PIER 1 IMPORTS | NET LEASED OFFERING - 4301 S STEELE STREET TACOMA, WA 98409 ACTUAL SITE PHOTO - LoopNet
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ACTUAL SITE PHOTO
O FFE RIN G M E M O R A N D U M Presented By:
PIER 1 IMPORTS | NET LEASED OFFERING
ROBERT CHANA | VICE PRESIDENT OF INVESTMENT SALES
4 301 S ST EE LE STRE E T TACOMA, WA 9 8 4 09 T: 847.571.4636 E: robc@thekasegroup.com BRE#01948220
DISCLAIMER & CONFIDENTIALITY
The material contained in this Investment Offering Brochure is furnished The information contained herein is subject to change without notice and the
solely for the purpose of considering the purchase of the property within and recipient of these materials shall not look to Owner or The Kase Group Advisor,
is not to be used for any other purpose. This information should not, under nor any of their officers, employees, representatives, independent contractors
any circumstances, be photocopied or disclosed to any third party without or affiliates, for the accuracy or completeness thereof. Recipients of this
the written consent of The Kase Group or Owner, or used for any purpose Investment Offering Brochure are advised and encouraged to conduct their
whatsoever other than to evaluate the possible purchase of the Property. own comprehensive review and analysis of the Property.
The only party authorized to represent the Property Owner (“Owner”) in This Investment Offering Brochure is a solicitation of interest only and is not
connection with the sale of the Property is The Kase Group Advisor listed an offer to sell the Property. The Owner expressly reserves the right, at its
in this proposal, and no other person is authorized by the Owner to provide sole discretion, to reject any or all expressions of interest to purchase the
any information or to make any representations other than contained in this Property and expressly reserves the right, at its sole discretion, to terminate
Investment Offering Brochure. If the person receiving these materials does not negotiations with any entity, for any reason, at any me with or without notice.
choose to pursue a purchase of the Property, this Offering Brochure must be The Owner shall have no legal commitment or obligation to any entity
returned to The Kase Group. reviewing the Investment Offering Brochure or making an offer to purchase
the Property unless and un l the Owner executes and delivers a signed Real
Neither The Kase Group Advisor nor the Owner make any representation Estate Purchase Agreement on terms accept- able to Owner, in Owner’s sole
or warranty, express or implied, as to the accuracy or completeness of the discretion. By submitting an offer, a prospective purchaser will be deemed to
information contained herein, and nothing contained herein is or shall be have acknowledged the foregoing and agreed to release the Owner and The
relied upon as a promise or representation as to the future performance of Kase Group Advisor from any liability with respect thereto.
the Property. This Offering Brochure may include certain statements and
estimates by The Kase Group with respect to the projected future performance To the extent Owner or any agent of Owner corresponds with any
of the Property. These Assumptions may or may not be proven to be prospective purchaser, any prospective purchaser should not rely on any such
correct, and there can be no assurance that such es mates will be achieved. correspondence or statements as binding Owner. Only a fully executed Real
Further, The Kase Group Advisor and the Owner disclaim any and all liability Estate Purchase Agreement shall bind the property and each prospective
for representations or warranties, ex- pressed or implied, contained in or purchaser proceeds at its own risk.
omitted from this Investment Offering Brochure, or any other written or oral
communication transmitted or made available to the recipient. The recipient
shall be entitled to rely solely on those representations and warranties that
may be made to it in any final, fully executed and delivered Real Estate Purchase
Agreement between it and Owner.
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA
TABLE OF CONTENTS
4 INVESTMENT OVERVIEW
5 FINANCIAL SUMMARY
6 TENANT OVERVIEW
7 LOCATION AERIAL
8 DEMOGRAPHICS
9 AREA OVERVIEW
ROBERT CHANA | VICE PRESIDENT OF INVESTMENT SALES
T: 847.571.4636 E: robc@thekasegroup.com BRE#01948220
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA
INVESTMENT OVERVIEW
This is a rare opportunity to acquire a net leased Pier 1 Imports with INVESTMENT HIGHLIGHTS
five years remaining on the intial lease term. The tenant has one 5
year option to renew with an increase in rent. The lease provides for
minimal landlord responsibilities. The subject property is situated on NET LEASED OFFERING
a major commerical thoroughfare. The asset benefits from being an 100% FEE SIMPLE INTEREST
outparcel of Tacoma Shopping Mall, the largest shopping center in
Tacoma, Washington. It is owned by Simon Property Group. Anchor MINIMAL LANDLORD OBLIGATIONS
tenants include JC Penney, Sears, Macy’s, and Nordstrom.
CORPORATE GUARANTEE
LOCATED ON A MAJOR COMMERCIAL THOROUGHFARE
OUTPARCEL TO TACOMA SHOPPING MALL -
ANCHOR TENANTS INCLUDE JC PENNEY, SEARS, AND MACY’S
VERY STRONG DEMOGRAPHICS WITH OVER 130,000 PEOPLE
WITHIN A 3 MILE RADIUS
PIER 1 HAS GREAT VISIBILITY AND ACCESSIBILITY FROM I-5, THE MAJOR
NORTH-SOUTH INTERSTATE RUNNING THROUGH TACOMI-5 HAS AN
ANNUAL AVERAGE DAILY TRAFFIC COUNT (AADT) OF 197,400 VPD
OFFERING SPECIFICATIONS
PRICE $3,712,000
CAP RATE 6.25%
NET OPERATING INCOME $232,000
SQUARE-FOOTAGE 8,000
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 4
FINANCIAL SUMMARY
PIER 1 IMPORTS | NET LEASED OFFERING
4 3 01 S ST EEL E STRE E T TACOMA, WA 9 8 4 0 9
$3,712,000
6.25% CAP
FEE SIMPLE OWNERSHIP
SUMMARY OPERATING SUMMARY
TENANT NAME PIER 1 IMPORTS NET OPERATING
CAP RATE
INCOME
SQUARE FOOTAGE 8,000
CURRENT $232,000 6.25%
LEASE BEGINS 3/1/2012
OPTION 1 (thru 2027) $248,000 6.68%
LEASE ENDS 2/28/2022
ANNUAL RENT $232,000
OPTIONS ONE, 5 YEAR
INCREASES AT OPTION
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 5
TENANT OVERVIEW
PIER 1 IMPORTS
Pier 1 Imports Inc. is a Fort Worth, Texas–based retailer specializing in imported home
furnishings and decor, particularly furniture, table-top items, decorative accessories,
and seasonal decor. It is publicly traded on the New York Stock Exchange under ticker
PIR. According to its investor relations website, “Our image is quirky, and our logo is
iconic” and describes itself as “ever-original, ever-evolving”.
The first Pier 1 Imports store opened in San Mateo, California, in 1962. According to
the company’s official history, the original store catered to hippy baby boomers and
featured love beads and incense. By 1966, Pier 1 had grown to 16 store locations, and
established its corporate headquarters in Fort Worth, Texas.
Pier 1 went public on the American Stock Exchange in 1970 and later joined the New
York Stock Exchange in 1972. At this time, the company had grown to 123 stores, posted
100 percent sales gains for four consecutive years, and opened stores internationally in
Australia and Europe. A Pier 1 store in Royal Oak, Michigan, reached annual sales of $1
million in 1979. By 1985, the Pier 1 chain grew to 265 stores, with the management goal
of doubling that number by 1990.
On December 29, 2006, Standard & Poor’s bumped Pier 1 Imports Inc. down one
spot and off the bottom of the S&P MidCap 400 Index when it added Parametric
Technology Corp. (NASDAQ: PMTC), a software company. As of December 2012 the
company had sales of $418 million.
PUBLICLIY 1,000+ 17,000
$ TRADED LOCATIONS EMPLOYEES
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 6LOCATION AERIAL
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 71 MILE 3 MILES 5 MILES
DEMOGRAPHICS TOTAL POPULATION 10,120 130,067 306,579
TOTAL HOUSEHOLDS 4,188 51,061 122,406
AVERAGE HOUSEHOLD INCOME $50,701 $51,889 $53,938
AVERAGE AGE 33.1 33.2 33.5
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 8AREA OVERVIEW
TACOMA, WASHINGTON WORKFORCE
Tacoma is a mid-sized urban port city in and the county seat of Pierce Tacoma serves as the center of business activity for the South Sound region and
County, Washington. The city is on Washington’s Puget Sound, 32 miles is a major gateway port for international trade. The Port of Tacoma is the sixth
southwest of Seattle. The population was 198,397, according to the 2010 largest container-handling port in North America and ranks in the top 25 for
census. Tacoma is the second-largest city in the Puget Sound area and worldwide container trade. Located on 2,400 acres, the port services more than
the third largest in the state. Tacoma also serves as the center of business 15 steamship lines, two transcontinental railroads, 200 interstate and intrastate
activity for the South Sound region, which has a population of around 1 trucking lines, and 20 air freight forwarders. Port activities generate more than
million people. Tacoma-Pierce County has been named one of the most 28,000 jobs and $477 million in wages in Pierce County.
livable areas in the United States. In 2006, Tacoma was listed as one of the
“most walkable” cities in the country.
MAJOR EMPLOYERS
TACOMA AREA ATTRIBUTES JOINT BASE LEWIS-MCCHORD 66,054
MULTICARE HEALTH SYSTEM 6,904
Located between Seattle and Olympia, Tacoma is quickly becoming a FRANCISCAN HEALTH SYSTEM 5,338
beacon for economic growth in the South Sound Region. The third
BOEING 1,670
largest city in the state of Washington, Tacoma serves a market of over
one million people. INTEL 310
• The market has grown 15% over the past ten years and is projected COLUMBIA BANK 599
to grow by 62% (127,000) over the next 25 years.
• A popular tourist destination, Tacoma boasts an idyllic setting with
stunning water and mountain views and over 2,700 hotel rooms.
Pierce County visitor spending topped $1 billion in 2015 (45.4% was
in Tacoma).
• Economic development in the area is booming. Plans are underway
to build a large residential and commercial project just three miles
from Pier 1 Imports. The 6.4 AC mixed-use project will feature 360
residential units, 90,000 square feet of offices, along with 480
parking stalls.
• The 199,000 SF convention center hosted 209 events in 2015.
• The Chambers Bay Golf Course was home to the 2015 PHA Open,
attracting approximately 235,000 people to the event.
WWW.T HE K AS EG ROU P.COM | P I E R 1 I MP ORT S TACOMA, WA | 9TACOMA | WASHINGTON
OFFERING MEMORANDUM
PIER 1 IMPORTS | NET LEASED OFFERING
4 3 01 S ST E E LE ST R E E T TACO M A , WA 9 8 40 9
ROBERT CHANA | VICE PRESIDENT OF INVESTMENT SALES
T: 847.571.4636 E: robc@thekasegroup.com BRE#01948220
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