ACE HARDWARESINGLE TENANT INVESTMENT OPPORTUNITY
Mukilteo, WA
Table of Contents
Contact Information
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, current or past tax payments, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
Erik [email protected]
Eric Bissell [email protected] 425.450.1121
Mike [email protected]
kiddermathews.com
ACE
HARDWARE
The Opportunity
Property Summary
Property Aerial
Location Overview
Demographics
Financial Analysis
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 2
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 3ACE HARDWARE | MUKILTEO, WA
The Opportunity
Ace Hardware is a single tenant net leased investment located approximately 35 minutes north of Seattle in Mukilteo, Washington. The build to suit property is 100% leased by Ace Hardware. The lease is personally guaranteed by the franchisee who operates this Ace plus a number of Jamba Juice locations in the Pacific Northwest.
The property is located on Mukilteo Speedway where traffic counts exceed 40,000 cars per day. The building was well built in 2008 with masonry and steel construction and includes a rollup door with loading dock. The property is situated on a 1 acre lot with ample parking.
Offering Price
Current Cap Rate
Lease Expiration
Building Size
Year Built
Investment Summary
Net Operating Income
$3,118,000
6.82%
$212,668
04/30/18
11,000
2008
INVESTMENT HIGHLIGHTS
Experienced Franchise Operator With Personal Guarantee
Multi-unit franchisee operates Ace Hardware and 20+ other Jamba Juice locations
High Traffic Location Traffic counts on State Route 525 exceed 40,000 cars per day
Newer Construction Concrete brick and steel completed in 2008
NNN Lease StructureTenant responsible for taxes, insurance, and all maintenance expenses, except roof structure and exterior walls
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 4ACE HARDWARE | MUKILTEO, WA
Property Summary
Address 12680 Mukilteo Speedway, Mukilteo, WA Year Built 2008
County Snohomish Parcel 004412-000-004-00
Municipality City of Mukilteo Construction Masonry and steel
Land Area 0.99 acres Land SF 43,124 SF
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 5ACE HARDWARE | MUKILTEO, WA
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 6ACE HARDWARE | MUKILTEO, WA
ACE HARDWARE
Property Aerial
19,827+ DAILY
38,666+ DAILY
Harbour Pointe Bldv SW
Bever
ly Par
k Rd
Mukilteo S
peedway
PAINE FIELD AIRPORT
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 7ACE HARDWARE | MUKILTEO, WA
Location Overview
Ace Hardware is located in Mukilteo, Washington approximately 30 minutes north of Seattle.
The property fronts State Highway 525 (Mukilteo Speedway), a heavily trafficked highway connecting the City of Mukilteo and the surrounding retail and industrial to Interstate 5.
Less than 2 miles away is The Boeing Everett Factory is an airplane assembly building employing more 30,000 people in three shifts. According to Wikipedia, it is the largest building in the world by volume. The Ace Hardware and surrounding retailers serve a five mile population of over 261,339 with an average household income of $81,294.
CITY OF MUKILTEO
Mukilteo is a waterfront community situated on Puget Sound in southern Snohomish County, about 25 miles north of Seattle. The city’s population has grown to 20,440 (April 2013) and its diverse, multi-cultural residents continue to share a great sense of pride, history and tradition of community involvement. Mukilteo amenities include quaint shopping areas, restaurants, financial institutions and several parks and open spaces for recreational opportunities. The city is also a neighbor to the Boeing Company, Paine Field Regional Airport and other major employers along a
technology corridor that reaches from northern King County through Mukilteo.
5 MILES
1 MILE
MUKILTEO
EVERETT
3 MILESACE HARDWARE
LYNNWOOD
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 8ACE HARDWARE | MUKILTEO, WA
Site Plan
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 9ACE HARDWARE | MUKILTEO, WA
1 MILE 3 MILES 5 MILES
Population
Projected Population (2020) 9,200 124,851 279,500
Estimated Population (2015) 8,830 116,217 261,339
Census Population (2010) 9,177 105,069 241,495
Projected Annual Growth (2015-2020) 4.19% 7.43 6.95%
Historical Annual Growth (2010-2015) (3.78%) 10.61% 8.22%
2015 Population by Race
White 6,077 81,720 190,608
Hispanic or Latino Population 864 15,534 31,697
Black or African American 375 6,197 11,807
American Indian or Alaska Native 82 1,295 2,919
Asian 1,826 20,335 41,624
Hawaiian or Pacific Islander 28 886 1,679
Other Race 442 5,786 12,702
Households
Estimated Households (2015)
Projected Households (2020) 3,551 49,104 107,896
Census Households (2010) 3,539 41,181 93,184
Projected Annual Growth (2015-2020) 4.26% 7.54% 7.00%
Housing Units Owner-Occupied 2,085 24,823 58,931
Housing Units Renter-Occupied 1,321 20,839 41,902
Estimated Average Household Income (2015) $81,381 $77,254 $81,294
Estimated Median Household Income (2014) $64,160 $61,178 $64,613
2015 Households by Income distribution
HH Income <$25,000 592 8,079 17,881
HH Income $25,000 - $50,000 729 9,568 20,497
HH Income $50,000 - $75,000 560 9,966 19,136
HH Income $75,000 - $100,000 495 6,964 15,382
HH Income $100,000 - $125,000 351 3,997 9,714
HH Income $125,000 - $150,000 235 2,544 6,336
HH Income $150,000 - $200,000 320 2,746 7,283
HH Income $200,000+ 123 1,797 4,605
5 MILES
1 MILE
261,339
279,500
$81,294
6.95%
5-MILE TRADE AREA DEMOGRAPHICS
Population (2015)
Estimated Population (2020)
Average Household Income
Projected Annual Growth
MUKILTEO
EVERETT
3 MILES
Demographics
ACE HARDWARE
LYNNWOOD
KIDDER MATHEWS | INVESTMENT OPPORTUNITY 10ACE HARDWARE | MUKILTEO, WA
PROPOSED FINANCINGNET OPERATING INCOME
PRICE $3,118,000
Down Payment $779,500
Loan to Value (LTV) 75%
New Loan Amount $2,338,500
Interest Rate 4.50%
Amortization 30
Debt Coverage Ratio 1.50
CURRENT NET OPERATING INCOME $212,668
Annual Debt Service ($142,186)
Cash Flow After Debt Service $70,482
LEVERAGED CASH ON CASH RETURN 9.04%
Principal Reduction $37,725
Return with Principal Reduction $108,207
TOTAL RETURN ON EQUITY 13.88%
Investment Summary
$3,118,000PRICE
6.82%CAP RATE
$296.95PRICE / SF
04/30/18LEASE TERM
ACTUAL PER SF
Scheduled Rent $209,004 $19.00
+ Expense Recapture* $43,968 $4.00
+ Year 1 Rent Increases $3,664 $0.33
Effective Gross Income $256,636 $23.33
Operating Expenses -$43,968 -$4.00
NET OPERATING INCOME $212,668 $19.33
LAND/SF $72.19
BUILDING PRICE/SF $283.45
PRICE $3,118,000
CAP RATE 6.82%
*NNN paid by tenant
TENANT SUITE SIZE % GLA MONTHLY RENT ANNUAL RENT ANNUAL RENT/SF LEASE TYPE LEASE TERM
STARTLEASE TERMEXPIRATION
OPTION PERIODS COMMENTS
Ace Hardware 11,000 100.00% $17,417 $209,004 $19.00 NNN 05/01/08 04/30/18 2, 5 year Increase year 8 & 10
GROSS LEASABLE AREA 11,000 $32,917 $209,004 $19.00
RENT ROLL
Contact Information
Erik [email protected]
Eric [email protected]
Mike [email protected]
Kidder Mathews 601 Union Street, Suite 4720 Seattle, WA 98101
kiddermathews.com
Top Related