INVESTMENT HIGHLIGHTS
LONG TERM LEASE (8 YEARS)
The Property has 8 years remaining on the original 10-year lease, providing an investor with long-term passive cash flow.
STRONG CORPORATE GUARANTEE / NATIONAL TENANT
The Lease is guaranteed by Hobby Lobby Stores Inc. the largest privately-owned crafts retailer in America, with annual revenue in excess of $5.3 billion.
2021 FULL PROPERTY RENOVATION
Prior to moving in, Hobby Lobby fully renovated the interior of the building, installed all new HVAC units, and upgraded the electrical and plumbing systems. The Landlord painted the exterior of the building with waterproof elastomeric paint, restored the parking lot and irrigation system, and updated all landscaping.
LOCATED IN DOMINANT TRADE AREA
The Property is located within the Silverdale retail trade area that boasts in excess of $1.2 Billion of consumer spending annually. The trade area is anchored by the Kitsap Mall and tenants such as Costco, Lowe’s, Trader Joe’s, Safeway and Best Buy.
SIGNIFICANTLY BELOW MARKET RENT
Hobby Lobby is currently paying $10.50/SF + NNN with market rents achievable in the $17.00 – $19.00/SF + NNN range.
MINIMAL LANDLORD RESPONSIBILITIES
The NN Lease features minimal Landlord management or repair responsibilities (Landlord responsible for roof/structure).
+70% VISITOR GROWTH FROM LAST YEAR
Hobby Lobby saw over 70% visitor growth to the store from last year according to Placer.Ai.
AAA LOCATION IN THE DYNAMIC SILVERDALE, WA TRADE AREA
The Property benefits from its central location in the Silverdale trade area and is located directly across the street from the Kitsap Mall, Winco, and Target. The Property features strong visibility, ample parking and multiple access points.
HIGH BARRIER TO ENTRY SUBMARKET WITH 2.4% VACANCY RATE
Retail vacancy rates in Silverdale are currently 2.4% with 4.2% rent growth year-over-year. 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.
STRONG, AFFLUENT DEMOGRAPHICS WITH STRONG POPULATION GROWTH
Within a 3-mile radius of the Property, the population grew by over 13% in the last decade and average household incomes are over $98,000.
ST. MICHAEL'S MEDICAL CENTER $500M EXPANSION
Located roughly 0.6 miles from the Property, St. Michael’s Medical Center recently completed a roughly $500M expansion including over 500,000 SF of additional space. St. Michael’s is the leading medical provider on the Kitsap Peninsula and one of the most advanced facilities in the Pacific Northwest. Healthgrades designating the campus as one of America’s 50 Best Hospitals for cardiac surgery along with five-star ratings in multiple service lines, including orthopedics, gynecologic, and pulmonary care (2021).
INCOME TAX FREE STATE
Washington State is an Income Tax-Free State.
Listing Agents:
CLAYTON J. BROWN
