AUBURN RETAIL CENTER 1510 Industry Drive SW, Auburn, WA 98001 CONTACT INFORMATION: NICHOLAS GILL COLLIN HAGSTROM PRINCIPAL | BROKER PRINCIPAL | BROKER 206.505.9410 206.505.9436 [email protected] [email protected] OFFERING SUMMARY Site Location Auburn is centrally located between Seattle and Tacoma in the heart of the Site Address: 1510 Industry Dr SW Green River Valley with easy access to the best of both cities. Auburn is a quick 30 minute drive to all Seattle has to offer and more, and a 20 minute drive to Tacoma. Auburn, WA 98001 Auburn is the center of the largest industrial complex in the northwest and sits Parcel Number: 030150-0220 in the middle of the major north-south, east-west routes of this region. With two railroads and close proximity to the Ports of Seattle and Tacoma, Auburn has Price: $7,600,000 been identified by the Department of Commerce as one of only 14 Innovation Partnership Zones in Washington. With continued job expansion and above Price / NRSF: $514.38 average retail growth, Auburn enjoys a vibrant and sustainable business environment. Cap Rate: 6.25% Auburn has reason to be proud of its schools. They pride themselves in providing Year Built: 2007 an excellent education that produces students who have a love of learning and a sense of responsibility. Auburn boasts over two dozen elementary, middle school and high schools, each one unique, but all offering a supportive learning Lot Size: 72,424 SF | 1.66 Acres environment designated to foster each student’s natural abilities. Green River College provides the serious student a quiet, natural environment in which to Total Building Size, Net: 14,775 SF study. This is a community that puts learning and education first. FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC FINANCIAL OFFERING PROPERTY OVERVIEW INCOME CURRENT Sale Price $7,600,000 Scheduled Rental Income $474,794 + NNN Reimbursements 130,731 Price per NRSF $514.38 Scheduled Gross Income $605,525 NRSF 14,775 SF - Vacancy & Cr Losses 0.00% ($0) Lot Size 72,424 SF Gross Income $605,525 Current CAP 6.25% EXPENSES CURRENT + Real Estate Taxes $83,010 + Property Insurance 4,275 + Landscaping 4,939 FINANCING + Cleaning 116 Loan Amount $4,636,000 + Fire Alarm 6,785 Rate 4.87% + Sweeping 6,933 + HVAC 5,538 Amortization 30 + Locks & Keys 201 Term 5 years + Roof Cleaning & Repair 3,266 Annual Payment $294,240 + Electrical Repair 495 66 Monthly Payment $24,520 + Repairs + Management Fees 15,106 ***Proposed Financing by Total Operating Expenses $130,731 Fidelity Bancorp Funding NET OPERATING INCOME $474,794 Less Annual Debt Service 1.20 $179,076 Return Before Taxes 8.40% $249,093 The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment. FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC TENANT MIX TENANT SUITE SIZE RENT RENT / SF LEASE TERM Painting with a Twist 100 & 101 2,660 SF $ 5,763 $ 2.17 3/23/2021 H&R Block 102 1,313 SF $ 3,064 $ 2.33 12/20/2023 Asiana Teriyaki 103 1,281 SF $ 3,456 $ 2.70 12/4/2022 Jersey Mike’s Subs 104 1,337 SF $ 3,120 $ 2.33 1/31/2023 T-Mobile 105 2,473 SF $ 9,460 $ 3.83 1/31/2023 Mattress Firm 200 5,711 SF $ 14,924 $ 2.61 10/29/2028 Totals | Averages 7 14,775 SF $ 39,787 $ 2.28 - FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC RENT ROLL PROJECTIONS 10 Year Projection 2018-2028 TENANT 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Painting with a Twist $65,504 $68,499 $70,554 $72,671 $74,851 $77,096 $79,409 $81,792 $84,245 $86,773 $89,376 H&R Block $36,768 $36,764 $36,764 $36,764 $36,764 $36,764 $42,279 $42,279 $42,279 $42,279 $42,279 Asiana Teriyaki $41,472 $42,721 $44,003 $45,323 $46,683 $48,083 $49,526 $51,012 $52,542 $54,118 $55,742 Jersey Mike’s Subs $37,440 $41,180 $41,180 $41,180 $41,180 $41,180 $47,357 $47,357 $47,357 $47,357 $47,357 T-Mobile $113,520 $113,520 $113,520 $113,520 $113,520 $124,872 $124,872 $124,872 $124,872 $124,872 $124,872 Mattress Firm $179,100 $179,100 $179,100 $179,100 $179,100 $179,100 $197,030 $197,030 $197,030 $197,030 $197,030 Annual Totals $474,804 $481,784 $485,121 $488,557 $492,097 $525,025 $540,472 $544,340 $548,324 $522,427 $556,654 FMV denotes Fair Market Value Thick outside borders denote the end of current term Asiana Teriyaki doesn’t have an options period past 2023 Blue font denotes Fair Market Value of Future Rent projections based on current market knowledge Increase Schedule Painting with a Twist 3% Annual Increases. (2) - 3 year options at FMV H&R Block $28 per square foot flat for five years and then FMV Asiana Teriyaki 3% Annual Increases from 2018-2023. No options to extend past 2023. Assuming 3% increases Jersey Mike’s Subs $30.80 From 2019-2023. Fair Market Value from there onwards T-Mobile 10% Flat 1st option period 2018-2023. 10% increase during 2nd option period Mattress Firm 10% Flat for five years. 10% increase in 2023 and then flat til 2028. FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC LOCATION 167 18 C St SW 18 167 C St SW 15th St SW 15th St SW 15th St SW SITE FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC SITE PLAN FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC PHOTOS FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC PHOTOS FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC TENANT HIGHLIGHTS T-Mobile US provides wireless voice, messaging, and data services H & R Block is a publicly traded American tax preparation company. in the United States, Puerto Rico, and the US Virgin Islands under the With locations in Austraila and India, in addition to North America, H T-Mobile, Metro PCS, and GoSmart Mobile brands. The company & R Block has over 12,000 retail locations. The business generates operates the third largest wireless network in the US market with over 43billion in revenues and over 87,500 employees (including over 65.5 million customers and annual revenues of $32 billion. Its tax seasonal hires). H & R Block, originally founded by two brothers nationwide network reaches 98 percent of Americans. in Kansas City, can now advise digitally. Transforming for the digital age further simplifies what can otherwise be a very frustrating few As of 2018, J. D. Power and Associates, a global marketing-informa- weeks for the average Amercian. tion-services firm, ranked the company highest among major wire- less carriers for retail-store satisfaction consecutively for four years and highest for wireless customer care for two years running. At age 14, Peter Canro of Point Pleasant Beach, New Jersey, took a Sleep Country USA was a Pacific Northwest bedding retailer found- part-time job at Mike’s Submarines, a neighborhood sandwich shop. ed in 1991. It had more than 80 mattress stores in Oregon, Washing- Today, Cancro is the owner and CEO of the company now known as ton, and Idaho. The company headquarters were in Kent, Washing- Jersey Mike’s. Cancro began franchising the restaurant in 1987. By ton and operated as a specialty sleep store chain. It started with 8 2014 it had 750 locations, with an additional 650 in some stages of stores and approximately 25 employees in Washington. development. In 2015, 197 new locations opened and the total number of Jersey Mike’s locations exceeded 1,000. Jersey Mike’s In March 2000, New York-based Fenway Partners Inc. acquired locations are gaining a larger presence on the west coast, particular- Sleep Country from Sunny Kobe Cook and Robert Cook. In 2003, ly in Southern California. Fenway Partners sold Sleep Country USA to the Atlanta-based Simmons Company. In August 2006, The Sleep Train, Inc. purchased the then-55-store Sleep Country USA Pacific Northwest chain from Simmons for $55 million. The chain continued to operate as Sleep Company USA. In July 2015, the company announced that it would begin rebranding FOR MORE INFORMATION: all of its stores with the Sleep Train name, now owned by Mattress COLLIN HAGSTROM NICHOLAS GILL Firm. 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC DEMOGRAPHICS Drive Time Demographics Population 5-Min 10-Min 15-Min 2010 4,051 52,492 214,244 2017 4,458 58,713 240,954 2022 4,749 62,917 258,752 2017 HH Incomes 5-Min 10-Min 15-Min Average $60,208 $72,975 $80,226 Median $45,784 $83,160 $91,284 Radius Demographics Population 1-Mile 3-Mile 5-Mile 2010 5,283 64,705 169,420 2017 5,706 71,951 190,709 2022 6,097 77,158 204,791 2017 HH Incomes 1-Mile 3-Mile 5-Mile Average $57,329 $76,908 $82,261 Median $44,167 $59,856 $63,771 FOR MORE INFORMATION: NICHOLAS GILL COLLIN HAGSTROM 206.505.9410 206.505.9426 [email protected] [email protected] WESTLAKE ASSOCIATES, INC LOCATION AUBURN LOCATED BETWEEN THE GREEN AND STUCK RIVERS, Auburn is centrally located in the Green River Valley just 24 miles Southeast of Seattle and 14 miles Northeast of Tacoma.