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INVESTMENT SALE27116 168th Ave SE, Covington, WA 98042

PLACE

JUSTIN HOLMES | (253) 447-2282 [email protected]

JOSH PARNELL | (253) [email protected]

EXCLUSIVELY REPRESENTED BY

CARRIE WALKER | (253) [email protected]

EXECUTIVE SUMMARYMeet Covington PlaceProperty OverviewTerms of the OfferingInvestment Highlights

LOCATION OVERVIEWBarriers of EntryCovington Market AerialSite PlanParcel Map

TENANT SUMMARY

TRADE AREACovington, WA - Growing Toward GreatnessDemographic ComparisonResidential GrowthPuget Sound Overview

LOCATION AERIALS

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As exclusive real estate advisors, First Western Properties – Tacoma, Inc are pleased to offer for sale the Covington Place shopping center and office complex located at the gateway to Covington, Washington. This Covington portfolio is nearly 100% leased and consists of 36,529 SF retail space in three separate buildings and an adjacent 30,585 SF office building that is home to Covington City Hall. The property provides tremendous accessibility and visibility to Highway 18 for all the tenants, customers and employees. The center can accommodate a variety of tenants and sizes, although 62% of the GLA are original tenants since the project started in 1999 and tenants opening by 2002.

Covington became a new city in 1996 and worked directly with Ashton Capital Corporation to develop not only a first-class shopping experience, but also a long-term home for the City Hall. There is a great sense of civic and community pride by having their City Hall in this complex and is an excellent complement to the retail amenities and services. This project was a family legacy development for Ashton Capital Corporation and it shows by the pride of maintenance and first class look and feel this property still embodies to this day.

Covington Place retail located on a total of 4.8 acres of land with a total of 36,529 SF of retail. The buildings are home to eleven (11) tenants, the largest being the Petco, in 12,485 SF. The remainder of the retail includes multiple quality tenants that range from local merchants to household names such as Starbucks, AT&T and Indigo MultiCare. The CMU block construction which is incredibly energy efficient is very appealing to the high-end tenants in the market and was completed by one of the Seattle’s premier general contractors - Foushée.

Covington Place office building located on 1.96 acre land area. The 31,917 SF building is 100% leased by six (6) companies, most of whom have been long-term tenants in the building including the City of Covington. It’s convenient State Route 516 location with close proximity and access to Highway 18, coupled with its professional atmosphere is the reason the office suites have always and will always remain leased. The office has excellent signage opportunities and the 2nd story has Mount Rainier Views.

COVINGTON PLACE | Covington, Washington

PROPERTY OVERVIEW

Executive Summary | First Western Properties - Tacoma

Property Name Covington Place

Address 27116 168th Ave SE, Covington, WA 98042

Year Built 2003

Parcel Number 1796330010, 1796330020, 1796330030, 1796330040, 0766000130

County King

Municipality Covington

Building SF 67,114 SF

Leaseable SF 67,114 SF

Land Area (SF) 4.8 Acres

Parking Stalls 241

Parking Ratio 3.6/1000

Access Access via SE 272nd Street and 168th Pl SE

Zoning Mixed Commercial (MC)

Signage 5 Monument Signs & Building Signage

Total Taxable Value $15,515,800.00

2019 Property Tax $185,198.00

TERMS OF THE OFFERING

Price $26,000,000

Year-1 NOI $1,682,764

CAP Rate 6.47%Year 5 CAP Rate 7.05%Year 10 CAP Rate 7.96%

Leveraged IRR 15.86%

Unleveraged IRR 8.97%

Price PSF $387.00

Debt Free & Clear

Occupancy 93%

Total Building SF 67,114

Total Land Area 4.8 Acres

Website covingtonretailportfolio.com Executive Summary | First Western Properties - Tacoma

INVESTMENT HIGHLIGHTS• Originally opened in 2003. The Covington Place has a long history of being a

quality retail & office location.

• Legacy Ownership - same local owner since start of development in 1999.

• Quality tenant mix and balanced merchandising plan. Original tenants since opening, represent 62% of the GLA.

• Excellent Highway 18 visibility and access.

• Shared lighted intersection with Fred Meyer, Safeway, and Costco Wholesale.

• CMU Block construction, completed by one of Seattle’s premier General Contractors - Foushee.

Executive Summary | First Western Properties - Tacoma

BARRIERS OF ENTRY

COVINGTON is situated in south east King County and has a strong retail core with big brands. While the population of Covington is about 18,750, the retail trade area serves a population of over 150,000. Visitors from more than four ZIP codes come to Covington to shop at some of the area’s most popular retail outlets, enjoy dining in the downtown core, and take care of their medical and healthcare needs all in one place.

COVINGTON MARKET RETAIL OCCUPANCYTenant Major Tenant SF Leased

Covington Place Petco 67,114 94%

Covington Center Big Lots 72,586 97%

Fred Meyer Center Fred Meyer 171,497 100%

Kohls Center Kohls 163,713 96%

Covington Square Safeway 155,506 100%

Covington Esplanade Home Depot 187,387 98%

Skagen Plaza Starbucks 26,000 100%

Covington Crossing HomeGoods 74,995 97%

PLACE

Location Overview | First Western Properties - Tacoma

PLACE

Healthcare ProfessionalsRepresent Covington’s

Largest Employee Groups

• 225,000 SF• 2012 - Added Emergency Dept.• 2017 - Added 74,000 SF and

58 bed hospital

• 62,000 SF • 2012 - Added 34,000 SF

Primary & Urgent Clinic • 2019 - Acquired Pinnacle

Physical Therapy at Covington Center

• Recently signed a 25,000 SF lease in Maple Valley.

• 18,000 SF • Adjacent to Covington Place

built in 2008.


TENANT LIST + ROLL OVER62% of Tenants Are Original

Suite Tenant SF Start ExpA101 MultiCare Indigo 3,921 11/03/16 11/1/26

A109 Cascade Chiropractic 2,918 6/1/03 5/31/22

BECU ATM 1/1/03 12/31/23

A113 PetCo 12,485 9/1/02 8/31/23

C100 Starbucks 1,400 3/1/03 2/28/23

C102 Ticor Title 1,400 4/19/18 4/30/23

C104 Bee’s Florist 1,241 1/1/18 12/31/22

C106 Available 4,865

C112 Silver Nails 1,057 11/1/04 10/31/24

C114 Farmers Insurance 1,545 9/17/18 9/30/23

C116 Covington Teriyaki 1,683 7/1/02 6/30/23

D AT&T 4,014 11/18/11 11/30/21

E100&207 City of Covington 17,079 1/1/03 12/31/22

E200 Outpatient Therapy 4,200 6/1/03 5/31/20

E202 Elizabeth Warner 1,034 5/1/03 4/30/22

E203 Pinnacle Physical Therapy 2,258 4/1/19 3/31/24

E205 Georgia Pacific 2,980 5/1/08 4/30/21

E211 Affordable Dental 3,034 1/1/05 12/31/20


PARCEL MAP

TENANT SUMMARY

A pet retailer that was founded in 1965 as a mail-order business selling veterinary supples. The store has now grown to operate over 1,500 locations across the United States and Mexico selling pet products and services, as well as certain types of live animals. Petco sells and holds fish, reptiles, small birds, hamsters, and more for adoption. Pet services include grooming and dog training. This Covington store is an original anchor tenant of the center, has completed several remodels over the years at their expense and is the only full service pet store serving the Covington trade area.

The first Starbucks opened in 1971 with a single store in Seattle’s historic Pike Place Market, just 45 minutes north of this Covington location. From their first storefront in Seattle to now over 30,000 locations worldwide, they offered and continue to offer some of the world’s finest fresh-roasted whole bean coffees. They’re not just passionate about coffee, but also a selection of premium teas, fine pastries and other delicious teats. This location was their first Covington location and recently was remodeled as they consider this a “Legacy Store”.

Tenant Summary| First Western Properties - Tacoma

TENANT SUMMARY

AT&T Wireless, is a wholly owned subsidiary of AT&T Inc. that provides wireless services to 153 million subscribers throughout the United States (including Puerto Rico and US Virgin Islands). AT&T Mobility is the largest wireless telecommunications provider in North America when including AT&T Mexico.

MultiCare Indigo Urgent Care offers patients a refreshingly friendly, fast and convenient experience. Offering treatment for minor, acute care, as well as initial worker’s compensation exams. Indigo Urgent Care is part of MultiCare Healthcare, which is comprised of eight hospitals throughout the Puget Sound, plus numerous outpa-tient specialty centers, and primary and urgent care clinics. Indigo invested over $1 million in this new Covington clinic location.


Covington Place center is home to Covington City Hall. Residents can find all services for the City of Covington as well as all city government. Services include athletic programs, building inspections, chamber of commerce, city council, economic development, employment, local utilities, permits, public records, waste & recycling.

CLASS “A” OFFICE WITH RETAIL VISIBILITY AND ACCESS


• The office component of this investment property has a long history of high occupancy and success, anchored by the City of Covington (original tenant).

• Mount Rainier views from second level make this a desirable location. • Tenants enjoy the Highway 18 access and exposure, as well as the surrounding retail amenities.

• City Hall has created a strong civic belonging for local residents.

154KTRADE AREA POPULATION

$122KAVERAGE HH I N C O M E

33%BACHELOR DEGREE OR HIGHER

DEMOGRAPHICSCOVINGTON, WA | GROWING TOWARD GREATNESS

Covington, WA is a youthful city that plays home to successful retail business in a family-friendly environment. Major thoroughfares transport commuters to the adventure in the mountains and fun on the Puget Sound, all while holding onto small town character. There has been rapid population growth fueling the retail industry as well as the growth in the medical sector. Bringing residents to not only shop but work in Covington.

Trade Area | First Western Properties - Tacoma

Tukwila

West Seattle

Seattle45 Mins North

Federal Way

Issaquah

Puyallup

VashonIsland

CovingtonPUGETSOUND

DEMOGRAPHIC COMPARISON

POPULATION

AVERAGE HH INCOME

BACHELOR DEGREE OR HIGHER

Mile 1 Mile 3 Mile 5

COVINGTON 9,108 56,410 154,778

ISSAQUAH 10,073 53,817 114,741

PUYALLUP 12,154 76,744 160,970

Regis - 2018


COVINGTON $123,591 $132,751 $122,765

ISSAQUAH $110,012 $149,945 $184,317

PUYALLUP $82,007 $95,816 $95,476


COVINGTON 1,970 32.8% 12,555 32.9% 33,976 33.2%

ISSAQUAH 3,769 53.3% 22,933 64.5% 49,355 66.4%

PUYALLUP 1,824 21.9% 14,575 27.6% 29,154 26.5%

KING COUNTY

PIERCE COUNTY

Auburn

Trade Area| First Western Properties - Tacoma

5 miles

Bellevue40 Mins North

Tacoma25 Mins South

Maple Valley

SeaTacAirport

DEMOGRAPHIC COMPARISON

RESIDENTIAL GROWTHNUMBER OF APPROVED PLATS

ALL ROADS LEAD TO COVINGTON...

PUGET SOUND OVERVIEW

The Puget Sound (Pierce and King County) is home to over 40% of Washington State’s population and is a national center for manufacturing, technology, services, international trade and tourism. Some of the world’s most recognizable companies call the Puget Sound home: Microsoft, Starbucks, Amazon, T-Mobile, Nord-strom, and Costco. The region is projected to generate 1.2 million new jobs by 2040.

Seattle has remained one of the most resilient cities due to its di-verse industries. The city accounts for over 20% of the nation’s soft-ware publishing employment. Healthcare employment is projected to continue to grow dramatically and Seattle has the 5th largest biotechnology Research and Development alliance in the University of Washington and the Fred Hutchinson Cancer Re-search Center. This is in addition to remaining one of the capitals of aerospace and computing.

Combine that with the superb quality of life in the Pacific Northwest, a world-class arts scene, professional sports teams, and culinary delights from some of the country’s top chefs, and you’ve got a great place to do business where employees are happy to call “home.”

Largest Employers in King County

The Boeing Co 65,829

Amazon 50,000

Microsoft 46,293

University of Washington 44,955

Providence Health and Services 43,067

Source: Puget Sound Business Journal Book of Lists 2018Amazon does not disclose their regional employment numbers. Estimate based on latest new reports.

25+ have a Bachelor’s Degree

Population Estimates

State of Washington 33.6%King County 49.1%Pierce County 25.4%

State of Washington 7,405,743King County 2,188,649Pierce County 876,764Population Estimates

State of Washington 7,405,743King County 2,188,649Pierce County 876,764

LOCATION AERIAL

PLACE

HIGHWAY ACCESS AERIAL

PLACE

PLACE

KYLE HERTING(253) 441-5503 [email protected]

JUSTIN HOLMES | (253) 447-2282 [email protected]

JOSH PARNELL | (253) [email protected]

CARRIE WALKER | (253) [email protected]

© First Western Properties, Inc. DISCLAIMER: The above information has been secured from sources believed to be reliable, however, no representations are made to its accuracy. Prospective tenants or buyers should consult their professional advisors and conduct their own independent investigation. Properties are subject to change in price and/or availability without notice.

RETAIL FOCUSED. RESULTS DRIVEN.

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