Cascade Station Outlot - LoopNet€¦ · TERMINAL TO ACCOMMODATE 34 MILLION PASSENGERS - SLATED TO...

Cascade Station OutlotPORTLAND, OREGON

CASCADE STATION OUTLOT is located within a preeminent shopping corridor that includes the state’s only IKEA, a high-performing Target, and in close proximity to the Portland International Airport and Cascade Station, anchored by tenants such as Nordstrom Rack, Ross, and Home Goods. The Offering provides the rare opportunity to acquire the sub-leasehold interest in the underlying land, subject to a 55-year ground lease with Target, who subsequently leases the land from the Port of Portland. The Building is a high-end construction developed by CenterCal Properties.

Leasehold Pad 100% Occupied by Two Corporate Tenants - Chipotle and a

Wendy’s Drive-Thru

Cascade Station Outlot9687-9695 NE CASCADES PKWY, PORTLAND, OR 97220

$2,670,000TOTAL PRICE

6.25%CAP

Overview

https://goo.gl/maps/WVZwHkCrPWcS6KN68

LEASEABLE SF5,116 SF

LAND AREA40,276 SF

OCCUPANCY100%

SUBMARKET VACANCY0.3%

YEAR BUILT2013

PARKING42 Spaces; 8.2/1,000 SF

Investment Summary

• 100% LEASED TO TWO STRONG NATIONAL BRANDS ON CORPORATE LEASES – CHIPOTLE AND WENDY’S.

• CHIPOTLE IS A HIGH-PERFORMING STORE WITH SALES ROUGHLY 25% ABOVE AVERAGE.

• WENDY’S OPERATES AS THE ONLY DRIVE-THRU RESTAURANT WITHIN A 1-MILE RADIUS AND PROVIDES STRONG ANNUAL SALES AND RENT GROWTH OF 15% EVERY FIVE YEARS.

• EXTREMELY TIGHT RETAIL MARKET WITH A VACANCY RATE OF 0.3%.

• EXTENDED TRADE AREA DUE TO PROXIMITY TO THE PORTLAND AIRPORT AND SOUTHWEST WASHINGTON, ATTRACTING SHOPPERS TO OREGON, A NO SALES TAX STATE.

• SYNERGY PROVIDED BY THE GREATER CASCADE STATION SHOPPING CENTER ANCHORED BY TARGET, NORDSTROM RACK, HOME GOODS, MARSHALLS, ROSS, AND THE ONLY IKEA IN THE STATE OF OREGON.

• INCREASED DRAW PROVIDED BY 272 HOTEL BEDS AND +/-127,000 SF OF CLASS A OFFICE, ALL DIRECTLY ACROSS THE STREET FROM THE PROPERTY.

PAGE 5

Overview

155,400 VPD

205NE

AIR

PORT

WAY

67,700 VPD

11,974 VPD

SOUTHWESTWASHINGTON

2 MILES N

CASCADE I

PORTLAND INTERNATIONAL

AIRPORT

Site

CASCADE STATION OUTLOT

DOWNTOWNPORTLAND11 MILES SW

136 BEDS

136 BEDS

CASCADESTATION OFFICE

127,718 SF

Site

PAGE 7

MAJOR RETAILBath & Body Works Best Buy Buffalo Wild Wings DSWGNC

HomeGoods IHOP IKEAJersey Mike’s Marshalls Nordstrom Rack Panda Express

PetSmart Red Robin Ross Dress for LessStaples Starbucks Target Ulta

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 367 3,029 12,407

Employees 7,145 39,411 149,747

Population 8,332 75,055 342,367

KEY 1-MILE 3-MILES 5-MILES

BusinessSummary

Surrounding Retail

NE AIRPORT WAY

67,700 VPD

155,400 VPD


PORTLAND INTERNATIONAL

AIRPORT

DOWNTOWNPORTLAND11 MILES SW

TRIMET MAX LINE

The nearest drive-thru restaurant

is Taco Bell, located at the

Airport Waiting Zone

11,974 VPD

205

STRONG DAYTIME TRAFFIC AND NUMBER OF DAILY

CUSTOMERS PROVIDED BY 272 HOTEL BEDS AND +/- 127,000 SF OF CLASS A OFFICE (BOTH DIRECTLY ACROSS FROM THE

PROPERTY), IN ADDITION TO STRONG DAILY DRAW

PROVIDED BY PROXIMITY TO A NUMBER OF DESTINATION

RETAILERS.

136 BEDS

136 BEDS

CASCADESTATION OFFICE

127,718 SF

Surrounding Retail

PAGE 9

1. COOK SECURITY HEADQUARTERS 9109 NE Cascades Parkway 3 Story Office Building Recently Completed

2. HOLIDAY INN EXPRESS & SUITES 9109 NE Cascades Parkway 107 Room Hotel - 4 Stories Recently Completed

3. LIFESTYLE HOTEL 9298 Cascades Parkway Proposed 200-Room Lifestyle Hotel Planning Phase

4. HOME2SUITES BY HILTON 7101 NE 82nd Ave 99 Rooms, 4 Stories Recently Completed

5. NESIKA ILLAHEE 6324 NE 42nd Ave 59 Affordable Units Under Construction

6. LAS ALELITAS 6723 NE Killingsworth St 140 Affordable Apartments Waiting for Approval

7. 5827 NE PRESCOTT 5827 NE Prescott St 50 Affordable Units Waiting for Permits

8. HALSEY 106 10476 NE Halsey St

75 Apartments Planned Waiting for Approval

9. WATERSIDE 16533 NE Halsey St 64 Apartment Units Under Construction

10. PDX LOGISTICS CENTER 10299 NE Alderwood Rd 355,200 SF Distribution Center New Parking Lot Addition - 2019-2020

Incoming Developments

LIMITED LAND ZONED FOR DEVELOPMENT LIMITS THE NUMBER OF NEW CONSTRUCTION AND WILL BE PREDOMINANTLY INFILL ONLY.

New Developments

3

12

56

9

8

7

4

205


Portland International Airport (PDX)Expansion

PDX SERVES 20 MILLION PASSENGERS ANNUALLY AND IS EXPANDING TWO CONCOURSES, ADDING 2,400 PARKING STALLS, AND A NEW MAIN TERMINAL TO ACCOMMODATE 34 MILLION PASSENGERS - SLATED TO FINISH 2020-2021.

10

New Developments

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https://www.portofportland.com/pdxnexthttps://www.portofportland.com/pdxnext

42 SPACES;8.2/1,000 SF

0.925ACRES

5,116LEASEABLE SF

11,974 VPD

NE CASCADE PKWY

NE M

T HO

OD A

VE

Site Plan

SITE PLAN NOT TO SCALE

DRIV

E THRU

PARKING LOT RESTRIPED IN

2018

Site Plan

PAGE 13

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $2,670,000CAPITALIZATION RATE 6.25%

CASH FLOW SUMMARY

SCHEDULED INCOME PER SFBase Rent for the Period of: 1/1/2020 - 12/31/2020 $55.45 $283,675Operating Expense Reimbursement $15.52 $79,425Equals: Scheduled Gross Income $70.97 $363,100Total Effective Gross Income (EGI) $70.97 $363,100

OPERATING EXPENSES PER SFCAMS $13.96 $71,444Property Taxes $3.64 $18,640Insurance $0.21 $1,091Management Fee of EGI $1.77 $9,031Land Rent1 $18.76 $95,960Total Operating Expenses $38.34 $196,166

NET OPERATING INCOME $70.97 $166,934

2.5%

1) Seller has interest in a 55-year Ground Lease expiring 12/31/2067, assuming they exercise 5, 5-year options to extend; rent to increase 10% every five years - the next scheduled rent increase is 12/1/2022. The Ground Lease expiration date (not including options) is 12/31/2042. Land Rent includes an annual payment of $2,459.75 that increases 3% annually paid to Target for the right of ingress and egress to their leased land.

9/13/2019 [ ]

Financial Summary

Rent Roll

10/16/2013 - 10/31/2023 Lease Type: NNN

2,916 Pro-Rata: 57.00%

MONTHLY BASE RENT

% INCREASEANNUAL

RENTPSF

11/1/2018 $15,573 $186,875 $64.09

1 11/1/2023 $17,909 15% $214,906 $73.70

2 11/1/2028 $20,595 15% $247,142 $84.75

3/31/2014 - 3/31/2024 Lease Type: NNN

2,200 Pro-Rata: 43.00%

MONTHLY BASE RENT

% INCREASEANNUAL

RENTPSF

4/1/2019 $8,067 $96,800 $44.00

1 4/1/2024 $8,873 10% $106,480 $48.40

2 4/1/2029 $9,761 10% $117,128 $53.24

3 4/1/2034 $10,737 10% $128,841 $58.56

5,116 OCCUPIED 100.00%

$23,640

TOTAL SF

TOTAL RENT/MONTH

DATE

OPTIONS

Notes: Tenant has 2, 5-Year options that extend automatically, unless Tenant provides 180 days notice to terminate prior to the start of the next option.

2, 5-Yr Options that Automatically Extend

WENDY'SLease Term:

Size (SF):

RENT SUMMARY

CHIPOTLELease Term:

Size (SF):

RENT SUMMARY

DATE

OPTIONS 3, 5-Yr Options with 120-Day Notice

9/13/2019 [ ]

RentRoll

Financial Summary

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Operating Expenses

REIMBURSEMENTS

TOTAL PER SF NOTES IN-PLACE

TOTAL EXPENSES $196,166 $38.34 $79,425

NOTES:1) Based on 2019 Budget.2) Based on 2.5% of EGI - reimbursements include Admin Fees.3) Land rent for underlying land & Access Fee for ingress/egress.

MANAGEMENT

$1,091 $0.21 1 $1,091

$9,031 $1.77 2 $1,861

INSURANCE

$57,833

$18,640 $3.64 1 $18,640 PROPERTY TAXES

PROJECTED OPERATING EXPENSES

CAMS $71,444 $13.96 1

$95,960 $18.76 3LAND RENT

9/13/2019 [ ]

NOTES:

1) BASED ON 2019 BUDGET.

2) BASED ON 2.5% OF EGI - REIMBURSEMENTS INCLUDE ADMIN FEES.

3) LAND RENT FOR UNDERLYING LAND & ACCESS FEE FOR INGRESS/EGRESS.

OperatingExpenses

Financial Summary

Reimbursements

TENANT NAMESize

PRO RATE % CAMSPROPERTY

TAXINSURANCE MGMT ADMIN FEE

ADMIN COLLECTED

NOTES TENANT TOTALS

EXPENSE TOTAL $71,444 $18,640 $1,091 $9,031

WENDY'S $2,916 57.00% $31,797 $10,624 $622 $936 0% $0 1 $43,980

CHIPOTLE $2,200 43.00% $26,036 $8,016 $469 $0 10% $925 2 $35,445

TOTAL 5,116 100.00% $57,833 $18,640 $1,091 $936 $925 $79,425

2) Controllable CAM (excludes taxes, insurance, utilities, and security) is capped at a 5% increase annually; Admin Fee is based on CAM and Insurance, excluding utilities.

NOTES:1) Controllable CAM (excludes taxes, insurance, and utilities) is capped at a 5% increase annually; Management Fee is not to exceed 5% of CAM (excluding utilities) in lieu of an Admin Fee. If not managed by a 3rd Party Management company, Tenant to pay a 10% Admin Fee on CAM and Insurance (excluding utilities) in lieu of Management.

9/13/2019 [ ]

NOTES:

1) CONTROLLABLE CAM (EXCLUDES TAXES, INSURANCE, AND UTILITIES) IS CAPPED AT A 5% INCREASE ANNUALLY; MANAGEMENT FEE IS NOT TO EXCEED 5% OF CAM (EXCLUDING UTILITIES) IN LIEU OF AN ADMIN FEE. IF NOT MANAGED BY A 3RD PARTY MANAGEMENT COMPANY, TENANT TO PAY A 10% ADMIN FEE ON CAM AND INSURANCE (EXCLUDING UTILITIES) IN LIEU OF MANAGEMENT.

2) CONTROLLABLE CAM (EXCLUDES TAXES, INSURANCE, UTILITIES, AND SECURITY) IS CAPPED AT A 5% INCREASE ANNUALLY; ADMIN FEE IS BASED ON CAM AND INSURANCE, EXCLUDING UTILITIES.

Reimbursements

Financial Summary

PAGE 17

Q: HAS THERE EVER BEEN ANY ENVIRONMENTAL TESTING CONDUCTED AT THE PROPERTY?

A: Yes, SCS Engineers conducted a Phase I ESA in October 2018 and no Recognized Environmental Conditions (RECs) were identified.

Q: DO TENANTS REPORT SALES?

A: Chipotle is required to report sales within thirty days of Landlord’s request, yet no more than twice per year and only in connection with a prospective sale or financing of the Property. Wendy’s is required to provide a statement of gross sales within 60 days of each lease year.

Q: DO ANY TENANTS HAVE A CO-TENANCY CLAUSE WITH TARGET?

A: Neither Tenant has a co-tenancy clause, nor any other tenants.

Q: ARE THERE CC&RS OVERSEEING THE GREATER SHOPPING CENTER?

A: See terms below:

The Declarant is the Cascade Station Tenant’s Association, an Oregon nonprofit corporation formed by the Port. The Declarant operates and manages all common areas of the greater shopping area and imposes and collects annual and special assessments from the Ground Lessees, including expenses for common area utilities, maintenance and repair with respect to the common areas and public right-of -ways. These common area expenses are reimbursed to the Declarant as part of the annual assessment. Typical uses restricted from Class A retail centers are restricted at Cascade Station – please contact Capital Pacific for more information.

Questions & Answers

Q: WHO OWNS THE LAND AND WHAT ARE THE TERMS?

A: The underlying land occupied by Target, Chipotle, and Wendy’s is owned by the Port of Portland and all land is leased to Target per the terms of a Ground Lease; Target subsequently subleases .925 acres of the land to the Seller. See terms below:

GROUND

LESSOR

PORT OF

PORTLAND

GROUND

LESSEE

TARGET

CORPORATION

GROUND SUBLESSEE

(SELLER)

CASCADE

STATION II

GROUND SUBLESSEE’S LEASE TERMS:

Rent Commencement: 12/1/2012Lease Expiration: 12/31/2042 Options: 5, 5-Year Options

GROUND SUBLESSEE’S RENT SCHEDULE:

10% Increases every 5 Years, including throughout all 5, 5-year Options. Such Options to be exercised with 180 day’s prior notice; The Seller currently pays annual ground rent of $102,850 to increase 10% 12/1/2022.

RESPONSIBILITY:

The Sublessee (Cascade Station 2 LLC) is directly responsible for all expenses related to the land and building structure alongside an annual Access Fee based on $2,000 for Year 1 to be increased 3% annually to maintain the Access Area (surrounding land providing guaranteed ingress/egress to the leased property). Tenant is responsible for obtaining and paying for general liability insurance.

PAGE 19

Maintenance & Repair

TENANT Chipotle Mexican Grill, Inc Dba Chipotle BUILDING SF 2,200 SFLEASE TYPE NNN TERM 10 YearsRENT COMMENCEMENT March 31, 2014LEASE EXPIRATION March 31, 2024OPTIONS 3, 5-YR Option; 120-day notice

Premise & Term

TENANT’S OBLIGATIONSTenant is responsible for all interior maintenance, repair, and replacement, including those relating to the HVAC system, plate glass windows, doors, and the storefront.

LANDLORD’S OBLIGATIONSLandlord is responsible for the repair and maintenance of the exterior and structural portions of the Building, including the foundation, exterior walls, roof, and parking lot repair/replacement in excess of re-striping and repair, none of which is reimbursable by Tenant.

Lease Abstract

CAMSTenant reimburses their prorata share of common area expenses, including the cost of repairing and re-striping the parking lot, exterior painting, and roof replacement every 10 years. CAM includes a 10% Admin Fee in lieu of Management, based on CAM and insurance (excludes utilities). CAM is capped at a 5% increase annually (excludes taxes, insurance, utilities, security, and snow removal).

TAXESTenant reimburses their prorata share of Property Taxes.

INSURANCETenant reimburses their prorata share of Landlord’s insurance.

UTILITIESTenant is directly responsible for utilities.

EXCLUSIVE USE Sale of burritos, wraps, etc. as a primary use.

FINANCIAL STATEMENTChipotle is not required to provide a financial statement so long as they are publicly-traded, yet is required to provide a statement of gross sales within 30 days of request by Landlord only in connection with the a possible sale or financing of the Property.

ASSIGNMENT/SUBLETTINGTenant shall not assign or sublease without the prior written consent of Landlord, which shall not be unreasonably withheld; however, Tenant may assign or sublease to a parent, subsidiary, or affiliated entity without approval.

SUBLEASE Tenant’s lease will continue directly with Target should the sublease between Target and current Landlord terminate for any reason other then expiration of the lease.

LeaseProvisions

Expenses

Lease Abstract

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Maintenance & Repair

TENANT Wendy’s International Inc dba Wendy’s BUILDING SF 2,916 SFLEASE TYPE NNN TERM 10 YearsRENT COMMENCEMENT October 16, 2013LEASE EXPIRATION October 31, 2023OPTIONS 2, 5-YR Options; Auto Renews unless terminated with 180-day notice.

Premise & Term

TENANT’S OBLIGATIONSTenant is responsible for all interior maintenance, repair, and replacement, including those relating to the HVAC system, plate glass windows, doors, storefront, and all mechanical, plumbing, and electrical systems serving their space, as well as the roof membrane.

LANDLORD’S OBLIGATIONSLandlord is responsible for the repair and maintenance of the exterior and structural portions of the Property, including the foundation, exterior walls, and the roof, none of which is reimbursable by Tenant.

Lease Abstract

CAMSTenant reimburses their prorata share of common area expenses, including a Management Fee not to exceed 5% of the total CAM, excluding utilities. If no 3rd Party Management company, Landlord may bill a 10% Admin Fee in lieu of Management based on CAM (excluding utilities). CAM is capped at a 5% increase annually (excludes taxes, insurance, and utilities).

TAXESTenant reimburses their prorata share of Property Taxes.

INSURANCETenant reimburses their prorata share of Landlord’s insurance.

UTILITIESTenant is directly responsible for utilities.

FINANCIAL STATEMENTTenant is not required to provide a financial statement so long as they are publicly-traded, yet is required to provide a statement of gross sales no later than 60 days after the close of each Lease Year.

ASSIGNMENT/SUBLETTINGTenant shall not assign or sublease without the prior written consent of the Landlord, which shall not be unreasonably withheld; however, Tenant doesn’t require Landlord’s approval to assign or sublease to affiliate with more than 50% voting stock of the parent company.

SUBLEASE Tenant’s lease will continue directly with Target should the sublease between Target and current Landlord terminate for any reason other then expiration of the lease.

LeaseProvisions

Expenses

Lease Abstract

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Featured Photography

Featured Photography

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Contact Us

We’d love to hearfrom you.

The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.

SEAN [email protected]: 503.675.8378

KEVIN [email protected]: 503.675.7726

SCOTT [email protected]: 503.675.8383

MICHAEL [email protected]: 503.675.8381

PETER [email protected]: 503.607.0197

MICHAEL [email protected]: 503.210.4069

LANCE [email protected]: 503.607.0207

Contact Us

Cascade Station Outlot - LoopNet€¦ · TERMINAL TO ACCOMMODATE 34 MILLION PASSENGERS - SLATED TO...

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