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Pocatello Square Retail CenterPOCATELLO, IDAHO
Pocatello Square Retail Center1799 HURLEY DRIVE, POCATELLO, ID 83202
Overview
Pocatello Square Retail Center
POCATELLO SQUARE RETAIL CENTER is a 9,402 SF center located off I-86 in Pocatello, Idaho. The offering provides an opportunity to acquire a 100% occupied four tenant retail center with minimal near-term lease expiration. Over 75% of the NOI is comprised of two national tenants with 3-5 years remaining on both leases. The center is near Pine Ridge Mall located within a thriving retail corridor. The Property benefits from increased development in the immediate area including major retailers, restaurants, and auto dealerships.
LEASEABLE SF9,402 SF
LAND AREA32,670 SF
OCCUPANCY100%
PRICE PER SF $238
YEAR BUILT2007
AVG CURRENT RENTS$18.88/SF
Investment Summary
7.25%CAP
$2,240,000PRICE
PAGE 3
Overview
FULLY OCCUPIED RETAIL STRIP WITH ALL TENANTS ON NNN LEASES.
STAGGERED LEASE EXPIRATIONS CREATE POTENTIAL BACKFILL
FLEXIBILITY.
40% OF THE TENANTS ARE BELOW MARKET RENTS
TENANT MIX HIGHLIGHTED BY NATIONAL BRANDS AMERICA’S BEST
AND T-MOBILE.
TheHighlights
Investment Highlights
AMERICA’S BEST RECENTLY EXECUTED A 5-YEAR EXTENSION.
SIGNIFICANT SURROUNDING DEVELOPMENT INCLUDING RED ROBIN,
PETSMART, CHRYSLER & HONDA DEALERSHIPS.
THE PROPERTY BENEFITS FROM THE RECENT REVITALIZATION/
REPURPOSING OF PINE RIDGE MALL.
Investment Highlights
PAGE 5
MAJOR RETAILAlbertsonsBed Bath & BeyondBig 5 Sporting GoodsCostco WholesaleDick’s Sporting GoodsDollar TreeFamily DollarFred Meyer
GoodwillGrocery OutletHarbor Freight ToolsHome DepotJoAnn Fabric and CraftsLowe’sRite AidRoss Dress for Less
Sportsman’s WarehouseStarbucksTJ MaxxTractor SupplyULTA BeautyWalgreensWalmart SupercenterWinCo
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 454 1,911 2,569
Employees 6,775 21,220 29,024
Population 8,011 53,122 70,202
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
PINE RIDGE MALLBath & Body WorksBuckleC-A-L RanchDiscount Tire
GNC Hobby LobbyJCPenneyMaurices
Panera BreadPlanet FitnessRed LobsterRed Robin
Surrounding Retail
26,579 VPD
PINE RIDGEMALL
86 86
POCATELLOSQUARE RETAIL
CENTER
YELLOW
STON
E AVE.
W QUINN RD.
THE NORTHGATE DISTRICT THE NORTHGATE DISTRICT IS A MASTER PLANNED DEVELOPMENT that will include residential, a technology park, and shopping district.
The new development, which broke ground in 2018, will include the following:• A true live, work, and play community design• Excellent quality, affordable homes in a walkable and bikeable neighborhood• 1 Million square-foot office/tech park that will ultimately support 6,000 jobs• Integrated retail and shopping district• 10,000 residential units at build-out
The project is being spearheaded by Millennial Development Partners and Portneuf Development.
THE NORTHGATE DISTRICT
New Developments
64
7
1
58
POCATELLOSQUARE RETAIL
CENTER
86 86
YELLOW
STON
E AVE.
W QUINN RD.
2
9
10 1112
3PINE RIDGE
MALL
1. FREDDY’S/ COSTA VIDA 2. CHRYSLER JEEP DODGE3. HONDA4. PETSMART
5. MATTRESS FIRM6. MACKENZIE RIVER PIZZA7. NAPA AUTO PARTS 8. MOD PIZZA
9. PANERA BREAD10. HOBBY LOBBY11. RED ROBIN12. CHIPOTLE & NOODLES
Surrounding Developments
New Developments
PAGE 9
HU
RLEY DRIV
E
35 SPACES;3.7/1,000 SF
0.75ACRES
9,402LEASEABLE SF
POLE LINE ROAD
21,740 VPD
W QUINN ROAD
Site Plan
SITE PLAN NOT TO SCALE
INSTALLER DIRECT
FLOORING
WANDERLUST
Site Plan
PAGE 11
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Income & Expense
PRICE $2,240,000
CAPITALIZATION RATE 7.25%PRICE PER FOOT $238
CASH FLOW SUMMARY
SCHEDULED INCOME PER SFBase Rent for the Period of: 1/1/2020 - 12/31/2020 $18.88 $177,465Rent Increases Over Base Rent $0.05 $497Operating Expense Reimbursement $5.10 $47,957Equals: Scheduled Gross Income $24.03 $225,919Market Vacancy 5% ($1.20) ($11,296)Total Effective Gross Income (EGI) $22.83 $214,623
OPERATING EXPENSES Per SFCAMS $2.16 $20,275Property Taxes $2.14 $20,077Insurance $0.33 $3,093Management Fee of EGI $0.82 $7,749Reserves $0.10 $940Total Operating Expenses $5.54 $52,134
NET OPERATING INCOME $17.28 $162,489
3.5%
9/23/2019 [ <www.CapitalPacific.com> ]
40% OF TENANTS ARE BELOW MARKET RENT
Financial Summary
RentRoll
TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM.
Financial Summary
PAGE 13
DATE RANGE MONTHLY RENT ANNUAL RENT
9/1/2015 - 1/31/2020 $5,091 $61,094
2/1/2020 - 1/31/2025 $5,091 $61,094
OPTIONS 1, 5-YR Option with a 10% Increase
TENANT National Vision, Inc. dba America’s BestBUILDING SF 2,777 SFLEASE TYPE NNNLEASE COMMENCEMENT February 1, 2010LEASE EXPIRATION January 31, 2025OPTIONS 1, 5-YR Option; 180-Day Notice
Premise & Term
Rent
LeaseProvisionsASSIGNMENT/SUBLETTINGTenant may not assign or sublease without the prior written consent of Landlord, which shall not be unreasonably withheld.
EXCLUSIVE USETenant shall have the exclusive right in the property or any adjoining property owned by Landlord for optometric and ophthalmological practice and procedures including the sale of eye wear and accessories.
CO-TENANCYIf, at any time 75% or more of the Shopping Center or 2 of the major tenants close for business for a period in excess of ninety (90) consecutive days (“Abatement Event”) tenant shall have the right to abate rent in full for 12 months until such Abetment Event is cured. After twelve months tenant has the option to terminate.
Lease Abstract
COMMON AREASTenant agrees to pay Landlord as additional rent Tenant’s pro rata share of all common area costs as defined in the lease. Tenant’s pro rata share shall not increase more than 5% over the charge for the previous calendar year.
MASTER COMMON AREA EXPENSESTenant is responsible for Tenant’s pro rata share of the Common and Limited Common Area expenses assessed to Landlord for Common and Limited Common area Maintenance associated with the Premises for each Lease Year as provided in the Declaration.
TAXESTenant is responsible for Tenant’s pro rata share of any real estate taxes.
INSURANCETenant is responsible for Tenant’s pro rata share of the premium costs incurred by Landlord for insurance coverage.
UTILITIESTenant is responsible for direct payment of gas and electricity and reimbursement to Landlord for water, sewer, and trash removal as part of Common Area Expenses.
MANAGEMENT FEETenant is not responsible for the reimbursement of management fees.
ADMINISTRATIVE FEETenant is not obligated to pay any administrative fee in excess of 10% of the other Common Area Expenses.
LANDLORD’S OBLIGATIONSLandlord is responsible for the roof, foundation, concrete slab floor, structural joints, exterior walls, utility systems and sewer lines, and sprinkler system.
TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the interior of the Premises including the plumbing, electrical, and HVAC (up to $500/occurrence) that are exclusive to the Premises.
Expenses
Lease Abstract
PAGE 15
DATE RANGE MONTHLY RENT ANNUAL RENT
9/1/2017 - 8/31/2022 $6,088 $73,053
OPTIONS 2, 5-YR Options
OPTION RENTDATE RANGE MONTHLY RENT ANNUAL RENT
9/1/2022-8/31/2027 $7,107 $85,2809/1/2027-8/31/2032 $8,279 $99,352
TENANT Express Locations, LLC SUBLEASE TENANT T-Mobile West Corporation dba T-MobileBUILDING SF 2,837 SFLEASE TYPE NNNLEASE COMMENCEMENT September 1, 2012LEASE EXPIRATION August 31, 2022OPTIONS 2, 5-YR Options; 90-Day Notice
Premise & Term
Rent
Lease ProvisionsASSIGNMENT/SUBLETTINGTenant may not assign or sublease without the prior written consent of Landlord, which shall not be unreasonably withheld.
EXCLUSIVE USETenant shall have the exclusive right to sell wireless products and services on the Property.
ANTENNATenant shall have the right to place communications dishes, antennae and related equipment (collectively the “Antenna Equipment”) on the roof of the Building over the Premises for its own use.
Lease Abstract
ExpensesCOMMON AREASTenant agrees to pay Landlord as additional rent Tenant’s pro rata share of all common area costs as defined in the lease. Tenant’s pro rata share shall not increase more than 5% over the charge for the previous calendar year.
MASTER COMMON AREA EXPENSESTenant is responsible for Tenant’s pro rata share of the Common and Limited Common Area expenses assessed to Landlord for Common and Limited Common area Maintenance associated with the Premises for each Lease Year as provided in the Declaration.
TAXESTenant is responsible for Tenant’s pro rata share of any real estate taxes.
INSURANCETenant is responsible for Tenant’s pro rata share of the premium costs incurred by Landlord for insurance coverage.
UTILITIESTenant is responsible for all utility charges of the Premises.
MANAGEMENT FEETenant is not responsible for the reimbursement of management fees.
ADMINISTRATIVE FEETenant is not obligated to pay any fee for supervision, administration, or management in excess of 5% of the total Common Area Costs.
TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the interior of the Premises including the plumbing, electrical, and HVAC that are exclusive to the Premises.
LANDLORD’S OBLIGATIONSLandlord is responsible for the maintenance, repair and replacement of the foundations, footings, exterior surfaces and paint, all utility systems to the point of distribution within the Premises, sprinkler mains and monitoring systems, if any, all structural systems, including without limitation, the roof, roof membrane, roof covering, load bearing walls, floors, slabs, and masonry walls. Landlord shall be responsible for replacement, when indicated, of the HVAC system at Landlord’s sole cost and expense.
Lease Abstract
PAGE 17
Featured Photography
Featured Photography
PAGE 19
Q: DO ANY TENANTS HAVE A CO-TENANCY CLAUSE?
A: Yes, America’s Best has a co-tenancy clause with Lowe’s and Walmart.
Q: DO ANY OF THE TENANTS HAVE A PERSONAL GUARANTY ON THEIR LEASE?
A: Yes, both Wanderlust and Direct Flooring are personally guaranteed leases.
Q: DO ANY TENANTS HAVE EXCLUSIVE USE CLAUSES?
A: Yes, America’s Best has an exclusive use for ophthalmology and T-Mobile has an exclusive use for the sale of wireless products and services.
Q: IS POCATELLO SQUARE RETAIL CENTER PART OF A LARGER DEVELOPMENT?
A: Yes, Pocatello Square Pad falls under the Master Common Area of Pocatello Square
Pocatello Square Subdivision - Declaration of Covenants, Conditions and Restrictions Pocatello Square Retail Center referenced as Parcel A in CC&Rs Declarant – Trevision Development, LLC
COMMON AREA MAINTENANCE Maintaining, repairing, seal coating, and resurfacing, common ingress and egress private roadways and removing snow, debris, and refuse and thoroughly sweeping the road area.
COMMON AREA EXPENSEThe amounts to be assessed to the Members for their proportionate share of the cost and expense of the Common Area Maintenance. Limited Common Area – The private easement for water and sewer system. LIMITED COMMON AREA EXPENSEEach parcel’s proportionate share, of the three Parcels in the Project which abut Hurley Drive, of expenses for the water and sewer system.
Questions & Answers
EASEMENTSBuilding encroachments:Easement for any building or structure located on any Owner’s Parcel which may encroach into or over the grantor’s adjoining Parcel(s) providing encroachment does not exceed two feet and easement for canopies, eaves, and roof overhangs does not exceed four feet.
PARKING No Common Area Parking is available in the Project for use by the Owners of the Parcels
RESTRICTED USES• Night club, stand alone bar, or tavern• Billiard or pool hall, gambling• Amusement park, carnival, or indoor children’s rec facility• Bowling alley or skating rink• Pawn shop or check cashing facility• Drive-through – Must be fast food and shall not exceed 3,700 SF and must have
a parking ratio of at least 10:1
MANAGEMENT Except for the Declarant’s right reserved in the Declaration, theBoard shall have the duty to manage the Common Area and Limited Common Area in the Project.
Questions & Answers
PAGE 21
POCATELLO is known as the “Gateway to the Northwest.” Founded in 1889 and located in southeast Idaho, Pocatello is the county seat and largest city of Bannock County, Idaho. It is the principal city of the Pocatello metropolitan area, which encompasses all of Bannock and Power counties, and is the fifth largest city in Idaho. Pocatello has a four-season climate where clear, sunny and dry is the norm. The area is popular for its numerous outdoor activities including hiking, biking, fishing, skiing and riding ATV’s. Employment in Pocatello is anchored by education, health and social services. The city’s largest employer is Idaho State University, a public university with over 15,000 students.
Pocatello,Idaho
Location
1 HR 45 MINS114 MILES
KEY 5 MINS 10 MINS 15 MINS
POPULATION
5 MINS 10 MINS 15 MINS
2010 11,169 50,104 70,174
2018 11,640 52,442 73,586
2023 11,947 53,818 75,504
2018 HH INCOME
5 MINS 10 MINS 15 MINS
Average $52,240 $59,437 $60,576
Median $41,081 $46,033 $46,965
DriveTime
Distanceto
Jackson,Wyoming
Twin Falls, Idaho
2 HRS 34 MINS140 MILES
Location
PAGE 23
Contact Us
PETER [email protected]: 503.607.0197
LANCE [email protected]: 503.607.0207
SEAN [email protected]: 503.675.8378
We’d love to hearfrom you.
The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
Contact Us