INVESTMENT HIGHLIGHTS
Strong Historical Occupancy
The Property was a build-to-suit for Big 5 Sporting Goods who has occupied this property since the original construction of the building in 1997.
Big 5 Sporting Goods (NSDQ: BGFV) Corporate Guarantee
The Lease is guaranteed by Big 5 Sporting Goods, Corp., a publicly traded company (NSDQ: BGFV). Big 5 is ranked #348 by Forbes for America’s Best Large Employers with over 424 stores in 11 western states, and $884M+ net sales in the full year 2023.
Recent 5-Year Lease Extension with Additional Option
In 2022, Big 5 Sporting Goods extended its lease 5 years at a 13.4% rent increase and added an additional 5-year option.
Minimal Landlord Responsibilities
The NNN Lease features minimal landlord management or repair responsibilities (landlord responsible for roof, structure, foundation, sidewalk and alleys) allowing an investor ease of management and passive cash flow.
High-Growth Population Sub-Market in Salem, OR MSA
The Property is located in the dense and rapidly growing Corvallis submarket and benefits from a population of over 70,000 residents within a 5-mile radius. Since 2010 the population has grown over 12% within a 5-mile radius and 12% within a 1-mile radius.
High Barrier-to-Entry Sub-Market with 2.2% Vacancy Rate
Retail vacancy rates in Corvallis are currently 2.2% (4.3% national average) with 12.4% rent growth over the past three years. With virtually no new retail development under construction and no new supply delivered in the past 12 months, the development lull creates an incredibly high barrier-to-entry as demand for space remains high with steady population growth.
Located Minutes from Oregon State University (OSU)
Oregon State University (OSU) is Oregon’s largest university for the 10th year in a row, boasting 2 campuses, 11 colleges, 12 experiment stations, extension programs in all 36 counties, and nearly 200 degree programs. OSU now currently hosts in excess of 36,000 students annually and offers undergraduate, masters, specialists, and doctoral degrees. They are ranked the #1 college town on the West Coast, #1 most innovative university in the Pacific Northwest, and are 1 of 3 land, sea, space and sun grant universities in the U.S.
Shadow Anchored by Successful Safeway, Coastal Farm & Ranch and Wilco
The Property is located directly across the street from a successful Safeway, Coastal Farm & Ranch and Wilco, providing for a consistent traffic draw and consumer exposure.
Robust Sporting Goods Market
The sporting goods market is a major industry across the globe and it is one that is set to keep growing over the coming years. By 2030, the global sports apparel market is expected to exceed 290 billion U.S. dollars in annual revenue (Forbes Business Insights). Similarly, sporting goods revenue in the U.S. is projected to grow in the coming years: after the trying year that was 2020 (due to the coronavirus pandemic) and the impact of the Russia-Ukraine war in 2022, annual U.S. sports and swimwear market revenue is forecast to reach about 90 billion U.S. dollars by 2028 (Statistica).
Located in Dominant Retail Trade Area
The Property is located in the heart of the Corvallis retail trade area that boasts in excess of 3.4 million visitors annually. The immediate trade area features national tenants such as Walmart, Safeway, Coastal Farm & Ranch, WilCo, the Home Depot, Grocery Outlet, and more.
Located Central to HP Campus, Pepsi Distribution Center, Garfield Elementary School, and Linus Pauling Middle School
The Property is adjacent to HP Campus which recently received $9.5 million from the state to support semiconductor research and manufacturing in Corvallis (~2,500 employees), and Pepsi Distribution (3.88 acres of distribution) amongst other tech manufacturers. The Property is also near Garfield Elementary School which enrolls 445 students and Linus Pauling Middle School which enrolls 768 students. Its close proximity to these locations provides a unique opportunity to serve a community looking for convenience between work, school, and home.
Listing Agents:
CLAYTON J. BROWN
RUTHANNE LOAR
206.493.2622
ruthanne.loar@marcusmillichap.com
