OFFERING MEMORANDUM LAKEWOOD COLONIAL CENTER E • A • S • T LAKEWOOD COLONIAL CENTER EAST • 9522-9528 BRIDGEPORT WAY SW, LAKEWOOD, WA 98499 Investment Contacts Scott Clements 206.445.7664 LAKEWOOD [email protected] COLONIAL David Butler CENTER 206.445.7665 [email protected] E • A • S • T 1218 Third Avenue Table of Contents Suite 2200 Seattle, WA 98101 Investment Summary .............................3 www.orioncp.com Property Overview ..................................5 Tenant Profiles ........................................11 Market Overview ....................................13 Detailed Financial Information Available by Request LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 2 Investment Summary • PRICE .....................................$10,375,000 • ADDRESS ........................................ 9522-9528 • OCCUPANCY ............................................. 94% Bridgeport Way SW, • CAP RATE ............................................. 6.5% Lakewood, WA 98499 • YEAR BUILT/REMODEL ..............1955/1988/2018 • PRICE PER SF ...................................... $301.00 • NAME ............... Lakewood Colonial Center East • PARKING ...................... 192 Spaces; 5.6/1,000 SF • PRICE PER SF LAND ...............................$70.70 • LEASEABLE SF .................................34,465 SF • LAND SIZE ....................................... 146,797 SF LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 3 Investment Summary • EXECUTIVE SUMMARY ORION Commercial Partners is pleased to offer for sale Lakewood Colonial Center East, located at 9522-9528 Bridgeport Way SW, Lakewood, WA. Nestled between Bridgeport Way SW and Gravelly Lake Drive SW, the center is in the heart of the Lakewood retail core and surrounded by the likes of Walgreens, CVS Pharmacy, Bank of America, and other national retailers. Additionally, there is a strong medical office component to the submarket. Lakewood Colonial Center East has a very strong tenant mix anchored by AutoZone, CHI Franciscan Health, and the Cohen Veterans Network. These three tenants account for over 78% of the total NRSF of the center. AutoZone recently renewed its lease for an additional 10-year term which further confirms the desirability of the submarket and this specific location. Throughout the Covid-19 pandemic, not one tenant in the center has missed a rent payment. The tenant mix has been 100% “Covid Proof” with respect to business interruption and rental payments, due in large part because the majority of the tenants are essential businesses. The center underwent a major renovation in 2018 which included approximately 1.7 M in capital improvements including a roof replacement, new HVAC, new façades, and parking lot upgraded. Lakewood Colonial Center East provides the passive investor a stabilized tenant base with no deferred maintenance and upside thought lease-up of the 2 small vacancies. The key driver to the Lakewood economy is Joint Base Lewis-McChord (JBLM), which is the largest Joint base on the west coast and the 8th largest military base in the United States. Three of the top four major employers in the greater Tacoma area are JBLM, MultiCare health Systems and CHI Franciscan all located less then 3-miles from the center which explains it’s heavy medical office occupancy. LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 4 Property Overview • PROPERTY HIGHLIGHTS • “COVID-19 PROOF” TENANT MIX 89% LEASED TO ESSENTIAL BUSINESSES • 94% LEASED • EXCELLENT 1031 EXCHANGE OPPORTUNITY • Diversified Tenant Lineup: AutoZone, CHI Franciscan Health, Olympic Sports & Spine, Cohen Veterans Network, State Farm Insurance, and Cutters Point Coffee • Investment-Grade Credit Tenant: AutoZone (Standard & Poor’s: BBB) • Occupied by the 2 largest private employers in the greater Tacoma/ Lakewood submarket: CHI Franciscan Health, and Olympic Sports & Spine (MultiCare Health Systems) • Highly-trafficked intersection, exposed to combined traffic counts of 45,000+ vehicles per day • Ideally located at the conflux of three major arterials with nine points of ingress and egress • Easy access to and from Interstate-5 • Close proximity to Joint Base Lewis-McChord • Less than a mile from a 1 million SF regional Shopping Center; Lakewood Towne Center • Approx. $1.7M invested in capital improvements, including: parking, roof work, HVAC, and new façades in 2018 • Located in income tax-free state LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 5 Property Overview • PROPERTY PHOTOS LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 6 Property Overview • TRAFFIC COUNTS MOUNT RAINIER JOINT BASE LEWIS-MCCORD LAKEWOOD WATER TOWER MT. TACOMA DR SW - VPD 8,500+ BRIDGEPORT WAY SW - VPD 18,700+ ONE OF THE HIGHEST TRAFFICKED INTERSECTIONS IN LAKEWOOD GRAVELLY LAKE DR SW - VPD 18,200+ LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 7 Property Overview • BIRD’S EYE VIEW ONE OF THE HIGHEST TRAFFICKED INTERSECTIONS IN LAKEWOOD LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 8 Property Overview • PROPERTY HIGHLIGHTS Exceptional Located in Highly 94% Leased Proximity to Investment- Location Income Tax Free Trafficked by Diversified Large Grade Credit State Intersection Tenant Lineup Employers Tenant LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 9 Property Overview • REGIONAL AERIAL MAP LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 10 Tenant Profile • SITE PLAN SITE PLAN KEY SUITE GLA SF TENANT C111 10,500 AutoZone C110-C109 3,594 Olympic Sport & Spine BRIDGEPORT WAY SW C108 1,280 VACANT C107 1,479 State Farm Insurance C106 858 VACANT C111 C105 7,979 CHI Franciscan Health C102-C104 8,475 Cohen Veterans Network B101 300 Cutters Point Coffee C109- TOTAL SF 34,465 94 % OCCUPANCY C110 GRAVELLY LAKE DRIVE SW C108 B101 C107 C106 C105 C102-C104 LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 11 Tenant Profile • THREE LARGEST TENANTS Lease Expiration: 05/31/31 Lease Expiration: 10/31/25 Lease Expiration: 09/30/26 Gross Leasable Area: 10,500 SF (Occupancy: 30.47%) Gross Leasable Area: 8,475 SF (Occupancy: 24.59%) Gross Leasable Area: 7,979 SF (Occupancy: 23.15%) Suite: C111 Suite: C102-C104 Suite: C105 Type: BBB Investment-Grade Retailer Type: Military Services Type: Health Care Founded: 1979 Founded: 1891 Founded: 1891 Website: www.autozone.com Website: www.valleycities.org/cohenclinic Website: www.chifranciscan.org AutoZone is the leading auto parts retailer and leading Cohen Veterans Network (CVN) is a not for profit network of Franciscan Health is a part of the Catholic Health Initiatives, distributor of automotive replacement parts with mental health clinics serving veterans and military families, one of the nation’s largest not-for-profit health care systems 6,400+ stores throughout the United States, Mexico, Puerto with a focus on post-traumatic stress and post 9/11 victims. and the largest private employer in the MSA. Franciscan Health Rico and Brazil. AutoZone is an investment-grade credit CVN provides out-patient therapy, counseling, and therapeutic is comprised of nearly 13,000 employees 900 doctors, with 10 tenant (S&P: BBB). mental health services out of only a handful of locations hospitals and 200-plus locations throughout Puget Sound. throughout the U.S. This is the only PNW location. LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 12 Market Overview • ABOUT LAKEWOOD Lakewood, Washington is the second-largest city in Pierce County and the 17th largest in the state of Washington. It is located midway between Tacoma and the state’s capital, Olympia. The city is conveniently located next to the Interstate-5 corridor and is a short drive to SeaTac International Airport. With 14 developed parks and 11 natural areas, Lakewood has 617 acres of open space for picnics, and play. You’ll also find more than 165 restaurants (including drive-thrus). You’re sure to find something to love at one of our 500 retailers. Lakewood also is the host community to Joint Base Lewis-McChord and Camp Murray, two major military installations. Joint Base Lewis-McChord is the largest military installation on the West Coast, occupying 415,000+ acres. Approximately, 60,000+ Military/Contract Personnel and about 145,000 military connections to the base are a huge driver of daily traffic and business through the area. TOTAL I-MILE 3-MILES 5-MILES Businesses 759 3,317 7,587 Employees 7,659 35,722 88,751 POINTS OF INTEREST LEWIS ARMY MUSEUM is FORT STEILACOOM is a life-changing power of JOINT BASE located in the Historic Red history museum where nature, fostering peace, LEWIS-MCCHORD Shield Inn on Joint Base guests of all ages can explore creativity and healing in our Lewis-McChord (JBLM). military life of enlisted communities. The Lewis Army Museum is soldiers, officers, the families the only certified U.S. Army of soldiers, civilians that THORNEWOOD CASTLE, “the Museum on the West Coast. worked for the garrison and house that love built,” is a The Museum preserves and those that visited from the historic Tudor Gothic home interprets historic artifacts community. The fort played a with a history going back relevant to Camp Lewis, significant role in the settling over 500 years. This 27,000 Fort Lewis, and the role that of Washington Territory. square foot manor is of the the United States Army has Gothic Tudor style and is the played in the exploration, LAKEWOLD GARDENS only one of its kind on the defense and development of provides intentional west coast. the Pacific Northwest. encounters with the LAKEWOOD COLONIAL CENTER EAST • OFFERING MEMORANDUM • 13 Market