Aaron’s Retail Center · 2019-10-23 · THE OFFERING provides the opportunity to acquire a 13,950...
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Aaron’s Retail Center KENNEWICK, WASHINGTON
Transcript of Aaron’s Retail Center · 2019-10-23 · THE OFFERING provides the opportunity to acquire a 13,950...
Aaron’s Retail CenterKENNEWICK, WASHINGTON
Aaron’s Retail Center 5020 CLEARWATER AVE, KENNEWICK, WA 99336
Overview
THE OFFERING provides the opportunity to acquire a 13,950 square foot retail center anchored by a Aaron’s, a publicly-traded national retailer and leader in the rent-to-own furniture industry, with the balance occupied by Runners Soul and Harris. The center benefits from strong historical occupancy with 85% of tenants having occupied the Property for 13+ years. The Property benefits from it’s location within a high-growth submarket of the Tri-Cities, with an affluent surrounding residential base and proximity to a number of new developments, including the Columbia Center, a major retail destination 3-miles away from the Property.
LEASEABLE SF13,950 SF
LAND AREA38,656 SF
OCCUPANCY100%
PRICE PER SF $160
YEAR BUILT2003
NUMBER OF TENANTS3
Investment Summary
6.25%CAP
$2,230,000PRICE
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Overview
STRONG HISTORICAL OCCUPANCY OF 100% SINCE
CONSTRUCTION IN 2003.*
AARON’S HAS OCCUPIED THE CENTER SINCE 2006.
TWO TENANTS, OCCUPYING APPROXIMATELY 85% OF THE CENTER,
OPERATE ON NNN LEASE STRUCTURES.
STRONG DAILY DRAW TO THE TRADE AREA PROVIDED BY DAILY-NEEDS
NATIONAL RETAILERS, SCHOOLS, AND EMPLOYERS IN CLOSE PROXIMITY.
LOCATED ON CLEARWATER AVENUE, A FOUR-MILE CORRIDOR
CONNECTING TO AREA HIGHWAYS WHERE SEVERAL NEW PROJECTS
ARE BEING DEVELOPED.
DENSE SURROUNDING RESIDENTIAL BASE WITH 165,000 RESIDENTS
WITHIN A FIVE-MILE RADIUS EXHIBITING STRONG AVERAGE ANNUAL
INCOMES OF $84K.
WASHINGTON STATE HAS ONE OF THE FASTEST-GROWING POPULATIONS
IN THE COUNTRY, WITH KENNEWICK LISTED AS HAVING THE 4TH
LARGEST INCREASE IN POPULATION.
*ALL BUT 8 MONTHS WHEN APPROXIMATELY 2,100 SQUARE FEET WAS NOT OCCUPIED.
Investment Highlights
AARON’S & RUNNERS SOUL HAVE OCCUPIED THE CENTER FOR 13+ YEARS
*ALL BUT 8 MONTHS WHEN APPROXIMATELY 2,100 SQUARE FEET WAS NOT OCCUPIED. Investment Highlights
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MAJOR RETAILBed Bath & BeyondBig Lots Burlington Costco Dollar Tree Fred Meyer Goodwill
Hobby Lobby Home Depot Lowe’sMcDonald’s PetSmart R.E.I. Rite Aid Ross
Safeway Sportsman’s Warehouse Starbucks Target T.J. Maxx Walgreens Walmart Supercenter WinCo
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 502 2,617 4,556
Employees 5,304 32,208 56,163
Population 15,583 75,414 172,091
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
COLUMBIA CENTERBarnes & NobleDSWGNC
HomeGoods JC PenneyLOFTMacy’sOld Navy
The Body ShopUlta BeautyVerizon
Tri-Cities Major EmployersBattelle/Pacific Northwest National LaboratoryBechtel NationalKadlec Regional Medical Center
Kennewick School DistrictLamb WestonWashington River Protection SolutionsPasco School District
Surrounding Retail
W CLEARWATER AVE
22,728 VPD
AARON’SRETAIL
CENTER
395
240
77,000 VPD
COLUMBIACENTER
PENDING
Surrounding Retail
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W CLEARWATER AVE
0.89ACRES
±32 SPACES;2.3/1,000 SF
22,728VPD
13,950LEASEABLE SF
SUIT
E 3
SUITE 2
SUITE 1
Suite Breakdown
Suite 1 Harris StorageSuite 2 Aaron’s Suite 3 Runners Soul
Site Plan
Featured Photography
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Aarons Retail Dev Map
new developments for map.xlsx
All items
AARON’SRETAIL
CENTER
3
12
5
6
91011
128
7 4
82
THE STATE OF WASHINGTON HAS ONE OF THE FASTEST-GROWING POPULATIONS in the country, with Kennewick listed as having the 4th largest increase in population. A significant number of new developments are coming in or are in the planning stages along Clearwater Avenue, a four-mile corridor connecting to area highways.
New Developments
1. IBEW UNION HALL N Edison St YEAR BUILT: Under Construction
2. KAMIAKAN HIGH SCHOOL EXPANSION
600 N Arthur St YEAR BUILT: Proposed
3. MAVERICK GAS & CONVENIENCE 4306 W Clearwater YEAR BUILT: 2019
4. COPIERS NW BUILDING 7035 W Clearwater Ave YEAR BUILT: 2018
5. GOODWILL CENTER & WAREHOUSE
South Columbia Center Blvd YEAR BUILT: Under Construction
6. AMON HILLS BUSINESS CENTER 9501 W Clearwater Ave YEAR BUILT: 2018
RecentDevelopments
7. AMON HILLS RETAIL CENTER 9501 W Clearwater Ave YEAR BUILT: 2018
8. CLEARWATER BUILDING 10379 W Clearwater Ave
YEAR BUILT: Under Construction
9. MUSTANG SIGNS 10379 W Clearwater Ave YEAR BUILT: 2019
10. SILOS SPORTS BAR & GRILL 12125 W Clearwater Ave YEAR BUILT: 2019
11. RIDGELINE RETAIL 10799 Ridgeline Dr YEAR BUILT: 2019
12. SUNDOWN SPORTS & MARINE 135 Reata Rd YEAR BUILT: 2019
New Developments
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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 $2,230,000CAPITALIZATION RATE 6.25%PRICE PER FOOT $160
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 12/1/2019 - 11/30/2020 $10.70 $149,283Operating Expense Reimbursement $2.06 $28,768Total Effective Gross Income (EGI) $12.76 $178,052
OPERATING EXPENSES Per SFCAMS $0.96 $13,385Property Taxes $1.06 $14,755Insurance $0.24 $3,300Management Fee of EGI $0.44 $6,153Reserves $0.10 $1,395Total Operating Expenses $2.79 $38,988
NET OPERATING INCOME $9.97 $139,064
3.5%
9/20/2019 [ <www.CapitalPacific.com> ]
Financial Summary
Rent Roll
LEASE TYPE
TENANT NAME SUITE SIZE % OF SF RENT START LEASE EXPIRATION
MONTHLY BASE RENT RENT/SF/YR DATE OF
INCREASEMONTHLY
BASE RENTAaron's 1 8,516 61.05% 9/15/06 9/30/26 NNN $7,806 $11.00 10/1/21 $8,161
Runners Soul 2 3,250 23.30% 1/1/06 6/30/21 NNN $3,659 $13.51
Harris Storage 2,184 15.66% 8/1/17 12/31/19 MG $975 $5.36
TOTALS 13,950 100% $12,440 $10.70
Comments: No options upon lease expiration, yet tenant has historically renewed their lease.
Comments: Lease is personally guaranteed. No options upon lease expiration, yet tenant has historically renewed their lease.
Comments: No options upon lease expiration, yet historically the tenant has renewed at the start of each calendar year for an additional 12 months.
LEASE TERMSTENANT INFO CURRENT RENT RENT INCREASES
9/20/2019 [ <www.CapitalPacific.com> ]
RentRoll
Financial Summary
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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
REIMBURSEMENTS
TOTAL PER SF NOTES IN-PLACE
TOTAL EXPENSES $38,988 $2.79 $28,768
NOTES:1) Based on 2019 Operating Budget.2) Based on 2018 County Tax Assessment.3) Based on 3.5% of EGI. Reimbursements include Admin Fees.4) Methodology: $0.10/SF.
$1,395 $0.10 4RESERVES
$12,445
INSURANCE
PROJECTED OPERATING EXPENSES
$2,783 $3,300 $0.24 1
$11,289
$6,153 $0.44 3 $2,251
$14,755 $1.06
1$13,385 $0.96
2
CAMS
PROPERTY TAXES
MANAGEMENT
9/20/2019 [ <www.CapitalPacific.com> ]
1) BASED ON 2019 OPERATING BUDGET.
2) BASED ON 2018 COUNTY TAX ASSESSMENT.
3) BASED ON 3.5% OF EGI. REIMBURSEMENTS INCLUDE ADMIN FEES.
4) METHODOLOGY: $0.10/SF.
OperatingExpenses
Financial Summary
Reimbursements
TENANT NAME PRO RATA CAMS PROPERTY TAX INSURANCE MGMT ADMIN FEE ADMIN
COLLECTED NOTES TENANT TOTALS
EXPENSE TOTAL $13,385 $14,755 $3,300 $6,153
Aaron's 61.05% $8,171 $9,007 $2,015 $0 10% $817 1 $20,010
Runners Soul 23.30% $3,118 $3,437 $769 $1,434 0% $0 $8,758
Harris 15.66% $0 $0 $0 $0 0% $0 2 $0
TOTAL 100.00% $11,289 $12,445 $2,783 $1,434 $817 $28,768
NOTES:1) Tenant reimburses 10% admin fee in lieu of a management fee, based on CAMs.2) Harris operates on a MG lease structure and does not reimburse for any expenses, yet are paying for utilites directly excluding garbage and electricity.
9/20/2019 [ <www.CapitalPacific.com> ]
Reimbursements
Financial Summary
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TENANT Aaron’s
BUILDING SF 8,516 SF
LEASE TYPE NNN
RENT COMMENCEMENT 09/15/2006
LEASE EXPIRATION 09/30/2026
Premise & Term
TENANT’S OBLIGATIONSTenant, at its sole cost, is responsible for the maintenance, repair and replacement of the windows, doors, interior electrical fixtures and wiring, alterations made by tenant, and fixtures installed in the Premises by the tenant, normal wear and tear, damage and destruction by casualty, and HVAC expenses up to $1,000 per year.
LANDLORD’S OBLIGATIONS Landlord, at its sole cost, is responsible for the maintenance, repair and replacement of the roof and foundation of the Premises, all exterior walls, interior walls that provide structural support to the Premises, all underground water sprinkler systems, sewer, water and other utility service pipes and lines serving the Premises, any expense related to the HVAC in excess of the first $1,000 per year, exterior lighting, sprinkler systems, driveways, sidewalks, parking and other paved areas.
Maintenance & Repair
Lease Abstract
CAMSTenant reimburses their prorata share of CAM expenses in addition to a 10% Admin Fee in lieu of Management, based on CAMs.
TAXESTenant reimburse their prorata share or property taxes.
INSURANCETenant reimburses their prorata share of Landlord’s insurance premiums.
EXCLUSIVE USEAny rental or rent-to-own business.
LeaseProvisions
Expenses
Lease Abstract
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Contact Us
SEAN [email protected]: 503.675.8378
DAVID [email protected]: 206.693.3349
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.
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