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Starbucks Shopping Strip - Richland, WA - OM2€¦ · This Marketing Brochure has been preparedto...
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STARBUCKS SHOPPING STRIP698 Gage Blvd • Richland, WA 99352
100% Leased – 7,038 SF - NNN
Offering Memorandum
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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and
should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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 investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be
reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or
name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
STARBUCKS SHOPPING STRIP
Richland, WA
ACT ID ZAA0210117
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STARBUCKS SHOPPING STRIP
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EXECUTIVE SUMMARYOFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Barrett Business Services Inc 5,004
Kadlec Regional Medical Center 3,614
Favorite Hlthcare Staffing Inc 1,213
Bechtel Hanford Inc 600
Kaiser Engineer Hanford Co 500
Energy Richland Operations 438
Macys 390
Target 354
McDonalds 323
Lamb Weston Inc 310
Lourdes Counseling Center 300
Lowes 300
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 10,235 41,211 104,812
2010 Census Pop 9,432 35,630 93,090
2018 Estimate HH 4,032 16,311 40,325
2010 Census HH 3,687 13,978 35,392
Median HH Income $97,471 $80,347 $69,940
Per Capita Income $49,603 $42,192 $36,312
Average HH Income $125,902 $106,434 $93,959
YEAR 1
Price $1,975,000 CAP Rate 7.00%
Down Payment 35% / 691,250Net Operating Income
$138,167
Loan Amount $1,283,750Net Cash Flow After Debt Service
7.46% / $51,612
Loan Type Proposed New Total Return 10.21% / $70,212
Interest Rate / Amortization
5.10% / 30 Years
Gross Leasable Area (GLA) 7,038 SFCurrent Occupancy
100.0%
Price/SF $280.62Year Built / Renovated
2005
Lot Size 0.7 acre(s)
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STARBUCKS SHOPPING STRIP
OFFERING SUMMARY
100% Leased Starbucks Anchored 3-Tenant Shopping Strip
Out-Pad to a of Grocery (Albertsons) Anchored Shopping Center
The Only Starbucks Drive-Thru in 3-Mile Radius
Starbucks Funded an Interior Renovation & Addition of Outdoor
Seating in 2015
Average Household Income (1-Mile Radius) - $125,902 !!!
Located on Gage Blvd - 18,000 VPD
Quality Construction (2005) – No Deferred Maintenance
True Triple-Net (NNN) Leases
1.5 Miles from Columbia Center Mall – Largest Regional Mall in
SE Washington
INVESTMENT HIGHLIGHTS
INVESTMENT OVERVIEW
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Marcus & Millichap is pleased to exclusively present for sale
a 3-Tenant strip center anchored by Starbucks. The
property is located at the entrance to a grocery (Albertsons)
anchored shopping center. The property has great visibility
along Gage Blvd the main east-west arterial running through
Richland and benefits from being at the main point of
entrance to this daily-needs center. Starbucks has
anchored the center since it was first developed in 2005
and Club 24 opened their doors in 2014 making South
Richland their 11th location in the Pacific NW. The leases
are triple-net (NNN) with the tenants reimbursing for their
proportionate share of CAM, Taxes, and Insurance.
FINANCIAL ANALYSIS
STARBUCKS SHOPPING STRIP
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TENANT SUMMARY
694-698 Gage Boulevard
Richland, WA 99352
Square % Bldg Lease DatesApprox
Base
Rent/ Annual LeaseLease
Renewal
Tenant Name Feet Share Comm. Exp. Rent/SF Month Rent Type Guarantor Options
Starbucks 1,519 21.6% 12/29/05 2/28/21 $31.05 $3,930 $47,165 NNN Corporate 2, 5 Year Options
Salon Chic 505 7.2% 1/30/17 4/30/22 $20.60 $893 $10,715 NNN Personal 1, 5 Year Option
Club 24 5,014 71.2% 6/25/14 9/30/20 $17.57 $7,538* $90,455* NNN Personal 1, 5 Year Option
*Takes into account rent bump on 7-1-19
Total SF: 7,038 100%Monthly
Income:
$12,361
Occupied SF: 7,038 100%Annual
Income:
$148,335
Available SF: 0 0%Average
Rent/SF:
$23.07
FINANCIAL ANALYSIS
STARBUCKS SHOPPING STRIP
OPERATING STATEMENT
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Income Year 1 Per SF
Scheduled Base Rental Income 148,335 21.08
Expense Reimbursement Income
CAM 24,924 3.54
Insurance 2,628 0.37
Real Estate Taxes 21,552 3.06
Total Reimbursement Income $49,104 99.4% $6.98
Potential Gross Revenue 197,439 28.05
General Vacancy (9,872) 5.0%
Effective Gross Revenue $187,567 $26.65
Operating Expenses Year 1 Per SF
Common Area Maintenance (CAM)
Utilities 1,334 0.19
Repairs & Maintenance 17,789 2.53
Insurance 2,323 0.33
Management Fee 7,414 4.0% 1.05
Other Expenses - Non Reimbursable 704 0.10
Total Expenses $49,400 $7.02
Expenses as % of EGR 26.3%
Net Operating Income $138,167 $19.63
PRICE $1,975,000
CAP Rate 7.00%
REGIONAL MAP
STARBUCKS SHOPPING STRIP
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LOCAL MAP
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AERIAL PHOTO
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MARKET OVERVIEW
OVERVIEW
TRI-CITIES, WASHINGTON
Located in the southwestern portion of Washington state, the Tri-Cities
of Kennewick, Pasco and Richland are within 225 miles of Seattle and
Portland via Interstate 82. The metro is composed of Benton and Franklin
counties. The Department of Energy is a driver of the economy, providing
highly skilled jobs that have contributed to boosting population growth
and incomes well above the U.S. level. The Columbia, Yakima and Snake
rivers provide an array of recreational activities, while the area’s favorable
weather and cultural amenities add to the quality of life.
The DOE in conjunction with partners and contractors including Battelle, Bechtel National,
Washington River Protection Solutions, Mission Support Alliance and CH2M provide more than
13,000 area jobs.
Kadlec Regional Medical Center, Trios Health, Lourdes Medical Center and Prosser Memorial
make up the vital healthcare sector, employing thousands of workers.
Plenty of sun and three rivers lure outdoor enthusiasts to a wide variety of water sports, as well as
golfing, hunting, fishing. Miles of trails attract joggers and bicyclists, while the region’s vineyards
and microbreweries draw tourists.
285K
2017POPULATION:
99K
2017HOUSEHOLDS:
33.5
2017MEDIAN AGE:
$59,400
2017 MEDIAN HOUSEHOLD INCOME:
DEMOGRAPHICS
U.S. Median:
37.8U.S. Median:
$56,3009.9%
Growth2017-2022*:
7.3%
Growth2017-2022*:
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Moody’s Analytics; U.S. Census Bureau
STARBUCKS SHOPPING STRIP
DEPARTMENT OF ENERGY
The DOE’s vast Hanford Site, Pacific Northwest National Laboratory and other
affiliated programs attract highly skilled engineers, scientists and researchers.
LARGE AGRICULTURAL SECTOR
Crops including wheat, potatoes, apples, cherries and grapes thrive in the conducive
weather. Major employers include Lamb Weston, Tyson Foods and Broetje Orchards.
INSTITUTIONS OF HIGHER LEARNING
Washington State University Tri-Cities, Columbia Basin College, Tri-Tech Skills
Center and Charter College help provide an educated workforce.
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PROPERTY NAME
MARKETING TEAM
STARBUCKS SHOPPING STRIP
DEMOGRAPHICS
Source: © 2018 Experian
Created on March 2019
POPULATION 1 Miles 3 Miles 5 Miles
2023 Projection
Total Population 11,731 46,558 117,247
2018 Estimate
Total Population 10,235 41,211 104,812
2010 Census
Total Population 9,432 35,630 93,090
2000 Census
Total Population 5,725 23,662 61,091
Current Daytime Population
2018 Estimate 6,223 37,054 105,516
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2023 Projection
Total Households 4,755 18,799 45,842
2018 Estimate
Total Households 4,032 16,311 40,325
Average (Mean) Household Size 2.47 2.47 2.56
2010 Census
Total Households 3,687 13,978 35,392
2000 Census
Total Households 1,966 8,779 23,468
Occupied Units
2023 Projection 4,755 18,799 45,842
2018 Estimate 4,152 16,827 41,165
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2018 Estimate
$150,000 or More 23.16% 17.67% 12.94%
$100,000 - $149,000 25.21% 20.92% 18.34%
$75,000 - $99,999 16.34% 14.65% 15.12%
$50,000 - $74,999 13.08% 16.39% 18.55%
$35,000 - $49,999 7.79% 10.83% 12.21%
Under $35,000 14.44% 19.56% 22.84%
Average Household Income $125,902 $106,434 $93,959
Median Household Income $97,471 $80,347 $69,940
Per Capita Income $49,603 $42,192 $36,312
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure
$95,571 $87,729 $83,171
Consumer Expenditure Top 10 Categories
Housing $24,826 $22,855 $21,740
Transportation $15,877 $14,280 $13,382
Shelter $14,992 $13,955 $13,382
Food $10,814 $9,699 $9,097
Personal Insurance and Pensions $9,291 $8,343 $7,809
Health Care $6,319 $5,562 $5,089
Utilities $4,479 $4,139 $3,917
Entertainment $3,958 $3,561 $3,316
Apparel $3,745 $3,251 $2,941
Cash Contributions $3,396 $2,806 $2,503
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2018 Estimate Total Population 10,235 41,211 104,812
Under 20 26.00% 26.20% 28.63%
20 to 34 Years 14.82% 18.19% 20.74%
35 to 39 Years 5.57% 6.16% 6.71%
40 to 49 Years 11.56% 12.00% 11.47%
50 to 64 Years 22.09% 20.85% 18.50%
Age 65+ 19.93% 16.60% 13.95%
Median Age 43.32 39.54 35.45
Population 25+ by Education Level
2018 Estimate Population Age 25+ 7,059 28,030 68,170
Elementary (0-8) 0.57% 1.14% 1.85%
Some High School (9-11) 2.10% 3.47% 3.90%
High School Graduate (12) 13.54% 18.19% 22.45%
Some College (13-15) 22.39% 24.65% 25.79%
Associate Degree Only 11.16% 11.71% 11.02%
Bachelors Degree Only 31.38% 25.13% 21.56%
Graduate Degree 18.09% 14.85% 12.23%
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Income
In 2018, the median household income for your selected geography is
$97,471, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 18.09%
since 2000. It is estimated that the median household income in your
area will be $105,480 five years from now, which represents a change
of 8.22% from the current year.
The current year per capita income in your area is $49,603, compare
this to the US average, which is $32,356. The current year average
household income in your area is $125,902, compare this to the US
average which is $84,609.
Population
In 2018, the population in your selected geography is 10,235. The
population has changed by 78.78% since 2000. It is estimated that
the population in your area will be 11,731.00 five years from now,
which represents a change of 14.62% from the current year. The
current population is 48.37% male and 51.63% female. The median
age of the population in your area is 43.32, compare this to the US
average which is 37.95. The population density in your area is
3,248.30 people per square mile.
Households
There are currently 4,032 households in your selected geography. The
number of households has changed by 105.09% since 2000. It is
estimated that the number of households in your area will be 4,755
five years from now, which represents a change of 17.93% from the
current year. The average household size in your area is 2.47 persons.
Employment
In 2018, there are 2,505 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
83.70% of employees are employed in white-collar occupations in
this geography, and 17.95% are employed in blue-collar occupations.
In 2018, unemployment in this area is 3.87%. In 2000, the average
time traveled to work was 22.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
84.98% White, 1.50% Black, 0.09% Native American and 6.56%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 8.34% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
STARBUCKS SHOPPING STRIP
Housing
The median housing value in your area was $265,685 in 2018,
compare this to the US average of $201,842. In 2000, there were
1,674 owner occupied housing units in your area and there were 291
renter occupied housing units in your area. The median rent at the
time was $641.
Source: © 2018 Experian
DEMOGRAPHICS
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