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Village Fair Shopping Center
Neighborhood Grocery Anchored Retail Center in Seattle MSA
[ www.CapitalPacific.com ]611 South Meridian Street, Puyallup, WA 98371
PuyALLUP, WA
ADDRESS:611 South Meridian Street, Puyallup, WA 98371
Investment Highlights
CORE CHARACTERISTICS
SAFEWAY ANCHOR WITH 50-YEAR TENURE AND CONSISTENT STORE SALES TRENDING UPWARD
NEW 10-YEAR TERM WITH JUNIOR ANCHOR, ACE HARDWARE
SUCCESSFUL ACE HARDWARE FRANCHISEE OPERATES EIGHT LOCATIONS IN WASHINGTON
CLOSE PROXIMITY TO PUYALLUP FAIRGROUNDS AND 1.1M ANNUAL VISITORS
LIMITED GROCERY COMPETITION IN IMMEDIATE TRADE AREA
LOW BASE RENTS ACROSS THE ENTIRE CENTER AND MINIMAL NEAR TERM ROLLOVER.
PRICE: $8,790,000 CAP: 5.4%LEASABLE SF . . . . . . . . . . . . . . . . . . ±50,101 SF
LAND AREA . . . . . . . . . . . . . . . . . . . . ±148,540 SF
LEASE TYPE. . . . . . . . . . . . . . . . . . . . NNN
ORIGINAL CONSTRUCTION . . . . . . 1966
PARKING . . . . . . . . . . . . . . . . . . . . . . ±188 Spaces or 3.8/1,000 SF
VILLAGE FAIR SHOPPING CENTER | 2
Site Plan
*Site Plan Not To Scale
SITE PLAN KEY
PARCEL OUTLINE:
LAND AREA: ±148,540 SF
BUILDING AREA: ±50,101 SF
NOT A PART:
INGRESS/EGRESS:
KYOTO
TERIYAKI
WEIG
HT W
ATCHERS
S Meridian 10,450 Daily
2nd St SE
7th
Ave
SE
4th Ave SE
CLA
SSY
CHA
SSIS
CA
R W
ASH
BOURBON STREET BAR & GRILL
APA
RTM
ENT
APA
RTM
ENT
AMOCAT SPEED
IMPORIUM
AVAILA
BLE -REN
T G
UA
RAN
TEED
VILLAGE FAIR SHOPPING CENTER | 3
Retail
Village Fair Shopping Center
MULTICARE GOOD SAMARITAN HOSPITAL
SOUTH HILL MALL
S MERIDIAN
161
512
167
98,000 DAILY
88,000 DAILY
Armstrong FitnessBed Bath & BeyondBest Buy Big Lots Burger KingChipotle Mexican Grill Denny’sDollar Tree Domino’s Pizza FedEx Office Print & Ship Center Five Guys Burger & Fries Fred Meyer GoodwillHaggen Market Home Depot Jack in the Box Les Schwab Tire Center Little Caesars PizzaLowe’s McDonald’sMen’s Wearhouse
MichaelsOffice Depot Papa John’s Pizza Papa Murphy’s PetcoRam Restaurant & Brewery Ross Dress for Less Safeway Shari’s Restaurant & Pies Sleep Train Mattress CentersSports Authority Sportsman’s Warehouse Starbucks Taco Bell Taco Del MarTaco Time Total Wine & More Tractor Supply Co UPS StoreWalgreensWalmartWendy’s
ADDITIONAL RETAIL
Applebee’s BJ’s RestaurantMacy’s Olive Garden Red RobinRegal Cinemas
Sears TargetToys “R” Us
SOUTH HILL MALL
CLICK HERE FOR FULL LIST OF RETAILERS
10,450 DAILY
512
82,000 DAILY
Aerial
KALLES JUNIORHIGH SCHOOL
PUYALLUP HIGH SCHOOL
10,450 DAILY
512
Village Fair Shopping Center
S MERIDIAN
161
THE WASHINGTON STATE FAIR IS ONE OF THE TEN LARGEST FAIRS IN THE UNITED STATES AND ATTRACTS MORE THEN 1.1 MILLION VISITORS TO THE IMMEDIATE AREA EVERY YEAR.
VILLAGE FAIR SHOPPING CENTER | 5
Featured Photos
VILLAGE FAIR SHOPPING CENTER | 6
Demographics
1 MILE
3 MILES
5 MILES
VILLAGE FAIR SHOPPING CENTER
1-Mile 3-Miles 5-Miles2010 10,607 59,183 135,4302015 10,711 60,857 139,7332020 10,981 63,001 145,321
POPULATION
1-Mile 3-Miles 5-MilesAVERAGE $61,334 $76,074 $78,512MEDIAN $49,516 $61,244 $64,063
2015 HH INCOMES
RESIDENTS
VILLAGE FAIR SHOPPING CENTER | 7
139,733
Income & Expense
PRICE $8,790,000
Capitalization Rate 5.40%Price Per Foot $175
NET OPERATING INCOME SUMMARYSCHEDULED INCOME Per SFScheduled Rent: 12/1/2016 $7.16 $358,842Plus: Expense Reimbursement $3.80 $190,454Plus: Percentage Rent¹ $2.79 $140,000Plus: Other Income² $0.03 $1,550Equals: Scheduled Gross Income $13.79 $690,846Vacancy Factor* 5% ($0.32) ($16,121)Equals: Effective Gross Income (EGI) $13.47 $674,725
Less: OPERATING EXPENSES Per SFCAMS $1.79 $89,585Property Taxes $1.47 $73,748Insurance $0.26 $13,000Management Fee 3.5% of EGI $0.47 $23,615Total Operating Expenses $3.99 ($199,948)
Equals: NET OPERATING INCOME $9.48 $474,777
1) Based on Safeway's annual sales.
2) Based on seasonal parking income related to the Puyallup Fair.
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.
Target Price Range
*Vacancy factor excludes Safeway
5/23/2016 [ <www.CapitalPacific.com>]
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.
Financial Summary
VILLAGE FAIR SHOPPING CENTER | 8
Rent Roll
LEASE TYPE
Tenant Name Size % of SFOccupancy
DateLease
ExpirationMonthly Base
RentRent/SF/YR
Date of Increase
Monthly Base Rent
Additional Annual
Safeway 26,719 53.33% 9/1/66 8/31/21 $5,549 $2.49 NNN
Weight Watchers 1,600 3.19% 9/1/12 8/31/17 $2,400 $18.00 NNN
RAC 4,589 9.16% 11/8/04 12/31/19 $5,163 $13.50 NNN
Kyoto Teriyaki 1,650 3.29% 11/25/92 11/30/19 $2,414 $17.56 12/1/17 $2,487 NNN12/1/18 $2,561
Classique Hair & Nails 750 1.50% 4/11/02 12/31/17 $700 $11.20 NNN
Yoga Soleil 1,277 2.55% 11/2/15 12/31/18 $950 $8.93 1/1/18 $1,000 NNN
Ace Hardware 8,495 16.96% 2/14/08 4/30/25 $7,079 $10.00 5/1/20 $7,787 NNN
Available - Rent Guarantee 5,021 10.02% $5,649 $13.50 NNN
Totals: 50,101 100% $29,903 $7.16 $0
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.
comments: Tenant still in free rent period, with full rent to commence in January 2017. Lease is personally guaranteed. Landlord has relocation right with 90 days notice and payment of reasonable relocation expenses.
1-3 YR
180 Days Notice
FMR > Prior180 Days Notice
FMR
OPTIONS
comments: Tenants option periods renew automatically unless 180 days notice is given. 1st option period is flat, final two options at $6,104.08/month. Percentage rent for Safeway will equal 2% of gross sales less base rent.
comments: Exclusive for a weight management center.
TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES
3 - 5 YrSee Comment
comments: New owner took over Ace store in May 2015. Operator has long history of hardware store operations and currently runs eight stores statewide. Exclusive for a hardware store.
comments: Exclusive for a rent-to-own store. Co-tenancy clause with Safeway, tenant has the right to terminate if anchor space is vacant for six months. Guaranteed by RAC corporate. Tenant has one-time termination right on 12/31/2017 given 180 days notice and termination fee of $30,976.
180 Days Notice
1-5 YR$2/SF Increase
1-5 YR
comments: Seller will guarantee rent for one year period if not leased by close of escrow.
180 Days Notice
180 Days Notice
180 Days Notice
2-5 YR95% of FMR
5/23/2016 [ <www.CapitalPacific.com>]
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.
Rent Roll
VILLAGE FAIR SHOPPING CENTER | 9
Operating Expenses
REIMBURSEMENTS
Total /SF Notes
Total Expenses $199,948 $3.99 $190,454
Notes:1) Based on 2016 Operating Budget2) Based on 216 Pierce County Tax Assessment3) Based on 3.5% of EGI. Reimbursements include Admin Fees.
Management
1$89,585 $1.79
2
CAMS
Property Taxes
$23,615 $0.47 3 $14,121
$73,748 $1.47 $73,748
Insurance
PROJECTED OPERATING EXPENSES
$13,000 $13,000 $0.26 1
$89,585
5/23/2016 [ <www.CapitalPacific.com>]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.
Operating Expenses
VILLAGE FAIR SHOPPING CENTER | 10
Reimbursements
Tenant Name Pro Rata % CAMSProperty
Taxes Insurance Management Admin FeeAdmin
Collected Notes Tenant Totals
Expense Total $89,585 $73,748 $13,000 $23,615
Safeway 53.33% $47,776 $39,330 $6,933 7% $1,575 1, 2 $95,614
Weight Watchers 3.19% $2,861 $2,355 $415 $754 $6,385
RAC 9.16% $8,206 $6,755 $1,191 15% $1,407 3, 4 $17,558
Kyoto Teriyaki 3.29% $2,950 $2,429 $428 $778 15% $1,891 4 $8,476
Classique Hair & Nails 1.50% $1,341 $1,104 $195 $354 15% $390 4 $3,383
Yoga Soleil 2.55% $2,283 $1,880 $331 $602 $5,096
Ace Hardware 16.96% $15,190 $12,505 $2,204 $4,004 $33,903
Available - Rent Guarantee 10.02% $8,978 $7,391 $1,303 $2,367 $20,038
TOTAL 100.00% $89,585 $73,748 $13,000 $8,858 $5,263 $190,454
Notes: 1) Admin Fee is collected in lieu of management fee.2) Admin Fee based on controllable CAM charges, excluding taxes, insurance, and utilities.3) Management and Admin Fees cannot exceed 15% of CAMs.4) Admin Fee based on percentage of CAMs only.
5/23/2016 [ <www.CapitalPacific.com>]
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.
Reimbursements
VILLAGE FAIR SHOPPING CENTER | 11
A unique HUMANRESULTS-DRIVEN client experience
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
MICHAEL [email protected] | (503) 675-8381
PETER [email protected] | (503) 607-0197
KEVIN ADATTO [email protected] | (503) 675-7726
SCOTT FRANK [email protected] | (503) 675-8383
DAVID GELLNER [email protected] | (206) 913-2842
SEAN MACK [email protected] | (503) 675-8378
SEAN TUFTS [email protected] | (206) 743-8468
[ Copyright © 2016 Capital Pacific LLC ]
