AUBURN RETAIL CENTER...the beaches of the Puget Sound are only 15 minutes away. Auburn’s housing...

COLLIN HAGSTROMPRINCIPAL | BROKER

[email protected]

CONTACT INFORMATION:

NICHOLAS GILLPRINCIPAL | BROKER

[email protected]

AUBURN RETAIL CENTER 1510 Industry Drive SW, Auburn, WA 98001

WESTLAKE ASSOCIATES, INC

FOR MORE INFORMATION:

NICHOLAS [email protected]

COLLIN [email protected]

OFFERING SUMMARY

Site Address:

Parcel Number:

Price:

Price / NRSF:

Cap Rate:

Year Built:

Lot Size:

Total Building Size, Net:

1510 Industry Dr SW

Auburn, WA 98001

030150-0220

$7,600,000

$514.38

6.25%

2007

72,424 SF | 1.66 Acres

14,775 SF

Auburn is centrally located between Seattle and Tacoma in the heart of the 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 is the center of the largest industrial complex in the northwest and sits 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 been identified by the Department of Commerce as one of only 14 Innovation Partnership Zones in Washington. With continued job expansion and above average retail growth, Auburn enjoys a vibrant and sustainable business environment.

Auburn has reason to be proud of its schools. They pride themselves in providing 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 environment designated to foster each student’s natural abilities. Green River College provides the serious student a quiet, natural environment in which to study. This is a community that puts learning and education first.

Site Location





FINANCIAL OFFERING

PROPERTY OVERVIEW

Sale Price $7,600,000

Price per NRSF $514.38

NRSF 14,775 SF

Lot Size 72,424 SF

Current CAP 6.25%

FINANCING

Loan Amount $4,636,000

Rate 4.87%

Amortization 30

Term 5 years

Annual Payment $294,240

Monthly Payment $24,520

INCOME

Scheduled Rental Income

+ NNN Reimbursements

Scheduled Gross Income

- Vacancy & Cr Losses

Gross Income

EXPENSES

+ Real Estate Taxes

+ Property Insurance

+ Landscaping

+ Cleaning

+ Fire Alarm

+ Sweeping

+ HVAC

+ Locks & Keys

+ Roof Cleaning & Repair

+ Electrical Repair

+ Repairs

+ Management Fees

Total Operating Expenses

NET OPERATING INCOME

Less Annual Debt Service

Return Before Taxes

CURRENT

$474,794

130,731

$605,525

0.00% ($0)

$605,525

CURRENT

$83,010

4,275

4,939

116

6,785

6,933

5,538

201

3,266

495

66

15,106

$130,731

$474,794

1.20 $179,076

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.

***Proposed Financing by Fidelity Bancorp Funding





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 -





RENT ROLL PROJECTIONS

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

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.

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

10 Year Projection 2018-2028





LOCATION

15th St SW

C S

t SW

C S

t SW

15th St SW15th St SW

18

18

167

167

SITE





SITE PLAN





PHOTOS





TENANT HIGHLIGHTS

T-Mobile US provides wireless voice, messaging, and data services in the United States, Puerto Rico, and the US Virgin Islands under the T-Mobile, Metro PCS, and GoSmart Mobile brands. The company operates the third largest wireless network in the US market with over 65.5 million customers and annual revenues of $32 billion. Its nationwide network reaches 98 percent of Americans.

As of 2018, J. D. Power and Associates, a global marketing-informa-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 part-time job at Mike’s Submarines, a neighborhood sandwich shop. Today, Cancro is the owner and CEO of the company now known as Jersey Mike’s. Cancro began franchising the restaurant in 1987. By 2014 it had 750 locations, with an additional 650 in some stages of development. In 2015, 197 new locations opened and the total number of Jersey Mike’s locations exceeded 1,000. Jersey Mike’s locations are gaining a larger presence on the west coast, particular-ly in Southern California.

H & R Block is a publicly traded American tax preparation company. With locations in Austraila and India, in addition to North America, H & R Block has over 12,000 retail locations. The business generates over 43billion in revenues and over 87,500 employees (including tax seasonal hires). H & R Block, originally founded by two brothers in Kansas City, can now advise digitally. Transforming for the digital age further simplifies what can otherwise be a very frustrating few weeks for the average Amercian.

Sleep Country USA was a Pacific Northwest bedding retailer found-ed in 1991. It had more than 80 mattress stores in Oregon, Washing-ton, and Idaho. The company headquarters were in Kent, Washing-ton and operated as a specialty sleep store chain. It started with 8 stores and approximately 25 employees in Washington.

In March 2000, New York-based Fenway Partners Inc. acquired Sleep Country from Sunny Kobe Cook and Robert Cook. In 2003, 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 all of its stores with the Sleep Train name, now owned by Mattress Firm.





DEMOGRAPHICS

Drive Time Demographics

Population

2010 20172022

2017 HH Incomes

Average Median

Radius Demographics

Population

2010 20172022

2017 HH Incomes

Average Median

5-Min

4,0514,4584,749

10-Min

52,49258,71362,917

15-Min

214,244240,954258,752

5-Min

$60,208$45,784

10-Min

$72,975$83,160

15-Min

$80,226$91,284

1-Mile

5,2835,7066,097

3-Mile

64,70571,95177,158

5-Mile

169,420190,709204,791

1-Mile

$57,329$44,167

3-Mile

$76,908$59,856

5-Mile

$82,261$63,771





LOCATION

AUBURNLOCATED 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.

Auburn has the spirit of the pioneers. Founded in 1891, the community has grown to a comfortable population of over 40,000. The city’s growth is carefully planned and controlled, reflecting the importance residents place on retaining open spaces and parks.

Emerald Down is the center of the thoroughbred horse racing in the Pacific Northwest. Emerald Downs showcases a dazzling six-story grandstand overlooking a 167-acre facility, offering world class racing and entertainment for all ages.

Auburn is also home to the Outlet Collections, taking place of the former Super Mall. Shoppers find over 130 stores in its one million square foot indoor shopping space, making it the largest outlet mall in the Pacific Northwest.

The Muckleshoot Casino also holds a big place within the community. Opened in April of 1995, the casino offers a variety of entertainment and dining options.

Auburn is rapidly becoming a destination city, mostly due to the amenities it offers and its location. Quality of life is key to both businesses and families located in Auburn. There is an abundance of freshwater fishing and boating in surrounding rivers and lakes, while the beaches of the Puget Sound are only 15 minutes away.

Auburn’s housing market is dominated by single-family homes that are reasonably priced within the King County market. There are also a number of condo and apartment options within the community.

24 MILES DOWNTOWN

SEATTLE

THE OUTLET COLLECTION | SEATTLE

The Outlet Collection | Seattle is the largest outlet mall in the Pacific Northwest, featuring a unique mix of top-brand outlets like Nike Factory Outlet, J. Crew Factory, Old Navy Outlet, as well as traditional stores like Sam’s Club, H&M and Bed Bath & Beyond. Conveniently located in Auburn, WA at Highway 18 and State Route 167, The Outlet Collection | Seattle is an easy escape from the busy city. If you get hungry during your visit, you can enjoy a blast from the past at Johnny Rocket’s, or opt for something fresh at Villa Fresh Italian Kitchen, or choose from many other dining options. Bring the kids along to ride the carousel or the kiddie rides, play in the Doxon Playland and join our Kids Club to receive exclusive discounts and attend fun events!FULL LIST OF RETAIL HERE.

EMERALD DOWN

14 MILES DOWNTOWN

TACOMA

AUBURN SOUNDER STATION

Serving Washington State since 1975, Westlake Associates has earned its

reputation as a leader in Commercial and Investment Real Estate Broker-

age. We’ve built a strong foundation of experience in Investment Property

Sales, Commercial Leasing, Property Management, and comprehensive

real estate services over our 40 year history. At Westlake Associates, we

operate as a team and leverage each other’s resources and experience to

provide the highest level of client services.

WESTLAKE ASSOCIATES, INC.

CONTACT INFORMATION:

NICHOLAS GILL

PRINCIPAL | BROKER

206.505.9410

[email protected]

AUBURN RETAIL CENTER...the beaches of the Puget Sound are only 15 minutes away. Auburn’s housing...

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