pier 1 imports - tacoma, washington
PIER 1 IMPORTS - TACOMA, WASHINGTON 4301 SOUTH STEELE STREET, TACOMA, WASHINGTON 98409
T0210067 - ACTIVITY ID
Investment Overview
To Sum Things Up. . . CORPORATE BACKED PIER 1 IMPORTS LOCATED ON AN OUT-PAD TO TACOMA MALL The lease for the subject property was recently renewed for 10 years with an increase in rent of 16% in Year 6. The lease is NNN providing Landlord with responsibility of roof, structure, and repair and replacement of downspouts and gutters. The lease allows for one, 5 year option to renew. The property sits as an out-pad to Tacoma Mall anchored by Macy’s, Sears, Nordstrom, and JC Penney. The property benefits from its close proximity and easy access to Interstate 5 whose traffic counts directly next to the subject property exceed 182,000 vehicles per day.
Address: 4301 South Steele Street, Tacoma, Washington 98409 Purchase Price: . . . . . . . . . . . . . . . .
$3,200,000
Cap Rate: . . . . . . . . . . . . . . . . . . . . . . . . 6.21% Annual Rent . . . . . . . . . . . . . . . . . . . . . . $200,000
Reserves @ $.15 PSF . . . . . . . . . . . . . ($1,200)
Net Operating Income: . . . . . . . . . . . . . $198,800 Rentable Square Feet:
. . . . . . . . . . . .
8,000 SF
Rent Per Square Foot: . . . . . . . . . . . . . Price Per Square Foot: . . . . . . . . . . . . .
$25.00 $400
Lot Size . . . . . . . . . . . . . . . . . . . .51 Acres PRIME LOCATION Out-Pad to Tacoma Regional Mall with Excellent Accessibility from Interstate 5 CORPORATE GUARANTEE Backed by Pier 1 Imports, Inc. with $1.5 Billion in Annual Sales and a Net Worth Exceeding $493 Million LONG TERM LEASE Renewed for 10 More Years with a Rent Increase of 16% in the 6th Lease Year EXCELLENT TRAFFIC Traffic Counts on Nearby Interstate 5 Directly Next to the Subject Property Exceed 182,000 Vehicles Per Day DENSE RETAIL LOCATION Surrounded by Over 25 National Retailers and Tacoma Regional Mall (Anchored by Macy’s, Sears, Nordstrom and JCPenney) T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 2
Aerial Map
00
VPD: 182,0
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 3
Tacoma Mall Map
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 4
Rent Roll
TENANT INFO Tenant Name
Size
Pier 1 Imports
8,000 SF
Totals:
8,000 SF
T0210067 - ACTIVITY ID
LEASE TERMS Occupancy Date Lease Expiration 3/1/1997
2/28/2022
CURRENT RENT Annual Base Rent $200,000
RENT INCREASES
Rent/SF/YR
Date
Annually
$25
3/1/2017 3/1/2022
$232,000 $248,000
OPTIONS
OTHER Lease Type
1 (5) Year Options
NNN
$200,000
Pier 1 Imports - Tacoma, Washington| 5
Area Overview
TACOMA, WASHINGTON
Population 1 miles
3 miles
5 miles
2000
12,246
123,037
268,001
2011
13,215
131,848
218,668
2016
14,320
140,936
296,626
1 mile
3 miles
5 miles
Average
$44,442
$50,184
$55,194
Median
$40,039
$42,224
$43,410
Household Incomes 2011
Major Employers Employer
Employees
Joint Base Lewis-McChord (Military)
55,603
Local Public School Districts
13,375
Multicare Health System
6,756
Washington State Employees
6,662
Franciscan Health System
5,507
Pierce County Government
2,947
Washington State Higher Education
2,720
City of Tacoma
2,316
Emerald Queen Casino
2,230
T0210067 - ACTIVITY ID
IDEAL TACOMA: Tacoma is Washington state’s third-largest city, with approximately 199,826 residents, and is primarily a residential district. Tacoma is ideally situated along the saltwater banks of Puget Sound and is the urban heart of the South Puget Sound. The city serves as the center of business activity for the South Sound region that has a population of around 1 million people as the cost of doing business in Tacoma is approximately 30 percent less than other major cities. Tacoma is also an international transportation hub with their quick and easy access to SeaTac International Airport, the Port of Tacoma, Tacoma Rail, and their quick access to BNSF and Union Pacific Railways. MADE THE LIST: Recently, Tacoma has found itself on many national ranking lists including: •America’s #1 Wired City. Their 700 miles of fiber optic cable creates a state-of-the-art network, and brings the world to your office or residence in the blink of an eye. •One of “America’s Most Livable Communities” by National Non-Profit Partners for Livable Communities •19th most walkable city in the country A PORT WITH ECONOMIC IMPACT: The Port of Tacoma is a major center for container cargo, bulk, breakbulk, autos and heavy-lift cargo. Created by Pierce County citizens in 1918, the Port of Tacoma has become one of the largest container ports in North America and one of the top 50 in the world. Located on Commencement Bay, a natural deep-water harbor in South Puget Sound, the Port is ideally situated for creating jobs through Pacific Rim trade. The Port encompasses about 2,400 acres of land on the Tacoma Tideflats. The Port of Tacoma is considered an “economic engine” for the region. In 2010, the Port handled 1.5 million containers, contributing to nearly $28 billion in international trade and about $3.5 billion in trade to Alaska. A study released in July 2005 highlighted the Port’s economic impact at both the local and state level: ▪More than 43,000 jobs in Pierce County are related to the Port of Tacoma’s activities. ▪More than 113,000 jobs in Washington State are related to the Port’s activities. ▪Port-related jobs generate $637 million in annual wages in Pierce County. ▪Port activities generate more than $90 million annually in state and local taxes in Washington state. Washington State is the most trade-dependent state in the nation -- one out of three jobs are related to international trade. GOING GREEN: Additionally, the Port has cleaned up 420 acres of formerly contaminated property for return to productive use, restored more than 80 acres of habitat for fish and other wildlife, and preserved about 70 acres of open space to serve as a natural buffer between industrial activities and residential areas.
Pier 1 Imports - Tacoma, Washington| 6
Site Plan
KEY
South 43rd Street
Building Size: 8,000 SF Lot Size: .51 Acres
South Steele Street T0210067 - ACTIVITY ID
South Steele Street
Ingress/Egress
Pier 1 Imports - Tacoma, Washington| 7
Tenant Overview
Headquartered in Fort Worth, TX, Pier 1 Imports sells about 4,000 items (imported from more than 50 countries) through some 1,045 Pier 1 Imports stores in the US and Canada. Stores offer a wide selection of indoor and outdoor furniture, lamps, vases, baskets, ceramics, dinnerware, candles, and other decorative accessories. Customers can also reserve items on Pier 1’s website and pick them up in stores. In addition, the company supplies merchandise to about 40 stores in Mexico owned by Grupo Sanborns. 2012 Sales reached $1.5 Billion; nearly 10% higher than sales in fiscal 2011. The company is publicly traded under PIR on the NYSE and has a net worth sitting at over $493 Million.
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 8
Area Overview
Traffic Counts on Nearby Interstate 5 Directly Next to the Subject Property Exceed 182,000 Vehicles Per Day
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 9
Confidentiality Disclosure
The information contained in this 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 10
Take Aways
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 11
T0210067 - ACTIVITY ID
Investment Overview
To Sum Things Up. . . CORPORATE BACKED PIER 1 IMPORTS LOCATED ON AN OUT-PAD TO TACOMA MALL The lease for the subject property was recently renewed for 10 years with an increase in rent of 16% in Year 6. The lease is NNN providing Landlord with responsibility of roof, structure, and repair and replacement of downspouts and gutters. The lease allows for one, 5 year option to renew. The property sits as an out-pad to Tacoma Mall anchored by Macy’s, Sears, Nordstrom, and JC Penney. The property benefits from its close proximity and easy access to Interstate 5 whose traffic counts directly next to the subject property exceed 182,000 vehicles per day.
Address: 4301 South Steele Street, Tacoma, Washington 98409 Purchase Price: . . . . . . . . . . . . . . . .
$3,200,000
Cap Rate: . . . . . . . . . . . . . . . . . . . . . . . . 6.21% Annual Rent . . . . . . . . . . . . . . . . . . . . . . $200,000
Reserves @ $.15 PSF . . . . . . . . . . . . . ($1,200)
Net Operating Income: . . . . . . . . . . . . . $198,800 Rentable Square Feet:
. . . . . . . . . . . .
8,000 SF
Rent Per Square Foot: . . . . . . . . . . . . . Price Per Square Foot: . . . . . . . . . . . . .
$25.00 $400
Lot Size . . . . . . . . . . . . . . . . . . . .51 Acres PRIME LOCATION Out-Pad to Tacoma Regional Mall with Excellent Accessibility from Interstate 5 CORPORATE GUARANTEE Backed by Pier 1 Imports, Inc. with $1.5 Billion in Annual Sales and a Net Worth Exceeding $493 Million LONG TERM LEASE Renewed for 10 More Years with a Rent Increase of 16% in the 6th Lease Year EXCELLENT TRAFFIC Traffic Counts on Nearby Interstate 5 Directly Next to the Subject Property Exceed 182,000 Vehicles Per Day DENSE RETAIL LOCATION Surrounded by Over 25 National Retailers and Tacoma Regional Mall (Anchored by Macy’s, Sears, Nordstrom and JCPenney) T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 2
Aerial Map
00
VPD: 182,0
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 3
Tacoma Mall Map
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 4
Rent Roll
TENANT INFO Tenant Name
Size
Pier 1 Imports
8,000 SF
Totals:
8,000 SF
T0210067 - ACTIVITY ID
LEASE TERMS Occupancy Date Lease Expiration 3/1/1997
2/28/2022
CURRENT RENT Annual Base Rent $200,000
RENT INCREASES
Rent/SF/YR
Date
Annually
$25
3/1/2017 3/1/2022
$232,000 $248,000
OPTIONS
OTHER Lease Type
1 (5) Year Options
NNN
$200,000
Pier 1 Imports - Tacoma, Washington| 5
Area Overview
TACOMA, WASHINGTON
Population 1 miles
3 miles
5 miles
2000
12,246
123,037
268,001
2011
13,215
131,848
218,668
2016
14,320
140,936
296,626
1 mile
3 miles
5 miles
Average
$44,442
$50,184
$55,194
Median
$40,039
$42,224
$43,410
Household Incomes 2011
Major Employers Employer
Employees
Joint Base Lewis-McChord (Military)
55,603
Local Public School Districts
13,375
Multicare Health System
6,756
Washington State Employees
6,662
Franciscan Health System
5,507
Pierce County Government
2,947
Washington State Higher Education
2,720
City of Tacoma
2,316
Emerald Queen Casino
2,230
T0210067 - ACTIVITY ID
IDEAL TACOMA: Tacoma is Washington state’s third-largest city, with approximately 199,826 residents, and is primarily a residential district. Tacoma is ideally situated along the saltwater banks of Puget Sound and is the urban heart of the South Puget Sound. The city serves as the center of business activity for the South Sound region that has a population of around 1 million people as the cost of doing business in Tacoma is approximately 30 percent less than other major cities. Tacoma is also an international transportation hub with their quick and easy access to SeaTac International Airport, the Port of Tacoma, Tacoma Rail, and their quick access to BNSF and Union Pacific Railways. MADE THE LIST: Recently, Tacoma has found itself on many national ranking lists including: •America’s #1 Wired City. Their 700 miles of fiber optic cable creates a state-of-the-art network, and brings the world to your office or residence in the blink of an eye. •One of “America’s Most Livable Communities” by National Non-Profit Partners for Livable Communities •19th most walkable city in the country A PORT WITH ECONOMIC IMPACT: The Port of Tacoma is a major center for container cargo, bulk, breakbulk, autos and heavy-lift cargo. Created by Pierce County citizens in 1918, the Port of Tacoma has become one of the largest container ports in North America and one of the top 50 in the world. Located on Commencement Bay, a natural deep-water harbor in South Puget Sound, the Port is ideally situated for creating jobs through Pacific Rim trade. The Port encompasses about 2,400 acres of land on the Tacoma Tideflats. The Port of Tacoma is considered an “economic engine” for the region. In 2010, the Port handled 1.5 million containers, contributing to nearly $28 billion in international trade and about $3.5 billion in trade to Alaska. A study released in July 2005 highlighted the Port’s economic impact at both the local and state level: ▪More than 43,000 jobs in Pierce County are related to the Port of Tacoma’s activities. ▪More than 113,000 jobs in Washington State are related to the Port’s activities. ▪Port-related jobs generate $637 million in annual wages in Pierce County. ▪Port activities generate more than $90 million annually in state and local taxes in Washington state. Washington State is the most trade-dependent state in the nation -- one out of three jobs are related to international trade. GOING GREEN: Additionally, the Port has cleaned up 420 acres of formerly contaminated property for return to productive use, restored more than 80 acres of habitat for fish and other wildlife, and preserved about 70 acres of open space to serve as a natural buffer between industrial activities and residential areas.
Pier 1 Imports - Tacoma, Washington| 6
Site Plan
KEY
South 43rd Street
Building Size: 8,000 SF Lot Size: .51 Acres
South Steele Street T0210067 - ACTIVITY ID
South Steele Street
Ingress/Egress
Pier 1 Imports - Tacoma, Washington| 7
Tenant Overview
Headquartered in Fort Worth, TX, Pier 1 Imports sells about 4,000 items (imported from more than 50 countries) through some 1,045 Pier 1 Imports stores in the US and Canada. Stores offer a wide selection of indoor and outdoor furniture, lamps, vases, baskets, ceramics, dinnerware, candles, and other decorative accessories. Customers can also reserve items on Pier 1’s website and pick them up in stores. In addition, the company supplies merchandise to about 40 stores in Mexico owned by Grupo Sanborns. 2012 Sales reached $1.5 Billion; nearly 10% higher than sales in fiscal 2011. The company is publicly traded under PIR on the NYSE and has a net worth sitting at over $493 Million.
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 8
Area Overview
Traffic Counts on Nearby Interstate 5 Directly Next to the Subject Property Exceed 182,000 Vehicles Per Day
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 9
Confidentiality Disclosure
The information contained in this 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 10
Take Aways
T0210067 - ACTIVITY ID
Pier 1 Imports - Tacoma, Washington| 11
