Two tenant nnn investment
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3 0 1 3 7 T H AV E S E , P U YA L L U P , W A 9 8 3 7 4
PASSIVE, HIGH CREDIT
two tenant
nnn investment
IN ONE OF THE PUGET SOUND’S
P U YA L L U P
STRONGEST RETAIL
C O R R I D O R S
24 HOUR FITNESS EXPECTED to open IN SUMMER 2019
PAUL S LEETH B I L LY SL E E T H PAT R I CK AL L E N
2 06 . 51 8. 9547 2 0 6 . 5 1 8 . 95 67 2 0 6 . 8 5 8 .8 43 4
terms of the offering
This investment offering presents investors with the rare
opportunity to acquire institutional quality real estate in one
of the most dominant retail trade areas in the Seattle-Tacoma
corridor.
At Home and 24 Hour Fitness was a former Lowe’s Hardware building
which was fully redeveloped for At Home and 24 Hour Fitness. Lowe’s
Hardware built a new full-line store adjacent to the offering and the
former Lowe’s Hardware building was sold to the current ownership who
is an experienced retail developer. The developer, At Home, and 24 Hour
Fitness have collectively invested over $20 million into the project to offer
essentially a brand new physical plant. Upgrades include new roof, hvac,
parking lot, exterior store fronts, utilities, loading dock, electrical, lighting,
and a full interior build-out for both tenants. The property sits in the heart
of Puyallup’s regional trade area surrounded by major retailers and new
residential and office/service oriented developments.
Both tenants signed new 10 year leases with contracted rental increase
every 5 years. The quality of the development, physical plant, tenant credit,
lease term, and location provide an excellent investment opportunity.
A D D RE SS CAS H ON CAS H
301 37th Ave SE 7.87%
Puyallup, WA 98374
L A N D A RE A OCCUPA N CY
335,735 SF 100%
B U I L D I N G A R EA PR ICE
124,435 SF $25,552,000
C A P RATE PR ICE/S F
6% $205
FI N A N C I N G YEA R 1 N OI
Free & Clear $1,533,137
10 -Y E A R 10-YEA R
U N L E V E RE D IR R L EV ER ED IR R
6.92% 9.89%
INSTITUTIONAL QUALITY, STRONG CREDIT, TWO-TENANT NNN,
INVESTMENT OPPORTUNITY IN SEATTLE-TACOMA MSA
“A” QUA L I TY RE TA I L LOCAT ION A N D CON ST R UCT ION
• The asset is ideally located along the only retail arterial in the Puyallup trade area,
South Meridian, and is surrounded by some of the strongest national credit tenants
in the industry; Walmart Supercenter, The Home Depot, T.J. Maxx, Ross Dress for
Less, Lowe’s, Hobby Lobby, Petco, PetSmart, and more.
• Advantageously positioned directly across from South Hill Mall, a Target, Macy’s,
JC Penney’s, and Dick’s Sporting Goods anchored regional shopping mall, creating
extensive consumer draw and increased crossover sales.
10 0 % OCC U PI E D BY ST R ON G CR ED IT T EN A N TS WIT H LON G
TE RM L E ASE S, LOW REN TS
• At Home is publicly traded (NYSE: HOME), with a current market cap of ~ $1.2B, and
over 187 stores in operation across 39 states.
• 24 Hour Fitness serves over 4 million active members across 420 clubs worldwide
while sustaining a Moody’s Corporate Family Rating of B2.
• Both tenants executed new, 10-yr, corporate backed NNN leases at sustainable rents,
protecting long term investment performance.
SI G N I FI C A N T RE SI D E NT IA L D EN S IT Y, H IG H IN COMES ,
FU TU RE D E N SI FI C ATI ON
• Over 1,000 existing apartment units within the immediate trade area.
• Over 62,000 households within a 5-mile radius, with an additional 7,000 more expect-
ed by 2023.
• Residential rental rates in the Tacoma MSA are growing at the 4th fastest rate in the
entire country.
• Average household incomes are $93,465 within a 5-mile radius.
N E W M A R K K N I G H T F R A N K | 5
investment highlights
STRONG NO I GR OW T H, M INIM AL L A N D LORD
R ES PONSIBIL IT Y, BR AND NE W CO N STRU C TI ON
• Both tenants recently signed corporately secured NNN leases.
• At Home’s lease includes a 10% increase in yr-6 while 24 Hour Fitness
features a 6.2% increase in yr-6, providing attractive investment growth
and sustainable rents.
• The asset was redeveloped by sophisticated retail developers with a
significant capital investment from the developers and tenants.
• The offering fits the optimal investment profile for both local and out of
state ownership.
FLAGSHIP STORES FOR E-COMMERCE RESISTANT TENANTS
• The physical plant and building systems have been fully redeveloped
and are brand new.
• This is At Home’s flagship store in the Pacific Northwest.
• 24 Hour Fitness is completing an extensive, luxury build-out, and will
feature state of the art equipment and high-class amenities.
• At Home and 24 Hour Fitness are lifestyle, destination-oriented,
e-commerce resistant tenants, providing investment security to the
investor.
N E W M A R K K N I G H T F R A N K | 6
credit two tenant lineup
24 Hour Fitness
$950.53 M 2018
REVENUE
The Puyallup
location is their
Flagship store in the
420 LOCATIONS
is completing an
extensive, luxury
build-out, and will
PNW and is a top
$1.37 B 2018
ASSETS
performing store
amongst their 187
locations.
B2 MOODY’S CORP.
FAMILY RATING
feature state of the
art equipment and
high-class amenities
S&P BBB $1.44B
CREDIT 2018 ANNUAL including a pool and
basketball gym.
RATING (NYSE: HOME) REVENUE
noi growth, minimal management
At Home &
24 Hour Fitness Landlord and tenants have invested over $20m into the
redevelopment of high quality, flagship stores for both
have executed tenants, increasing consumer draw while significantly
reducing long term capital expenditures and management for
future investors.
new, 10-year,
NNN leases
10% RENTAL INCREASE
IN YEAR 6 6.2% RENTAL INCREASE
IN YEAR 6
N E W M A R K K N I G H T F R A N K | 1 0
SITE AERIAL
SOUTH HILL MALL
S. MER
IDIAN
S. MER
IDIAN
N E W M A R K K N I G H T F R A N K | 1 6
site plan 35 TH STRE E T SE
NAP
5 TH STRE E T SE
32,500
VEHICLES
PER DAY
37 TH STRE E T SE
N E W M A R K K N I G H T F R A N K | 1 7
site description
T R AF F I C
BU I L D IN G
COUNTS
Square Feet: 124,435 S. Meridian/SR 512:
Year Remodeled: 2018/2019 70,000 cars per day
Year Built: 1993 37th/5th Ave:
32,500 cars per day
PAR CE L
ACC E SS
5th St SE: 1 Access Point Parcel #: 419037005
37th Ave SE: 2 Access Points Acres: 7.71
35th St SE: 4 Access Points Square Feet: 335,735
ZO N IN G PAR K I NG
UCX - Maximum building There are approximately 394
parking spaces on the owned
height of 68’, with height bonuses
parcel. The parking ratio is
up to 90’ and maximum approximately 3.18 stalls per
lot coverage of 65% 1,000 SF of leasable area
N E W M A R K K N I G H T F R A N K | 1 8
DEMOGRAPHICS
P O P U L AT I O N
1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS
2010: 8,775 2010: 72,515 2010: 148,554
2018: 9,837 2018: 80,056 2018: 169,002
2023: 10,559 2023: 85,860 2023: 182,926
HOUSEHOLDS
1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS
2010: 3,920 2010: 27,670 2010: 55,321
2018: 4,305 2018: 30,154 2018: 61,773
2023: 4,611 2023: 32,239 2023: 66,507
M E D I A N H O U S E H O L D I N CO M E $93,465
AVG. HOUSEHOLD
1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS
2018: $56,214 2018: $73,420 2018: $77,146 INCOME - 5 MILES
2023: $65,190 2023: $83,250 2023: $87,926
AV E R AG E H O U S E H O L D I N CO M E
1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS
2018: $69,449 2018: $89,915 2018: $93,465
2023: $80,017 2023: $104,175 2023: $108,837
P E R C A P I TA I N CO M E
1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS
2018: $30,332 2018: $34,364 2018: $34,407
2023: $34,777 2023: $39,605 2023: $39,806
N E W M A R K K N I G H T F R A N K | 2 6parcel map
PARCEL#
0419037005
N E W M A R K K N I G H T F R A N K | 3 5DISCLAIMER BGC Real Estate of Washington, LLC, a Delaware limited
liability company doing business as Newmark Knight Frank
has been engaged as the exclusive sales representative for
The Seller reserves the right, at its sole and absolute
discretion, to withdraw the Property from the market for
sale at any time and for any reason without notice, to reject
any and all expressions of interest or offers regarding the
the sale of At Home & 24 Hour Fitness (the ”Property”) by
NLA Puyallup LLC (the “Seller”). Property, and/or to terminate discussions with any entity at
any time, with or without notice. This Offering Memorandum
The Property is being offered for sale in an “as-is, where- is made subject to omissions, correction of errors, change
is” condition, and the Seller and the Agent make no of price or other terms, prior sale or withdrawal from the
representations or warranties as to the accuracy of the market without notice. The Agent is not authorized to make
information contained in this Offering Memorandum. any representations or agreements on behalf of the Seller.
The enclosed materials include confidential information The Seller shall have no legal commitment or obligation to
and are being furnished solely for the purpose of review any recipient reviewing the enclosed materials, performing
by prospective purchasers (“Purchasers”) of the interest additional investigation, and/or making an offer to purchase
described herein for which it shall be fully and solely the Property unless and until a binding written agreement
responsible. Neither the enclosed materials, nor any for the purchase of the Property has been fully executed,
information contained herein, are to be used for any other delivered, and approved by Seller and any conditions
purpose, or made available to any other person without the required under the contract for title to pass from the Seller to
express written consent of the Seller. Each recipient, as a the buyer have been satisfied or waived.
prerequisite to receiving the enclosed information, should be
registered with the Agent as a “Registered Potential Investor” By taking possession of and reviewing the information
or as a “Buyer’s Agent” for an identified “Registered contained herein, the recipient agrees that (a) the enclosed
Potential Investor”. The use of this Offering Memorandum, materials and their contents will be held and treated in the
and the information provided herein, is subject to the terms, strictest of confidence; and (b) the recipient shall not contact
provisions and limitations of the Confidentiality Agreement employees, contractors, sub-contractors or lien-holders of
furnished by the Agent prior to delivery of this Offering the Property directly or indirectly regarding any aspect of the
Memorandum. enclosed materials or the Property without the prior written
approval of the Seller or the Agent; and (c) no portion of the
The material contained herein is based on information and enclosed materials may be copied or otherwise reproduced
sources deemed to be reliable, but no representation or without the prior written authorization of the Seller or
warranty, express or implied, is being made by the Agent the Agent or as otherwise provided in the Confidentiality
or the Seller or any of their respective representatives, Agreement executed and delivered by the recipient(s) to
affiliates, officers, employees, shareholders, partners, and Agent.
directors, as to its accuracy or completeness. Summaries
contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of
such documents, but rather only outlines of some of the
principal provisions contained therein. Neither the Seller nor
the Agent shall have any liability whatsoever for any other
written or oral communication or information transmitted, or
made available, or any action taken, or decision made by the
recipient with respect to the Property.
N E W M A R K K N I G H T F R A N K | 3 6P U YA L L U P
PA U L S L E E T H • 206.518.9547 • PA U L . S L E E T H @ N G K F. C O M
B I L LY S L E E T H • 206.518.9567 • B I L LY. S L E E T H @ N G K F . C O M
PAT R I C K A L L E N • 206.858.8434 • PAT R I C K . A L L E N @ N G K F. C O M
The distributor of this communication is performing acts for which a real estate license is required. The information con-
tained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or
representation, either express or implied, is made with respect to such information. Terms of sale or lease and availabili-
ty are subject to change or withdrawal without notice.You can also read
