Cascade Plaza - Capital Pacific
Transcription
Cascade Plaza - Capital Pacific
Cascade Plaza Spoka n A e, W Dollar Tree Anchored retail center Along major retail corridor 7414-7458 N Division St., Spokane, WA, 99208 [ www.CapitalPacific.com ] CASCADE PLAZA IS A 26,818 SF MULTI-TENANT RETAIL CENTER WITH ROBUST TRAFFIC COUNTS IN SPOKANE, WASHINGTON. Investment Highlights The offering provides an opportunity to acquire an established multitenant retail center located along North Division Street, the primary commercial corridor in Spokane. Cascade Plaza is situated within a larger shopping center anchored by Hobby Lobby, Grocery Outlet, Michael’s, and Furniture Row, creating a daily needs draw to the immediate area. The Property is anchored by publicly-traded Dollar Tree (NASDAQ: DLTR), who is issued a Standard and Poor’s credit rating of ‘BB’ and has occupied space at the Property for more than 13 years. The Property also benefits from a balanced rollover schedule with the anchor tenant having approximately eight years remaining on their lease term. Cascade Plaza’s location along North Division Street boasts traffic counts of nearly 50,000 vehicles per day. The dominant retail corridor features several national retailers including a Costco located across the street and NorthTown Mall, a regional mall anchored by Macy’s, Kohl’s, and Regal Cinemas. Cascade Plaza’s location also benefits from the dense close-in population of more than 175,000 residents within a five mile radius. PRICE: $2,570,000 CAP: 7.80% OCCUPANCY . . . . . . . . . . . . . 96% LEASABLE SF. . . . . . . . . . . . . ±26,818 SF PRICE PER SF. . . . . . . . . . . . . $96 LAND AREA*. . . . . . . . . . . . . . ±27,000 SF LEASE TYPE. . . . . . . . . . . . . . NNN YEAR BUILT. . . . . . . . . . . . . . . 1980 AVG CURRENT RENT. . . . . . . $8.62/SF PARKING*. . . . . . . . . . . . . . . . ±99 Spaces or 3.7/1,000 SF ANCHOR . . . . . . . . . . . . . . . . . Dollar Tree *Subject is located within a larger shopping center that has reciprocal parking and access easements. ADDRESS: 7414-7458 N Division St., Spokane, WA, 99208 CASCADE PLAZA | 2 Core Characteristics STRONG PERFORMING CREDIT TENANT ANCHOR Cascade Plaza is anchored by publicly-traded Dollar Tree (NASDAQ: DLTR) who has a Standard and Poor’s credit rating of ‘BB’. Dollar Tree has occupied space at the Property for more than 13 years and has an additional eight years remaining on its lease term. Notably, Dollar Tree has reported strong store sales in this location and has one, five-year option period remaining. Please contact Capital Pacific for more information about store performance. PRICED BELOW REPLACEMENT COST With true replacement costs estimated in excess of $200/SF, the Property is offered well below replacement cost at $96/SF. An investor has the ability to remain competitive in the leasing market and be a lower cost provider in which cost-feasible rents are significantly higher. Cascade Plaza’s current in-place rent is $8.62/SF, which is significantly below market averages and minimizes risk upon turnover. DOMINANT RETAIL ACROSS FROM COSTCO The Property is located along Spokane’s main retail artery, North Division Street, which boasts traffic counts of nearly 50,000 vehicles per day. Division Street is home to several national retailers within close proximity to Cascade Plaza including Costco, located across the street. Additionally, NorthTown Mall is a more than one million square foot regional mall anchored by Macy’s, Nordstrom Rack, and Regal Cinemas located south of the Property on Division Street. FAVORABLE LEASE TERMS WITH MINIMAL ROLLOVER EXPOSURE Cascade Plaza benefits from the balanced rollover schedule of its shop tenants. Additionally, anchor Dollar Tree is committed to this location until 2023, spreading out future rollover risk over time and reducing the threat of any major decrease in cash flow. PART OF LARGER CENTER ANCHORED BY HOBBY LOBBY Cascade Plaza is part of a larger center anchored by Hobby Lobby, Grocery Outlet, Michael’s and Furniture Row. Also located within the larger center are pad restaurants, Noodle Express, The Onion and Old European. The diverse tenant mix within the larger shopping center creates excellent retail synergy and a wide draw. Further, each property owner within the larger shopping center benefits via reciprocal access and parking agreements. DENSE DEMOGRAPHIC AREA The area surrounding the Property is densely populated with more than 175,000 residents living within a five mile radius. CASCADE PLAZA | 3 Quick Stats ABOUT STAGGERED LEASE EXPIRATIONS NASDAQ: DLTR 39% STANDARD & POOR’S CREDIT RATING 17% 2014 50% 2013 BB 64% $8.60B $7.84B $7.39B 2012 100% 100% ANNUAL REVENUE 0% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 Annual Cumulative LEASE TENANCY 955% OCCUPANCY 10-YEAR SHARE PRICE GAIN SINCE 2005 13,600+ CURRENT LOCATIONS US & CANADA 10+ YEARS - 51% 3+ YEARS - 13% < 2 YEAR - 32% 96% OCCUPANCY AVAILABLE - 4% CASCADE PLAZA | 4 NN ew po rt H WY E Hawthorne Road Retail Corridor 2 395 NORTHPOINTE PLAZA NORTHPOINTE PLAZA Best Buy Big Lots HobbyTown USA Olive Garden Panda Express PetSmart Pier 1 Imports Red Robin Safeway Shakey’s Pizza Shopko Sports Authority Staples Starbucks T.J.Maxx Taco Bell Target Total Wine & More 2 E Magnesium Road 395 Famous Footwear Game Stop JCPenney Kohl’s Macy’s Marshall’s Men’s Wearhouse Payless Shoe Source RadioShack Red Lobster Regal Cinemas Sears Starbucks Subway Yankee Candle N Nevada Street AT&T Barnes & Noble Baskin Robbins Bath & Body Works Chili’s N Division Street NORTHTOWN MALL FOR A FULL LIST OF RETAILERS, CLICK HERE CASCADE PLAZA FRANKLIN PARK COMMONS Bed, Bath & Beyond Burlington Coat Factory Guitar Center Outback Steakhouse Rite Aid Ross Shari’s Restaurant Trader Joe’s 291 W Francis Avenue OTHER SURROUNDING RETAIL Albertsons Babies “R” Us Bed Bath & Beyond Big 5 Sporting Goods Burlington Coat Factory Carl’s Jr Costco Dollar Tree Grocery Outlet Hobby Lobby IHOP KMart Office Depot Petco Quizno’s Rite Aid Ross Dress for Less Shari’s Restaurant Taco Bell Walmart Supercenter SEATTLE NORTHTOWN MALL Site 44,000 DAILY 10,710 DAILY E Lincoln Rd N Division Street CASCADE PLAZA IS LOCATED AMONG NUMEROUS NATIONAL RETAILERS AND REGIONAL RESTAURANTS, SURROUNDED BY HIGH TRAFFIC COUNTS. CASCADE PLAZA 3,900 DAILY CASCADE PLAZA | 6 NORTHGATE LLC Site Plan Old European Michael’s SITE PLAN KEY LAND AREA: ±27,000 SF LEASABLE AREA: ±26,818 SF LEASED: 44,000 DAILY PARCEL OUTLINE: Cash And Carry AVAILABLE: The Onion INGRESS/EGRESS: N Division St. NOT A PART: Furniture Row RECIPROCAL EASEMENT AGREEMENT There shall be established mutual ingress and egress areas providing for ingress and egress between the Northgate, LLC Property and the Subject Property. The agreement runs with the land and shall be binding upon the owners of the Subject Property and The Northgate, LLC Property, and their successors. Noodles Express MAINTENANCE AGREEMENT KINJA SUSHI ESCAPE ENTERTAINMENT DOLLAR TREE JULIE’S DANCE *Site plan not to scale PYLON SIGN BEYOND BEADS Building owners are responsible for reimbursing their proportionate share of Real Estate taxes, General Liability Insurance and all maintenance and utilities including paving, lighting, water, sewer, gas and striping of the common area costs incurred by the larger shopping center’s land owner, Northgate, LLC. Jump-N-Party CASCADE PLAZA | 7 Financial Summary Cascade Plaza Income & Expense PRICE $2,570,000 Capitalization Rate 7.80% Price Per Foot $96 NET OPERATING INCOME SUMMARY SCHEDULED INCOME Scheduled Rent: Plus: Rent Increases Through: Plus: Expense Reimbursement Equals: Scheduled Gross Income Vacancy Factor Equals: Effective Gross Income (EGI) Per SF $8.27 $0.04 $3.48 $12.14 6/1/2016 5/31/2017 5% $11.07 Less: OPERATING EXPENSES CAMS Property Taxes Insurance Management Fee Reserves Total Operating Expenses Per SF $1.59 $1.37 $0.16 $0.40 $0.10 $3.61 3.5% of EGI Equals: NET OPERATING INCOME $221,853 $1,202 $89,529 $312,585 ($15,629) $296,955 $42,655 $36,634 $4,200 $10,645 $2,682 ($96,815) $200,140 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. [ 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. CASCADE PLAZA | 8 Rent Roll TENANT INFO LEASE TERMS CURRENT RENT 38.47% Occupancy Date 12/1/02 Lease Expiration 1/31/23 Monthly Base Rent $8,597 5/1/05 11/30/16 $2,200 $7.70 Tenant Name Suite Size % of SF Dollar Tree 7414 10,316 Rent/SF/YR $10.00 RENT INCREASES Date of Increase 2/1/18 Monthly Base Rent $9,362 OPTIONS Additional Annual 1-5 YR 180 Days 10% Increase 1-2 YR 180 Days FMR comments: Tenant has exercised the two of their three (3) option periods. Beyond Beads 7452 3,428 12.78% Available 7452R 1,072 4.00% LEASE TYPE NNN NNN comments: Space is not leasable for retail use in currrent status. Space is being used by Beyond Beads free of charge as storage space. Analysis assumes lease up of space with no base rent but Tenant will assume pro-rata share of NNN charges. Julie's Dance Academy 7454 5,532 20.63% 9/1/14 11/30/17 $4,034 $8.75 12/1/16 $4,149 $692 Escape Entertainment 7456 3,050 11.37% 8/1/15 10/31/18 $2,033 $8.00 11/1/16 11/1/17 $2,097 $2,160 $445 7458 3,420 12.75% 12/1/12 3/31/19 $1,624 $5.70 4/1/17 4/1/18 $1,657 $1,690 $66 $18,488 $18,488 $8.27 $8.62 comments: Lease is personal guaranteed. Kinja Sushi comments: Percentage rent of 5% of Gross Sales if total exceeds base rent. Tenant must provide statement of Sales monthly. Lease has personal guarantee. Totals: Occupied Leasable 26,818 25,746 1,072 100% 96% 4% NNN 1-3 YR 180 Days $2,287.50 NNN NNN $1,202 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. 3/21/2016 [ 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. 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. > CASCADE PLAZA | 9 Operating Expenses Cascade Plaza Operating Expenses 2015 OPERATING EXPENSES REIMBURSEMENTS Total /SF Notes CAMS $42,655 $1.59 1 $40,244 Property Taxes $36,634 $1.37 2 $36,634 Insurance $4,200 $0.16 1 $4,200 Management $10,645 $0.40 3 $8,452 Reserves $2,682 $0.10 4 $0 $96,815 $3.61 Total Expenses $89,529 Notes: 1) Based on 2015 Operating Budget. 2) Based on 2015 Spokane County Tax Assessment of Cascade Plaza building parcel plus 15.197% share of Northgate Center parking lot parcel. 3) Based on 3.5% of Stabilized EGI. 4) Methodology: $0.10/SF for maintenance and repairs. 3/21/2016 [ 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. 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. > CASCADE PLAZA | 10 Reimbursements Tenant Name Pro Rata % Expense Total CAMS Property Taxes Insurance Management $42,655 $36,634 $4,200 $10,645 Notes Tenant Totals Dollar Tree 38.47% $19,020 $14,092 $1,616 $1,902 1, 2 $36,629 Beyond Beads 12.78% $4,598 $4,683 $537 $1,361 3 $11,179 Available - Storage Space 4.00% $1,375 $1,464 $168 $425 4 $3,433 Julie's Dance Academy 20.63% $5,983 $7,557 $866 $2,196 5 $16,602 Escape Entertainment 11.37% $4,368 $4,166 $478 $1,211 3 $10,223 Kinja Sushi 12.75% $4,898 $4,672 $536 $1,357 $11,463 100.00% $40,244 $36,634 $4,200 $8,452 $89,529 TOTAL Notes: 1) Dollar Tree has a combined Admin and Management fee not to exceed 10% of CAM charges. 2) Tenant has 5% year over year cap on CAM charges. 3) Tenant 's management reimbursement NTE 5% of minimum and additional rent. 4) Assumes space can be leased for an amount equal to its pro-rata share of expenses. 5) Tenant has a cap on all common charges of $3.00/SF 3/21/2016 [ 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. 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. > CASCADE PLAZA | 11 Featured Photos << N ION DIVIS > ST > CASCADE PLAZA | 12 1.5 Hours 100 Miles Area Intel & Demos Spokane OVERVIEW Settled in 1871 on the Spokane River, the city of Spokane is presently the second largest city in Washington. The city is 92 miles south of the Canadian border, approximately 20 miles from the Washington–Idaho border, and 232 miles east of Seattle. Spokane is known as the birthplace of Father’s Day, hosted the first environmentally themed World’s Fair, Expo ‘74, and is home to Gonzaga University, Whitworth University, and the growing Riverpoint campus that includes satellite campuses for Eastern Washington University and Washington State University. Coeur D’Alene 90 moses lake 2 Hours 140 Miles ECONOMY NATURAL RESOURCES Natural resources have historically been the foundation of Spokane’s economy, with the mining, logging, and agriculture industries providing much of the region’s economic activity. Considered to be one of the most productive mining districts in North America and due to its location between mining and farming areas, Spokane became an important rail and shipping center. Tri-Cities DIVERSIFIED INDUSTRY Today the city’s economy has diversified to include other industries, including the high-tech and biotech sectors. As the metropolitan center of the Inland Northwest as well as southeastern British Columbia and Alberta, Spokane serves as a commercial manufacturing, transportation, medical, financial, shopping, and entertainment hub. CORPORATE HEADQUARTERS & OFFICES Genetics company, Signature Genomic Laboratories and Fortune 1000 technology company, Itron are headquartered in the area. Other companies with head offices in the Spokane area include technology company Key Tronic, hotelier Red Lion Hotels Corporation, and automaker Commuter Cars. The largest military facility in the area is Fairchild Air Force Base near Airway Heights, which employs over 5,100 military and civilian employees and is home to the 92d Air Refueling Wing. 5 Miles CASCADE PLAZA 3 Miles 1 Mile POPULATION 2010 2015 2020 1-Mile 16,918 16,812 16,881 3-Mile 97,611 99,265 101,158 5-Mile 171,740 175,197 178,898 2015 HOUSEHOLD INCOMES Average Median 1-Mile3-Mile5-Mile $46,265 $53,570 $54,047 $33,922 $40,506 $39,649 40 min 37 Miles THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ www.CapitalPacific.com ] DAVID GELLNER SEAN TUFTS KEVIN ADATTO MICHAEL HORWITZ SEAN MACK SCOTT FRANK [email protected] | (206) 913-2842 [email protected] | (503) 675-8381 [email protected] | (206) 743-8468 [email protected] | (503) 675-8378 PETER DUNN [email protected] | (503) 607-0197 [ Copyright © 2016 Capital Pacific LLC ] [email protected] | (503) 675-7726 [email protected] | (503) 675-8383