INVESTMENT HIGHLIGHTS
NEW 5-YEAR EXTENSION FROM VERIZON
Verizon Wireless just extended its lease for 5 years at a 10% increase and added an additional 5-year option, showing commitment to the site. In addition, Verizon will be renovating its store at its own expense.
100% OCCUPIED RETAIL CENTER WITH DIVERSE TENANT MIX
The Property is 100% leased by a diverse mix of tenants including Verizon Wireless and Windermere Real Estate. A new tenant, Create Fitness, just signed a brand new 5.5-year lease.
Crown Castle, Inc Access Agreement Upside in 2027
Crown Castle, a publicly traded telecommunications company (NYSE: CCI), has an access agreement through the Property to access two large cell towers on the backside of the Property. The Lease for this access agreement was originated in 1997 and expires in 2027. The Lease is well below market rental rates at just $91/month with expected market rent to be at least $3,000/month, creating approximately $36,000/year of NOI upside in 2027, taking the cap rate north of 7.40% based on the current purchase price.
GROCERY SHADOW ANCHORED
The Property is located directly across the street from a successful Albertson’s grocery store anchored shopping center and just down the street from a high-performing Safeway and McLendon Hardware. Other nearby national retailers include Dollar Tree, O’Reilly Auto Parts, ATI Physical Therapy, Bank of America, T-Mobile, Burger King, and Jack in the Box.
ANNUAL RENT INCREASES
The Property benefits from 69% of the GLA having annual rent increases. The annual increases during the initial lease terms range from 2.0% – 4.0%.
AAA HIGH TRAFFIC LOCATION
The Property is located directly on Canyon Road with visibility to over 52,800 VPD and is adjacent to Hwy 512 (81,400+ VPD) with easy left turn access into the Property from both east and west side exit ramps.
Easy Access, Ample Parking and Large Pylon Signage
The Property features a signalized left-turn into the Property, ample parking and large pylon signage on Canyon Road with exposure to 52,800+ VPD.
HIGH BARRIER-TO-ENTRY SUB-MARKET WITH 3.3% VACANCY RATE
Retail vacancy rates in the Spanaway/Puyallup retail sub-market are currently 3.3% with 6% rent growth year-over-year. In the past three years, rents have increased a cumulative of 17.8%. 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.
AFFLUENT DEMOGRAPHICS HIGH-GROWTH SUB-MARKET
Within a 5-mile radius, the population has grown over 17% since 2010 and is projected to increase by another 3.1% in the next 5 years, with average household incomes exceeding $93,000. Within a 1-mile radius, the population has grown by more than 34% since 2010.
INCOME TAX FREE STATE
Washington State is income tax-free state.
Listing Agents:
CLAYTON J. BROWN
Trevor Lane
425.233.9522
trevor.lane@marcusmillichap.com
