Domino’s & CARD Retail Center
32
Domino’s & CARD Retail Center VANCOUVER, WASHINGTON
Transcript of Domino’s & CARD Retail Center
Domino’s & CARD Retail CenterVANCOUVER, WASHINGTON
THREE SIXTY KITCHEN
ALL NATURAL PET SUPPLY
GRAPES NHOPS
Site
SE 192ND AVENUE
SE 192ND AVENUE
18,674 VPD
DOMINO’S & CARD RETAIL
CENTER
COLUMBIA PALISADES
Brand new 84-acre lifestyle center in
development.
Site
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Domino’s & CARD Retail Center4101 SOUTHEAST 192ND AVE, VANCOUVER, WA 98683
Overview
Domino’s Pizza and the Center for Autism and Related Disorders (CARD) both operate on NNN leases and have annual rental escalations with extension options. Domino’s has strong sales since their opening in mid-2018 and has approximately three years remaining, and CARD operates on a brand new five year term. The Property is shadow-anchored by QFC and shares a primary point of access, benefiting from a strong daily-needs draw and adjacent retail. The Property is ideally located within a growing, affluent submarket of east Vancouver along the 192nd corridor, featuring average area incomes of $110,000 and a significant number of new developments.
Investment Summary
6.00%CAP
$2,420,000PRICE
LEASEABLE SF4,594 SF
LAND AREA23,087 SF
OCCUPANCY100%
RENT GROWTHAnnual 3% Increases
YEAR BUILT2007
PARKING30 Spaces; 6.5/1,000 SF
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Overview
OCCUPIED BY TWO EXCEPTIONALLY STRONG BRANDS – DOMINO’S PIZZA AND THE CENTER FOR AUTISM & RELATED DISORDERS (CARD).
ANNUAL 3% RENT INCREASES FOR BOTH TENANTS PROVIDES A 14% LIFT IN BASE RENT INCOME IN THE NEXT FIVE YEARS. HIGH PROFILE LOCATION ACROSS FROM THE QFC-ANCHORED RIVERSTONESHOPPING CENTER, WITH EXCELLENT CO-TENANCY.
PRIMARY POINT OF ACCESS IS SHARED BY QFC, ONE OF ONLY THREE ACCESSPOINTS TO THE GREATER SHOPPING CENTER.
CARD IS THE NATION’S LARGEST PROVIDER OF AUTISM TREATMENT WITH ANAGGRESSIVE GROWTH STRATEGY, AND OVER 230 LOCATIONS.
TheHighlights
SUCCESSFUL DOMINO’S OPERATOR WITH OVER 23 LOCATIONS THROUGHOUT WASHINGTON & OREGON
Investment Highlights
DOMINO’S INTERNATIONAL HAS EXPERIENCED 101 CONSECUTIVE QUARTERS OF SAME-STORES SALES GROWTH THROUGH Q1 2020 ; LESSEE IS AN AWARD-WINNING FRANCHISEE WITH OVER TWO DECADES OF EXPERIENCE.
HIGH PURCHASING POWER IN THE TRADE AREA WITH AVERAGE AREA INCOMESEXCEEDING $136,000.
COLUMBIA PALISADES, A BRAND NEW 84-ACRE LIFESTYLE DEVELOPMENT DIRECTLY SOUTH OF THE PROPERTY IS CURRENTLY UNDER CONSTRUCTION , AND WILL INCLUDE OVER 350 SINGLE AND MULTIFAMILY UNITS.
SIGNIFICANT GROWTH IN VANCOUVER IN RECENT YEARS WITH RELOCATION OF TWO MAJOR AREA EMPLOYERS TO VANCOUVER, AND AN ANNUAL SALES INCREASE OF 8.8% FROM 2010 THROUGH 2018.
DOMINO’S AND CARD ARE EACH WELL-POSITIONED TO WEATHER COVID-19 RELATED CONCERNS.
CONCEPTUAL SIGNAGE FOR CARD
Investment Highlights
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Center for Autism & Related Disorders (CARD)
CARD is the world’s largest and most experienced provider of top-quality, evidence-based autism treatment, and recognized as the third largest non-governmental organization contributing to autism research. CARD focuses on the principles of Applied Behavior Analysis (ABA), the only evidence-based treatment, and has treated tens of thousands of individuals. Tenant has strong credit.
WORLD’S LARGEST AUTISM TREATMENT PROVIDER
LOCATIONS233, 6 Opening in 2019YEARS IN OPERATION 29 Years
About the Tenants
Domino’sPizza
Domino’s is recognized as the world leader in pizza delivery in the U.S. based on retail sales, with over 16,100 stores. More than 65% of sales are generated via online ordering, including through their savvy online portal, app, and partnership with Google, Apple, and Amazon, providing the capability to order a pizza for delivery by simply sending a pizza emoji. Domino’s credits their year-over-year growth and continued success to being on the forefront of changing technology.
ABOUT TRIO EQUIPMENT, INCTrio Equipment, Inc. is operated by Troy Hamilton, a 2019 “Gold Franny Award” winner for operational excellence, awarded by the International Franchise Association. Troy Hamilton owns roughly 23 locations in Washington & Oregon (operated under multiple LLCs), with over two decades of experience with Domino’s, and provides a personal guaranty of the lease.
STORES 16,100
FRANCHISE OWNED IN U.S. 93%
LESSEETrio Equipment, Inc.
DOMINO’S INTERNATIONAL HAS EXPERIENCED 101 CONSECUTIVE QUARTERS OF POSITIVE SAME-STORES SALES
GROWTH THROUGH Q1 2019.
About the Tenants
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MAJOR EMPLOYERSBanfield Pet Hospital Head QuartersClark College Fisher InvestmentsHewlett-PackardNautilus
Netrush
PeaceHealthWaferTechWeyerhaeuser
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 206 1,570 5,535
Employees 5,189 23,539 83,272
Population 10,896 63,933 176,248
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
MILL PLAIN CROSSING Chase BankCricket WirelessDiscount TireH&R Block
Home DepotJC PenneyKey BankLowe’s
PetSmartSally BeautyVerizon WirelessWalmart Supercenter
SHOPPING CENTER
COLUMBIA CROSSING Bed Bath & BeyondCost Plus World MarketKohl’s
Mattress FirmMichaelsPier 1 Imports
Ross Dress for LessULTA Beauty
SHOPPING CENTER
Surrounding Retail
LEWIS AND CLARK HWY
LEWIS AND CLARK HWY
SE 192ND
AVEN
UE
SE 192ND
AVEN
UE
SE 34TH STREETSE 34TH STREET
14
14
DOMINO’S & CARD RETAIL
CENTER
18,674 VPD
11,734 VPD
84,000 VPD
COLUMBIATECH
CENTER
MILL PLAINCROSSINGSHOPPING
CENTER
COLUMBIACROSSINGSHOPPING
CENTER
COLUMBIA PALISADES84 acres of
residential, office, retail, hospitality
and entertainment is currently in development.
HEADQUARTERS
VANCOUVER TECH
CAMPUS
NAUTILUS, INC.
HEWLETT-PACKARD
FISHER’S LANDING
ELEMENTARY
FISHERINVESTMENTS
(1 MILEEAST)
Surrounding Retail
East Vancouver is experiencing significant growth to accommodate the city’s growing population (roughly 1,500 new residents monthly in Clark County) and continued push east. The immediate trade area surrounding 192nd Ave. has some of the areas highest average incomes, major area employers, and a handful of new developments on the horizon to support the growth.
Columbia Palisades is an 84-acre master plan lifestyle center, currently under development on the site of a former quarry. The project will include a modern outdoor shopping mall, mixed-use retail and office spaces, luxury single and multifamily housing, a recently completed hotel, planned assisted living facility, 24-acre park. The entire development is slated for completion in 2020.
GROWTH IN EAST VANCOUVER / WEST CAMAS
COLUMBIA PALISADES
KEYRed - Retail/Mixed-UseGreen - Open ParkYellow - Housing
Area Development
192nd CorridorDevelopment
1. UNION STATION 30,000 SF of commercial space;
Black Rock completed 20182. SONIC
Completed 2018 3. LEGACY HEALTH CLINIC
Completed 2018 4. HOLIDAY INN EXPRESS
Completed 2018 $15 million development5. COLUMBIA PALISADES
Under Development
6. VANCOUVER CLINIC Opened in 2020
7. FIRST STREET VILLAGE 115 multifamily units 77,000 SF retail on 8.7 acres;
in review8. 192ND WEST LOFTS
4-story, mixed use; 126 multifamily units9. THE WESTRIDGE APARTMENTS
100 multifamily units; opened 2020
DOMINO’S & CARD RETAIL
CENTER
COMPLETED2018
COMPLETED2018
VANCOUVERCLINIC
UNION STATION30,000 SF of commercial
space; Black Rock completed 2018
COMPLETED2018
COLUMBIA PALISADES
84 acres of residential, office, retail, hospitality
and entertainment is currently in development.OPENED IN
2020
FIRST STREET VILLAGE
1 Mile North115 multifamily
units, 77k SF retailIn Review
192ND WEST LOFTS
4-story, mixed use; 126 multifamily
units
THE WESTRIDGE APARTMENTS100 Multifamily Units Opened
2020
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SE 192ND
AVEN
UE
0.53ACRES
30 SPACES;6.5/1,000 SF
18,674 VPD
4,594LEASEABLE SF
Site Plan
Q: HAS THERE BEEN ANY ENVIRONMENTAL TESTING PERFORMED AT THE PROPERTY?
A: Yes, a Phase I ESA (Environmental Site Assessment) was performed by Professional Service Industries in June 1999. No RECs (Recognized Environmental Conditions) were identified, and no further testing was recommended.
Q: DO ANY TENANTS REPORT SALES?
A: Domino’s Pizza is required to provide an annual statement of gross sales by March 31st each year, and CARD is not required to report on sales.
Q: ARE ANY DEVELOPMENTS PLANNED FOR THE LARGE, VACANT PARCEL BEHIND THE PROPERTY?
A: The 2.06-acre parcel (currently undeveloped), is owned by the City of Vancouver and has historically been inhibited due to its wetland designation. The City removed the conservation covenant and is now zoned for commercial use as of January 2019.
Q &
A
Questions & Answers
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
I&E
PRICE $2,420,000CAPITALIZATION RATE 6.00%PRICE PER FOOT $527
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 11/1/2020 - 10/31/2021 $30.89 $141,929Rent Increases Over Base Rent $1.00 $2,993Operating Expense Reimbursement $7.23 $33,222Total Effective Gross Income (EGI) $38.78 $178,145
OPERATING EXPENSES PER SFCAMS $3.63 $16,669Property Taxes $2.19 $10,066Insurance $0.28 $1,298Management Fee of EGI $1.13 $5,189Total Operating Expenses $7.23 $33,222
NNEETT OOPPEERRAATTIINNGG IINNCCOOMMEE $38.78 $144,922
3.0%
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
7/31/2020 [ <www.CapitalPacific.com> ]
Financial Summary
RentRoll Rent Roll
5/13/2018 - 8/31/2023
1,231 Pro-Rata: 26.80%
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF
6/1/20 $3,700 $44,402 $36.076/1/21 $3,811 3.0% $45,734 $37.156/1/22 $3,926 3.0% $47,106 $38.276/1/23 $4,043 3.0% $48,519 $39.41
22,, 55--YYrr SSeeee CCoommmmeennttss
1/1/2020 - 3/31/2025
3,363 Pro-Rata: 73.20%
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF
1/1/20 $8,127 $97,527 $29.001/1/21 $8,371 3.0% $100,453 $29.871/1/22 $8,623 3.0% $103,480 $30.771/1/23 $8,881 3.0% $106,573 $31.691/1/24 $9,147 3.0% $109,768 $32.641/1/25 $9,422 3.0% $113,064 $33.62
11,, 55--YYrr SSeeee CCoommmmeennttss
4,594 OCCUPIED 100.00%
$11,827
TOTAL SF
TOTAL RENT/MONTH
Comments: Tenant has 1, 5-Yr option to be exercised with 180 day's notice; Option rent to adjust to FMR. SF is approximate and is subject to remeasurement upon final buildout.
DATE
OPTIONS
Comments: Tenant has 2, 5-Yr Options; Option 1 rent increases 10% for year 1 with annual 3% increases, and Option 2 rent increases to FMR (not to be less than 10% of the immediately preceding month) with annual 3% increases. Personal guaranty for primary term only.
DOMINO'S PIZZALease Term:
Size (SF):
RENT SUMMARY
118800--DDaayy NNoottiiccee
CARDLease Term:
Size (SF):
RENT SUMMARY
DATE
OPTIONS 118800--DDaayy NNoottiiccee
7/31/2020 [ <www.CapitalPacific.com> ] Financial Summary
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Operating Expenses
REIMBURSEMENTS
TOTAL PER SF NOTES IN-PLACE
TOTAL EXPENSES $33,222 $7.23 $33,222
NOTES:1) Based on 2020 Budget. 2) Based on 2020 Clark County Tax Assessment.3) Based on 3% of EGI.
MANAGEMENT
$1,298 $0.28 1 $1,298
$5,189 $1.13 3 $5,189
INSURANCE
$16,669
$10,066 $2.19 2 $10,066 PROPERTY TAXES
PROJECTED OPERATING EXPENSES
CAMS $16,669 $3.63 1
7/31/2020 [ <www.CapitalPacific.com> ]
OperatingExpenses
Financial Summary
Reimbursements
TENANT NAME PRORATA SHARE CAMS PROPERTY
TAX INSURANCE MGMT NOTES TENANT TOTALS
$$1166,,666699 $$1100,,006666 $$11,,229988 $$55,,118899
DOMINO'S PIZZA 26.8% $4,467 $2,697 $348 $1,390 $8,902
CARD 73.2% $12,202 $7,369 $950 $3,798 1 $24,320
TOTAL 100.00% $16,669 $10,066 $1,298 $5,189 $33,222
NOTES:1) Tenant has a 7% cap on controllable cam; Tenant not currently hitting Cap.
7/31/2020 [ <www.CapitalPacific.com> ]
Reimbursements
Financial Summary
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Maintenance &Repair
TENANT Trio Equipment, Inc. dba Domino’s PizzaBUILDING SF 1,231 SFLEASE TYPE NNNRENT COMMENCEMENT 5/13/2018EXPIRATION 8/31/2023GUARANTOR Personal Guaranty ( (terminates 5/12/2023)
OPTIONS 2, 5-Yr OptionsOPTION RENT Option 1: 10% increase with annual 3% increases. Option 2: FMR (not to be less than 10%) with annual 3% increases.
Premise & Term
TENANT’S OBLIGATIONSTenant is responsible for all interior maintenance, repair, and replacement, alongside the storefront, windows/doors, and all plumbing, electrical, HVAC (including replacement), and other mechanical operating systems.
LANDLORD’S OBLIGATIONSLandlord is responsible for the building exterior, foundation, and roof, not to be reimbursed by Tenant.
Lease Abstract
CAMTenant reimburses their share of all common area maintenance, including utilities and management.
TAXESTenant reimburses their share of Property Taxes to Landlord.
INSURANCETenant reimburses their share of Landlord’s insurance.
EXCLUSIVE USESale of pizza. SALES REPORTINGTenant is required to provide an annual statement of gross sales to Landlord on or before March 31st.
FINANCIAL STATEMENTLandlord may request a financial statement from Tenant no more than once per year, to be provided within 10 days of such request.
LeaseProvisions
Expenses
Lease Abstract
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Maintenance &Repair
TENANT Center for Autism and Related Disorders, LLC dba CARDBUILDING SF 3,363 SFLEASE TYPE NNN COMMENCEMENT DATE 1/1/2020 LEASE EXPIRATION 3/31/2025
OPTIONS 1, 5- Yr OptionOPTION RENT Option 1: Adjust to FMR
Premise & Term
TENANT’S OBLIGATIONSTenant is responsible for all interior maintenance, repair, and replacement, alongside the storefront, windows/doors, and all plumbing, electrical, and other mechanical operating systems. Tenant is responsible for regularly scheduled HVAC maintenance and routine repairs (Landlord is responsible for HVAC replacement – see below for details).
LANDLORD OBLIGATIONSLandlord is responsible for the building exterior, foundation, roof, and downspouting, not to be reimbursed by Tenant. Landlord is responsible for HVAC replacement (yet may bill Tenant back for such expense based on an amortization schedule).
Lease Abstract
CAMTenant reimburses their share of all common area maintenance, including utilities. Controllable CAMS are capped at a 7% increase year-over-year (such cap excludes taxes, insurance, utilities, and snow removal).
TAXESTenant reimburses their share of Property Taxes to Landlord.
INSURANCETenant reimburses their share of Landlord’s insurance.
FINANCIAL STATEMENTLandlord may request a financial statement from Tenant no more than once per year, to be provided within 15 days of such request.
LeaseProvisions
Expenses
Lease Abstract
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2
1
3
45
SE 192ND
AVEN
UE
8
67SE 34TH STREETLEWIS AND CLARK HWY
14
14DOMINO’S & CARD RETAIL
CENTER
Comparable Rents
DOMINO’S & CARD RETAIL CENTER base rents are in-line with surrounding Class A retail properties in the market. With growth and development continuing to push into east Vancouver, the Property continues to benefit from a growing trade area and continued stability.
1. MILL PLAIN RETAIL CENTER 11909 SE Mill Plain Road RENT: $29-$42/SF NNN YEAR BUILT: 2016
3. STARBUCKS STRIP & PACIFIC DENTAL 918 SE 164th Avenue RENT: $32-$38/SF NNN YEAR BUILT: 2014
5. 192ND PLAZA STATION 1905 SE 192nd Avenue RENT: $27-$35/SF NNN YEAR BUILT: 2012
7. STARBUCKS STRIP 3401 SE 192nd Ave. RENT: $32-$37/SF NNN YEAR BUILT: 2007
RetailRent Comps
2. CROSSROADS AT MILL PLAIN & 164TH 902 SE 164th Avenue RENT: $25-$32/SF NNN
YEAR BUILT: 2013
4. FISHERS LANDING PLAZA 16415 SE 15th Avenue RENT: $19-$25/SF NNN YEAR BUILT: 2008
6. RIVERSTONE MARKETPLACE II 3205 & 3215 SE 192nd Ave RENT: $30-$36/SF NNN YEAR BUILT: 2005
8. NATURAL GROCERS 3317 SE 192nd Avenue RENT: $28/SF NNN YEAR BUILT: 2017
Comparable Rents
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Vancouver, Washington
VANCOUVER is the fourth largest city in Washington state and is situated on the southernmost border, alongside the Columbia River. The affordability of Vancouver in relation to Portland just across the river is a huge driving factor of the economy, and has prompted annual growth for the last ten years with a near record-low unemployment rate, making it the fastest-growing county in the Portland Metro area.
CLARK COUNTY ADDS JOBS AT SWIFT PACEVancouver has had an annual 3-4% employment growth rate the last four years straight, and added an additional 8,200 jobs in 2017-2018. The increase in jobs is well above the national rate and double what the strong Portland metro area recognized over the same period.
Location
TAX INCENTIVES TO DEVELOPERS ARE FUELING MULTIFAMILY DEVELOPMENT as Clark County is recognizing an influx of multifamily development projects. The significant increase in multifamily developments will provide much needed housing relief to combat a 2% vacancy rate, among the lowest in the country.
MultifamilyDevelopment
VANCOUVER’S HISTORIC WATERFRONT is continuing to be developed and now includes office space, restaurants, shops, housing, a hotel, and a new waterfront park, connecting all 35 acres along the Columbia River to the city’s historic core. The project includes a maximum of 3,300 residential units, approximately 1 million square feet of office, and retail space for restaurants, specialty shops and services.
MajorDevelopment
Home Depot expanded their corporate presence in Vancouver in late 2018 with a 45,000 square foot facility to house their new Quote Center. The expansion should add more than 200 jobs and will be part of the new 22-acre Convene development which will have up to 400,000 SF of office and retail.
Home DepotExpansion
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KEY 5 MINS 10 MINS 15 MINS
163 MILES3 HRS 22 MINS
129 MILES2 HRS 34 MINS
13 MILES25 MINS
Portland,Oregon
Distanceto
166 MILES2 HRS 41 MINS
Seattle,Washington
Demographics
POPULATION
5 MINS 10 MINS 15 MINS
2010 19,715 58,808 152,806
2019 24,668 67,739 175,087
2024 26,592 72,191 187,285
2019 HH INCOME
5 MINS 10 MINS 15 MINS
Average $120,855 $108,639 $79,974
Median $101,232 $82,785 $60,339
DriveTime
CLARK COUNTY POPULATION (ESTIMATED)
459,495
Demographics
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Contact Us
KEVIN [email protected]: 503.675.7726
SCOTT [email protected]: 503.675.8383
MICHAEL [email protected]: 503.675.8381
We’d love to hearfrom you.
The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
MICHAEL [email protected]: 503.210.4069
Contact Us
