Cascade Plaza - Capital Pacific · The diverse tenant mix within the larger shopping center ... Baskin Robbins Bath & Body Works ... Cascade Plaza Income & Expense PRICE $2,570,000

Dollar Tree Anchored retail center Along major retail corridor7414-7458 N Division St., Spokane, WA, 99208

Cascade Plaza

[ www.CapitalPacific.com ]

Spokane, WA

The offering provides an opportunity to acquire an established multi-tenant retail center located along North Division Street, the primary commercial corridor in Spokane. Cascade Plaza is situated within a larger shopping center anchored by Hobby Lobby, Grocery Outlet, Michael’s, and Furniture Row, creating a daily needs draw to the

immediate area. The Property is anchored by publicly-traded Dollar Tree (NASDAQ: DLTR), who is issued a Standard and Poor’s credit rating

of ‘BB’ and has occupied space at the Property for more than 13 years. The Property also benefits from a balanced rollover schedule with the anchor

tenant having approximately eight years remaining on their lease term.

Cascade Plaza’s location along North Division Street boasts traffic counts of nearly 50,000 vehicles per day. The dominant retail corridor features several national retailers including a Costco located across the street and NorthTown Mall, a regional mall anchored by Macy’s, Kohl’s, and Regal Cinemas. Cascade Plaza’s location also benefits from the dense close-in population of more than 175,000 residents within a five mile radius.

OCCUPANCY . . . . . . . . . . . . 96%

LEASABLE SF . . . . . . . . . . . . ±26,818 SF

PRICE PER SF . . . . . . . . . . . . $96

LAND AREA* . . . . . . . . . . . . . ±27,000 SF

LEASE TYPE. . . . . . . . . . . . . . NNN

YEAR BUILT . . . . . . . . . . . . . . 1980

AVG CURRENT RENT . . . . . . $8.62/SF

PARKING* . . . . . . . . . . . . . . . ±99 Spaces or 3.7/1,000 SF

ANCHOR . . . . . . . . . . . . . . . . Dollar Tree

*Subject is located within a larger shopping center that has reciprocal parking and access easements.

CASCADE PLAZA IS A 26,818 SF MULTI-TENANT RETAIL CENTER WITH ROBUST TRAFFIC COUNTS IN SPOKANE,

WASHINGTON.

PRICE: $2,570,000CAP: 7.80%

ADDRESS: 7414-7458 N Division St., Spokane, WA, 99208

Investment Highlights

CASCADE PLAZA | 2

STRONG PERFORMING CREDIT TENANT ANCHOR

Cascade Plaza is anchored by publicly-traded Dollar Tree (NASDAQ: DLTR) who has a Standard and Poor’s credit rating of ‘BB’. Dollar Tree has occupied space at the Property for more than 13 years and has an additional eight years remaining on its lease term. Notably, Dollar Tree has reported strong store sales in this location and has one, five-year option period remaining. Please contact Capital Pacific for more information about store performance.

PRICED BELOW REPLACEMENT COST

With true replacement costs estimated in excess of $200/SF, the Property is offered well below replacement cost at $96/SF. An investor has the ability to remain competitive in the leasing market and be a lower cost provider in which cost-feasible rents are significantly higher. Cascade Plaza’s current in-place rent is $8.62/SF, which is significantly below market averages and minimizes risk upon turnover.

DOMINANT RETAIL ACROSS FROM COSTCO

The Property is located along Spokane’s main retail artery, North Division Street, which boasts traffic counts of nearly 50,000 vehicles per day. Division Street is home to several national retailers within close proximity to Cascade Plaza including Costco, located across the street. Additionally, NorthTown Mall is a more than one million square foot regional mall anchored by Macy’s, Nordstrom Rack, and Regal Cinemas located south of the Property on Division Street.

FAVORABLE LEASE TERMS WITH MINIMAL ROLLOVER EXPOSURE

Cascade Plaza benefits from the balanced rollover schedule of its shop tenants. Additionally, anchor Dollar Tree is committed to this location until 2023, spreading out future rollover risk over time and reducing the threat of any major decrease in cash flow.

PART OF LARGER CENTER ANCHORED BY HOBBY LOBBY

Cascade Plaza is part of a larger center anchored by Hobby Lobby, Grocery Outlet, Michael’s and Furniture Row. Also located within the larger center are pad restaurants, Noodle Express, The Onion and Old European. The diverse tenant mix within the larger shopping center creates excellent retail synergy and a wide draw. Further, each property owner within the larger shopping center benefits via reciprocal access and parking agreements.

DENSE DEMOGRAPHIC AREA

The area surrounding the Property is densely populated with more than 175,000 residents living within a five mile radius.

Core Characteristics

CASCADE PLAZA | 3

Quick Stats

STAGGERED LEASE EXPIRATIONS

0%

100%

50%

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

CumulativeAnnual

39%

17%

64%

100%

10+ YEARS - 51%

3+ YEARS - 13%

< 2 YEAR - 32%

AVAILABLE - 4%

LEASE TENANCY

ABOUT

BBSTANDARD & POOR’S

CREDIT RATING

NASDAQ: DLTR

955%10-YEAR SHARE

PRICE GAIN SINCE 2005

2014

2013

2012

ANNUAL REVENUE

$8.60B

$7.39B$7.84B

US & CANADA

13,600+CURRENT LOCATIONS

OCCUPANCY

96%OCCUPANCY

CASCADE PLAZA | 4

Retail Corridor

N N

evad

a St

reet

N New

port

HWY

W Francis Avenue

E Magnesium Road

E Hawthorne Road

OTHER SURROUNDING RETAIL

AlbertsonsBabies “R” UsBed Bath & BeyondBig 5 Sporting GoodsBurlington Coat Factory

Carl’s JrCostcoDollar TreeGrocery OutletHobby Lobby

IHOPKMartOffice DepotPetcoQuizno’s

Rite AidRoss Dress for LessShari’s RestaurantTaco BellWalmart Supercenter

NORTHPOINTE PLAZA

Best BuyBig LotsHobbyTown USAOlive GardenPanda Express

PetSmartPier 1 ImportsRed RobinSafewayShakey’s Pizza

ShopkoSports AuthorityStaplesStarbucksT.J.Maxx

Taco BellTargetTotal Wine & More

FRANKLIN PARK COMMONS

Bed, Bath & BeyondBurlington Coat FactoryGuitar CenterOutback Steakhouse

Rite AidRossShari’s RestaurantTrader Joe’s

NORTHTOWN MALL

AT&TBarnes & NobleBaskin RobbinsBath & Body WorksChili’s

Famous FootwearGame StopJCPenneyKohl’sMacy’s

Marshall’sMen’s WearhousePayless Shoe SourceRadioShackRed Lobster

Regal CinemasSearsStarbucksSubwayYankee Candle

FOR A FULL LIST OF RETAILERS, CLICK HERE

N D

ivis

ion

Stre

et

395

2

2

395

291

SEATTLE NORTHTOWN MALL

NORTHPOINTE PLAZA

CASCADE PLAZA

Site

CASCADE PLAZA

N D

ivis

ion

Stre

et

E Lincoln Rd

3,900 DAILY

10,710 DAILY

44,000 DAILY

CASCADE PLAZA IS LOCATED AMONG NUMEROUS NATIONAL RETAILERS AND REGIONAL RESTAURANTS, SURROUNDED BY HIGH TRAFFIC COUNTS.

CASCADE PLAZA | 6

44,0

00 D

AIL

Y

SITE PLAN KEY

PARCEL OUTLINE:

LAND AREA: ±27,000 SF

LEASABLE AREA: ±26,818 SF

LEASED:

AVAILABLE:

NOT A PART:

INGRESS/EGRESS:

Site Plan

N D

ivisi

on S

t.

*Site plan not to scale

KINJA SU

SHI

JULIE’S

DAN

CE

ESCAPEEN

TERTAINM

ENT

BEYON

D BEAD

S

DOLLAR TREEPYLON SIGN

RECIPROCAL EASEMENT AGREEMENTThere shall be established mutual ingress and egress areas providing for ingress and egress between the Northgate, LLC Property and the Subject Property. The agreement runs with the land and shall be binding upon the owners of the Subject Property and The Northgate, LLC Property, and their successors.

MAINTENANCE AGREEMENTBuilding owners are responsible for reimbursing their proportionate share of Real Estate taxes, General Liability Insurance and all maintenance and utilities including paving, lighting, water, sewer, gas and striping of the common area costs incurred by the larger shopping center’s land owner, Northgate, LLC.

NORTHGATE LLC

Old European

The

Oni

on

Furniture Row

Jump-N-Party

Cash And Carry

Michael’s

NoodlesExpress

CASCADE PLAZA | 7

Cascade PlazaIncome & Expense

PRICE $2,570,000Capitalization Rate 7.80%Price Per Foot $96

NET OPERATING INCOME SUMMARYSCHEDULED INCOME Per SFScheduled Rent: 6/1/2016 $8.27 $221,853Plus: Rent Increases Through: 5/31/2017 $0.04 $1,202Plus: Expense Reimbursement $3.48 $89,529Equals: Scheduled Gross Income $12.14 $312,585Vacancy Factor 5% ($15,629)Equals: Effective Gross Income (EGI) $11.07 $296,955

Less: OPERATING EXPENSES Per SFCAMS $1.59 $42,655Property Taxes $1.37 $36,634Insurance $0.16 $4,200Management Fee 3.5% of EGI $0.40 $10,645Reserves $0.10 $2,682Total Operating Expenses $3.61 ($96,815)

Equals: NET OPERATING INCOME $200,140

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.

3/21/2016 [ <www.CapitalPacific.com> ]

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.

Financial Summary

CASCADE PLAZA | 8

Cascade PlazaRent Roll

LEASE TYPE

Tenant Name Suite Size % of SFOccupancy

DateLease

ExpirationMonthly Base

RentRent/SF/YR

Date of Increase

Monthly Base Rent

Additional Annual

Dollar Tree 7414 10,316 38.47% 12/1/02 1/31/23 $8,597 $10.00 2/1/18 $9,362 NNN

Beyond Beads 7452 3,428 12.78% 5/1/05 11/30/16 $2,200 $7.70 NNN

Available 7452R 1,072 4.00%

Julie's Dance Academy 7454 5,532 20.63% 9/1/14 11/30/17 $4,034 $8.75 12/1/16 $4,149 $692 NNN

Escape Entertainment 7456 3,050 11.37% 8/1/15 10/31/18 $2,033 $8.00 11/1/16 $2,097 $445 NNN11/1/17 $2,160

Kinja Sushi 7458 3,420 12.75% 12/1/12 3/31/19 $1,624 $5.70 4/1/17 $1,657 $66 NNN4/1/18 $1,690

Totals: 26,818 100% $18,488 $8.27 $1,202Occupied 25,746 96% $18,488 $8.62Leasable 1,072 4%

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.

comments: Lease is personal guaranteed.

10% Increase1-2 YR

180 Days

comments: Space is not leasable for retail use in currrent status. Space is being used by Beyond Beads free of charge as storage space. Analysis assumes lease up of space with no base rent but Tenant will assume pro-rata share of NNN charges.

RENT INCREASES

1-5 YR180 Days

180 Days$2,287.50

comments: Percentage rent of 5% of Gross Sales if total exceeds base rent. Tenant must provide statement of Sales monthly. Lease has personal guarantee.

FMR

1-3 YR

OPTIONS

comments: Tenant has exercised the two of their three (3) option periods.

TENANT INFO LEASE TERMS CURRENT RENT

3/21/2016 [ <www.CapitalPacific.com> ]

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.

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.

Rent Roll

CASCADE PLAZA | 9

Cascade PlazaOperating Expenses

REIMBURSEMENTS

Total /SF Notes

Total Expenses $96,815 $3.61 $89,529

Notes:1) Based on 2015 Operating Budget.

3) Based on 3.5% of Stabilized EGI.4) Methodology: $0.10/SF for maintenance and repairs.

2) Based on 2015 Spokane County Tax Assessment of Cascade Plaza building parcel plus 15.197% share of Northgate Center parking lot parcel.

$2,682 $0.10 4 $0 Reserves

$36,634

Insurance

2015 OPERATING EXPENSES

$4,200 $4,200 $0.16 1

$40,244

$10,645 $0.40 3 $8,452

$36,634 $1.37

1$42,655 $1.59

2

CAMS

Property Taxes

Management

3/21/2016 [ <www.CapitalPacific.com> ]

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.

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.

Operating Expenses

CASCADE PLAZA | 10

Cascade PlazaReimbursements

Tenant Name Pro Rata % CAMS Property Taxes Insurance Management Notes Tenant Totals

Expense Total $42,655 $36,634 $4,200 $10,645

Dollar Tree 38.47% $19,020 $14,092 $1,616 $1,902 1, 2 $36,629

Beyond Beads 12.78% $4,598 $4,683 $537 $1,361 3 $11,179

Available - Storage Space 4.00% $1,375 $1,464 $168 $425 4 $3,433

Julie's Dance Academy 20.63% $5,983 $7,557 $866 $2,196 5 $16,602

Escape Entertainment 11.37% $4,368 $4,166 $478 $1,211 3 $10,223

Kinja Sushi 12.75% $4,898 $4,672 $536 $1,357 $11,463

TOTAL 100.00% $40,244 $36,634 $4,200 $8,452 $89,529

1) Dollar Tree has a combined Admin and Management fee not to exceed 10% of CAM charges.2) Tenant has 5% year over year cap on CAM charges.3) Tenant 's management reimbursement NTE 5% of minimum and additional rent.4) Assumes space can be leased for an amount equal to its pro-rata share of expenses.5) Tenant has a cap on all common charges of $3.00/SF

Notes:

3/21/2016 [ <www.CapitalPacific.com> ]

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.

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.

Reimbursements

CASCADE PLAZA | 11

Featured Photos

<< N DIVISION ST >>

CASCADE PLAZA | 12

Area Intel & Demos

OVERVIEWSettled in 1871 on the Spokane River, the city of Spokane is presently the second largest city in Washington. The city is 92 miles south of the Canadian border, approximately 20 miles from the Washington–Idaho border, and 232 miles east of Seattle. Spokane is known as the birthplace of Father’s Day, hosted the first environmentally themed World’s Fair, Expo ‘74, and is home to Gonzaga University, Whitworth University, and the growing Riverpoint campus that includes satellite campuses for Eastern Washington University and Washington State University.

ECONOMY

NATURAL RESOURCESNatural resources have historically been the foundation of Spokane’s economy, with the mining, logging, and agriculture industries providing much of the region’s economic activity. Considered to be one of the most productive mining districts in North America and due to its location between mining and farming areas, Spokane became an important rail and shipping center.

DIVERSIFIED INDUSTRYToday the city’s economy has diversified to include other industries, including the high-tech and biotech sectors. As the metropolitan center of the Inland Northwest as well as southeastern British Columbia and Alberta, Spokane serves as a commercial manufacturing, transportation, medical, financial, shopping, and entertainment hub.

CORPORATE HEADQUARTERS & OFFICESGenetics company, Signature Genomic Laboratories and Fortune 1000 technology company, Itron are headquartered in the area.

Other companies with head offices in the Spokane area include technology company Key Tronic, hotelier Red Lion Hotels Corporation, and automaker Commuter Cars. The largest military facility in the area is Fairchild Air Force Base near Airway Heights, which employs over 5,100 military and civilian employees and is home to the 92d Air Refueling Wing.

1-Mile 3-Mile 5-MileAverage $46,265 $53,570 $54,047Median $33,922 $40,506 $39,649

2015 HOUSEHOLD INCOMES

1-Mile 3-Mile 5-Mile 2010 16,918 97,611 171,7402015 16,812 99,265 175,1972020 16,881 101,158 178,898

POPULATION

Tri-Cities

Spokane

Coeur D’Alene

moses lake

90

40 min37 Miles

2 Hours140 Miles

1.5 Hours100 Miles

5 Miles

3 Miles

1 Mile

CASCADE PLAZA

MICHAEL [email protected] | (503) 675-8381

PETER [email protected] | (503) 607-0197

KEVIN ADATTO [email protected] | (503) 675-7726

SCOTT FRANK [email protected] | (503) 675-8383

SEAN MACK [email protected] | (503) 675-8378

SEAN TUFTS [email protected] | (206) 743-8468

DAVID GELLNER [email protected] | (206) 913-2842

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