DOWNTOWN SEATTLE 7-ELEVEN - 819 VIRGINIA ST, SEATTLE, WA 98101 OFFERING MEMORANDUM - ORION Commercial Partners
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DOWNTOWN SEATTLE 7-ELEVEN 819 VIRGINIA ST, SEATTLE, WA 98101 OFFERING MEMORANDUM SCOTT CLEMENTS DAVID BUTLER 1218 Third Avenue www.orioncp.com P// 206.445.7664 P// 206.445.7665 Suite 2200 P// 206.734.4100 sclements@orioncp.com dbutler@orioncp.com Seattle, WA 98101 Established in 2010
TABLE OF
CONTENTS
TABLE OF CONTENTS
// INVESTMENT SUMMARY PAGE// 3
// SITE OVERVIEW PAGE// 4
// TENANT SUMMARY PAGE// 7
// RENT ROLL PAGE// 8
// MARKET OVERVIEW PAGE// 9
// DEMOGRAPHICS PAGE// 10
2 // DOWNTOWN SEATTLE 7-11
THE OFFERING
ORION Commercial Partners is excited to offer for sale the 7-Eleven store located at
819 Virginia St. in Seattle, Washington. This commercial condominium is located on
the first floor of the Cosmopolitan Condominium Complex, which was built in 2007.
This 34-story high-end condominium complex is strategically located next-door
to the Amazon Campus in the Denny Triangle neighborhood of downtown Seattle.
This perfectly located condominium is backed by an investment grade tenant
INVESTMENT
(7-Eleven S&P AA-) at well below market rents. The tenant is currently in year 6 of its initial
10-year term with just under 4 years remaining. 7-Eleven will thrive at this location for
decades to come.
SUMMARY Address
819 VIRGINIA ST,
SEATTLE, WA 98101
Offering Price $1,675,000
Unit Size 2,301 SF
NOI $73,672
$
Cap Rate 4.4%
Lease Expiration 6/30/2022
Renewal Options (4) 5-YEAR OPTIONS
Year Built 2007
3 // DOWNTOWN SEATTLE 7-11
INVESTMENT HIGHLIGHTS
STRONG DEMOGRAPHICS
There are over 50,000 people living within at 1-mile radius with an average household
income of over $104,000.
BELOW MARKET RENTS
SITE
7-Eleven currently pays $32.00 NNN per square foot where market rent for retail in and
around the Amazon campus averages approximately $38.50 NNN per square foot with
rents continuing to rise.
OVERVIEW
STRATEGIC CORE LOCATION
Location, location, location. The 7-Eleven condominium borders the Amazon campus which
employs over 40,000 people.
AMAZON OWNS
AMAZON IS DEVELOPING
AMAZON IS LEASING
SUBJECT
PROPERTY
AMAZON
HEADQUARTERS
Source: The Seattle Times (Research Team)
4 // DOWNTOWN SEATTLE 7-11
SITE OVERVIEW
PROPERTY PHOTOS
5 // DOWNTOWN SEATTLE 7-11
SITE OVERVIEW
AREA AERIAL VIEW
SEATTLE CBD
WESTLA
KE AVE
// 19,019
ST
IA CAMPUS
N
VPD
R IG
VI
6 // DOWNTOWN SEATTLE 7-11
ABOUT 7-ELEVEN
Tenant Name: 7-Eleven®
Standards & Poor’s Rating: AA-
Lease Commencement: 07/01/2012
Lease Expiration: 06/30/2022
TENANT
Gross Leasable Area: 2,301
Original Term: 10 Years
Option Term: (4) 5-Year
SUMMARY
Headquartered: Irving, TX
Number of Locations: more than 64,000
Website: www.7-eleven.com
Founded in 1927 and originally named Tote’m Stores, the convenience store chain was founded
by Jefferson Green who determined that selling grocery store items would increase customer
convenience. New hours of operation in 1946 from 7 AM to 11 PM prompted a name change of the
stores to the 7-Eleven® name that is well-recognized. Now, 91 years after it’s founding, 7-Eleven®
is an international company with over 64,000 stores in the US, Canada, Mexico, Europe, the
United Arab Emirates, Australia and Asia. Although 7-Eleven® is based in Irving, TC, their parent
company, Seven & I Holdings Co, is based in Chiyoda, Tokyo, Japan.
In 2017, 7-Eleven® entered into it’s largest asset purchase agreement with Sunoco. 7-Eleven®
acquired 1,108 company-operated c-stores in 19 geographic regions, primarily in Texas, New York,
and Florida. The company ranked #1 on CSP’s 2017 Top 202 list of the largest c-store chains in
the United States. Ahead of the asset purchase agreement, Sunoco ranked #6 on the list.
7-Eleven® ended its fiscal 2017 with 8,256 stores in the United States. Striving to reach a new
goal of 10,000 stores in North America. Seven & I Holdings Co. has been beefing up its U.S.
convenience stores by following the strategies of its c-stores in Japan, such as expanding ready-
made foodservice. With this strategy behind their expansion, operating profit in the United
States is climbing approximately 10% every year.
7 // DOWNTOWN SEATTLE 7-11
FINANCIAL ANALYSIS
RENT ROLL
RENT
EXPIRATION
TENANT SIZE COMMENCEMENT MONTHLY RENT RENT/SF ANNUAL RENT OPTIONS EXPENSES
DATE
DATE
(4) 5-year
7-Eleven 2,301 SF 07/01/2012 06/30/2022 $6,136 $32.00 $73,632 options. NNN
See chart below.
Option 1 07/01/22 - $35.40/SF $6,749.60
06/30/27 Per month
Option 2 07/01/27 - $38.72/SF $7,424.56 Per
06/30/32 month
Option 3 07/01/32 - Market Rent
06/30/37
Option 4 07/01/37 - Market Rent
06/30/42
8 // DOWNTOWN SEATTLE 7-11
ABOUT SEATTLE
Seattle, Washington is a coastal seaport city in King County. With over 700,000 residents as
of 2017, Seattle is the largest city in both the State of Washington and the Pacific Northwest
region of North America. As of July 2013, it is one of the fastest-growing major city in the United
States with an annual growth rate of 2.5%. The Seattle metropolitan area of around 3.8 million
inhabitants is the 15th largest metropolitan area in the United States. Seattle and its surrounding
counties added 86,320 new residents between April 2015 and 2016, marking the region’s biggest
MARKET
INVESTMENT
population gain this century, fueled in large part by the region’s technology industry. The city is
situated on a narrow isthmus between Puget Sound and Lake Washington, about 100 miles (160
km) south of the Canada–United States border.
SUMMARY
Seattle is the region’s commercial and transportation hub and the center of manufacturing, trade,
OVERVIEW
and finance. The Port of Seattle, which also operates Seattle–Tacoma International Airport, is a
major gateway for trade with Asia and cruises to Alaska and is the 8th largest port in the United
States in terms of container capacity. Seattle’s importantly diversified industries include aircraft,
lumber and forest products, fishing, high technology, food processing, boat building, machinery,
fabricated metals, chemicals, pharmaceuticals, and apparel.
The city’s gross metropolitan product was $231 billion in 2010, making it the 11th largest
metropolitan economy in the United States. Though it was also affected by the recession, Seattle
has retained a comparatively strong economy, and remains a hotbed for start-up businesses,
especially in green building and clean technologies: it was ranked as America’s No. 1 “smarter
city” based on its government policies and green economy.
Very large companies dominate the business landscape in the “Emerald City”. Four companies
on the 2017 Fortune 500 list of the United States’ largest companies, based on total revenue,
are headquartered in Seattle: Internet retailer Amazon.com, coffee chain Starbucks, department
store Nordstrom, and freight forwarder Expeditors International of Washington. Other Fortune
500 companies popularly associated with Seattle are based in nearby Puget Sound cities.
Boeing, has large aircraft manufacturing plants in Everett and Renton, which makes it the largest
private employer in the Seattle metropolitan area. Warehouse club chain Costco, the largest retail
company in Washington, is based in Issaquah. Microsoft is located in Redmond. Weyerhaeuser, the
forest products company, is based in Federal Way. Finally, Bellevue is home to truck manufacturer
Paccar. Other major companies in the area include Nintendo of America in Redmond, the T-Mobile
US in Bellevue, Expedia Inc. in Bellevue and Providence Health & Services — the state’s largest
health care system and fifth largest employer — in Renton. The city has a reputation for heavy
coffee consumption; coffee companies founded or based in Seattle include Starbucks, Seattle’s
Best Coffee, and Tully’s. There are also many successful independent artisanal espresso roasters
and cafés.
The “Emerald City” is extremely multicultural and is influenced by the Pacific Rim in art
and architecture. The city offers residents a pace of life that can be either relaxed or fast-paced
and entrepreneurial.
DEMOGRAPHICS
1, 3 & 5 MILE RADIUS
RADIUS 1 MILE 3 MILE 5 MILE RADIUS 1 MILE 3 MILE 5 MILE
POPULATION: HOUSEHOLDS:
2023 Projection 87,549 258,886 506,981 2023 Projection 55,381 136,720 243,937
2018 Estimate 78,860 237,321 467,664 2018 Estimate 50,053 125,521 225,342
2010 Census 53,403 186,648 385,781 2010 Census 35,059 100,394 188,915
Growth 2018-2023 11.02% 9.09% 8.41% Growth 2018 - 2023 10.64% 8.92% 8.25%
Growth 2010-2018 47.67% 27.15% 21.23% Growth 2010 - 2018 42.77% 25.03% 19.28%
2018 POPULATION BY RACE: Owner Occupied 10,024 40,773 91,719
White 56,048 166,958 336,904 Renter Occupied 40,029 84,748 133,623
Hispanic 5,672 16,160 29,310 2018 AVG HOUSEHOLD INCOME $104,111 $114,587 $116,859
Black 6,592 21,621 33,451 2018 MED HOUSEHOLD INCOME $80,370 $86,242 $88,584
Am. Indian & Alaskan 1,060 2,407 4,044 2018 HOUSEHOLDS BY HOUSEHOLD INC:
Asian 11,144 33,752 68,243 Less than $25,000 9,766 19,557 33,624
Hawaiian & Pacific Island 300 815 1,526
$25,000 - $50,000 7,719 19,010 33,544
Other 3,716 11,769 23,496
$50,000 - $75,000 6,061 16,950 30,551
U.S. Armed Forces: 254 648 1,019
$75,000 - $100,000 6,892 16,106 27,517
$100,000 - $125,000 5,319 12,826 23,798
$125,000 - $150,000 3,688 9,442 16,797
$150,000 - $200,000 4,209 11,742 22,931
$200,000+ 6,399 19,887 36,580
10 // DOWNTOWN SEATTLE 7-11DEMOGRAPHICS
1, 3 & 5 MILE RADIUS RINGS
1 MILE
3 MILES
5 MILES
11 // DOWNTOWN SEATTLE 7-11ORION Commercial Partners maximizes
real estate value through comprehensive
project acquisition/disposition, property/
asset management, and leasing services. We are
a progressive real estate services and investment
firm constantly seeking a perfect alignment of
interests between us as the service provider and
our clients. ORION delivers a
UNIFIED TEAM APPROACH
to fulfill our client’s objectives. Creativity,
accountability and focused attention are the
hallmarks of our business.
SCOTT CLEMENTS DAVID BUTLER 1218 Third Avenue www.orioncp.com
P// 206.445.7664 P// 206.445.7665 Suite 2200 P// 206.734.4100
sclements@orioncp.com dbutler@orioncp.com Seattle, WA 98101 Established in 2010You can also read
