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Smokey PointPlazaARLINGTON, WASHINGTON
ESTABLISHED RETAIL CENTER IN A MAJOR SHOPPING DESTINATION
Smokey Point Plaza3323 169TH PLACE NE, ARLINGTON, WA 98223
Overview
THE OFFERING provides an opportunity to acquire a stabilized, 92% occupied retail center leased to 15 national and local tenants in Smokey Point, a booming, dynamic submarket of north Snohomish County. The Property benefits from increased draw to the trade area provided by adjacent Tractor Supply and a Lowe’s Home Improvement store, with excellent accessibility to and from Interstate 5, located 1/4 mile from the Property. Smokey Point Plaza is situated in a dense retail pocket at the intersection of I-5 and Highway 531, which has experienced tremendous growth in the last 10 years adding several national retailers, including Costco, Target and Walmart.
LEASEABLE SF±24,180
LAND AREA±89,298 SF
AVG RENT PER SF$20.21
PRICE PER SF$252
YEAR BUILT1996
PARKING±106 Spaces; 4.38/1,000 SF
Investment Summary
7.20%CAP
$6,100,000PRICE
PAGE 5
Overview
NNN LEASE STRUCTURE OF TENANTS INSULATES LANDLORD FROM
INCREASING COSTS OF OPERATING EXPENSES.
THE NEW 4,100 SF SNO-ISLE LIBRARY OPENED THE BEGINNING OF 2018, WITH
A LEASE GUARANTEE FROM SNOHOMISH AND ISLAND COUNTIES.
RENTAL UPSIDE PROVIDED BY SCHEDULED ANNUAL RENT BUMPS
FOR 70% OF TENANTS.
LOCATED IN DYNAMIC RETAIL SUBMARKET OF NORTH SNOHOMISH COUNTY.
PROPERTY BENEFITS FROM LONG TERM TENANCY OF 5+ YEARS
FOR 58% OF THE GLA, INCLUDING PAPA MURPHY’S, CLEANERS, TOKYO HOUSE,
AND HAIR MASTERS.
EXPOSED TO 100,000+ VEHICLES PER DAY.
INCREASED DAILY DRAW PROVIDED BY CONCENTRATION OF
SURROUNDING NATIONAL RETAILERS PULLING FROM A WIDE
DEMOGRAPHIC BASE WITHIN A FIVE MILE RADIUS.
HIGHLY ACCESSIBLE LOCATION LESS THAN A QUARTER MILE FROM
INTERSTATE 5 INTERCHANGE .
Thehighlights
Investment Highlights
NEQUATEM DOLEST FUGA. ET ETUM QUE LAUT FACES
LOCATED WITHIN MAJOR SHOPPING DESTINATION OFF FREEWAY INTERCHANGE
ADJACENT TO A LOWE’S HOME IMPROVEMENT AND TRACTOR SUPPLY
ALONG WITH A BRAND NEW HABITAT FOR HUMANITY STORE - SLATED
FOR SUMMER 2018.
CLOSE PROXIMITY TO DEVELOPMENTS ON INTERSTATE 5, TULALIP RESORT
AND CASINO, AND SEATTLE PREMIUM OUTLETS.
Investment Highlights
PAGE 7
OF TENANTS HAVE OCCUPIED SPACE 5+ YEARS.
10+ YEARS
5+ YEARS 58%36%22%12%22%8%
LeaseTenancy Breakdown
3+ YEARS
<1 YEARS
AVAILABLE
Tenants
TenantMix
PERSONALSMOKEY POINT CLEANERSHAIRMASTERSCK NAILS & SPASENSES SPASNO-ISLE LIBRARY
36%RESTAURANTSMOKEY POINT BAKERY & CAFETOKYO HOUSEPHO DAT VIETNAMESEPAPA MURPHY’SBASKIN ROBBINS
28%AVAILABLE
8%RETAILJ-LEE FLOORSPROGROWI-DOCTOR
17%PROFESSIONAL AMERICAN INSURANCESMOKEY POINT LICENSING
11%
BALANCED LEASE ROLLOVER SCHEDULE
THE PROPERTY IS CURRENTLY 92% OCCUPIED, utilizing its competitive rents and economic growth in the market area to stimulate recent leasing activity. The dynamic mix of food, retail, and personal/professional uses compliments one another and benefits from daily draw provided by surrounding national box retailers. The bulk of the GLA is leased for restaurant and personal services, insulating the center from online retail.
PAGE 9
Tenants
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 450 1,146 2,209
Employees 4,899 13,920 27,929
Population 6,930 27,906 60,183
KEY 1-MILE 3-MILES 5-MILES
Businesssummary
MAJOR RETAILBest Buy Costco Fred Meyer Goodwill Grocery Outlet Home Depot JoAnn Fabrics
Kohl’s Marshalls McDonald’s Michaels Office Depot Petco Petsmart Rite Aid
Ross Dress for LessSafewaySherwin Williams Starbucks Target Walmart Supercenter WinCo
THE MARKETPLACE ATSMOKEY POINTDick’s Sporting Goods
Firehouse Subs Fitness EvolutionHobby Lobby
Outback SteakhouseParty City Tuesday Morning
SEATTLE PREMIUM OUTLETSAdidas Factory OutletArmaniBanana Republic
BurberryCalvin KleinDVFGap Factory OutletKate Spade
Nike Factory OutletThe North FaceRestoration HardwareTuesday Morning
Surrounding Retail
SMO
KEY POIN
T BLV
D
39,000 VPD
74,000 VPD
24,284 VPD
SMOKEYPOINT PLAZA
THEMARKETPLACE
AT SMOKEYPOINT
531531
5
5
AAA Four Diamond award-winning 12-story hotel with 370 rooms and suites. The resort includes 192,000 square feet of gaming space, 7 restaurants, and is home to the T Spa, an on-site spa which features 14,000 square feet of treatment rooms. There are also meeting facilities, and the Canoes Cabaret, Orca Ballroom, and Tulalip Amphitheatre for entertainment events. Surrounding Retail
PAGE 11
LODGEAPARTMENTS
VINTAGEAPARTMENTS
THE MARKETPLACE
AT SMOKEY POINT
5LAKEWOODCROSSING
Area Developments
SMOKEY POINTPLAZA
SMO
KEY POIN
T BLVD
LODGE APARTMENTS2203 172ND ST NE, MARYSVILLE, WA 98271
VINTAGE APARTMENTS17500 25TH AVE NE, MARYSVILLE, WA 98271
THE MARKETPLACE AT SMOKEY POINT2323 172ND ST NE, MARYSVILLE, WA 98271ANCHORS:DICK’S SPORTING GOODS, HOBBY LOBBY, ULTA, PARTY CITY LAKEWOOD CROSSING17101 27TH AVE NE, MARYSVILLE, WA 98271ANCHORS:TARGET, BEST BUY, COSTCO, MARSHALLS
BRAND NEW AREA DEVELOPMENTS include the opening of Dick’s Sporting Goods and Hobby Lobby at The Marketplace at Smokey Point. Additionally, the Lodge apartments and the Vintage apartments have opened adjacent to The Marketplace at Smokey Point bringing the total of newly developed multi-family units in the area to over 500.
Newdevelopments
Area Developments
PAGE 13
SMO
KEY
POIN
T RD
172ND ST NE
2.05ACRES
±106 SPACES;4.38/1,000 SF
30,250 VPD
24,287 VPD
±24,180LEASEABLE
SF
Site Plan
SITE PLAN NOT TO SCALE
SITE PLAN KEY
SUITE TENANT 1 Available 2 CK Nails & Spa 3 Tokyo House 4 ProGrow 5 J-Lee Floors6 American Insurance 7 Smokey Point Bakery Cafe 8 Senses Spa 9 Smokey Point Cleaner
SUITE TENANT10 Sno-Isle Library 11 I-Doctor 12 Pho Dat Restaurant 13 Smokey Point Licensing 14 Hair Masters 15 Papa Murphy’s 16 Baskin Robbins
12
34
5
10
6
11
7
12
8
13
9
1415 16
PAGE 15
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 $6,100,000CAPITALIZATION RATE 7.20%PRICE PER FOOT $252
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 1/1/2019 - 12/31/2019 $18.55 $448,575Rent Increases Over Base Rent $0.07 $1,661Operating Expense Reimbursement $6.07 $146,780Equals: Scheduled Gross Income $24.69 $597,016Current Vacancy 8%Total Effective Gross Income (EGI) $24.69 $597,016
OPERATING EXPENSES Per SFCAMS $2.46 $59,578Property Taxes $2.18 $52,633Insurance $0.92 $22,343Management Fee of EGI $0.83 $20,082Reserves $0.10 $2,418Total Operating Expenses $6.50 $157,054
NET OPERATING INCOME $18.20 $439,962
3.5%
10/11/2018 [ <www.CapitalPacific.com> ]
Financial Summary
Rentroll
TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM.
Financial Summary
PAGE 17
Featured Photography
Featured Photography
PAGE 19
Questions & Answers
Q: DO ANY TENANTS HAVE EXCLUSIVE USES, RESTRICTIONS, OR CO-TENANCY CLAUSES IN-PLACE?
A: Yes. Tenants that have exclusive uses are listed as follows:
J-LEE FLOORS: Floor covering business SMOKEY POINT BAKERY & CAFÉ: Coffee shop and bakery PAPA MURPHY’S: Take and bake pizza
There are no co-tenancy clauses, but Pho Dat Restaurant is restricted from offering menu items that compete directly with Tokyo House restaurant.
Q: ARE THERE ANY CC&R’S OR EASEMENTS/ENCROACHMENTS AFFECTING THE PROPERTY?
A: According to the title report provided by First American Title Insurance, there are no adverse easements or encroachments affecting the Property. There are CC&R’s in place affecting the larger shopping center which includes the Tractor Supply and incoming Habitat for Humanity immediately to the north. Each property owner within the larger shopping center is granted cross easements, ingress/egress, and reciprocal parking. Each owner has approval rights for additional pad developments on the Tractor Supply site, which allows an investor the ability to prevent further buildings without their permission.
Q&A
Questions & Answers
PAGE 21
Snohomish County
SNOHOMISH COUNTY has a total area of 2,087 square miles and is home to over 759,583 people, making it the third-most populous county in Washington. Several interstates connect Snohomish County to surrounding counties including: Interstate 5, Interstate 405, State Route 9, and State Route 99.
Location
NORTHERN SNOHOMISH COUNTY IS THE MANUFACTURING CENTER OF WASHINGTON STATE. Twenty-five percent of the workforce is associated with manufacturing; twice the State average. The assembly of commercial aircraft is significant for the local economy, including both The Boeing Company and the associated supply chain. Southern Snohomish County has a concentration of knowledgeable workers and life science companies. T-Mobile has an engineering technology center with a staff of 600 and Google is planning to open a facility in Bothell that is designed to house 800 workers. Several medical device companies are located in Snohomish county including Philips Healthcare and Sonosite with a combined workforce of 3,000.
Industry
NAVAL STATION EVERETT IS LOCATED NEXT TO THE MARINA IN THE CITY OF EVERETT, 25 miles north of Seattle. NAVSTA Everett is home to two Guided-Missile Destroyers with approximately 6,000 Sailors and Civil Service persons assigned to commands. The Naval Station itself has approximately 500 Sailors and Civilians assigned to other posts.
Naval Station Everett
ArlingtonARLINGTON IS A BEDROOM COMMUNITY SITUATED IN THE STILLAGUAMISH RIVER VALLEY just north of Marysville. The area was settled in the late 1800’s and its early economy was largely dependent upon timber. Early settlers constructed sawmills, shingle mills and logging camps to take advantage of the heavily-wooded area.While the Arlington economy is still rooted in timber, recently Arlington has seen substantial population growth largely attributed to residents in search of affordable housing while working in Everett and Seattle.
One million square feet of industrial currently is in development at Gayteway Office Park nearby. The build-to-suit offerings are currently being marketed and has the potential to add thousands of jobs to the city of Arlington. FOR MORE INFO
Developments
Location
PAGE 23
Distanceto
KEY 5 MINS 10 MINS 15 MINS
41 MILES46 MINS
Seattle, Washington
20 MILES 26 MINS
Everett, Washington
Demographics
Seattle, Washington
POPULATION
5 MINS 10 MINS 15 MINS
2010 5,619 29,984 76,997
2017 6,406 33,891 84,188
2022 6,979 36,939 90,014
2017 HH INCOME
5 MINS 10 MINS 15 MINS
Average $64,814 $81,524 $80,384
Median $54,002 $69,610 $65,730
Drivetime
SNOHOMISH COUNTY POPULATION (ESTIMATED)
772,501
Demographics
PAGE 25
Contact Us
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.
SEAN [email protected]: 206.693.3352
DAVID [email protected]: 206.693.3349
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