Download pdf - OFFERING MEMORANDUM - LoopNet...ARABELLA BUSINESS PARK 13909 Meridian E, Puyallup, WA 98373 139th & Meridian E (SR 161) Bldg A: Bldg B: Bldg C: Bldg D: 13909 Meridian E 10213 139th

ARABELLA BUSINESS PARK13909 Meridian E, Puyallup, WA 98373139th & Meridian E (SR 161)

Bldg A: Bldg B: Bldg C: Bldg D:

13909 Meridian E10213 139th St Ct E 10227 139th St Ct E10305 139th St Ct E

OFFERING MEMORANDUM

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Confidentiality and DisclaimerThe 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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, the physical condition of the improvements thereon, or the financial condition or business pros-pects 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a servicemark of Marcus & Millichap Real Estate Investment Services, Inc.© 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Arabella Business ParkPuyallup, WAACT ID ZAA0110384

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

**DO NOT DISTURB TENANTS**

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13909 Meridian E, Puyallup, WA 98373

THE OPPORTUNITY

Arabella Business Park | Puyallup WA

PRICE $4,998,000

CAP RATE: 6.14%

RENTABLE SF: 25,966

PRICE/GROSS SF: $192.48

OCCUPANCY: 100%

YEAR BUILT: 1997 & 1999

LOT SIZE: 1.78 Acres

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INVESTMENT OVERVIEWMarcus & Millichap has been retained to exclusively market for sale Arabella Business Park, a four-building, 25,966 rentable square-foot property situated on 1.78 acres of land in Puyallup, WA. Built in two phases in 1997 and 1999, the property is on two parcels that are part of the Arabella - Glen Mar Park development located on the bustling commercial corridor of Meridian Avenue East.

All four buildings enjoy multi-tenant occupancy composed of medical, professional & service-based tenants with suite sizes that range from 380 SF to 3,100 SF. Building A benefits from Meridian Avenue East frontage (42,000 CPD) and is 100% leased to four medical tenants including dental, optometry, physical therapy, and massage therapy practices. Buildings B, C, and D are tenanted by businesses focused on professional services, martial arts instruction, dance instruction, mechanical services, manufacturing, and automotive repair. Many tenants have been in the property over ten years and continue to renew their leases for its excellent location, amenities and attractive build quality. Leases are typically 1 to 3 years in length and structured as either gross or modified gross format. Most significantly, the majority of in-place lease rates are substantially lower than the current market rates for the area.

Arabella Business Park is situated on Meridian Ave E (SR 161), a major thoroughfare that plays host to numerous retail, commercial, and office properties. SR 161 is the largest commercial corridor in the Puyallup area and has been the primary axis of growth for the past 20 years. Tenants have close proximity to the South Hill Mall, the largest regional mall in Pierce County located just 2 miles north, and Sunrise Village Shopping Center just 1.5 miles south. SR 512 is also just two miles north of the property, providing convenient access to I-5, SR 167 (Valley Freeway), and SR 410 (over the Cascades to Eastern Washington). 176th St E is located less than one mile south of the property, which provides the most convenient east/west access in the area, and leads directly to the rapidly developing industrial submarket of Frederickson, WA.

Since 2000, the population within a 3-mile radius of the property has increased by 39.82%. It is projected that population will grow from 82,833 to 91,818 over the next five years, bringing increased population density and higher rents as vacancy rates across the region are at record lows. Given these fundamentals, an investor in Arabella Business Park should expect to enjoy robust rent growth, high occupancy, and excellent risk-adjusted returns in the coming years.

• Multi-Tenant Business Park with Medical, Retail, and Service Tenants

• Below Market Rents and Long Standing Tenants

• Property in a Low Vacancy Submarket

• Excellent Commercial Visibility on Meridian: 42k Cars Per Day

• Population Growth of 39.9% Since 2000

Arabella Business Park | Puyallup WA 4

PROPERTY OVERVIEW

CONSTRUCTION

Year Built 1997 & 1999

Roof Low-Pitched Metal Frame Roof with Metal Panel Covering

Exterior Finish

Enamel Coated Metal Siding with Split-Face CMU Wainscot on Streetfacing Walls

Sanitary Sewer Private Septic System with an Off-Site Drain Field

Stormwater Shared Storm Water Pond Across 139th Ave Ct E; Nominal HOA Fee of About $600 Annually

Utilities Electric & Natural Gas: Puget Sound EnergyWater & Sewer: City of Puyallup

Foundation Concrete Slab on Grade

Structural System Pre-Engineered Metal Buildings

Fenestration and Doors Insulated Fixed Glass Storefront System

HVACBuilding A has Full HVAC Service in Four Suites. For Buildings B, C, and D, Heating is Supplied by Suspended Gas Heaters in the Shops

Plumbing Electric Water Heaters

Life Safety No Sprinkler System; The Property is Protected by Fire Alarm and Security Systems


SITE PLAN

AccessEasement

Parcel Numbers: 0419157029 & 0419157030

Lot Size: 1.78 Acres (77,537) SF

Lot Coverage: 33%

Parking: 70 Stalls (2.7/1,000 SF)

Zoning: Community Center District (CC) by Pierce County

PARCEL & LAND

Supplemental Parking

Arabella Business Park | Puyallup WA

*Boundary lines are approximate

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KEY TENANTS

Willows Eye Care

Willows Eye Care is an optometry clinic that offers eye exams for glasses and contact lenses, medical office visits for eye infections, cataract evaluation, and refractive surgery evaluation with follow up care.

Relaxation Foot SpaRelaxation Foot Spa is massage therapy clinic that offers facials and massages, by either appoint-ment or walk-in.

ARestore Physical Therapy

Restore Physical Therapy is a physical therapy clinic providing treatment services in therapeutic exercises, cardiovascular endurance training, and training in activities of daily living.

C.

PR Cosmetic & General Dentistry

PR Cosmetic & General Dentistry is a dental clinic that offers general and family dentistry, providing services in cosmetic dentistry, dental implants, endodontic treatment, annual teeth cleanings, veneers, wisdom teeth treatment, pediatric and emergency dental services, and CT scan imaging.

D.

B C D

B.A.


KEY TENANTS

Restore Physical Therapy

Willows Eye Care

P.R. Cosmetic & General Dentistry

Relaxation Foot Spa


TRADE AREA MAP

Subject Property

Robert Wiggins,D.D.S., Family Dentistry

Arabella Condominiums

42,0

00 V

PD


Subject Property

Frederickson

Parkland City of Sumner

City of Spanaway

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PIERCE COUNTY

Canyon Road E

City of Puyallup

Pacific Ave

161

Meridian Ave E

37,0

00 V

PD

56,0

00 V

PD

42,0

00 V

PD

Pierce County Airport - Thun Field 14

Joint Base Lewis-

McChord

DowntownTacoma

SeaTac International

Airport

Seattle

Olympia Subject Property

PUGET SOUND REGION

Destination Distance Drive TimeSeattle 40 mi 55 min

SeaTac 25.5 mi 45 min

Downtown Tacoma 14.5 mi 30 min

Olympia 33 mi 55 min

Joint Base Lewis-McChord 13 mi 30 min

Bellevue

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MARKET OVERVIEWPUYALLUP/PIERCE COUNTY, WASHINGTON

Located roughly 10 miles southeast of Tacoma and 35 miles south of Seattle, Puyallup is one of the largest cities in Pierce County with steady growth projected to continue in the coming years. Port operations, global companies and tourism attractions fuel economic activity in Pierce County, Puyallup is also home to the Washington State Fair and is considered to be the gateway to Mt. Ranier. As a more affordable option to nearby Seattle, this submarket is drawing residents and businesses.

METRO HIGHLIGHTS• JOINT BASE LEWIS-MCCHORD

The U.S. military installation employs more than 66,000 civilianand military personnel and is the largest employer in the county.

• AIRCRAFT MANUFACTURINGThe composite vertical fin for the 777X jet is constructed inFrederickson, where Boeing employs more than 1,600 workers.Frederickson is only 3.2 miles away from the property.

• PORT OF TACOMAMarine cargo operations at the port of Tacoma generate morethan 29,000 jobs and nearly $3 billion in economic activity.

• A number of higher-education institutions are located in Pierce County,including Pacific Lutheran University, University of Puget Sound, and abranch at the University of Washington. A highly educated workforce,roughly 30 percent of the population have achieved a bachelor’s degreeor greater.

• Deep-water terminals at the Port of Tacoma are equipped with moderncargo-handling equipment. The port merged with Seattle’s seaport in2014 to gain a competitive advantage against other growing ports.

• Points of interest include Mount Rainier National Park, Puget Sound,the Museum of Glass, Washington State History Museum, America’s CarMuseum and Point Defiance Zoo & Aquarium. These facilities and manyothers draw tourists to the area and contribute to the local economy.

ECONOMY

MT. RANIER

WASHINGTON STATE FAIR


PROJECTION 2023 POPULATION 14,395 91,818 168,776

ESTIMATE 2018 POPULATION 13,265 82,833 169,854

CENSUS 2010 POPULATION 12,102 73,672 151,704

CENSUS 2000 POPULATION 9,487 53,005 114,813

PROJECTION 2023 HOUSEHOLDS 5,256 33,118 68,243

ESTIMATE 2018 HOUSEHOLDS 4,757 29,524 61,443

AVERAGE 2018 HOUSEHOLD INCOME $77,793 $88,466 $86,400

MEDIAN 2018 HOUSEHOLD INCOME $67,205 $73,113 $70,613

According to the US Census, the city of Puyallup has a current population of 153,150, and projected growth of 5.64% over the next five years. Since 2000, the population within the 3 mile trade area of the subject property has experienced a population growth rate of 39.82%.

DEMOGRAPHICS

1 MILE 3 MILE 5 MILE

3 Mile Radius


E X C L U S I V E L Y L I S T E D B Y

O F F I C E S N AT I O N W I D E

Matthew HermanNational Office and Industrial Properties [email protected]

Stren LeaNational Office and Industrial Properties Group Senior [email protected] 18