4700 Yelm Hwy Se | Lacey, Wa Olympia, Wa Msa
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4700 YELM HWY SE | LACEY, WA OLYMPIA, WA MSA SINGLE-TENANT ABSOLUTE NET LEASE | +/- 19.6 YEARS REMAINING I RENT INCREASES THIS INVESTMENT OFFERING MEMORANDUM Seller and Thomas Company each expressly has been prepared by Thomas Company and reserve the right, at their sole discretion, to does not purport to provide a necessarily accurate reject any and all expressions of interest or summary of the Property or any of the documents offers regarding the Property and/or terminate related thereto, nor do they purport to be all discussions with any entity at any time with PLEASE CONTACT inclusive or to contained all of the information or without notice. Seller shall have no legal which prospective investors may need or desire. commitment or obligation to sell the property JEFFREY S. THOMAS All projections have been developed by Seller, to any entity reviewing the Investment Offering Thomas Company and designated sources, Memorandum or making an offer to purchase the THOMAS COMPANY and are based upon assumptions relating to the Property unless and until such offer is approved 210 Third Avenue South general economy, competition and other factors by Seller, a written agreement for the purchase of beyond the control of Seller, and therefore are the Property has been fully executed, delivered Suite 5C subject to variation. No representation is made and approved by Seller and its legal counsel and Seattle, WA 98104 by Seller or Thomas Company as to the accuracy any conditions to Seller’s obligations thereunder 800.775.3350 or completeness of the information contained have been satisfied or waived. This Investment [email protected] herein, and nothing contain herein, is, or shall be Offering Memorandum and the contents are of a relied on as a promise or representation as to the confidential nature. By accepting the Investment future performance of the Property. Although Offering Memorandum, you agree that you will THOMASCOMPANY.COM the information contained herein is believed hold and treat it in the strictest confidence, that you to be correct, Seller and its officers, directors will not photocopy or duplicate it, that you will not and employees disclaim any responsibility for disclose the Investment Offering Memorandum or inaccuracies and expect prospective purchasers any of the contents to any other entity (except to to exercise independent due diligence in outside advisors retained by you if necessary, for verifying all such information. Further, Thomas your determination of whether or not to make a Company, Seller and its officers, directors and proposal and from whom you have obtained an employees disclaim any and all liability for agreement of confidentiality) without the prior representations and warranties, expressed and written authorization of Seller, and that you will implied, contained in, or omission from the not use the Investment Offering Memorandum Investment Offering Memorandum or any other or any of the contents in any fashion or manner written or oral communication transmitted or detrimental to the interest of Seller or Thomas made available to the recipient. The Investment Company. If you do not have an interest in the Offering Memorandum does not constitute a Property at this time, please return the Investment representation that there has been a change in Offering Memorandum forthwith. the business or affairs of the Property or Seller since the date of preparation of the Investment © 2019 Thomas Company Offering Memorandum. Analysis and verification of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser. ExecutiveEXECUTIVE Summary SUMMARY PROPERTY SUMMARY RENT SUMMARY Price $16,922,628 Lease Years Annual Rent Monthly Rent Increases Cap Rate 5.25% 1 $888,438 $74,037 Building SF 56,199 2 $901,765 $75,147 1.50% NOI $888,438 3 $915,291 $76,274 1.50% Year Built/Expanded/Renovated 1986/1999/2005 Land/Lot Size 5.51 Acres 4 $929,020 $77,418 1.50% 5-10 $942,956 $78,580 1.50% LEASE SUMMARY 11-15 $1,013,677 $84,473 7.50% Lease Type Absolute Triple-Net (NNN) Lease 16-20 $1,089,703 $90,809 7.50% Tenant Safeway, Inc. Options Annual Rent Monthly Rent Increases Albertsons Companies Inc., a Delaware Guarantor Corporation 1st Term $1,171,431 $97,619 7.50% Roof & Structure Tenant Responsible 2nd Term $1,259,288 $104,941 7.50% Lease Commencement Date 6/28/19 3rd Term $1,353,735 $112,811 7.50% Lease Expiration Date 6/30/39 4th Term FMV FMV FMV Lease Term Remaining +/- 19.6 Years 5th Term FMV FMV FMV Rental Increases 1.5% Annually in Years 2-5; 7.5% in Years 11 & 16 6th Term FMV FMV FMV Renewal Options 8, 5 Year Options (Options 4 - 8 are FMV) 7th Term FMV FMV FMV Commencing 4 years after the effective date of Right of First Refusal the Lease. Tenant has 15 days to respond. 8th Term FMV FMV FMV SAFEWAY, LACEY, WASHINGTON 3 Property Overview SAFEWAY, LACEY, WASHINGTON 4 4700 YELM HWY SE | LACEY, VA Note: Only select retailers shown SAFEWAY, LACEY, WASHINGTON 5 Site Map 4700 YELM HWY SE | LACEY, VA Note: Only select retailers shown SAFEWAY, LACEY, WASHINGTON 6 Lease Abstract Lessor CF ALBERT PROPCO III, LLC, a Delaware limited liability company Tenant Name Safeway, Inc. Guarantor ALBERTSONS COMPANIES, INC., a Delaware corporation Tenant Size (SF) 56,199 Lease Commencement Date 6/28/19 Expiration Date 6/30/39 Lease Term 20 years Remaining Lease Term (Current-6/27/2039) +/-19.6 years No. & Term of Options 8 x 5 yr Contractual Rental Rate (Current-6/27/2020) $888,438 Rent Increase Schedule TERM RENT 6/28/2020-6/30/2021 $901,765 7/01/2021-6/30/2022 $915,291 7/01/2022-6/30/2023 $929,020 7/01/2023-6/30/2029 $942,956 7/01/2029-6/30/2034 $1,013,677 7/01/2034-6/30/2039 $1,089,703 Option 1-3 7.50% Option 4-8 FMV Lesee Operating Expenses Tenant shall maintain or cause to be maintained, at its sole cost and expense, the Common Area at all times in good and clean condition and repair. Property Tax Expense Tenant shall be liable for and, to the extent permitted under applicable law, agrees to pay directly to the applicable collecting authority, as they accrue, all taxes. Property Insurance Tenant shall maintain commercial general and auto liability insurance, insuring it against claims for personal injury, bodily injury or death, and property damage or destruction. Maintenance & Repairs Tenant must maintain the Leased Premises, structural and non-structural, interior and exterior, in good repair and condition, and will make all structural and non-structural, interior and exterior, foreseen and unforeseen and ordinary and extraordinary changes, replacements, upgrades and repairs which may be required with respect to the Leased Premises. Estoppel Tenant must deliver to Landlord within fifteen (15) business days after receipt of written request. SAFEWAY, LACEY, WASHINGTON 7 Regional Map 4700 YELM HWY SE | LACEY, VA KEY DRIVING DISTANCES Olympia, WA 6.0 miles / 15 mins Tacoma, WA 30.2 miles / 39 mins SEATAC 47.7 miles/ 58 mins Seattle, WA 60.3 miles/ 1h 8 mins SAFEWAY, LACEY, WASHINGTON 8 Local Map 4700 YELM HWY SE | LACEY, VA SAFEWAY, LACEY, WASHINGTON 9 Demographics 1 3 5 POPULATION MILE MILES MILES 5 MILES 2000 Total Population 8,472 46,849 100,296 2010 Total Population 13,340 57,752 117,670 3 MILES 2010-2019 Annual Rate 1.58% 1.33% 1.36% 2019-2024 Annual Rate 1.61% 1.35% 1.35% 1 MILE HOUSEHOLDS 2019 Total Households 6,089 25,383 53,941 2024 Total Households 6,584 27,102 57,674 4700 YELM HWY SE | LACEY, VA 2010-2019 Annual Rate 1.40% 1.27% 1.35% 2019-2024 Annual Rate 1.58% 1.32% 1.35% HOUSEHOLD INCOME 2019 Median Household Income $67,434 $75,246 $69,908 2019 Average Household Income $88,907 $102,181 $98,237 SAFEWAY, LACEY, WASHINGTON 10 Market Overview OLYMPIA, WASHINGTON Olympia is the capital of Washington State. It is located 60 miles southwest of Seattle, the largest city in the Pacific Northwest region. The city has a population of 49,928, an increase of 9.2% since 2010. The median household income is $67,347 and the median home price is $331,000. The city has a gross metro product of $13.4 billion. Olympia is known for its high quality of life and has been on Livability. com’s “Top 100 Places to Live” list since 2015. Residents enjoy a variety of public parks and nature conservation areas. The 600-acre Woodard Bay Natural Resources Conservation Area contains more than five miles of Puget Sound waterfront. Olympia is home to five theatrical Olympia, Washington, State Capitol companies, a symphony orchestra, and the Olympia Film Society. Just south of Olympia, the Monarch Contemporary Art Center and Sculpture Park offers an 5-acre sculpture garden and art gallery. Olympia is an educational hub and is home to a Washington State University campus, Evergreen State College, and South Puget Sound Community College. Residents have high educational attainment: the vast majority (94.7%) have completed high school, and many have an undergraduate (35.7%) or a graduate degree (13.6%). The city benefits from excellent transportation connections. It is located on Interstate 5, which runs from Mexico to Canada via San Diego, Los Angeles, Sacramento, Portland, and Seattle. Amtrak, the national passenger rail system, links Olympia to Seattle, Vancouver, Portland, Sacramento, Emeryville, and Los Angeles. Olympia’s award- winning Intercity Transit provides bus service within the Olympia- Lacey-Tumwater area with connections to regional bus and commuter rail services.