OLYMPIC TOWNE CENTER 98% Leased Lifestyle Retail Center in Prime Location Anchored by Fred Meyer
POINT FOSDICK DR OLYMPIC DR
32ND AVE
5118 POINT FOSDICK DR NW, GIG HARBOR, WA 98406 CONTACT
DAVE SPEERS 206.296.9626 [email protected]
ARIELLE DORMAN 425.450.1100 [email protected] 01 BRUCE PEART EXECUTIVE SUMMARY 425.450.1142 TABLE OF [email protected] 02 CONTENTS PROPERTY DESCRIPTION
03 MAJOR TENANT SUMMARIES
OLYMPICTOWNECENTER.COM
The information contained in the following Marketing Brochure is 04 proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of FINANCIAL SUMMARY Kidder Mathews. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence 05 investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income GIG HARBOR / PIERCE COUNTY MARKET or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. 06 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has SEATTLE MARKET OVERVIEW not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. OLYMPIC DR POINT FOSDICK DR
FUEL AISLES 01
32ND AVE EXECUTIVE SUMMARY
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
56TH ST N
OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 5 PROPERTY OVERVIEW
Offering Lifestyle category retail center with multiple pad buildings and anchor tenant improvements Address 5118 Point Fosdick Dr NW Gig Harbor, WA 98406 Pierce County 4002790050; 4002790040; Tax Parcels 4002790030; 4002790020; 4002790010; 221173101; 221177059 Building Area* 235,853 SF gross leasable area EXECUTIVE Land Area 17.97 AC (782,773.20 SF) Zoning C-1 – Commercial Zone 1, City of Gig Harbor SUMMARY Use *Multi-tenant shopping center including fee owned and long-term ground lease tenancies high-volume Point Fosdick Drive. The average daily traffic counts on Year Built Completed in 2018 SR 16 (the freeway connecting Gig into 2073) and celebrated its grand Harbor to Tacoma via the Tacoma opening this supercenter new Kidder Mathews has been Narrows Bridge) are over 62,000, location January 2018. The center appointed exclusive listing and along Point Fosdick Drive are has a balanced mix of local, regional agents for the sale of Olympic more than 20,000 cars per day. and national tenants including; Towne Center, a 98% leased Located conveniently off Highway AutoZone, Kaiser Permanente, lifestyle retail center strategically 16, Olympic Towne Center is a PetSmart, Jimmy Johns and many located in West Gig Harbor, WA. major shopping destination for more. Approximately 91% of the the Gig Harbor and Port Orchard center is leased to e-commerce communities and the strong resistant tenants and feature demographic neighborhoods of INVESTMENT SUMMARY staggered lease termination dates. North Tacoma. Olympic Towne Center provides an investor solid in-place income The center is anchored by Kroeger BID DEADLINE from successful tenants, strong Corporation’s regional grocer Fred The owner will review offers as rental growth, and an unparalleled Meyer which has been serving the submitted. location in Gig Harbor, boasting Gig Harbor area since 1990. In approximately 7,000 visitors per June of 2015 Fred Meyer signed Price: $63,900,000 day. In 2018, local developer, WWR a twenty-year ground lease for the Properties, constructed Olympic grocery and adjacent large gas Towne Center in phases along service aisles (with options to extend
6 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 7 98% occupied center with all tenants paying rent throughout the pandemic.
INVESTMENT HIGHLIGHTS
FRED MEYER occupies the largest share of the GLA, an investment grade credit tenant, having serviced the area since 1990; their leasehold includes a large gas service aisles adjacent to the store
NATIONAL TENANTS include national brands PetSmart, AutoZone, Kaiser Permanente and Wells Fargo
NEW CONSTRUCTION with few capital expenses required in the foreseeable future
STAGGERED LEASE expiration schedule with strong tenant renewal and option execution history
98% OCCUPIED with 23 tenants and 91% of tenants are e-commerce resistant
63% CREDIT tenants make up 55% of Gross Revenues
DIVERSE MIX of local, regional and national tenants
STABLE IN-PLACE cash flow, year one cash-on-cash 6%
OFFERED FREE and Clear of Debt
8 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 9 WEST BREMERTON SEATTLE
PORT ORCHARD
25 Min | 18.4 Miles PUGET SOUND
TUKWILA RENTON
SEATAC INT'L AIRPORT 46 Min | 34.3 Miles SEATAC VASHON ISLAND
KENT
40 Min | 27.3 Miles
AUBURN OLYMPIC TOWNE CENTER
TACOMA
17 Min | 11.9 Miles
N
PUYALLUP LAKEWOOD
35 Min | 18.6 Miles
10 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 11 OLYMPIC TOWNE CENTER POINT FOSDICK DR
FUEL AISLES 02 FUEL AISLES PROPERTY 32ND AVE DESCRIPTION
PROPERTY DESCRIPTION
SITE PLAN
PHOTOS N
OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 13 PROPERTY DESCRIPTION
ASSET EXCELLENT DEMOGRAPHICS The Olympic Towne Center A substantial population of over contains 235,511 square feet of 25,000 people live within a 3-mile gross leasable area in 10 buildings radius of The Olympic Towne Center on 17.97 acres. The first building and over 90,000 people live within whose tenants include Key Bank a 5-mile radius. The 3 mile radius and Starbucks was completed in household income is over $114,000 1982; in 1986 the Dairy Queen pad (full report available in offering data was added to the center along with room). construction completed on 14,148 SF multi-tenant building known STRONG GROCERY ANCHOR as Olympic Plaza and in 1999 the building housing Heritage Bank Fred Meyer, a division of The Kroger CORPORATE GUARANTY was added to the property. The Company which operates over 2,700 The Fred Meyer lease is fully final phase of construction was grocery retail units nationwide, is guaranteed by it's corporate parent, completed in 2017, which makes up the dominant grocer in the area Kroger, the largest supermarket approximately 91% of the center, and makes up 46% of the gross chain by revenue and the second- and includes buildings A-F totaling leasable area and 16% of the rental largest retailer in the United States 213,501 SF. income at Olympic Towne Center. with an estimated 2019 revenues of The Fred Meyer lease is The Fred Meyer ground lease has 18 $121 billion. years of term remaining, (with lease fully guaranteed by Kroger, LOCATION extension options through 2073) The Olympic Towne Center is and as a ground lease the tenant LOCATION COMMITMENT the largest supermarket located in a heavily trafficked and is responsible for all operating Fred Meyer has been serving the tourist destination area, along SR and building expenses associated Gig Harbor area since 1990 and has chain by revenue in the US. 16, a primary freeway corridor that with their building and gas aisle demonstrated its commitment to connects downtown Gig Harbor and improvements, and share a prorata this center by recently executing a Tacoma whose population in 2019 share of the shopping center new 20-year lease with eight 5-year exceeded 216,000 residents. common area expenses. options.
1414 KIDDER MATHEWS OFFERING MEMORANDUM APARTMENTOLYMPIC TOWNE BUILDING CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 15 SITE PLAN VICINITY TENANTS
32ND AVE NW
NAIL SMOKE SALON LAND
OLYMPIC TOWNE CENTER
RETAIL MEN'S CLIPS SHOPS OLYMPIC DR NW OLYMPIC RETAIL SHOPS
VARIOUS RETAIL SHOPS MEDICAL OFFICE GALAXY IMAX THEATER N
PT FOSDICK DR NW NAIL N N SALON
16 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 17 18 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 19 OCEAN 5 INTERIOR PHOTOS
20 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 21 OCEAN 5 INTERIOR PHOTOS CONTD
Ocean 5 and it's attendant restaurant and bar are a regional draw to Olympic Towne Center. This entertainment venue hosts all manner of parties, civic and business organization meetings, and children's parties.
22 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 23 56TH ST
OLYMPIC TOWNE CENTER
FUEL AISLES 32ND AVE 03 MAJOR TENANT
POINT FOSDICK DR SUMMARIES
FRED MEYER
OCEAN 5
PETSMART
AUTOZONE
KAISER PERMANENTE
LEASE EXPIRATION
PARCEL BREAKDOWN
24 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 25 CORPORATE NAME Fred Meyer
LEASABLE AREA 108,423 SF
% OF GLA 46%
MAJOR SECTOR Grocery
STORES/LOCATIONS 2,758 TENANTS OWNERSHIP Public Company (NASDAQ: KR) MARKET CAP 23B FRED MEYER ANNUAL REVENUE $121 billion Fred Meyer is a chain of supermarket stores founded CREDIT RATING Baa1 in Portland, Oregon by Fred G. Meyer. The stores are found in the western US within the states of Oregon, Washington, Idaho and Alaska. Fred Meyer was one of first in the United States to promote one-stop shopping by combining a complete grocery supermarket with a drugstore, bank, clothing, jewelry, home decor, home improvement, garden, electronics, restaurant, shoes, sporting goods, and toys. The company merged with Kroger in 1998 and remains branded Fred Meyer.
26 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 27 OCEAN 5 CORPORATE NAME PetSmart
LEASABLE AREA 14,210 SF Founded by retired Starbucks COO Troy Alstead, Ocean 5 is a premier entertainment facility designed as a social gathering % OF GLA 6.02% destination, developed with the core purpose of creating unforgettable shared experiences for its guests and team, and SECTOR Retail | Pets driving awareness and inspiring action to improve the health of STORES/LOCATIONS 1,500 the oceans and seas. In addition to multiple restaurants and bars Ocean 5 features a top of the line game room, laser tag and high OWNERSHIP Private tech bowling alley for all ages. MARKET CAP N/A
ANNUAL REVENUE $6.9 billion
CREDIT RATING B3
CORPORATE NAME Ocean 5
LEASABLE AREA 57,075 SF
% OF GLA 24.20%
SECTOR Financial Services STORES/LOCATIONS 1 PETSMART OWNERSHIP Private Based in Phoenix, AZ, BC Partners owns and operates over 1,500 MARKET CAP N/A PetSmart stores in the US, Canada and Puerto Rico. PetSmart is engaged in the sale of specialty pet animal products such as food, ANNUAL REVENUE TBD furniture, habitats and services. As of 2017 their annual revenues CREDIT RATING N/A were in excess of $6.9 billion and employed 53,000 people.
28 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 29 AUTOZONE CORPORATE NAME Kaiser Permanente
LEASABLE AREA 4,205 SF Based in Memphis, Tennessee, AutoZone is the largest retailer of aftermarket automotive parts and accessories in the US. Founded % OF GLA 1.92% in 1979, AutoZone has over 6,000 stores across the US, Mexico and Brazil with annual revenues exceeding $10.9 billion. SECTOR Medical Services
STORES/LOCATIONS 39 Hospitals; 700+ Clinics
OWNERSHIP Private
MARKET CAP N/A
ANNUAL REVENUE 2018 - $80 Billion
CREDIT RATING AA- Moodys
CORPORATE NAME AutoZone
LEASABLE AREA 6,879 SF
% OF GLA 2.78%
SECTOR Automotive STORES/LOCATIONS 6,000 KAISER PERMANENTE OWNERSHIP Public Company (NASDAQ: AZO) Headquartered in Oakland, CA, Kaiser Permanente was founded in MARKET CAP 28b 1945 and operates integrated managed care facilities nationwide. The firm employs over 217,000 employees with 2018 revenues ANNUAL REVENUE $12 billion exceeding $80 billion. CREDIT RATING Baa1
30 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 31 TENANT PARCEL BREAKDOWN LEASE EXPIRATION BREAKDOWN
Year of Lease Expiration % of Net Rentable Cumulative Lot Parcel Land Acres Type Building SF Tenants 34.53% LOCAL 1 4002790050 1.00 Gnd Lease Pad 43,499 Fred Meyer Fuel 2020 2.38% 2.38% Tenant 48.87% 2 4002790040 5.41 Gnd Lease Pad 64,765 Fred Meyer 2021 2.83% 5.21% Breakdown REGIONAL 3 4002790030 7.60 Buildings A - E 2022 1.27% 6.48% 14.60% NATIONAL A 8,578 Hop Jacks Restaurant, Nail Salon, Wells Fargo 2023 1.12% 7.60% B 20,510 AutoZone, Bright Now Dental, Kaiser Permanente & Mattress Firm 2% 2024 0.51% 8.11% AVAILABLE C 4,705 Goldmine Coins & Ms. Sai Gon 2025 0.60% 8.71%
D 14,210 PetSmart 2026 0.00% 8.71% 2027 0.00% 8.71% Gnd Lease E Pad 57,075 Ocean 5 98% 63% 2028 17.13% 25.84% 4 4002790020 0.76 Land Lease 3,004 Dairy Queen 2029 0.00% 25.84% OF GLA IS Papa Murphy's, Jimmy Johns, Secondwave Corp, Tiny Nails, Postal Annex, Men's Clips Barber, OCCUPIED 5 4002790010 1.44 Building 14,148 CREDIT RATED Smoke Shop, & Half Time Sports Pub 2030 0.00% 25.84% 6 0-221173101 1.09 Land Lease 3,000 Key Bank & Starbucks 2031 0.00% 25.84%
7 0-221177059 0.67 Land Lease 2,200 Heritage Bank 2032 0.00% 25.84% TERM REMAINING 2033 0.00% 25.84% 2034 0.00% 25.84% 2035 0.00% 25.84% 71% 15+ YEARS 2036 0.00% 25.84% 2037 0.00% 25.84% 2038 70.27% 96.11% 17.74% 9+ YEARS 2039 0.00% 96.11% 2040 0.00% 96.11% 2041 0.00% 96.11% 2.84% 4+ YEARS 2042 0.00% 96.11% 2043 0.00% 96.11% 2044 0.00% 96.11% 4.7% 1+ YEARS 2045 0.00% 96.11% 2046 1.28% 97.39%
32 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 33 OLYMPIC TOWNE CENTER OLYMPIC DR
POINT FOSDICK DR 04
32ND AVE FINANCIAL
FUEL AISLES SUMMARY
ASSUMPTIONS OVERVIEW
RENT ROLL
11-YEAR CASH FLOW
34 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 35 YEAR 1 NOI FORECAST
January-December For the Year Ending 2021
Rental Revenue
Potential Base Rent $3,217,959 FINANCIAL Scheduled Base Rent $3,217,959 Total Rental Revenue $3,217,959
Other Tenant Revenue
Total Expense Recoveries $846,762 SUMMARY Total Other Tenant Revenue $846,762 Total Tenant Revenue $4,064,721
Potential Gross Revenue $4,064,721
OLYMPIC TOWNE CENTER FINANCIAL ASSUMPTIONS OVERVIEW Vacancy & Credit Loss
Vacancy Allowance ($129,065) Total Rentable Area 235,511 SF Total Vacancy & Credit Loss ($129,065)
Cash Flow Start Date January 1, 2020 Effective Gross Revenue $3,935,656 Rent Growth 2% Operating Expenses Building Maintenance $7,420 Rent Increase During Term (if not otherwise cited) 5% Management Fee $116,047 Ground leases - Abs Net Reimbursable Expenses Power $9,206 Fee owned tenancies - NNN Trash/Recycling $17,106 Major Tenants - 90% Renewal Probability Water/Sewer $21,832 Shop Tenants - 85% Building Insurance $9,880
Re-lease Downtime 3 months Fire Sprinkler Monitoring $3,573
Tenant Improvements (non-ground lessee) $5.00 Phone/Internet/Alarm $4,307 Roof Membrane $5,539
Lease Commissions 5% Christmas Lights $109 Rent abatement 0 months Pest Control $732 Liability Insurance $4,381 Expense Inflation Rate 2% Parking Lot Lights $5,425 General Vacancy 5% Parking Lot Storm Drain/Asphalt $9,435 Parking Lot Sprinkler/Water $3,579 Vacant Space Lease Up 4 months after vacant Parking Lot Maintenance/Portering/Sweeping $44,187
Parking Lot Sand/Snow Removal $8,044
Landscape Maintenance $69,424
Property Taxes $431,932
Security Patrol $18,165
Total Operating Expenses $790,324
Net Operating Income $3,145,332
36 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 37 RENT ROLL
OLYMPIC TOWNE CENTER NEW CONSTRUCTION RENT ROLL OLYMPIC TOWNE CENTER EXISTING SHOP SPACE RENT ROLL Rent Annual Monthly Lease Delivery Rent Comm Termination Remaining Days Annual Monthly Lease Delivery Comm Termina- Remaining Days Address Building Tenant Type Status SF Rate Income Rent Date Date Date Date # Years Options D:R Address Building Tenant Type Status SF Rate Income Rent Date Date Date tion Date # Years Options D:R 5114 Pt Fosdick Dr NW Olympic Plaza 5414 Pt Fosdick Dr NW Bldg A Shop Tenants A Papa Murphy's Shop E 1,856 $31.04 $57,606 $4,800.46 10/1/2000 9/30/2020 20 Years 0 A-100 Hop Jacks Restaurant Shop E 4,499 $32.00 $143,968 $11,997.33 2/23/2015 7/13/2017 4/10/2018 4/30/2028 10 Years 4 X 5 Years 150 B Jimmy Johns Shop E 1,444 $22.00 $31,768 $2,647.33 11/1/2015 10/31/2025 10 Years 2 X 5 Years A-101 Nail Salon Shop E 1,200 $32.00 $38,400 $3,280.00 8/26/2015 8/20/2018 11/18/2018 11/30/2023 5 Years 2 X 5 Years 90 C Secondwave Corp Shop E 1,200 $16.00 $19,200 $1,600.00 6/23/2018 8/1/2018 9/1/2018 8/31/2021 3 Years 1 X 3 Years A-102 Wells Fargo Bank Shop E 2,784 $38.75 $107,880 $8,990.00 6/24/2016 7/13/2017 5/1/2018 4/30/2028 10 Years 4 X 5 Years 120 D/E Tiny Nails Shop R 2,552 $21.38 $54,574 $4,547.81 1/1/2017 5/31/2019 3 Years 2 X 5 Years M&E Room Main E 95 $0.00 F Postal Annex Shop E 1,420 $27.00 $38,340 $3,195.00 8/30/2019 8/21/2019 1/1/2020 1/31/2025 5 Years 2 X 5 Years 8,578 G Men's Clips Barber Shop E 1,200 $22.37 $26,838 $2,236.54 5/1/2015 4/30/2020 5 Years 1 X 5 Years 5216 Pt Fosdick Dr NW Bldg B Shop Tenants H Smoke Land Shop E 1,200 $26.52 $31,827 $2,652.25 12/6/2017 11/30/2024 7 Years B-100 AutoZone Shop E 6,879 $23.06 $158,664 $13,222.00 6/1/2016 3/23/2018 8/1/2018 7/31/2028 10 Years 4 X 5 Years 90 J/K Half Time Sports Pub Shop E 3,276 $31.51 $103,236 $8,602.97 7/1/2016 6/30/2021 10 Years 1 X 5 Years B-101 Bright Now Dental Shop E 2,734 $34.99 $95,655 $7,971.25 3/21/2018 5/10/2018 8/17/2018 8/31/2028 10 Years 2 X 5 Years 120 14,148 $363,388 $30,282.36 B-102 Kaiser Permanente Shop E 4,205 $35.50 $149,278 $12,439.79 7/31/2018 8/8/2018 12/26/2018 12/31/2028 10 Years 2 X 5 Years 120 5118 Pt Fosdick Dr NW Dairy Queen B-103 Matress Firm Shop E 3,944 $34.50 $136,068 $11,339.00 5/17/2018 6/23/2018 11/14/2018 11/30/2028 10 Years 2 X 5 Years 120 Land Lease $85,831 $7,152.58 6/18/1986 11/30/2046 29 Years 0 B-104 Xfinity Shop P 2,594 $37.50 $97,275 $8,106.25 5 Years 2 X 5 Years DQ Total Land SF 32,977 E 3,004 $85,831 $7,152.58 M&E Room Main E 154 $0.00 5001 Pt Fosdick Dr NW Key Bank 20,510 Land Lease $149,040 $12,420.00 2/1/1982 1/31/2022 35 Years 1 X 5 Years 5160 Pt Fosdick Dr NW Bldg C Shop Tenants Key Bank Total Land SF 47,500 E 3,000 $149,040 $12,420.00 C-100 Goldmine Coins Shop E 1,426 $36.05 $51,407 $4,283.92 9/8/2017 8/31/2018 11/5/2018 12/1/2023 5 Years 1 X 5 Years 30 5119 Pt Fosdick Dr NW Heritage Bank C-101 Ms. Sai Gon Shop E 1,080 $36.00 $38,880 $3,240.00 11/23/2016 6/12/2018 7/1/2018 6/30/2028 10 Years 2 X 5 Years 90 Heritage Bank Total Bldg. $112,872 $9,406.00 1/19/2011 1/31/2021 10 Years 2 X 5 Years C-102 Vie Athletics Shop A 2,106 $35.00 $73,710 $6,142.50 4/7/2020 1/1/2021 1/1/2021 12/31/2025 5 Years 2,200 $112,872 $9,406.00 M&E Room Main E 93 $0.00 Revenue Subtotal 235,853 $3,198,621 $266,631.74 4,705
5304 Pt Fosdick Dr NW Bldg D
PetSmart (original 14,264 SF) Bldg. E 14,210 $24.00 $341,040 $28,420.00 4/14/2016 4/16/2018 5/7/2018 5/31/2028 10 Years 4 X 5 Years 90
14,210
5268 Pt Fosdick Dr NW Bldg E
Ocean 5 (PAD lease = to bldg SF) Gnd Lease Pad E 57,075 $9.64 $550,000 $45,833.33 9/10/2015 6/9/2016 4/15/2018 4/30/2038 20 Years 4 X 10 Years 540
57,075
5502 Pt Fosdick Dr NW Bldg F
Fred Meyer (PAD lease = to bldg SF) Gnd Lease Pad E 64,765 $6.79 $440,000 $36,666.67 6/17/2015 8/1/2016 1/10/2018 1/31/2038 20 Years 8 X 5 Years 365
5504 Pt Fosdick Dr NW Kiosk
Fred Meyer Fuel Gnd Lease Pad E 43,658 $1.37 $60,000 $5,000.00 6/17/2015 3/28/2017 1/5/2018 1/31/2038 20 Years 8 X 5 Years 365
108,423
OTC Total 213,501 $2,487,490 $207,370.80
38 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 39 11-YEAR CASH FLOW
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 For the Years Ending DEC 2021 DEC 2022 DEC 2023 DEC 2024 DEC 2025 DEC 2026 DEC 2027 DEC 2028 DEC 2029 DEC 2030 DEC 2031 TOTAL
Rental Revenue
Potential Base Rent $3,217,959 $3,264,408 $3,430,781 $3,516,817 $3,561,347 $3,555,918 $3,583,842 $3,744,802 $3,848,257 $3,906,893 $3,937,196 $39,568,220
Scheduled Base Rent $3,217,959 $3,264,408 $3,430,781 $3,516,817 $3,561,347 $3,555,918 $3,583,842 $3,744,802 $3,848,257 $3,906,893 $3,937,196 $39,568,220
Total Rental Revenue $3,217,959 $3,264,408 $3,430,781 $3,516,817 $3,561,347 $3,555,918 $3,583,842 $3,744,802 $3,848,257 $3,906,893 $3,937,196 $39,568,220
Other Tenant Revenue
Total Expense Recoveries $846,762 $828,491 $841,892 $828,173 $802,735 $800,074 $816,075 $724,022 $575,584 $587,096 $598,838 $8,249,742
Total Other Tenant Revenue $846,762 $828,491 $841,892 $828,173 $802,735 $800,074 $816,075 $724,022 $575,584 $587,096 $598,838 $8,249,742
Total Tenant Revenue $4,064,721 $4,092,899 $4,272,673 $4,344,990 $4,364,083 $4,355,992 $4,399,917 $4,468,824 $4,423,841 $4,493,989 $4,536,034 $47,817,962
Potential Gross Revenue $4,064,721 $4,092,899 $4,272,673 $4,344,990 $4,364,083 $4,355,992 $4,399,917 $4,468,824 $4,423,841 $4,493,989 $4,536,034 $47,817,962
Vacancy & Credit Loss
Vacancy Allowance ($129,065) ($130,040) ($134,073) ($136,502) ($136,997) ($136,123) ($137,841) ($135,833) ($132,276) ($135,276) ($136,860) ($1,480,886)
Total Vacancy & Credit Loss ($129,065) ($130,040) ($134,073) ($136,502) ($136,997) ($136,123) ($137,841) ($135,833) ($132,276) ($135,276) ($136,860) ($1,480,886)
Effective Gross Revenue $3,935,656 $3,962,859 $4,138,600 $4,208,488 $4,227,086 $4,219,869 $4,262,076 $4,332,991 $4,291,564 $4,358,713 $4,399,174 $46,337,076
Operating Expenses
Building Maintenance $7,420 $7,569 $7,720 $7,875 $8,032 $8,193 $8,356 $8,524 $8,694 $8,868 $9,045 $90,296
Management Fee $116,047 $118,368 $120,736 $123,150 $125,613 $128,126 $130,688 $133,302 $135,968 $138,687 $141,461 $1,412,146
Power $9,206 $9,390 $9,578 $9,769 $9,965 $10,164 $10,367 $10,574 $10,786 $11,002 $11,222 $112,021
Trash/Recycling $17,106 $17,448 $17,797 $18,153 $18,516 $18,886 $19,264 $19,649 $20,042 $20,443 $20,852 $208,155
Water/Sewer $21,832 $22,269 $22,714 $23,168 $23,632 $24,104 $24,586 $25,078 $25,580 $26,091 $26,613 $265,667
Building Insurance $9,880 $10,077 $10,279 $10,485 $10,694 $10,908 $11,126 $11,349 $11,576 $11,807 $12,043 $120,224
Fire Sprinkler Monitoring $3,573 $3,644 $3,717 $3,792 $3,867 $3,945 $4,024 $4,104 $4,186 $4,270 $4,355 $43,478
Phone/Internet/Alarm $4,307 $4,393 $4,481 $4,571 $4,662 $4,756 $4,851 $4,948 $5,047 $5,148 $5,251 $52,414
Roof Membrane $5,539 $5,650 $5,763 $5,878 $5,996 $6,115 $6,238 $6,363 $6,490 $6,620 $6,752 $67,402
Christmas Lights $109 $111 $113 $115 $117 $120 $122 $125 $127 $130 $132 $1,320
Pest Control $732 $747 $762 $777 $792 $808 $824 $841 $858 $875 $892 $8,908
Liability Insurance $4,381 $4,469 $4,558 $4,650 $4,743 $4,837 $4,934 $5,033 $5,133 $5,236 $5,341 $53,316
Parking Lot Lights $5,425 $5,534 $5,644 $5,757 $5,872 $5,990 $6,110 $6,232 $6,356 $6,483 $ 6,613 $66,016
Parking Lot Storm Drain/Asphalt $9,435 $9,623 $9,816 $10,012 $10,212 $10,417 $10,625 $10,837 $11,054 $11,275 $11,501 $114,808
Parking Lot Sprinkler/Water $3,579 $3,651 $3,724 $3,798 $3,874 $3,952 $4,031 $4,111 $4,193 $4,277 $4,363 $43,553
Parking Lot Maintenance/Portering/Sweeping $44,187 $45,071 $45,972 $46,892 $47,830 $48,786 $49,762 $50,757 $51,772 $52,808 $53,864 $537,703
Parking Lot Sand/Snow Removal $8,044 $8,205 $8,369 $8,536 $8,707 $8,881 $9,059 $9,240 $9,425 $9,613 $9,805 $97,884
Landscape Maintenance $69,424 $70,813 $72,229 $73,674 $75,147 $76,650 $78,183 $79,747 $81,342 $82,969 $84,628 $844,806
Property Taxes $431,932 $440,571 $449,383 $458,370 $467,538 $476,888 $486,426 $496,155 $506,078 $516,199 $526,523 $5,256,063
Security Patrol $18,165 $18,528 $18,899 $19,277 $19,662 $20,056 $20,457 $20,866 $21,283 $21,709 $22,143 $221,045
Total Operating Expenses $790,324 $806,130 $822,253 $838,698 $855,472 $872,581 $890,033 $907,834 $925,990 $944,510 $963,400 $9,617,226
Net Operating Income $3,145,332 $3,156,728 $3,316,347 $3,369,790 $3,371,614 $3,347,287 $3,372,043 $3,425,157 $3,365,574 $3,414,203 $3,435,773 $36,719,849
40 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 41 05 GIG HARBOR / PIERCE COUNTY MARKET
PIERCE COUNTY
LIFESTYLE & ENTERTAINMENT
DEMOGRAPHICS
42 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 43 GIG HARBOR / PIERCE COUNTY MARKET
PIERCE COUNTY Located at the southerly region of the Puget Sound, Pierce County is the second largest county in Washington State by population, behind King County, and is part of the Seattle MSA. Formed out of Thurston County in 1852, it was named for U.S. President Franklin Pierce. At the 2010 census, Pierce County’s population was 795,225 and it is currently estimated to be approximately 876,764.
Pierce County boasts a diverse mixture of dynamic businesses with key industries including healthcare, financial services, aerospace, government and international marine shipping principally at the Port of Tacoma. Top employers include Boeing, CHI Franciscan, Joint Base Lewis-McChord (JBLM), MultiCare Health System, and State Farm Insurance, Totem Ocean Trailer Express, and Evergreen Shippers and Expeditors International.
44 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 45 countywide, including St. Joseph The impacts from the package Medical Center, MultiCare Mary Defense on Pierce County include a 15% Bridge Children’s Hospital, MultiCare 415,000-acre Joint Base Lewis improvement in travel time between Allenmore Hospital, and MultiCare Employment McCord Military Base Puyallup and Tacoma, $10.1 billion Tacoma General Hospital. Tacoma is a city known for its With access to one of the largest in job growth, 950 new direct beautiful parks and outdoor $3 billion Economic Impact jobs, and approximately 2,000 ports in the United States and the Aerospace GIG HARBOR spaces and marine setting on largest military installation west indirect positions annually during Commencement Bay and Puget 60,100 Jobs Supported 1,500+ Jobs Supported by Boeing Gig Harbor known to locals as the of the Mississippi, the Tacoma construction. Construction is Sound. One of the city’s gems is gateway to the Olympic Peninsula economy is anchored by the Trade 254,000 Local Residents expected to begin in July 2019 and Point Defiance Park with its 760 1 million SF Boeing Fredrickson and the Maritime City is both a bay and Government Sectors. Health Supported continue through 2031. acres of nature trails, beaches, Plant on the Puget Sound and a harbor care and a rapidly growing leisure town that has been named one of and popular Point Defiance Zoo & ST-3 Tacoma Extensions and hospitality industry help add Joint Base Lewis-McChord (JBLM), 3rd Largest Aerospace Segment the Smithsonian Magazines Top Five Aquarium. Several cultural exhibits diversity to this expanding economy. located just south of Tacoma, is the in State $2.3 billion Two Light Rail are located downtown including Small Towns for culture, heritage and The Tacoma Metro Division added current home of I Corps and the Extension Projects the Museum of Glass, the Tacoma charm. Its unique location, close to approximately 9,100 jobs during 62nd Airlift Wing with more than 80+ Aerospace Suppliers Art Museum, the Washington State metropolitan centers yet positioned the 12-month period ending in 46,000 active-duty soldiers. The 14.1 miles Combined Extensions History Museum, and LeMay - Pierce County boasts the third- on a quiet, beautiful and historic November 2018, 3,600 of which 415,000-acre base includes the America’s Car Museum. largest cluster of aerospace jobs Seattle’s largest-ever investment in peninsula – provides visitors and were in the Leisure & Hospitality Yakima Training Center in Central residents with a beautiful historic Washington, making it the largest among counties in the state of public transportation, includes two Tacoma is known as the “City of sector. waterfront town center, excellent installation on the West Coast. JBLM Washington. Boeing, the nation’s Tacoma Link extensions. Spanning Destiny” because the area was site-seeing, , and many cultural and supports more than 60,000 military premier aerospace manufacturer, 4.4 miles, the first link extends to chosen to be the western terminus Distribution / Trade dining opportunities. Gig Harbor and civilian jobs and contributes employs over 1,500 workers at their Tacoma Community College and of the Northern Pacific Railroad in $3 billion Economic Impact is located along State Route 16 nearly $3 billion to the local one million-square-foot Frederickson will feature six new stations and the late 19th century. The decision across the Tacoma Narrows, a pair economy and supports over 254,000 plant, where the company produces one relocated station - with the first by the railroad was influenced by 29,000+ Jobs Supported of twin suspension bridges that local residents. tail structures for the 787 and station slated to open by 2022. The Tacoma’s neighboring deep-water span the Tacoma Narrows strait of No. 4 Container Gateway in the 777x. The facility is supported second extension spans 9.7 miles harbor, Commencement Bay. By Puget Sound and connect the City of U.S. Health Care by approximately 80 aerospace between the Federal Way Transit Tacoma to Gig Harbor and with the connecting the Bay with the railroad, suppliers who have created a 29,900+ Healthcare related jobs Kitsap Peninsula. Tacoma’s motto became “When rails $75.3 billion Total Trade in 2017 thriving supply chain network for the meet sails.” Today Commencement 1,570+ Beds Operated by Two county’s aerospace sector. Notable Bay serves the Port of Tacoma, a The Port of Tacoma, Washington’s aerospace suppliers in the county TACOMA Health Systems center of international trade on the largest port, is a major seaport include Aeroforge, GKN Aerospace, With a population over 213,000, Pacific Coast, the principal terminus for the United States, serving as 10 Hospitals Countywide and Delta Tooling. Tacoma is the third-largest city in for a majority of goods and materials a major economic hub for the Washington State, the urban core of shipped to the State of Alaska, and region and linking local businesses Pierce County is home to two major Transportation Pierce County and less than 10 miles is Washington State’s largest port. with international markets. Port health care providers and serves $16 billion Transportation Package from The Olympic Towne Center. Tacoma has seen a revitalization in operations support over 29,000 as a health care hub for south Affectionately nicknamed “T-Town,” its downtown core since the 1990s, jobs and generate nearly $3 billion Puget Sound. Based in Tacoma, $10.1 billion in Job Growth Tacoma has stayed true to its which include developments such in economic activity, including CHI Franciscan Health System and working-class roots and is known for as the University of Washington - $223 million in annual tax revenues. MultiCare Health System support In October 2015, plans were its unpretentious vibe and genuine Tacoma campus, a restored urban Together with the Port of Seattle, the approximately 14,000 of the more unveiled for a $16 billion community spirit. Locals enjoy waterfront known as the Thea Foss ports recorded over $75.3 billion in than 29,900 health care related jobs transportation package to include Tacoma’s relaxed pace of life while Waterway, and the Tacoma Link, two-way international trade value in the county. Additionally, the two work on the SR 167, I-5 at JBLM, still experiencing its urban amenities which was the first modern electric that included commodities ranging systems operate 7 of the 10 licensed Port of Tacoma Road Interchange, and services. light rail service in the state. from electronics to produce. health care facilities and Schuster Parkway Trail projects.
46 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 47 on the southern edge of downtown much-needed link between Point Point State Park enjoy camping, hiking, biking, beachcombing, Center to the Tacoma Dome and Tacoma. Set in the historic Union Defiance Park and the growing LIFESTYLE & fishing, birdwatching, windsurfing, will feature four new stations and Station District, UW Tacoma owes its one of five in the Northwest granted Point Ruston waterfront village. and wildlife viewing. Dash Point’s two new parking spaces. Combined, charm to century-old, brick buildings a charter by Phi Beta Kappa, the Public meetings and brainstorming ENTERTAINMENT beaches provide unobstructed the two extensions are estimated to that were built to last by businesses country’s most prestigious academic sessions resulted in securing $124 views of the Sound along 3,301 Dome annually for a variety of live cost at least $2.3 billion and carry that depended on the railroad in honor society. POINT DEFIANCE PARK million for the park improvements. feet of saltwater shoreline. There entertainment events including at least 40,000 passengers daily. the late 1880s and early 1900s. The Situated in Tacoma along the shores of the Puget Sound, The Point Defiance Zoo & Aquarium are excellent opportunities to study major concerts, regional sports, bull Construction on the first extensions university has earned architectural UPS offers Bachelor of Arts, Bachelor Point Defiance Park is a 760-acre urban park featuring is located within the park and is the sea-life and wildlife, which include riding, monster trucks, family shows, is slated to end in 2039 while the awards for transforming these of Science, Bachelor of Music, natural forests, saltwater beaches, a marina, gardens, only combined zoo and aquarium eagles, hawks, geese, jays, owls, holiday celebrations, and trade second extension is slated to be buildings into modern classrooms. Master of Arts in Teaching, Master of and spectacular views. The park is a popular destination in the Pacific Northwest. The 29-acre woodpeckers, herons, foxes, rabbits, shows. finished by 2030. In the design of its beautiful campus, Education, Master of Occupational for more than 3.1 million visitors each year and is the UW Tacoma honors the traditions of Therapy, and Doctor of Physical zoological park is the second most crabs, shellfish, starfish, cod, and red most visited site in the region. Each year in July, Point popular tourist destination in Pierce snapper. Renovations were completed in Education the Northern Pacific Railroad and its Therapy degrees. The school has Defiance Park hosts the Taste of Tacoma, a three day 2018 for the iconic Tacoma Dome, part in establishing Tacoma as the an undergraduate enrollment of County, behind Mount Rainier, Higher Education 59,400+ local food festival with multiple music stages, carnival where the City of Tacoma spent over City of Destiny. Tacoma’s Light Rail approximately 2,600 and a graduate and attracts over 700,000 visitors a TACOMA DOME students countywide rides, beer and wine gardens, and local vendors. Now in $30 million in improvements. The stops right in front of campus. enrollment of nearly 270. It offers year. A $65 million renovation was its 30th year, the Taste of Tacoma attracts over 200,000 completed in September 2018 at the For more than 33 years the revitalization project consisted of Ranked among the best college 1,200 courses each year in more legendary Tacoma Dome has hosted exterior beautification, including: Undergraduates make up 80 guests each year. Zoo for a newly revamped aquarium towns in the U.S., Tacoma’s than 50 major fields with a faculty the world’s top touring artists and new siding, paint and signage, percent of their 4,987 students, with and new animal exhibits. education network provides support ratio of 11 to 1. UPS is in the top 5% Last year, three major construction projects broke hundreds of community events. With state of the art telescopic seating, 82 percent of students attending for a growing economy, drives of colleges in the nation for students ground at Point Defiance Park: a four-tiered new a seating capacity of 23,000 people renovations to backstage offices full-time. The campus employs demand for the local multifamily who go on to earn doctorate aquarium at the Point Defiance Zoo & Aquarium, a DASH POINT STATE PARK and a sound reverberation of 2.5 and dressing rooms, and more. The about 340 faculty with a student- market, and serves as a lure for new degrees. permanent spot for Tacoma Public School’s Science & Located in both King and Pierce seconds, it is the preferred concert improved efficiency is also expected to-faculty ratio of 18:1. Since 1990, residents and businesses. Math Institute adjacent to the zoo, and an expansion County on the shores of Puget venue in the northwest. Over one to increase the number of events UW Tacoma has awarded 19,145 PACIFIC LUTHERAN UNIVERSITY of 11 acres of recreation. A new bridge will provide a Sound, visitors of the 398-acre Dash million guests visit the Tacoma and overall attendance. degrees and certificates in seven UNIVERSITY OF WASHINGTON - academic fields. New degree Founded in 1890, Pacific Lutheran TACOMA programs are rolled out regularly University is located in Parkland and UW Tacoma is one of three to meet the region’s needs. Their consistently ranks among the top campuses that make up the most recent academic additions — 15 universities in U.S. News & World University of Washington: the criminal justice, sustainable urban Report’s Best Universities in the West 156-year old Seattle campus, and development, healthcare leadership, and was named one of the best the Tacoma and Bothell campuses and electrical engineering — business schools in the nation by the which were both founded in 1990. brings them to 32 majors for Princeton Review. UW Tacoma offers many of the same undergraduates. Recently, grad educational qualities as their sister students will be able to study The university offers 43 majors and universities — an urban campus Business Analytics, their 12th 50 minors as well as graduate and setting; top drawer faculty known graduate program. professional programs in business for their teaching ability; a rigorous, administration, creative writing, interdisciplinary curriculum; education, finance, marketing UNIVERSITY OF PUGET SOUND and high standards of social research, marriage and family responsibility. The University of Puget Sound therapy, and nursing. PLU currently (UPS) is a private liberal arts college has 3,100 students enrolled and The campus’ 46-acre footprint is located in the North End of Tacoma. employs about 250 faculty members located on a hillside overlooking the It is one of only two independent with a student-to-faculty ratio of Port of Tacoma and Mount Rainier, colleges in Washington State and 12:1.
48 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 49 DEMOGRAPHICS VASHON ISLAND
1 Mile 3 Miles 5 Miles POPULATION
Estimated Population (2020) 6,015 26,505 90,366
Projected Population (2025) 6,440 28,608 97,800
Census Population (2010) 5,624 23,456 78,407 5 MILES Projected Annual Growth (2020 - 2025) 1.4% 1.6% 1.6%
Historical Annual Growth (2010 - 2020) 0.7% 1.3% 1.5%
3 MILES HOUSEHOLDS
Estimated Households (2020) 2,480 10,703 38,058 GIG HARBOR
Projected Households (2025) 2,646 11,530 41,165
Projected Annual Growth (2020 - 2025) 1.3% 1.5% 1.6% 1 MILE
Historical Annual Change (2010 - 2020) 0.1% 0.6% 1.0%
Estimated Average HH Income (2020) $114,256 $127,302 $119,360 OLYMPIC TOWNE Estimated Median HH Income (2020) $88,695 $102,669 $93,594 CENTER
DAYTIME DEMOGRAPHICS
Total Businesses (2020) 1,101 2,308 4,206
Total Employees (2020) 7,379 15,426 31,997 TACOMA
N
50 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 51 OLYMPIC DR
OLYMPIC TOWNE CENTER 32ND AVE 06 SEATTLE MARKET POINT FOSDICK DR OVERVIEW
52 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 53 SEATTLE MARKET OVERVIEW CITY IN THE US TO FIND A JOB Since the recovery from the past business culture. Other Fortune 500 big reason why the region’s current #1 (Wallethub, 2015) recession, Seattle’s economic companies call Seattle home like unemployment rate is at 3.8%. growth has led the way for much Boeing, Weyerhauser, Starbucks, The overall office market throughout MOST CONSTRUCTION of the country. and Nordstrom, which provide a Seattle has experienced significant CRANES strong sense of diversity from the #1 (Rider Levett Bucknail LTD) technology industry. According to growth from the strong region wide economic fundamentals as well. SEATTLE MARKET OVERVIEW the website for the City of Seattle’s Rents have increased steadily for the Office of Economic Development, TECH MARKET IN THE As the fastest growing big city in Seattle remains an established past six years as vacancy continues UNITED STATES the country, the nation’s #1 city for leader with immunotherapy as well, to hover below 10% region wide. #2 (CBRE) jobs, and the current crane count with anchors like Juno Therapeutics Activity in this sector shows leader, Seattle is transitioning to one and the Fred Hutchinson Cancer little signs of slowing either, as of the strongest economic hubs in Research Center. In South Lake technology companies continue to TOP CITY FOR TECH JOBS the world. This growth is led largely Union, research and development expand their footprint by taking up #2 (Geekwire) by its burgeoning tech industry and in engineering and life sciences is space in Seattle and the surrounding highly skilled labor pool. Several nearly 14 times more concentrated submarkets. Record per-square- giants in the tech world call Seattle than it is nationally. foot sales prices for commercial home, including Microsoft, Amazon, buildings continue to rise and FASTEST GROWING CITY (Insignia) and Expedia, while numerous others The booming tech industry positive absorption continues to #5 continue to expand their Pacific generally takes the headlines, but increase. Numerous companies Northwest footprint, including an emerging life sciences sector, a are also expanding their search to
Google, Facebook, and Apple. growing talent pool, and an active find space with a need estimated at BEST CITY TO LIVE IN commercial real estate industry approximately 9 million square feet (Insignia) In addition to its technology industry, has made the Puget Sound an throughout the Puget Sound. #5 the skilled workforce in Seattle increasingly strong economic hub has proven a hotbed for its overall for the foreseeable future and a
54 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 55 TOP PUGET SOUND AREA COMPANIES
2018 net absorption of office in the Seattle Metro region is of well-paid employees looking for apartments in the space in Seattle was over 2.8 $87,000, nearly 40% higher than core areas near job hubs will also keep the market million square feet and the EOY the national median HH income. strong. And as the median income continues to rise, 2018 market vacancy was 5.64%. June 2018 - 2019 Seattle posted which in some areas it has grown from $70k to over Asking lease rates in Seattle's the second-highest pay growth and $80k in a few years, a strong class of renters will CBD new construction average the third-highest job growth among maintain the strong demand throughout the area. $47.52/s.f./year (NNN)at the end of the nation's 10 largest metro areas. Q1 2019, an increase of $1.08/s.f/ Seattle ranks 2nd in a measure of The strong and growing renter pool throughout Seattle year over Q4 2018. At the end of fastest growth in median pay as of is largely driven by the growth in personal income. Q1 2019 there were 15 major office May, 2019, at $63,247, up 2.4% According to GeekWire, Washington state leads the projects under construction in over the prior year. nation in personal income growth. This growth has also Seattle, which accounts for 79% pushed housing prices to all-time highs throughout of all new construction in the Rents have risen steadily throughout the region, causing the Greater Seattle area to lead the Puget Sound region. the area as the insatiable demand nation in home price increases for 20 months in a row. for housing grows. The opportunity Despite these rising housing costs, many of the well The unemployment rate for Seattle for rent growth continues paid workers in the area are still making more money in in May 2019 was 3.5% and Seattle throughout Seattle as apartment Seattle with their salaries going further in Seattle than in had a total of 111,591 job openings, vacancy rates have remained under competing markets, making the city the top relocation up 3.4% over 2018, the 3rd highest 4% for more than three years while destination for workers elsewhere. number of openings in the nation. rents have risen as much as 30% in The median household income some submarkets. The in-migration
56 KIDDER MATHEWS OFFERING MEMORANDUM OLYMPIC TOWNE CENTER OLYMPIC TOWNE CENTER OFFERING MEMORANDUM KIDDER MATHEWS 57 EXCLUSIVELY REPRESENTED BY
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ARIELLE DORMAN 425.450.1100 [email protected]
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