Embed Size (px)
Citation preview
Boulevard Plaza Pad
bURLINGTON, WA
Two-Tenant Retail Centeralong major retail arterial
[ www.CapitalPacific.com ]1820 S Burlington Blvd, Burlington, WA 98233
The offering provides an opportunity to acquire a high quality retail asset 90% occupied by a nationally recognized tenant mix
in AT&T and Jimmy John’s. Lease up of the remaining available space at Boulevard Plaza provides an opportunity for an investor to
increase their yield an additional 60 basis points. Both in-place leases boast strong annual rent growth with Jimmy John’s recognizing over 30% rent growth during their initial term. Additionally, AT&T corporate will be taking over this location from existing Connect Wireless franchisee and consolidating its other Burlington store into this location.
The Property’s location benefits from an expansive regional draw created by the Burlington Blvd retail corridor including two shopping malls and several major national retailers including Home Depot, Costco and others. The retail draw to Burlington Blvd. and the Center’s close proximity to an Interstate 5 off-ramp create traffic counts in front of the Property nearing 30,000 vehicles per day.
OCCUPANCY . . . . . . . . . . . . . 90%
LEASABLE SF . . . . . . . . . . . . ±6,055 SF
PRICE PER SF . . . . . . . . . . . . $339
LAND AREA . . . . . . . . . . . . . ±27,117 SF
YEAR BUILT . . . . . . . . . . . . . .2008
LEASE TYPE . . . . . . . . . . . . . .NNN
AVG CURRENT RENTS . . . . . .$23.64 per SF
PARKING . . . . . . . . . . . . . . . . .±19 Spaces or 3.1/1,000 SF
BOULEVARD PLAZA PAD IS A 6,055 SF MULTI-TENANT RETAIL CENTER ALONG
A MAJOR RETAIL THOROUGHFARE IN BURLINGTON, WASHINGTON.
PRICE: $2,050,000IN-PLACE CAP: 6.00%STABILIZED CAP: 6.60%
Investment Highlights
ADDRESS: 1820 S Burlington Blvd, Burlington, WA 98233 BOULEVARD PLAZA PAD | 2
ANNUAL RENT GROWTHREGIONAL SHOPPING DESTINATION AREA
NATIONAL TENANT MIX
Boulevard Plaza Pad benefits from a first-class tandem of AT&T and Jimmy John’s who have 5,000+ and 2,300+ locations nationwide respectively.
Jimmy John’s has a lease term with nine years remaining on a triple-net basis and the existing AT&T-franchised store (Connect Wireless) is being
purchased by corporate in September 2016. AT&T will reportedly also consolidate another Burlington store into this location.
IN THE HEART OF RETAIL DESTINATION AREA
The city of Burlington has become known for its density of major retail along Burlington Blvd, including the Cascade Mall, the Outlet Shoppes, Costco, Home Depot, Target and several others. The collection of major retail creates a strong
regional draw to the area and specifically, Burlington Blvd. The Property is also part of the larger Boulevard Plaza development, which includes two hotels and
adjacent strip retail use.
STRONG RENT GROWTH WITH UPSIDE
In-place leases at Boulevard Plaza Pad exhibit strong annual rent growth providing long-term upside for a potential investor. Jimmy John’s annual increases accumulate to an over 30% increase in base rent between year one and the end of their initial
term while AT&T also demonstrates annual increases through their initial term and a 10% increase in each option period. An investor can achieve additional yield upside of nearly 60 basis points through the lease up of the remaining available suite.
HIGHLY-TRAFFICKED RETAIL ARTERIAL
Burlington Blvd. is the main retail thoroughfare in Burlington and boasts traffic counts of nearly 30,000 vehicles per day. Additionally, the Property’s location benefits from
excellent accessibility only two blocks from an Interstate 5 off-ramp where traffic counts are upwards of 70,000.
Core Characteristics
BOULEVARD PLAZA PAD | 3
About the Tenants
LEASE TYPE: CORPORATE NYSE: T EMPLOYEES: 240,000+
5,000+LOCATIONS WORLDWIDE
65+ LOCATIONS - FRANCHISEE ONLY
BBB+STANDARD & POOR'S INVESTMENT GRADE
CREDIT RATING
2,316+TOTAL LOCATIONS
1983FOUNDED
$150MILLION
ANNUAL EARNINGS
NET OPERATING INCOME
$
$134,999
$123,509
In Place
Stabilized
CAP: 6.00%
CAP: 6.60%BASIS POINT GROWTH
60
32,693 DAILY
20
AMC TheatresApplebee’sChuck E. Cheese’sDavid’s BridalDollar Tree
JCPenneyMacy’sOfficeMaxOutback SteakhousePopeyes
Red RobinSleep CountryT.J.MaxxTarget
CASCADE MALL
FOR A FULL LIST OF RETAILERS, CLICK HERE
Coach FactoryEddie BauerFilsonGap Outlet
Jones New Yorklululemon athleticaNikeNine West
PendletonPumaVitamin World
THE OUTLET SHOPPES AT BURLINGTON
FOR A FULL LIST OF RETAILERS, CLICK HERE
Ashley FurnitureBed Bath and BeyondBest BuyFive Guys Burger
Kohl’sMen’s WarehouseOld NavyOlive Garden
PetSmartRoss Dress For LessStarbucks
BURLINGTON CROSSING
Ace HardwareArby’sAutoZoneBurger KingBurlington Coat FactoryCascade PlaceChipotleCostcoDenny’sDick’s Sporting GoodsDiscount TireDollar TreeFred Meyer
GoodwillGrocery OutletHaggenIHOPJack in the BoxJiffy LubeJoAnn FabricsKFCLes SchwabLowesNAPA Auto PartsPanda ExpressPanera Bread
PetcoRite AidSafewayShari’s RestaurantsStarbucksSubwayTaco BellTaco Del MarTaco TimeWalgreensWalmart SupercenterWendy’s
ADDITIONAL SURROUNDING RETAILERS
S BU
RLIN
GTON
BLV
D
20
71,000 DAILY
Retail Corridor
CASCADE MALL
THE OUTLET SHOPPES AT BURLINGTON
BURLINGTON CROSSINGS
BOULEVARD PLAZA PAD
BOULEVARD PLAZA PAD | 5
Site Plan Not To Scale
Site Plan
Each party at Boulevard Plaza grants and conveys to each other a non-exclusive easement for ingress and egress for the passage and parking of vehicles over and across the parking and driveway areas.
The Hampton Inn & Suites parcel owner is the manager of the common area maintenance which shall be reimbursed monthly by the other parcel owners based on their pro-rata share of land area.
CC&R’S
LAND AREA ±27,117 SF
LEASABLE SF ±6,055 SF
PARCEL OUTLINE
SUBJECT
NOT A PART
MONUMENT SIGN
INGRESS/EGRESS
SITE PLAN KEY E GEORGE HOPPER RD
S BU
RLIN
GTON
BLV
D32
,693
DA
ILY
7,032 DAILY
HERITAGEBANK
SAVIBANK
KELLER WILLIAMS WESTERN REALTY
SAKURASTEAKHOUSE
BLISS DAYSPA
AMERICANFAMILY INSUANCE
EDWARDJONES
CANDLEW
OOD SUITES BURLIN
GTON
HAMPTON INN & SUITES BURLINGTON
PIAZZA REALTY
BOULEVARD PLAZA PAD | 6
Income & Expense
PRICE $2,050,000 $2,050,000
Capitalization Rate 6.00% 6.60%
Price Per Foot $339 $339
NET OPERATING INCOME SUMMARY IN-PLACE STABILIZEDSCHEDULED INCOME Per SFScheduled Rent: 10/1/2016 $24.09 $128,261 $145,873Plus: Rent Increases Through: 9/30/2017 $0.46 $2,789 $2,789Plus: Expense Reimbursement $4.80 $25,657 $29,069Equals: Scheduled Gross Income $29.35 $156,708 $177,732Market Vacancy 5% ($1.47) ($8,887)Equals: Effective Gross Income (EGI) $27.89 $156,708 $168,845
Less: OPERATING EXPENSES Per SFCAMS $1.36 $8,240 $8,240Property Taxes $2.44 $14,759 $14,759Insurance $0.63 $3,800 $3,800Management Fee 3.5% of EGI $1.00 $5,485 $6,044Reserves $0.10 $606 $606Total Operating Expenses $5.52 ($32,889) ($33,448)
Equals: NET OPERATING INCOME $22.36 $123,818 $135,397
9/1/2016 [ <www.CapitalPacific.com> ]
OFFERED FREE AND CLEAR OF DEBT
The following loan summaries are for consideration purposes only, and not a guarantee of loan terms. The rates and terms are subject to market fluctuation.
LOAN TO VALUE: 65% INTEREST RATE: 4.25% TERM: 10 Years AMORTIZATION: 25 Years
BRIAN BONIPART Newmark Realty Capital, INC.1500 Fourth Ave, Suite 601Seattle, WA 98101W 206-816-6807 [email protected]
FOR MORE INFORMATION PLEASE CONTACT
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
BOULEVARD PLAZA PAD | 7
Rent Roll
LEASE TYPE
Tenant Name Size % of SFOccupancy
DateLease
ExpirationMonthly Base
RentRent/SF/YR
Date of Increase
Monthly Base Rent
Additional Annual
AT&T Wireless 3,926 64.84% 11/1/14 10/31/19 $7,688 $23.50 11/1/16 $7,852 $1,799 NNN$0.50/SF Annual Increases
Jimmy John's 1,500 24.77% 11/1/15 10/31/25 $3,000 $24.00 11/1/16 $3,090 $990 NNN3% Annual Increases
Available 629 10.39% $1,468 $28.00 NNN
Totals: 6,055 100% $12,156 $24.09 $2,789Occupied 5,426 90% $10,688 $23.64Leasable 629 10% $1,468 $28.00
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.
OPTIONSRENT INCREASES
2-5 YR10% Increases
2-5 YR3% Annual Increases
comments: Exclusive use for wireless products. Occupancy date is estimated.
comments: Rent Commencement date is estimated. Exclusive for selling sandwiches. Lease has personal guarantee from operator.
TENANT INFO LEASE TERMS CURRENT RENT
9/1/2016 [ <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
BOULEVARD PLAZA PAD | 8
Operating Expenses
REIMBURSEMENTS
Total /SF Notes
Total Expenses $33,448 $5.52 $25,657
Notes:1) Based on 2016 Operating Budget.2) Based on 2016 Skagit County Tax Assessment.3) Based on 3.5% of EGI. Reimbursements include Admin Fees.4) Methodology: $0.10/SF.
Management
1$8,240 $1.36
2
CAMS
Property Taxes
$6,044 $1.00 3 $1,642
$14,759 $2.44 $13,226
Insurance
2016 OPERATING EXPENSES
$3,405 $3,800 $0.63 1
$7,384
$606 $0.10 4 $0 Reserves
9/1/2016 [ <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
BOULEVARD PLAZA PAD | 9
Reimbursements
Tenant Name Pro Rata % CAMSProperty
Taxes Insurance Management Admin FeeAdmin
Collected Notes Tenant Totals
Expense Total $8,240 $14,759 $3,800 $6,044
AT&T Wireless 64.84% $5,343 $9,570 $2,464 $267 15% $1,171 1, 2, 3 $18,814
Jimmy John's 24.77% $2,041 $3,656 $941 $102 5% $102 1, 2, 5 $6,843
Available 10.39% $856 $1,533 $395 $628 4 $3,412
TOTAL 100.00% $8,240 $14,759 $3,800 $997 $1,273 $29,069
5) Admin Fee is based on percentage of CAM charges.
Notes: 1) Controllable CAM costs are capped at a 5% increase from year to year on a non-cumualtive basis.2) Tenant is responsible for their pro-rata share of management expense not to exceed 5% of CAM charges.3) Admin Fee is based on percentage of CAM charges and Insurance.4) Assumes full NNN reimbursement.
9/1/2016 [ <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
BOULEVARD PLAZA PAD | 10
[S BURLINGTON BLVD]
Featured Photos
BOULEVARD PLAZA PAD | 11
PREMISES/TERM
TENANT: New Cingular Wireless PCS, LLC dba AT&T Mobility, CorporateSQUARE FEET: ±3,926 SFLEASE COMMENCEMENT: November 1, 2014LEASE EXPIRATION: October 31, 2019OPTIONS: Two 5-Year Options with 10% increases.
Lease Abstract
EXCLUSIVESTenant shall have the exclusive right to provide, offer, service and/or sell communication products and services.
UTILITIESTenant shall promptly pay all charges for water, electricity, gas, heat, sewage, trash and garbage removal, and other materials and services furnished to or used by Tenant in or about the Premises.
REAL ESTATE TAXTenant shall be responsible for all real estate taxes, charges and assessments on the Premises including any improvements and fixtures.
INSURANCETenant, at its own expense, shall maintain a general liability policy, including personal damages occurring in or about the Premises. Landlord shall obtain fire and extended coverage upon the building, to be reimbursed as part of tenant’s additional rent.
CAMSTenant to reimburse Landlord for their pro-rata share of all operating costs subject to a maximum 5% increase in controllable costs per year. Tenant’s management fee reimbursement is not to exceed 5% of CAM charges.
LANDLORD MAINTENANCE OBLIGATIONSLandlord shall keep in good order, condition, and repair the exterior foundation, exterior walls, downspouts, gutters, and roof of the Premises, HVAC equipment and the plumbing and sewage system outside the building.
TENANT MAINTENANCE RESPONSIBILITIESTenant shall keep and maintain the Premises and every part thereof and the store front in good order, condition and repair, including all plumbing and sewage facilities within the Premises, fixtures, interior walls, floors, ceilings, signs and all interior building appliances.
LEASE YEAR11/01/15–10/31/16
11/01/16–10/31/17
11/01/17–10/31/18
11/01/18–10/31/19
PER SQ. FOOT$23.50
$24.00
$24.50
$25.00
MONTHLY$7,688.42
$7,852.00
$8,015.58
$8,179.17
ANNUALLY$92,261
$94,224
$96,187
$98,150
LEASE YEAR#1, Exp. 10/31/2024
#2, Exp. 10/31/2029
PER SQ. FOOT$27.50
$30.25
MONTHLY$8,997.08
$9,896.79
ANNUALLY$107,965
$118,761
BASE RENT
OPTIONS
BOULEVARD PLAZA PAD | 12
PREMISES/TERM
TENANT: Zurinsky Management LLC, dba Jimmy John’s, FranchiseeGUARANTOR(S): David Zurinsky & Stephanie ZurinskySQUARE FEET: ±1,500 SFLEASE COMMENCEMENT: November 1, 2015LEASE EXPIRATION: October 31, 2025OPTIONS: Two 5-Year Options with 3% annual increases.
Lease Abstract
EXCLUSIVESTenant shall have the exclusive right to make and sell sandwiches and Landlord shall not lease any space to a direct competitor of the Tenant, including Subway, Quizno’s, and Jersey Mike’s.
UTILITIESTenant shall promptly pay all charges for water, electricity, gas, heat, sewage, trash and garbage removal, and other materials and services furnished to or used by Tenant in or about the Premises.
REAL ESTATE TAXESTenant shall be responsible for all real estate taxes, charges and assessments on the Premises including any improvements and fixtures.
INSURANCETenant, at its own expense, shall maintain a general liability policy, including personal damages occurring in or about the Premises. Landlord shall obtain fire and extended coverage upon the building, to be reimbursed as part of tenant’s additional rent.
CAMSTenant to reimburse Landlord for their pro-rata share of all operating costs subject to a maximum 5% increase in controllable costs per year. Tenant’s management fee reimbursement is not to exceed 5% of CAM charges.
LEASE YEAR11/01/15–10/31/16
11/01/16–10/31/17
11/01/17–10/31/18
11/01/18–10/31/19
11/01/19–10/31/20
11/01/20–10/31/21
11/01/21–10/31/22
11/01/22–10/31/23
11/01/23–10/31/24
11/01/24–10/31/25
PER SQ. FOOT$24.00
$24.72
$25.46
$26.23
$27.01
$27.82
$28.66
$29.52
$30.40
$31.31
MONTHLY$3,000.00
$3,090.00
$3,182.70
$3,278.18
$3,376.52
$3,477.82
$3,582.16
$3,689.62
$3,800.31
$3,914.32
ANNUALLY$36,000
$37,080
$38,192
$39,338
$40,518
$41,734
$42,986
$44,275
$45,604
$46,972
LEASE YEAR11/01/25–10/31/26
11/01/26–10/31/27
11/01/27–10/31/28
11/01/28–10/31/29
11/01/29–10/31/30
11/01/30–10/31/31
11/01/31–10/31/32
11/01/32–10/31/33
11/01/33–10/31/34
11/01/34–10/31/35
PER SQ. FOOT$32.45
$33.22
$34.21
$35.24
$36.29
$37.38
$38.50
$39.66
$40.85
$42.08
MONTHLY$4,031.25
$4,152.50
$4,276.67
$4,404.50
$4,536.67
$4,672.33
$4,812.67
$4,956.92
$5,106.25
$5,259.42
ANNUALLY$48,375
$49,830
$51,320
$52,854
$54,440
$56,068
$57,752
$59,483
$61,275
$63,113
BASE RENT
OPTIONS
LANDLORD MAINTENANCE OBLIGATIONSLandlord shall keep in good order, condition, and repair the exterior foundation, exterior walls, downspouts, gutters, and roof of the Premises, HVAC equipment and the plumbing and sewage system outside the building.
TENANT MAINTENANCE RESPONSIBILITIESTenant shall keep and maintain the Premises and every part thereof and the store front in good order, condition and repair, including all plumbing and sewage facilities within the Premises, fixtures, interior walls, floors, ceilings, signs and all interior building appliances.
OPTI
ON 1
OPTI
ON 2
BOULEVARD PLAZA PAD | 13
5
20
20
5 Miles 3 Miles
3-Mile 5-MileMedian $49,675 $53,671Average $61,710 $67,881
2016 HOUSEHOLD INCOMES
3-Mile 5-Mile2010 40,756 53,6702016 41,245 55,4792021 42,513 57,423
POPULATIONBURLINGTON OVERVIEW
Burlington is a city of 4.42 square miles located in Skagit County, one hour north of Seattle and 45 minutes south of the Canadian border along Interstate 5. Settled in the late 1800’s originally as a logging town, Burlington has become best known as a retail destination area, with multiple shopping malls and neighborhood retail centers located along Burlington Blvd. Skagit County’s location between the North Cascades and the San Juan Islands also makes it a popular destination for residents and tourists who enjoy several different outdoor activities.
With the emergence of Burlington as a regional shopping destination, the retail trade now exhibits the highest percentage of the Skagit County workforce, followed by health care and social services then Manufacturing.
CANADA
bURLINGTON
sEATTLE
Bellingham
50 MILES
24 MILES
85 MILES
Area Insight & Demos
BOULEVARD PLAZA PAD
BOULEVARD PLAZA PAD | 14
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
SEAN MACK [email protected] | (503) 675-8378
SEAN TUFTS [email protected] | (206) 743-8468
A unique HUMANRESULTS-DRIVEN client experience
THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS[ www.CapitalPacific.com ]
[ Copyright © 2016 Capital Pacific LLC ]
DAVID [email protected] | (206) 913-2842
