Gravity Coffee...Income & Expense PRICE $1,610,000 CAPITALIZATION RATE 5.50% CASH FLOW SUMMARY...
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Gravity Coffee TACOMA, WASHINGTON
Transcript of Gravity Coffee...Income & Expense PRICE $1,610,000 CAPITALIZATION RATE 5.50% CASH FLOW SUMMARY...
GravityCoffeeTACOMA, WASHINGTON
Gravity Coffee12811 PACIFIC AVE SOUTH, TACOMA, WA 98444
5.50%CAP
$1,610,000PRICE
Overview
LEASEABLE SF500 SF
LAND AREA16,579 SF
LEASE TYPEAbsolute NNN
YEAR BUILT2020 Opening Date: 5/11/2020
TERM20 Years
PARKING±4 Spaces; 8.0/1,000 SF
Investment Summary
■ HIGH QUALITY NEW CONSTRUCTION DRIVE-THRU BUILDING.
■ ABSOLUTE NNN LEASE WITH NO LANDLORD RESPONSIBILITIES.
■ ANNUAL INCREASES OF 1.03% STARTING IN 2023.
■ PROMINENT LOCATION 3 BLOCKS FROM PACIFIC LUTHERAN UNIVERSITY, WITH 3,100 STUDENTS.
■ GROWING TRADE AREA WITH SEVERAL NEW COMMERCIAL DEVELOPMENTS IN THE SUBMARKET (1,135 UNITS DELIVERED SINCE 2017 AND 1,637 NEW MULTIFAMILY UNITS THAT ARE UNDER CONSTRUCTION OR PLANNED).
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Overview
QuickStats
FOUNDED IN TACOMA, WA
201513 LOCATIONS IN
PUGET SOUND
2 CURRENTLY UNDER CONSTRUCTION
About Gravity Coffee
Gravity Coffee is positioned adjacent to a Starbucks, which Gravity Coffee considers an advantage rather than a liability - The Gravity Coffee goal is to have a wait time of two and a half minutes at most and receives a number of customers who don’t want to wait in line. Unlike other coffee stands, Gravity Coffee stands have doors so employees can go outside, greet their customers, take orders, and process payments.
Outweighing the Neighboring Competition
Privately held company modernizing the personalized
drive-thru coffee experience.
About Gravity Coffee
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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.
Income & Expense
PRICE $1,610,000CAPITALIZATION RATE 5.50%
CASH FLOW SUMMARYSCHEDULED INCOME Base Rent for the Period of: 6/1/2020 - 5/31/2021 $88,488Total Effective Gross Income (EGI) $88,488
OPERATING EXPENSES CAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses -
NET OPERATING INCOME $88,488
5/19/2020 [ <www.CapitalPacific.com> ]
Financial Summary
Rent Roll
5/11/2020 - 5/31/2040
MONTHLY BASE RENT % INCREASE ANNUAL
RENT CAP RATE
5/11/2020 $7,374 $88,488 5.50%6/1/2022 $7,534 2.17% $90,405 5.62%6/1/2023 $7,611 1.03% $91,336 5.67%6/1/2024 $7,690 1.03% $92,277 5.73%6/1/2025 $7,769 1.03% $93,227 5.79%6/1/2026 $7,849 1.03% $94,188 5.85%6/1/2027 $7,930 1.03% $95,158 5.91%6/1/2028 $8,011 1.03% $96,138 5.97%6/1/2029 $8,094 1.03% $97,128 6.03%6/1/2030 $8,177 1.03% $98,129 6.09%6/1/2031 $8,262 1.03% $99,139 6.16%6/1/2032 $8,347 1.03% $100,160 6.22%6/1/2033 $8,433 1.03% $101,192 6.29%6/1/2034 $8,520 1.03% $102,234 6.35%6/1/2035 $8,607 1.03% $103,287 6.42%6/1/2036 $8,696 1.03% $104,351 6.48%6/1/2037 $8,786 1.03% $105,426 6.55%6/1/2038 $8,876 1.03% $106,512 6.62%6/1/2039 $8,967 1.03% $107,609 6.68%
2, 5-YR options with annual rent increases, 180 days' notice
CURRENT $7,374 $88,488 5.50%
DATE
OPTIONS
LLeeaassee NNootteessComments: New Construction, Absolute NNN 20-Year lease. Annual 1.03% rent increases start in 2023. Tenant has 2, 5 year options that include annual rental increases of 1.03%. Tenant has a rent abatement for months 1-9 but still responsible for NNN expenses, not reflected in UW. Lease has a personal guaranty.
Gravity Coffee
Lease Term:
RENT SUMMARY
5/19/2020 [ <www.CapitalPacific.com> ]
RentRoll
Financial Summary
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TENANT Gravity Coffee Company, LLC dba Gravity Coffee
BUILDING SF 500 SF
LEASE TYPE Absolute NNN
RENT COMMENCEMENT May 11, 2020
EXPIRATION May 31, 2040
Premise & Term
Maintenance & RepairTENANT’S OBLIGATIONSTenant is responsible for all maintenance, repair, and replacement of the interior and exterior of the premises, including all structural elements of the building, the roof, plumbing, HVAC, electrical, lighting, boilers, pressure vessels, fire protection systems, landscaping, driveways, parking lots, fences, signs, sidewalks, and parkways.
LANDLORD’S OBLIGATIONS Landlord to provide a 6-month warranty on the HVAC and 1-month warranty on all other components following rent commencement. Following the warranties, Landlord has zero responsibilities.
Lease Abstract
TAXESTenant is responsible for property tax reimbursement to Landlord.
INSURANCETenant reimburses property and liability insurance, and the tenant must carry their own liability insurance policy.
UTILITIESTenant is responsible for direct payment of all utilities.
ASSIGNMENT/SUBLETTINGTenant may not assign or sublease without the prior written consent of Landlord, which shall not be unreasonably withheld, unless tenant is a corporation and its stock is publicly traded on a national stock exchange. 50% of rent that exceeds original lease term rent aggregated from a sublease shall be paid to the Landlord.
LeaseProvisions
Expenses
Lease Abstract
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MAJOR RETAIL
Ace Hardware Albertsons Arby’s AutoZone Domino’s Goodwill Home Depot
LA Fitness McDonald’sO’Reilly Auto Parts Pizza Hut Popeyes Rite Aid Saar’s Super Saver FoodsSafeway
StarbucksT-Mobile Tractor Supply Co. Walgreens QFC
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 433 2,182 5,855
Employees 5,124 19,476 57,338
Population 15,797 82,701 208,664
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
Surrounding Retail
StarbucksT-Mobile Tractor Supply Co. Walgreens QFC
GRAVITYCOFFEE
JOINT BASE LEWIS-
MCCHORD2 MILES WEST
39,000 VPD
PACIFIC
AVE SO
UTH
PACIFIC
AVE SO
UTH
512
86,000 VPD
Surrounding Retail
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SITE PLAN NOT TO SCALE
DRIVE THRU
Site Plan
GRAVITYCOFFEE
5 JOINT BASELEWIS-
MCCHORD
512
86,000 VPD
LARGEST MILITARY INSTALLATION ON THE
WEST COAST
415,000LARGEST EMPLOYER
IN WASHINGTON
2nd
MILITARY CONNECTED POPULATION
145,000
Joint BaseLewis-McChord
5 Miles from Interstate 5Gravity Coffee is less than 5 miles from Interstate 5, the major north-south interstate connecting the Property to Seattle in the north and Olympia in the south.
Proximity
Connectivity
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Tacoma, Washington
TACOMA is located on the Puget Sound, and serves as the center of business activity for the South Sound region. Just south of Seattle, Tacoma is the third largest city in the state of Washington. Known for its world-renowed glass art, Tacoma has a vibrant urban culture. With close access to the Puget Sound banks and Mount Rainier, tourists visit frequently to enjoy the outdoor activities that Tacoma provides, on land and on the water.
Location
TOP EMPLOYERS IN TACOMA are primarily government operations and health care providers, which account for the top five employers. Although these employers are driving the local economy, the driving force behind the population growth lies heavily on the city’s affordability. Comparable to the neighboring Seattle market, Tacoma’s average home price of $241,000, is less than 40% of the average home price in Seattle. Affordable housing and a strong job growth rate of 23% over the last 20 years has allowed Tacoma to attract more residents and a larger labor force.
EmploymentGrowth
KEY 5 MINS 10 MINS 15 MINS
DriveTime
POPULATION
5 MINS 10 MINS 15 MINS
2010 24,813 98,503 244,649
2019 26,349 106,836 275,046
2024 27,545 112,332 293,301
2019 HH INCOME
5 MINS 10 MINS 15 MINS
Average $64,969 $69,058 $73,349
Median $53,633 $54,897 $57,930
Location
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Contact Us
SEAN [email protected]: 503.675.8378
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]: 206.693.3352
DAVID [email protected]: 206.693.3349
Contact Us
