Marketing Package

Gibraltar
Lane
ck
Kennew
i
, WA
Retail Center
investment Opportunity
1350 N Louisiana Street, Kennewick, WA 99336
[ www.CapitalPacific.com ]
Investment Highlights
GIBRALTAR LANE IS A 9,898 SQUARE FOOT RETAIL
CENTER ADJACENT TO COLUMBIA CENTER MALL IN
KENNEWICK, WA.
The offering provides an opportunity to acquire an established 86%
occupied center adjacent to the largest regional mall in Southeast
Washington. The Property’s ingress/egress benefits from a signalized
corner intersection off of West Gage Boulevard which boasts average
daily traffic counts in excess of 28,550.
Gibraltar Lane shares access with a high performing Costco and is located on
North Louisiana Street. The area is the retail hub of the Tri-City region, which has experienced 37%
population growth over the last 15 years.
PRICE: $2,090,000
CAP: 7.05%
RENTABLE SF. . . . . . . . . . . . . . . . . . . 9,898 SF
LAND AREA. . . . . . . . . . . . . . . . . . . . . 37,461 SF
OCCUPANCY. . . . . . . . . . . . . . . . . . . . 86%
PRICE PER SF. . . . . . . . . . . . . . . . . . . $211
LEASE TYPE. . . . . . . . . . . . . . . . . . . . NNN
AVERAGE CURRENT RENTS. . . . . . $18.28/SF
YEAR BUILT. . . . . . . . . . . . . . . . . . . . . 2004
PARKING. . . . . . . . . . . . . . . . . . . . . . . 38 Spaces
ADDRESS:
1350 N Louisiana Street, Kennewick, WA 99336
Disclosure: Seller is a licensed real estate agent in the State of Washington
GIBRALTAR LANE | 2
Investment Highlights
PROXIMITY TO REGIONAL MALL
Gibraltar Lane is adjacent to Columbia Center Mall; a 754,287 square foot regional mall anchored by JC Penney, Macy’s,
Sears, Barnes & Noble, Toys R Us and Regal Cinemas.
COSTCO
SHADOW
ANCHOR
shadow anchored by a
HIGH PERFORMING
COSTCO >>
VIBRANT RETAIL TRADE AREA
Shadow anchored by Costco, the Property is surrounded by national retailers most notably Target, Lowes, Kohl’s, Value
Village, TJ Maxx, Staples, ShopKo, Bed Bath and Beyond, Best Buy, Ross and PetSmart.
HIGH GROWTH AREA
Since 2000, the Tri-Cities region has grown by 37%. Within a 5 mile radius of the subject property, near term growth
is projected at 12.5%.
SOLID DEMOGRAPHICS
The Property benefits from a nearby population of 126,427 people earning an average annual household income
of $77,249 within a 5 mile radius.
STABLE TENANCY
All of the Tenants have occupied the center for 8+ years. Heritage Home Accents & Floral which occupies 57%
of the center, has occupied Gibraltar Lane since construction in 2004.
GIBRALTAR LANE | 3
Aerial
STRONG RETAIL
LOCATION & HIGH
TRAFFIC COUNTS
240
SEATTLE
240
28,550 DAILY
GIBRALTAR
LANE
W GAGE BLVD
16,626 DAILY
COLUMBIA SQUARE
W CANAL DR
THE COLONNADE
N
CE
NT
ER
PK
W
Y
N STEPTOE ST
COLUMBIA CENTER
W GRAN
DRIDGE
BLVD
N YOUNG ST
SM
DAILY
TRI-CITIES CENTER
N COLUMBIA CENTER BLVD
Americas
D r iv e• In
39,238 DAILY
44,000
VISTA FIELD
AIRPORT
GIBRALTAR LANE | 4
Site
CLOSE PROXIMITY TO MAJOR RETAIL
Gibraltar Lane is adjacent to Columbia Center Mall; a
754,287 SF regional mall anchored by JC Penney, Macy’s,
Sears, Barnes & Noble, Toys R Us and Regal Cinemas.
28,550 DAILY
AI
N LOUISIANA ST
1D
N COLUMBIA CENTER BLVD
W GRANDRIDGE BLVD
,44
N CENTER PKWY
W GAGE BLVD
GIBRALTAR
LANE
11
39,238 DAILY
SM
10,748 DAILY
Americas
D r iv e• In
LY
COLUMBIA CENTER MALL
GIBRALTAR LANE | 5
Site Plan
W GAGE BOULEVARD
28,550 DAILY
SITE PLAN KEY
PARCEL OUTLINE:
37,461 SF
BUILDING AREA: 9,898 SF
INGRESS/EGRESS:
LEASED:
AVAILABLE:
NOT A PART:
N LOUISIANA ST
LAND AREA:
N LOUISIANA
ST
N LOUISIANA ST
Heritage
Home
Accents &
Floral
Men’s Zone
Sushi Nori
Site Plan Not To Scale
GIBRALTAR LANE | 6
Photos
GIBRALTAR LANE | 7
Financial Summary
Gibraltar Lane
Income & Expense
PRICE
$2,090,000
Capitalization Rate:
7.05%
Price Per Foot:
$211
NET OPERATING INCOME SUMMARY
Plus: STABILIZED INCOME
Scheduled Rent:
Plus: Expense Reimbursement
Equals: Scheduled Gross Income
Current Vacancy
Equals: Effective Gross Income
4/1/2015
14%
Less: OPERATING EXPENSES
CAMS
Property Taxes
Insurance
Management Fee
Total Operating Expenses
3.5% of EGI
Per SF
$18.65
$4.46
$20.48
$158,282
$44,175
$202,804
$20.48
$202,804
Per SF
$2.40
$2.25
$0.22
$0.72
$5.59
$23,777
$22,302
$2,200
$7,098
($55,378)
Equals: NET OPERATING INCOME
$147,426
[ 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.
GIBRALTAR LANE | 8
Rent Roll
TENANT INFO
Tenant Name
Lease
Expiration
2/29/16
Monthly
Base Rent
$8,324
14.28%
9/15/05
9/30/16
$2,327
$19.75
1,417
14.31%
2/15/06
2/28/16
$2,539
$21.50
9,901
8,487
1,414
100%
86%
14%
$13,190
$18.65
Size
% of SF
A-D
5,656
57.13%
Available
E
1,414
14.28%
Men's Zone
F
1,414
Sushi Nori
G
comments: Monthly rent increases to $8,324 on on 3/1/2015. This is reflected in the rent
roll.
comments: Monthly rent increases to $2,539 on on 3/1/2015. This is reflected in the rent
roll.
Totals:
Occupied
Leasable
CURRENT RENT
Occupancy
Date
10/26/04
Suite
Heritage Home Accents & Floral
LEASE TERMS
Rent/SF/YR
$17.66
RENT INCREASES
Date of
Increase
Monthly
Base Rent
OPTIONS
Additional
Annual
LEASE
TYPE
NNN
10/1/15
$2,385
$347
NNN
1-5 YR
180 days notice
NNN
$347
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.
1/8/2015
[ 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.
>
BETHEL
GIBRALTAR
JUNCTION
LANE || 99
Gibraltar Lane
Operating Expenses
Operating Expenses
2014 BUDGETED EXPENSES
REIMBURSEMENTS
Total
/SF
Comments
CAMs
$23,777
$2.40
2014 Budget
$17,087
Property Taxes
$22,302
$2.25
2014 Budget
$19,117
Insurance
$2,200
$0.22
2014 Budget
$1,886
Management Fee
$7,098
$0.72
Based on 3.5% of Effective Gross
Income
$6,084
Total Expenses
$55,378
$5.59
1/8/2015
$44,175
[ 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.
>
GIBRALTAR LANE | 10
Reimbursements
Tenant Name
Pro Rata %
Expense Total
CAMs
Property
Taxes
Insurance
Management
$23,777
$22,302
$2,200
$7,098
$10,289
$12,740
$1,257
$4,055
Admin %
Admin
Notes
1
Tenant Totals
Heritage Home Accents & Floral
57.13%
Available
14.28%
Men's Zone
14.28%
$3,396
$3,185
$314
$1,014
$7,909
Sushi Nori
14.31%
$3,403
$3,192
$315
$1,016
$7,925
TOTAL
100.00%
$17,087
$19,117
$1,886
$6,084
$28,341
$0
$0
$44,175
Notes:
1) Tenant's reimbursements are capped at $5.00 per square foot for entirety the Lease term.
1/8/2015
[ 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.
>
GIBRALTAR LANE | 11
Location & Demos
Ke n n e w
ic
A
k, W
KENNEWICK/TRI-CITIES AREA OVERVIEW
ECONOMIC GROWTH
Kennewick is the largest of the Tri-Cities Metropolitan
Statistical Area (MSA) consisting of Richland, West Richland,
Pasco and Kennewick located in Benton and Franklin
Counties. With a population of 268,000, the Tri-Cities was
the fastest growing MSA in the United States in 2010 and
2011.
The city benefits from a talented labor pool, steady job
market and low cost of living. Business advantages in the
Kennewick area include electric costs among the lowest
in the nation, access to a state of the art communications
network, an exceptional transportation network,
and one-stop permitting from pro-business local
governments. Tri-City’s population is highly educated
and enjoys the second highest per capita income levels
in Washington State.
A thriving city, Kennewick continues to be at the forefront
for statewide growth in almost every way. The area has
grown into a regional retail hub, drawing consumers from
Southeast Washington and portions of Idaho and Oregon.
Nestled in the heart of Washington wine country,
Kennewick boasts over 160 wineries within a 50 mile radius.
Kennewick’s location along the Columbia River provides
a variety of recreational activities including world-class
fishing, birding, bike trails and parks.
2013 HOUSEHOLD INCOMES
TOP EMPLOYERS
POPULATION
Employer
Battelle/Pacific NW National Laboratory
ConAgra Foods
Bechtel National
Kadlec Regional Medical Center
# Of
Employees
3,984
2,498
2,244
2,227
1-Mile3-Mile5-Mile
Median $44,532 $59,142 $55,317
Average $64,172$79,123$74,362
2010
2013 2018
3-Mile5-Mile
56,816 133,717
60,497
143,472
67,626160,986
WA is a n in
come
t ax free sta
te
Seattle
1.5 Hours
100 Miles
3 Hours
180 Miles
Spokane
90
Moses Lake
1.2 Hours
180 Miles
Kennewick
*Approximate
GIBRALTAR LANE | 12
A unique HUMAN
RESULTS-DRIVEN
client experience
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
SEAN TUFTS
[email protected] | (206) 743-8468
SCOTT FRANK
[email protected] | (503) 675-8383
SEAN MACK
[email protected] | (503) 675-8378
KEVIN ADATTO
[email protected] | (503) 675-7726
[ Copyright © 2015 Capital Pacific LLC ]
MICHAEL HORWITZ
[email protected] | (503) 675-8381
PETER DUNN
[email protected] | (503) 607-0197