petsmart - loopnet · petsmart is a 19,495 sf stand-alone retail building located off interstate 82...
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PetSmartUNION GAP, WASHINGTON
PETSMART is a 19,495 SF stand-alone retail building located off Interstate 82 in Union Gap, Washington. The offering provides an opportunity to purchase a built-to-suit Absolute NNN PetSmart in Union Gap, WA, an income tax-free state. PetSmart recently signed a 5-year renewal which shows its commitment to the greater Yakima area. The Property benefits from surrounding retail and easy access off S 1st Street, a main thoroughfare in Yakima. Chewy, a recently purchased PetSmart brand, went public in 2019 with an IPO valuation at $5B above the original purchase price.
LEASEABLE SF19,495 SF
LAND AREA68,197 SF
PPSF$140
LEASE TYPEAbsolute NNN
YEAR BUILT2000
ZONINGC-2; Regional Commercial
PARKING84 Spaces; 4.3/1,000 SF
SUBMARKET VACANCY2% (Q1 2019)
Investment Summary
8.25%CAP
$2,730,000PRICE
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RECENT 5-YEAR RENEWAL ON AN ABSOLUTE NNN LEASE
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RECENT 5-YEAR RENEWAL ON AN ABSOLUTE NNN LEASE WITH ZERO LANDLORD RESPONSIBILITIES.
BUILT-TO-SUIT CONSTRUCTION SPECIFIC TO TENANT.
LOCATED IN WASHINGTON, AN INCOME TAX-FREE STATE.
LOCATED IN UNION GAP JUST OFF I-82, A STRONG RETAIL SUBMARKET WITH 2% VACANCY (Q1 2019).
THE PROPERTY HAS STRONG SHADOW ANCHOR SUPPORT FROM NEARBY CABELA’S, ROSS, HOBBY LOBBY, HOME DEPOT, AND VALLEY MALL.
STRONG VISIBILITY OFF EAST WASHINGTON AVENUE JUST EAST OF S. 1ST STREET, A MAJOR NORTH/SOUTH ARTERIAL THROUGH UNION GAP AND YAKIMA.
PETSMART’S ONLINE PRESENCE CHEWY INC.’S STRONG IPO NEARLY TRIPLED PETSMART’S INITIAL INVESTMENT.
Investment Highlights
AboutPetSmart
YTD FISCALREVENUE
$5.32BTOTAL
LOCATIONS
1,500+
PETSMART is an American retail chain operating in the United States, Canada, and Puerto Rico that is engaged in the sale of pet animal products and services. In 2017 PetSmart acquired Chewy, an online retailer specializing in the sales of pet food and other products. The acquisition cost PetSmart $3.35B however Chewy’s recent IPO valued the company at just under $9B.
AVG REVENUE PER STORE
$3.55M
OWNERSHIP Private
IN THE NEWS
Investment Highlights
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MAJOR RETAILBed Bath & BeyondBest BuyBoot BarnBurlington Cabela’s Costco Dick’s Sporting GoodsDollar TreeGoodwill
Grocery OutletHarbor Freight ToolsHome Depot JCPenneyLowe’sMichaelsOld NavyPetcoPier 1 Imports
Planet FitnessRite AidRoss Dress for LessTarget TJ Maxx ULTA Beauty Walmart Supercenter
VALLEY MALLAnytime FitnessBath & Body WorksBuffalo Wild WingsCarter’s
Foot Locker GamestopGNCKohl’s
Macy’sMen’s WearhousePacSunSears
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 536 2,933 4,340
Employees 8,271 37,963 58,364
Population 8,052 62,007 98,199
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
Surrounding Retail
PETSMART
VALLEY MALL
82
82S 1 ST STREET
E WASHINGTON AVE
20,000 VPD
43,000 VPD
Surrounding Retail
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SEVERAL NEW CONSTRUCTION retail properties have been built in the Yakima market over the past two years, including Dick’s Sporting Goods and Party City at the Union Gap Mall. Additionally, Hogback Development Company has completed several new construction projects in the area, including Rainier Square and Tahoma Square, both included the re-purposing of obsolete shopping centers and completely transforming areas of the city.
PETSMART3
57
6
1. RAINIER SQUARE
2. HOME2 SUITES BY HILTON
3. DOLLAR TREE & BOOT BARN
4. TAHOMA SQUARE
5. MARSHALLS (BACKFILL REHAB)
6. PARTY CITY
7. DICK’S SPORTING GOODS
RecentDevelopments
1 2
4
New Developments
RAINIER SQUARE LOCATED IN YAKIMA, WASHINGTON
New Developments
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E WASHINGTON AVE
Q&AQ: HAVE ANY ENVIRONMENTAL STUDIES BEEN PERFORMED ON THE PROPERTY?A: Yes, a Phase 1 was done in 2003 and concluded there are no RECs and no further environmental inquires were warranted at the time.
Q: HOW MUCH ARE THE PROPERTY TAXES?A: 2018 property taxes were $33,200, which were paid directly by tenant.
Q: DOES THE PROPERTY HAVE A RECIPROCAL PARKING EASEMENT AGREEMENTS?A: Yes, there is a non-exclusive perpetual easement in and over the common areas for the purpose of parking.
Site Plan
SITE PLAN NOT TO SCALE
Site Plan
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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.
Income & Expense
PRICE $2,730,000CAPITALIZATION RATE 8.25%PRICE PER FOOT $140
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 10/1/2019 - 9/30/2020 $11.55 $225,217Total Effective Gross Income (EGI) $11.55 $225,217
OPERATING EXPENSES PER SFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN
NET OPERATING INCOME $225,217
6/24/2019 [ <www.CapitalPacific.com> ]
ABSOLUTE NNN LEASE WITH ZERO LANDLORD RESPONSIBILITIES
Financial Summary
Rent Roll
6/12/2003 - 1/31/2024
19,495
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF CAP RATE
2/1/2019 $18,768 $225,217 $11.55 8.25%
1 2/1/2024 $20,270 8.0% $243,234 $12.48 8.91%2 2/1/2029 $21,891 8.0% $262,693 $13.47 9.62%3 2/1/2034 $23,642 8.0% $283,709 $14.55 10.39%
CURRENT $18,768 $225,217 $11.55 8.25%
DATE
OPTIONS
Lease NotesComments: Absolute NNN Lease - Tenant is responsible for all interior and exterior, structural and nonstructural maintenance, repair, and replacement. Tenant pays Property Taxes directly to the assessor, maintains property insurance, and is responsible for utilities. Tenant has 3, 5-year options to exercise with 180 day's notice.
PetSmart
Lease Term:
Size (SF):
RENT SUMMARY
6/24/2019 [ <www.CapitalPacific.com> ]
RentRoll
LEASE NOTESComments: Absolute NNN Lease - Tenant is responsible for all interior and exterior, structural and nonstructural maintenance, repair, and replacement. Tenant pays Property Taxes directly to the assessor, maintains property insurance, and is responsible for utilities. Tenant has 3, 5-year options to exercise with 180 day’s notice.
Financial Summary
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PPSF/YEAR ANNUAL BASE RENT
Current Rent $11.55 $225,167.25
OPTION RENT PPSF/YEAR ANNUAL BASE RENT
Option #1 $12.48 $243,234.36Option #2 $13.47 $262,693.11Option #3 $14.55 $283,708.56
TENANT PetSmart, Inc.BUILDING SF 19,495 SFLEASE TYPE Absolute NNNLEASE COMMENCEMENT February 1, 2019LEASE EXPIRATION January 31, 2024TERM 5 YearsOPTIONS 3, 5 Years; 180-Day Notice
Premise & Term
Rent
Lease Abstract
Maintenance& Repair
TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repairs. LANDLORD’S OBLIGATIONSLandlord has zero responsibility.
UTILITIESTenant pays all utilities directly. TAXESTenant pays taxes directly to the billing authority.INSURANCETenant must obtain property and general liability insurance and list the Landlord on all policies as an Additional Insured.CAMSTenant is responsible for the maintenance and repair of all common areas.
LeaseProvisions
Expenses
ASSIGNMENT/SUBLETTINGTenant shall have the right to assign this Lease or to sublet the whole or any part of the Premises with written notice to Landlord.
Lease Abstract
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Featured Photography
Featured Photography
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Union Gap,Washington
UNION GAP is nestled in the “gap” between two mountain ranges, known for old traditions blending with contemporary ideas. Founded more than a century ago, this charming community was the original Yakima City until it was renamed in 1917. Union Gap has a storied history and in recent years has become the retail hub for the entire Yakima Valley as a result of Valley Mall, Yakima Valley’s only indoor mall, and other thriving businesses.
Location
THE GROWTH OF WINE IN WASHINGTON STATE is highlighted by the Yakima Valley region, which is home to over half of the state’s wine grape production and more than 120 wineries. The large collection of wineries and tasting rooms create a tourist attraction and a far reaching draw to the Yakima Valley.
WineCountry
Location
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Distanceto
KEY 5 MINS 10 MINS 15 MINS
81 MILES1 HR 12 MINS
Tri-Cities, Washington
202 MILES3 HRS
Spokane,Washington
Demographics
POPULATION
5 MINS 10 MINS 15 MINS
2010 19,173 58,916 108,910
2017 19,713 61,073 112,641
2022 20,109 62,242 114,880
2017 HH INCOME
5 MINS 10 MINS 15 MINS
Average $43,220 $48,125 $60,831
Median $34,383 $36,026 $43,822
DriveTime
YAKIMA COUNTY POPULATION (ESTIMATED)
248,830
Demographics
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Contact Us
PETER [email protected]: 503.607.0197
LANCE [email protected]: 503.607.0207
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.
SEAN [email protected]: 503.675.8378
Contact Us
