EAST WENATCHEE PETCO 516 N Valley Mall Parkway I East Wenatchee, Washington Price: $3,965,000 Cap Rate: 5.75% Exclusive Single-Tenant Retail Investment Opportunity
TABLE OF CONTENTS Executive Summary... 3 Property Description... 6 Market Overview... 9 INVESTMENT SALES MARK THYGESEN Senior Associate Capital Markets - Investments +1 206 607 1737 mark.thygesen@am.jll.com Offered Exclusively by: JLL 601 Union Street Suite 2800 Seattle, WA 98101 +1 206 607 1700 main +1 206 607 1701 fax jll.com/seattle
EXECUTIVE SUMMARY THE OFFERING Jones Lang LaSalle is pleased to offer for sale the fee-simple interest in the East Wenatchee Petco ( The Property ) located in Wenatchee, Washington. The Property is ideally situated adjacent to the Wenatchee Valley Mall, a 360,000 square foot regional shopping center with national retailers Macy s, Ross, Sportsman s Warehouse and Marshalls. The Property is leased on an absolute-net basis to Petco, with over seven years of contractual term remaining and attractive 5.0% rent increases every five years. As an outparcel to the Wenatchee Valley Mall, the Property benefits from superior proximate commercial activity and traffic counts in the center of the market s prime retail corridor. Price: $3,965,000 Cap Rate: 5.75% Current NOI: $228,000 Ownership Interest: Fee Simple Summary Address: 516 N Valley Mall Parkway Wenatchee, Washington Total Size: 12,000 square feet Stories: One-story Year Built: 2000 Tenant: Petco Animal Supplies Store, Inc. Site: 1.19 acres / 51,627 SF Lease Type: NNN Landlord Responsibilities: None Lease Commencement: November 11, 1999 Lease Expiration: January 31, 2025 Term Remaining: Seven years Renewal Options: Two 5-year options Zoning: CBD Central Business District Parcel: 03-70-00-03014 EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 3
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS As of 2017, Petco operates more than 1,500 locations across the United States, Mexico, and Puerto Rico Quality Tenant Founded in 1965 Petco is a privately held company and one of the leading national pet retailers in the United States with more than 1,500 locations across the U.S., Mexico and Puerto Rico. Superior Location The property benefits from its highly visible location and close proximity to the thriving Wenatchee Valley Mall, a 360,000 square foot regional mall that draws from a population in excess of 115,000 residents and welcomes millions of visitors each year. Thriving Local Economy The local amazon-proof economy, bolstered by the over $1 billion apple trade, provides long-term macroeconomic security to the area, ensuring asset value appreciation in the long-term. Lease Structure Ideal long term triple-net leased structure with attractive five percent rent escalations every five years. EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 4
EXECUTIVE SUMMARY MARKET HIGHLIGHTS Wenatchee is the largest city in North Central Washington, serves as a regional hub for retail, government, and health care services, and is less than a 3 hour drive to three major metropolitan areas, Seattle, Spokane and Canada. The resort towns of Leavenworth and Chelan are only 30 minutes from Wenatchee and significantly contribute to the local tourism industry. Fruit orchards, hydroelectric power production, and growing technology are the key economic drivers in the region. The Wenatchee Valley boasts multi-million dollar data centers for Yahoo and the Sabey Corporation and numerous high technology businesses Wenatchee is the urban center in a region that has traditionally been dependent on agriculture as the mainstay of the economy Wenatchee boasts a daytime population of 72,334, which consists of 40,072 workers and 32,262 residents Wenatchee is the second largest City in Central Washington, drawing people from all over the region EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 5
EAST WENATCHEE PROPERTY DESCRIPTION Wenatchee Valley Mall 28 Valley Mall Parkway Fred Meyer 285 EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 6
PROPERTY OVERVIEW Built in 2000, the East Wenatchee Petco is located in a prime retail location adjacent to the Wenatchee Valley Mall, offering strong signage, convenient access, and good visibility. The building is situated to the west of Valley Mall Parkway, at the northwest corner of 5th Street and Valley Mall Parkway. Access is provided off of Valley Mall Parkway. There are approximately 53 parking spaces in front of the building and 24 spaces along the south side of the building, for a total of 77 spaces. This provides over double the required parking by zoning, which is 2.85 spaces/1,000 sf or 34.2 spaces for the Property. Building detail Construction: Masonry block, and front mansard gable roof entry with stucco Foundation: Slab concrete Ceilings: 18 ceilings with exposed, painted beams NEIGHBORING TENANTS Petco is surrounded by strong retail including Wenatchee Valley Mall s anchor tenants, multiple grocery options, several restaurants, banking and government offices Store Front: Interior: Flooring: Storeroom: Loading: Signage: Sprinkler: Power: Roof: Entry: Double pane fixed window Painted wallboard Commercial grade linoleum style tiles Storeroom houses power panels and leads to loading dock Metal roll-up door and exterior dock-high concrete loading ramp Yes Commercial fire sprinkler system One panel of 3-phase 675 amp / one panel of 3-phase 225 amp Roof is flat built up roof Large, glass entry vestibule with three sets of sliding doors EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 7
PROPERTY DESCRIPTION TENANT PROFILE Petco Petco is a specialty pet food, supplies and services retailer with over 1,500 stores in the United States, Puerto Rico and Mexico. The company has 25,000 employees and offers more than 10,000 pet-related products. In addition to their standard store formats, they have 85 Unleashed by Petco locations which are smaller neighborhood shops carrying high-end products. They provide in-store grooming and pet training. Petco was founded in San Diego in 1965 and was acquired by Leonard Green & Partners and TPG Capital in 2000. Summary Tenant: Petco Animal Supplies Stores, INC ( Petco ) Square Feet: 12,000 square feet % of Building: 100% Lease Expiration: 01/31/2025 In Place Rent / Year: $228,000 Options: Two 5-year options EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 8
MARKET OVERVIEW L O C AT I O N East Wenatchee Petco is strategically located by and an outparcel to the Wenatchee Valley Mall. This is a heavily trafficked retail corridor with direct exposure to a dense residential community. The George Sellar Bridge adjacent to the shopping center connects East and West Wenatchee and sees daily traffic counts of up to 50,000 vehicles per day. George Stellar Bridge WA-28: 50,000 VPD EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 9
MARKET OVERVIEW L O C AT I O N M A P Rocky Reach Dam DOUGLAS COUNTY CHELAN COUNTY EAST WENATCHEE PETCO Wenatchee East Wenatchee Pangborn Memorial Airport Rock Island Dam EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 10
MARKET OVERVIEW WENATCHEE The Property is located in East Wenatchee, Washington, which together with neighboring Wenatchee, comprise the Wenatchee-East Wenatchee Metropolitan Statistical Area. The MSA boasts a population of over 115,000 residents, and includes the entirety of Douglas and Chelan counties. Wenatchee is located 140 miles inland from Seattle in the geographic center of the state and serves as a hub of commerce and culture for much of central Washington. Known as the Apple Capital of the World, Wenatchee is home to numerous picturesque orchards and countless companies involved in all levels of the tree fruit supply chain, primarily pertaining to the cultivation and distribution of apples. These local area employers include Stemilt Growers, Oneonta/Starr Ranch Growers, Columbia Fruit Packers, Pregis Corporation, Honey Bear Tree Fruit, Jackson Orchards, Carl Lewis Orchards, Van Well Nursery, C&M Packing, Chelan Fresh, Favco USA, McDougal & Sons, and Northern Fruit. East Wenatchee is the landing spot of the first non-stop, trans-pacific flight Wenatchee is served by Pangborn Memorial Airport, named after the above mentioned historical event, which offers daily commercial flights to Seattle/Tacoma through the Alaska Airlines subsidiary, Horizon Air. Additionally, Pangborn is actively recruiting a commercial flight to the San Francisco Bay Area, and has already raised $358,000 of community investment towards the $400,000 threshold to secure the flight. In addition to air travel, Wenatchee is served by Amtrak s Empire Builder line, with service to Portland, Seattle and Chicago. WENATCHEE FAST FACTS TRANSIT // Transit services within Wenatchee are provided by Link Transit, serving all of Chelan County and parts of Douglas County RECREATION // The city offers a large system of parks and paved trails as well as an abundance of sports and recreational activities. This includes hiking, fishing, hunting, boating and water recreation. Whitewater rafting and inner-tubing are also popular on the Wenatchee River. In the winter, the mountains near Wenatchee provide great snowmobiling, and sledding. EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 11
area highlights MARKET OVERVIEW Wenatchee offers a variety of outdoor activities and is located within close proximity of several of Washington s popular ski resorts. Wenatchee is situated at the Wenatchee National Forest Apple Capital Loop Trail Pybus Public Market confluence of the Wenatchee and Columbia Rivers. The Columbia River pours more water into the Pacific Ocean than any other river in North or South America. Riverfront Park Ohme Gardens Mission Ridge Ski and Board Resort The scenic Wenatchee National Forest offers great hiking, rock climbing, trails and horseback riding. The Apple Capital Loop Trail is an 10-mile trail that runs along the Columbia River. It is one of the top attractions in the Wenatchee area offering recreation for all and is known for its challenging overnight trips. Ohme Gardens is a scenic garden with stone walkways, spectacular mountain views and water features. The gardens were started in 1929 by Herman and Ruth Ohme and first open to the public in 1939. There is nearly a mile of natural stone pathways through hillside gardens, with panoramic views, towering trees, waterfalls and tranquil pools. Mission Ridge is situated where the Cascade Range meet the desert of eastern Washington. A volcanic past has created a ridge where snowcapped peaks are visible on one side and the Columbia River can be seen on the other. Mission Ridge has over 2000 acres to explore. EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 12
MARKET OVERVIEW DEMOGRAPHICS 1 MILE 2017 Population 11,235 2017 Household 3,886 2022 Population 11,691 2022 Household 4,026 2017 Household Income $42,765 2022 Population $44,841 EAST WENATCHEE PETCO 3 MILES 2017 Population 58,149 2017 Household 21,491 2022 Population 60,647 2022 Household 22,333 2017 Household Income $52,780 2022 Household Income $56,916 2017 Population 69,458 2022 Population 72,652 5 MILES 2017 Household 25,830 2022 Household 26,922 2017 Household Income $54,355 2022 Household Income $59,071 EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 13
INVESTMENT SALES MARK THYGESEN Senior Associate Capital Markets - Investments +1 206 607 1737 mark.thygesen@am.jll.com Offered Exclusively by: JLL 601 Union Street Suite 2800 Seattle, WA 98101 +1 206 607 1700 main +1 206 607 1701 fax jll.com/seattle EAST WENATCHEE PETCO I OFFERING MEMORANDUM PAGE 14