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