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JAMES CAPITAL ADVISORS, INC.
JAMES CAPITAL ADVISORS
MARKETING PACKAGE
LA-Z-Boy Distribution CENTER
CONTENTS PAGE
The Offering 03
Investment Summary 05
Property Summary 06
Highlights 07
Industrial Aerials 10
Site Plan 13
About the Brand 14
Location Overview 18
CONTACT INFORMATION
ANTHONY COHEN
Associate
(424) 306-0320
REED MELILLO
Senior Director
(424) 325-2606
MIKE JAMES
Managing Director
(424) 325-2601
02 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
The Offering
James Capital Advisors is pleased to present this rare opportunity to purchase the Seattle MSA La-Z-Boy Distribution Center located in Kent Valley, WA 20 miles
south of Seattle, WA.
La-Z-Boy Incorporated (LZB) will be acquiring a business that operates six independently owned La-Z-Boy Furniture Galleries® stores and one warehouse that
serves the Seattle, WA market. The business currently generates $30 million in annual retail volume which is 25% higher than the average across the Furniture
Galleries® network. The stores will become part of La-Z-Boy’s Retail segment, which today is composed of 155 stores. This M&A transaction is expected to
close in June.
At the close of La-Z-Boy Incorporated’s (LZB) acquisition, La-Z-Boy Incorporated (LZB) will sign a 5-year Triple-Net (NNN) Lease. The lease will feature two, five-
year extension options with a 10% rental increase. The subject lease will be backed by a corporate guaranty from La-Z-Boy Incorporated (NYSE: “LZB”), is a
publicly traded company with over nine decades of servicing the home furniture industry.
This distribution facility services La-Z-Boy Incorporated’s Seattle customer base and is strategically located in one the U.S’s top industrial markets nearby a
variety of Fortune 500 companies such as Amazon, Boeing, FedEx, etc. The facility includes 63,546 square feet of warehouse space situated on 3.24 acres of
land with fourteen loading docks and one drive-in doors.
03 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA PROPERTY Photo 04 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
INVESTMENT SUMMARY
$13M
$13,485,381
Tenant La-Z-Boy Distribution Center
Street Address 21214 66th Ave S. PURCHASE PRICE
5.50%
5.50%
City Kent
State WA CAP RATE
$741K
Zip 98032
$741,696
GLA 63,546 SF NET OPERATING INCOME
Lot Size 3.24 AC Price / SF $212.21
Year Built 2016
PERIOD TERM ANNUAL RENT RENT / SF INCREASE CAP RATE
COB - Year 5 Base Term $741,696 $11.67 - 5.50%
Year 6 - 10 Option One $815,866 $12.84 10% 6.05%
Year 11 - 15 Option Two $897,452 $14.12 10% 6.66%
05 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
PROPERTY SUMMARY
Lease Type Triple-Net (NNN) Type of Ownership Fee Simple
Real Estate Taxes Tenant Responsible Lease Guarantor Corporate
Insurance Tenant Responsible Company Name La-Z-Boy
CAM Tenant Responsible Ownership Public (NYSE: LZB)
Commencement Date COB* Years in Business 93 Years
Lease Expiration 5 Years from COB* Market Capitalization $1.345 Billion
Increases 10% in Options Revenue $1.745 Billion
Options Two (2), 5-Year Website La-Z-Boy.com
*COB denotes Close of Business transaction between Seller and La-Z-Boy.
Parcel Number 112204-9079 Zoning MIC
Tenancy Single Market Seattle MSA
Construction Class Masonry Warehouse SF 56,122 SF
Construction Reinforced Concrete Office SF 7,424 SF
Number of Stories 2 Parking 73 Spaces
Number of Docks 14 Clear Height 30’
Number of Dock Seals 8 Sprinkler System High Capacity ESFR
Number of Oversized Ramp Doors 1 Electrical Service Three (3) Phase/480 AMP
06 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
Investment Highlights
Mission-Critical Distribution Facility - This distribution facility serves all La-Z-Boy corporate stores in the greater Seattle Market, which were recently acquired
by La-Z-Boy from their long-standing independent licensee in the market.
Brand New Lease - As they complete their acquisition of the business, La-Z-Boy will be executing a brand new, 5-year lease with two 5-year options to extend.
Triple-Net (NNN) Investment - The lease structure calls for zero operating expenses.
Corporate Guaranty From Publicly Traded Company - La-Z-Boy Incorporated (NYSE: “LZB”) is a publicly traded company with $1.7 billion in revenue spanning
across 155 corporate owned stores and a total of 2,400 independently owned retail outlets.
Strong Operating History - La-Z-Boy has been serving its clients since 1927 and has experienced $388 million in sales growth in the last 5 years.
07 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA PROPERTY Photo 08 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
Real Estate Highlights
Rent / SF in Line With Market With Room For Growth - La-Z-Boy is currently paying $11.67 / sq. ft, which is in line with market for comparable properties in the
area and provides a runway for continued rent growth over the life of the investment.
Trophy Real Estate Investment in Coveted Kent Valley Industrial Market - Kent Valley industrial rents have trended substantially upwards, increasing more
than 93% in the last 5 years with more than 7.5% growth coming in the last 12 months.
High Barrier to Entry Market with limited vacancy - Market vacancy rate has shrunk by more than 38% since 2014 to less than 4% vacancy in 2019. Furthermore,
there are no comparable properties for sale or lease in the immediate area.
Substantial Rent Growth Trend - Kent Valley industrial rents have trended substantially upwards, increasing more than 93% in the last 5 years.
Continued Growth and Development in Greater Seattle Market - There are currently more than 3.3 Million square feet of industrial projects under construction
in the area, and an average of 9.6% in price / sq. ft. premium for properties sold over the last 12 months.
09 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA Industrial AERIAL 10 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA Industrial AERIAL 11 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA Industrial AERIAL 12 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA Site Plan 13 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
ABOUT THE BRAND
La-Z-Boy
In 1928 the first recliner was born and a legendary company was founded on the principles of comfort, innovation, and industry-leading craftsmanship. For more
than 90 years, the American furniture manufacturer based in Monroe, Michigan, USA has manufactured and distributed some of the most comfortable furniture
available. La-Z-Boy furniture is sold in thousands of retail residential outlets in the United States and Canada and is manufactured and distributed under license
in other countries including the United Kingdom, Australia, Germany, Indonesia, Italy, Japan, Mexico, New Zealand, Turkey and South Africa.
The company manufactures a full line of comfortable products for the living room and family room, including the company’s world-famous recliners, reclining
sofas and love seats, sleep sofas, modular furniture and leather upholstery, as well as stationary sofas, love seats and chairs. La Z Boy Incorporated (NYSE: LZB),
one of the world’s leading residential furniture producers, marketing furniture for every room of the home. "Live Life Comfortably.®"
La-Z-Boy includes various companies and brands including La-Z-Boy Residential, La-Z-Boy Kids, La-Z-Boy Hospitality, Lea Furniture, American Drew, Kincaid
Furniture, Bauhaus USA Furniture, Hammary Furniture and England Furniture Incorporated. The company has a network of approximately 350 La-Z-Boy
Furniture Galleries stores and over 560 Comfort Studio locations. The company owns approximately 155 of the La-Z-Boy Furniture Galleries stores. La-Z-Boy’s
world-famous furniture is sure to make your home more elegant & comfortable.
Five-Year Performance ($ in Millions)
$388* 32% $388
SALES GROWTH SHARE PRICE INCREASE TOTAL SHARE PURCHASES
$39* $627 $39
GAAP OPERATING TOTAL CASH GENERATED TOTAL DIVIDENDS PAID
INCOME GROWTH FROM OP. ACTIVITIES TO SHAREHOLDERS
$41* *Five-year sales and operating income growth is
NON-GAAP OPERATING calculated as sales / operating income for fiscal ‘19
INCOME GROWTH less the sales / operating income for fiscal ‘14.
14 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
ABOUT THE BRAND
GENERAL INFORMATION
Headquarters One La-Z-Boy Dr, Monroe, MI 48162
Website La-Z-Boy.com
BUSINESS DESCRIPTION
Sales $1.7 billion (+28% from 2014)
Cash Used for Acquisitions $77 million (+370% from 2015)
OWNERSHIP AND KEY PERSONNEL
Ownership Public NYSE: LZB
CEO Kurt L. Darrow
15 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
La-Z-Boy to Acquire La-Z-Boy Furniture Galleries® Stores in Seattle Market
La-Z-Boy Incorporated (LZB) announced on March 5th, 2020 that it intends to acquire the business
that operates six independently owned La-Z-Boy Furniture Galleries® stores, with approximately
$30 million in annual retail volume, and one warehouse in the Seattle, Washington market. The
transaction is a result of the planned retirement of independent dealers, Chris and Lisa Washko, who
took over the stores in 2011, and the mutually agreed-upon decision that selling the stores to La-Z-
Boy Incorporated would be in the best interest of their employees while providing for the greatest
stability and continuity of the business.
The transaction is expected to close in June and is subject to customary closing conditions. The
stores will become part of La-Z-Boy’s Retail segment, which today is composed of 155 stores.
As La-Z-Boy is already recording a portion of the Seattle-based store volume in its wholesale
segments, the acquisition of the six stores will contribute approximately $15 million of additional
sales annually to the company on a consolidated basis. Chris Washko said, “It has been an honor
to be part of the La-Z-Boy organization. Lisa and I have worked with a great team of talented and
passionate individuals across our business and we are proud of what we have built and the support
the team has given to our local community. Additionally, it has been a distinct pleasure to work with
the many executives at La-Z-Boy Incorporated as we have collectively grown our businesses.”
Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, “The La-Z-Boy
Furniture Galleries® network is growing and performing well, with consumers demonstrating a
preference to shop in store. We are thrilled to acquire the successful Seattle stores which have
sales 25% higher than average across the Furniture Galleries® network. The stores are profitable,
will be integrated into our Retail segment, and will be immediately accretive. Additionally, having a
dedicated warehouse in the market will provide enhanced distribution capabilities for all the La-Z-
Boy companies. As we continue to grow our company-owned store base, we have the opportunity
to further leverage the combined margin associated with our integrated retail model, where we earn
a profit on both the wholesale and retail sales. Chris and Lisa have been great leaders and friends of
La-Z-Boy and we wish them all the best in their well-deserved retirement.”
Tj Linz, President of La-Z-Boy Retail, said, “We expect a smooth and seamless transition for all
involved so that customers will continue to enjoy the excellent shopping experience and service
they have come to expect from the La-Z-Boy Furniture Galleries® store teams in the Seattle market.”
Terms of the deal were not disclosed.
Click here to read the full article on Yahoo! Finance.
16 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA PROPERTY Photo 17 21214 66TH AVE S, KENT, WA 98032
LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
Location Overview
Kent, WA
Located midway between Seattle and Tacoma, Kent, Washington is the fourth largest city in King
County and the sixth largest in Washington state. It currently has a population of 128,000+ including
a culturally diverse mix of residents from around the globe. The city is approximately 34 square miles
in size and is known for its rolling hills, lush valleys, Green River and views of Mt. Rainier. Boasting
dozens of parks and award-winning schools, Kent retains some of its agricultural roots while also
serving as an industry hub to companies including Amazon Boeing, Blue Origin, Oberto Sausage
Company, Flow International and OMAX Corporation and as the home to the Maleng Regional
Justice Center and the Kent campus of Green River Community College.
In addition to its lush landscape and sports & recreation opportunities, the City of Kent offers a
wide variety of shopping, dining and cultural options for its residents and visitors. Highlights include
Kent’s historic district, Kent Station, Pacific Raceways, the Kent Historical Museum and a range of live
entertainment at local restaurants, coffee shops and pubs. There is never a shortage of things to do
in Kent. Come for the day or stay for the weekend.
Seattle, WA
Seattle, chief city of the state of Washington & the largest metropolis of the Pacific Northwest, and
one of the largest and most affluent urban centers in the United States. A major port of entry and an
air and sea gateway to Asia and Alaska, Seattle lies alongside Puget Sound, a deep inland arm of
the northern Pacific Ocean, and is at the center of a conurbation that is defined roughly by Everett to
the north, Bellevue to the east, and Tacoma to the south.
Seattle is a city of distinct neighborhoods and urban districts that, though close to one another, change
from one street to the next. Seattle’s districts have a comfortably prosperous but not ostentatious
feel, characterized by neat family homes and townhouses occupied by industrial workers, artists,
academics, professionals, and that odd class of technology workers. Seattle is a bustling place that
thrives with industrial, commercial, and cultural activity around the clock. Despite Seattle’s enormous
growth, it still maintains a high level of social and public services, excellent schools, and abundant
parks and greenbelts, which have earned it the sobriquet “the Emerald City.”
18 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
Local Points of Interest
1. Amazon Fulfillment Center
20526 59th Pl S, Kent, WA 98032
0.4 MILES FROM SUBJECT PROPERTY
2. Boeing
20403 68th Ave S, Kent, WA 98032
0.9 MILES FROM SUBJECT PROPERTY
3. Blue Origin
21218 76th Ave S, Kent, WA 98032
0.8 MILES FROM SUBJECT PROPERTY
4. FedEx Ship Center
6633 S. 216th St, Kent, WA 98032
0.3 MILES FROM SUBJECT PROPERTY
5. Columbia Distributing
20301 59th Pl S, Kent, WA 98032
1 MILE FROM SUBJECT PROPERTY
6. Center Point Offices
20819 72nd Ave S, Kent, WA 98032
0.8 MILES FROM SUBJECT PROPERTY
19 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
Local Points of Interest
01 02 03
Amazon Fulfillment Center Boeing Blue Origin
Amazon is a multinational technology Boeing designs, manufactures, and Blue Origin, LLC is an American privately
company based in Seattle, with 75k+ sells airplanes, rockets, satellites, funded aerospace manufacturer and
employees. This is their BFI4 location. telecommunication equipment & more. sub-orbital spaceflight services company.
04 05 06
FedEx Ship Center Columbia Distributing Center Point Offices
This center serves as a main facilitator for Columbia is the largest beer and non- This center houses offices for national
delivery goods through FedEx Express alcoholic beverage distribution company companies such as Alaska Airlines, Blue
and FedEx Ground shipping in Kent, WA. in the Pacific Northwest. Origin, Bright Horizons & more.
20 21214 66TH AVE S, KENT, WA 98032LA-Z-BOY DISTRIBUTION CENTER - KENT, WA
DEMOGRAPHICS
POPULATION 1-Mile 3-Mile 5-Mile
2024 Projection 190 110,123 294,633
2019 Estimate 160 101,484 274,779
2010 Census 28 80,835 274,779
Growth ‘19 - ‘24 18.75% 8.51% 7.23%
Growth ‘10 - ‘19 471.43% 25.54% 14.63%
HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2024 Projection 79 43,073 112,182
2019 Estimate 66 39,574 104,358
2010 Census 11 30,865 89,578
Growth ‘19 - ‘24 19.70% 8.84% 7.50%
Growth ‘10 - ‘19 500.00% 28.22% 16.50%
Average Income $37,096 $75,276 $81,733
Median Income $31,666 $56,277 $63,194
21 21214 66TH AVE S, KENT, WA 98032JAMES CAPITAL ADVISORS, INC. DISCLAIMER The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com- parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property. CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker. RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein. NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker. 22 21214 66TH AVE S, KENT, WA 98032
THANK YOU FOR YOUR TIME
CONTACT
ANTHONY COHEN REED MELILLO MIKE JAMES Brian Brockman
Associate Senior Director Managing Director Broker of Record
(424) 306-0320 (424) 325-2606 (424) 325-2601 (513) 898-1551
anthony.cohen@jamescapitaladvisors.com reed@jamescapitaladvisors.com mike@jamescapitaladvisors.com brian@bangrealty.com
CA RE Lic. 02097395 CA RE Lic. 01984199 CA RE Lic. 01869890 WA RE Lic #: 27380
Bang Realty, Inc
Cincinnati, OH
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