities and many others draw tourists to the area and contribute to the local economy.
ECONOMY
MT. RANIER
TACOMA DOME
Windmill Warehouse Park | Lakewood WA 15
PROJECTION 2023 POPULATION 9,438 93,566 232,201
ESTIMATE 2018 POPULATION 9,462 92,280 228,698
CENSUS 2010 POPULATION 8,992 87,757 216,360
CENSUS 2000 POPULATION 8,213 81,798 204,352
PROJECTION 2023 HOUSEHOLDS 3,693 36,428 89,875
ESTIMATE 2018 HOUSEHOLDS 3,640 35,257 86,784
AVERAGE 2018 HOUSEHOLD INCOME $48,225 $56,697 $64,568
MEDIAN 2018 HOUSEHOLD INCOME $37,830 $43,537 $50,034
In 2018, the population within a 5 mile radius of the subject
property was 228,698. This is a 15.2% increase since 2000. The
projected growth of this area in 5 years is about 1% to 232,201.
The median age of the population in this area is 29, compared
to the US average of 38. The population density is about 3,000
people per square mile.
DEMOGRAPHICS
1 MILE 3 MILE 5 MILE
5 Mile Radius
Windmill Warehouse Park | Lakewood WA 16
E X C L U S I V E L Y L I S T E D B Y
O F F I C E S N AT I O N W I D E
Matthew HermanNational Office and Industrial Properties [email protected]
John MarksNational Office and Industrial Properties [email protected]
Stren LeaNational Office and Industrial Properties Group Senior [email protected] 17