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11 West Mercer Street - Seattle, Washington 98119
Actual Property
24HOURS
New ConstructionOpen 24 Hours
31 Dedicated Parking StallsNew 25-Year Triple-Net (NNN) Lease
2 Blocks From Seattle CenterOn Signalized Intersection
Walk Score Of 96
SEATTLE, WASHINGTONo f f e r i n g m e m o r a n d u m
Developed by:
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
Investment Overv iew
• Newly Constructed 24-Hour CVS Located in the Heart of the Desirable Queen Anne Neighborhood of Seattle, Washington | Less than Two Miles from Downtown Seattle
• Ground Floor of a Brand New, 34-Unit Luxury Apartment Complex | 31 Dedicated Parking Stalls for CVS
• CVS Signed a 25-Year Triple-Net (NNN) Lease Featuring Four, Five-Year Option Periods with 10 Percent Escalations in Rent
• Two Blocks West of the Attraction-Heavy Seattle Center | 10 Cultural Facilities, Six Venues, and Over 24 Acres of Open Space
• Dense Infill Location: 223,000 Residents with an Average Household Income of $100,000 Within the Three-Mile Radius
• Seattle Ranks Number Six in Forbes List of The Best Places for Business and Careers
• The Queen Anne Neighborhood Ranked Number Four in the Country on Redfin’s List of Top 24 Affordable and Balanced Mix Neighborhoods Ranked by Walk Score and GreatSchools Score
• Highly Visible Signalized, Hard-Corner Location| Walk Score of 96 and Nearly 40,000 Vehicles Pass Through Intersection Each Day
• High Barrier to Entry | Major Tenants in the Vicinity Include: Bank of America, Safeway, Starbucks, Taco Bell, Chase Bank, Key Bank, FedEx, UPS, and Many More
Marcus & Millichap is pleased to present this newly constructed 15,971-square foot 24-Hour CVS Pharmacy located in the heart of the desirable Queen Anne neighborhood of Seattle, Washington. Located less than two miles north of Downtown Seattle, this CVS is situated on the ground floor of a brand new, 34-unit luxury apartment complex. CVS agreed to a 25-year, triple-net (NNN) lease with 10 percent escalations in rent in each of the four, five-year option peri-ods. The lease is backed by CVS Caremark Corporation, a publicly traded company (New York Stock Exchange: CVS) that ranks number seven in the Fortune 500.
This highly visible CVS is located just two blocks west of Seattle Center on the signalized, hard-corner intersection of West Mercer Street and Queen Anne Avenue. Nearly 40,000 vehicles pass through the intersection each day. This lo-cation also features excellent public transit and a Walk Score of 96 out of 100, making it a walker’s paradise since daily errands do not require a car.
The subject property sits two blocks west of Seattle Center in the neighborhood of Queen Anne. In early 2016, Queen Anne ranked number four in the country on Redfin’s list of Top 24 Affordable and Balanced Mix Neighborhoods Ranked by Walk Score and GreatSchools Score. This CVS is located in a dense market with a high barrier to entry. The three-mile radius features ideal demographics, with 223,000 residents with an average household income (AHHI) of $100,000.
QUEEN ANNE AVE N
18,400 VPD
W MERCER ST21,100 VPD
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
PRICE $19,500,000 CAP RATE 4.52%NOI $880,481 PRICE PER SQUARE FOOT $1,220.96 RENT PER SQUARE FOOT $55.13 YEAR BUILT 2016LOT SIZE +/- 0.28 AcresGROSS LEASEABLE AREA 15,971TYPE OF OWNERSHIP PublicLEASE GURANTOR Corporate GuaranteeLEASE TYPE Triple-Net (NNN)ROOF AND STRUCTURE Tenant Responsible
LOAN AMOUNT $11,700,000 LOAN TO VALUE 60%FIXED TERM 10-YearTERM 10-YearAMORTIZATION PERIOD 30-YearINDEX 10-Year SWAPINDEX AS OF 10/03/16 1.44%SPREAD 260 BPSINTEREST RATE AS OF 10/03/16 4.04%RECOURSE Non-RecoursePREPAY 4-3-2-1-0…%RESERVES (PSF) NoneLENDER ORIGINATION FEE Par
Financia l Overv iew
Offer ing Summary
Acqu is i t ion F inanc ing
Actual Property
QUEEN ANNE AVE N
18,400 VPD
W MERCER ST
21.100 VPD
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
Lease Overv iew
LEASE COMMENCEMENT DATE October 1, 2016LEASE EXPIRATION DATE January 31, 2042LEASE TERM 25TERM REMAINING 25INCREASES 10% in Each Option PeriodOPTIONS TO RENEW Four, Five-Year OptionsOPTIONS TO TERMINATE NoneOPTIONS TO PURCHASE NoneFIRST RIGHT OF REFUSAL None
Lease Summary
Actual Property
QUEEN ANNE AVE N
18,400 VPD W MERCER ST
21,100 VPD
Base Rent Annual Annual/SF Increase
Years 1-25 $880,481 $55.13
Options
Years 26-30 $968,529 $60.64 10%
Years 31-35 $1,065,382 $66.71 10%
Years 36-40 $1,171,921 $73.38 10%
Years 36-41 $1,289,113 $80.72 10%
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
Tenant Overview - CVS Pharmacy
CVS Health Corporation, together with its subsidiaries, is a pharmacy innovation company helping people on their path to better health. At the forefront of a changing health care landscape, the Company has an unmatched suite of capabilities and the expertise needed to drive innovations that will help shape the future of health.
We are currently the only integrated pharmacy health care company with the ability to impact consumers, payors, and providers with innovative, channel-agnostic solutions to complex challenges managing costs and care. We have a deep understanding of their diverse needs through our unique integrated model, and we are bringing them innovative solutions that help increase access to quality care, deliver better health outcomes and lower overall health care costs.
Through our nearly 10,000 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 80 million plan members, a dedicated senior pharmacy care business serving more than 1 million patients per year, and expanding specialty pharmacy services, we enable people, businesses and communities to manage health in more affordable, effective ways. We are delivering break-through products and services, from advising patients on their medications at our CVS Pharmacy locations, to introducing unique programs to help control costs for our clients at CVS Caremark, to innovating how care is delivered to our patients with complex conditions through CVS Specialty, to improving pharmacy care for the senior community through Omnicare, or by expanding access to high-quality, low-cost care at CVS MinuteClinic.
TENANT TRADE NAME CVS HealthOWNERSHIP Public
TENANT Corporate Store
LEASE GUARANTOR Corporate Guarantee
NUMBER OF LOCATIONS 9,900+
HEADQUARTERED Woonsocket, Rhode Island
WEB SITE www.cvs.com
SALES VOLUME $153 Billion (2015)
NET WORTH $37.2 Billion (2015)
STOCK SYMBOL CVS
BOARD New York Stock Exchange (NYSE)
CREDIT RATING BBB+
RATING AGENCY Standard & Poor S&P
RANK #7 in Fortune 500 (June 2016)
TENANT PROFILE
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
Local Area Overv iew
DOWNTOWN SEATTLE
SPACE NEEDLE
KEY ARENA
CENTURY LINK STADIUMMEDITERRANEAN INN
MARQUEEN HOTEL
INN AT QUEEN ANNE
EXPO APTS
TRIBECA CONDOS
525 FIRST WEST APTS
EMP MUSEUM
Downtown Seattle is the city’s central business district and is the largest employment center in the Pudget Sound region
accounting for half the city’s jobs and 21% of King County jobs.
TOURIST ATTRACTION1,000,000+ Visitors Per Year
0.5 Miles From Subject Property
TOURIST ATTRACTIONMulti-Purpose Arena with 15,000+ Seating Capacity
0.2 Miles From Subject Property
TOURIST ATTRACTIONSeating Capacity Over 70,000
2.34 Miles From Subject PropertyHotel 180 Rooms
Hotel 56 Rooms
Hotel 68 Rooms
MIXED-USE 6-Story275 Residential Units
MIXED-USE 4-Story51 Condos
MIXED-USE 4-Story41 Condos
TOURIST ATTRACTION500,000+ Visitors Per Year
0.5 Miles From Subject Property
Home to the following Fortune 500 Companies:
SITE
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
Local Area Overv iew
NORTH
5
5
18
,40
0 V
PD
216,000
60,2
00 V
PD
64,800 VPD
Que
en A
nne
Ave
N
Inte
rsta
te-5
Alaskan Way Viaduct
El l iott Ave W
21,100 VPDMercer St
CVS
11 W Mercer StSeattle, WA 98119
Seattle Center
Safeco Field
CenturyLink Field
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
11 West Mercer Street - Seattle, Washington 98119
90
90
90
5
5
5
405
405
405
202
202
520520
522
304
304
303
308
305
305
305
509
99
99
5 MILE
RADIUS
3 M
ILE R
ADIUS
1 MIL
E
SITE
KIRKLAND
REDMOND
BELLEVUE
NEWCASTLE
FORT WARD
PORT BLAKELY
VENICE
AGATE POINT
KEYPORT
BROWNSVILLE
TRIKKALA
ILLAHEE
ENETAI
SHERIDAN
BREMERTON
MANCHESTER
PORT ORCHARD
PARKWOOD
MEDINA
CLYDE HILL
YARROW POINT
MERCERISLAND
UNIVERSITY OF WASHINGTON
KING COUNTY INTER-NATIONAL AIRPORT
SEATTLE
BAINBRIDGEISLAND
Area Overview & Demographics
1-Mile 3-Mile 5-Mile
P o p u l a t i o n
2000 Population 25,517 168,896 350,937
2010 Population 32,347 188,751 384,826
2016 Population 40,193 222,877 438,587
2021 Population 44,232 243,388 476,384
1-Mile 3-Mile 5-Mile
H o u s e h o l d s
2000 Households 16,540 90,088 171,920
2010 Households 21,037 103,173 191,358
2016 Households 25,500 121,103 216,063
2021 Households 27,984 132,258 234,569
1-Mile 3-Mile 5-Mile
H o u s e h o l d ( H H ) I n c o m e s
2016 Average HH Income $105,469 $99,707 $102,918
2016 Median HH Income $82,092 $72,419 $75,414
2016 Per Capita Income $66,914 $54,177 $50,701
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
Market Overv iew - Lower Queen Anne
THE QUEEN ANNE/LOWER QUEEN ANNE NEIGHBORHOOD IS AMONG THE MOST AFFLUENT IN SEATTLE, LOCATED NEAR THE DOWNTOWN AREA AND HAS A POPULATION OF APPROXIMATELY 28,000.Lower Queen Anne is easily accessible from Interstate 5 via the Mercer Street exit and has several main thoroughfares collectively known as Queen Anne Boulevard. Queen Anne is among the closest neighborhoods to downtown Seattle, well within walking distance.
Lower Queen Anne runs up on the Seattle Center, where the Space Needle, Key Arena, and other iconic Seattle landmarks are located. Queen Anne is also home to 29 official Seattle landmarks, making it a top tourist attraction in the city. Seattle Pacific University is also located in Queen Anne, and its students contribute to the area’s vibrant nightlife. The neighborhood has a walkability score of 95, so while tens of thousands of cars pass through every day, it also has plenty of foot traffic.
This highly visible CVS is located just two blocks west of Seattle Center on the signalized, hard-corner intersection of West Mercer Street and Queen Anne Avenue, and includes 31 dedicated parking spots. The stretch of Queen Anne Ave the CVS is located on serves as the backbone of the central business district.
New construction projects are underway across the neighborhood, and several new residential buildings have been put up in recent years. The median income is $64,000, above the average for Seattle, which is itself above the average for Washington State, which is in turn above the average for the United States.
LOWER QUEEN ANNE
SITE
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883
Market Overv iew - Seatt le , Washington
Actual Property
EconomySeattle is one of America’s fastest growing cities. It grew by 2.3 percent in 2015, among the top five fastest growing cities in the United States. A highly skilled and educated workforce, advanced transportation and distribution infrastruc-ture, manufacturing capabilities and access to national and global markets have contributed to its economic diversity. Five Fortune 500 companies have head-quarters within Seattle’s city limits—Amazon, Starbucks, Nordstrom, Expedi-tors, and Alaska Air—and four others, including Costco and Microsoft, call the broader metro area home. They are all major employers in the region, and four out of ten jobs in the entire state are connected to international trade in part be-cause of the Port of Seattle, one of the busiest ports in the United States. Seat-tle has a mix of established companies and exciting up-and-comers. Microsoft operates out of nearby Redmond, while Seattle itself is home to fast-growing industries like e-commerce and biomedical tech. Start-ups in these industries can thrive because of Seattle’s strong entrepreneurial culture, the presence of venture capital, and local assets like the University of Washington, the Fred Hutchinson Cancer Research Center, the Allen Institute for Brain Science, and even Amazon, all located within the city limits of Seattle.
Labor
This year, Washington State ranked first in combined job and wage growth, driven in large part by gains in the Seattle area, which has seen steady job growth during the eco-nomic recovery. Construction-related jobs led in growth, with a 4.6 percent increase in King County (where Seattle is located) in 2015, above the national average. The expanding biomedical field will increase employment in the education and health services sector by nearly 2 percent per year through 2020. Professional/business services also saw above-average gains in King. This sector is expected to grow by an annual average of 3.3 percent, or by a total of 48,400 jobs, during this period.
The Seattle area outpaced national employment growth in the last five years, and is expected to do so through 2020, expanding 1.5 percent annually. Approximately 37.7 percent of the population over the age of 25 hold at least a bachelor’s degree, compared with just under 28.8 percent nationwide.
MAJOR EMPLOYERS
• Boeing
• Microsoft
• University of Washington
• Amazon
• Walmart
• Starbucks
• Wyerhaueser
• Fred Meyer
• King County Government
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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID # X0331883 | Broker of Record: Joel Deis Lic: 25469