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WINDMILL WAREHOUSE PARK2624 112th St S • Lakewood, WA 98499

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.

Windwill Warehouse ParkLakewood, WAACT ID ZAA0110618

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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2624 112th St S • Lakewood, WA 98499

PRICE: $5,900,000

CAP RATE: 4.75%

PRO FORMA CAP RATE: 7.93%

RENTABLE SF: 59,400

PRICE PER SF: $99.33

OCCUPANCY: 100.0%

YEAR BUILT: 1997 & 1999

LOT SIZE: 4.06 Acres

THE OPPORTUNITY

Windmill Warehouse Park | Lakewood WA 3

INVESTMENT OVERVIEW

Marcus & Millichap has been selected to exclusively market for sale Windmill Warehouse Park in Lakewood, Washington. Built in 1997, the multi-tenant industrial property consists of five insulated metal structures totaling 59,400 square feet, situated on a single, four-acre parcel. Located adjacent to the Joint Base Lewis-McChord Airfield, the subject benefits from immediate access to Interstate-5 and Highway 512.

Each building consists of spaces ranging from 2,400-4,800 square feet. There are currently 15 tenants, over half of which have called the subject home for 5+ years, and all tenants are leased on a triple net basis. With rents substantially lower than the market rate, the short-term nature of the leases in place allow for an investor to implement a value-add investment strategy with little to no additional capital expenditure.

• Multi-Tenant Industrial Park in Seattle MSA

• Excellent Location With Immediate Access To Major Freeways

• Low In-Place Rents And Short-Term Leases

• Low Vacancy Submarket at 5.3%*

*Per CoStar Data 2019 for industrial property in the city of Lakewood, WA


PROPERTY OVERVIEW

Year Built 1997 & 1999

Construction Insulated Metal

Foundation Concrete Slab

Roof Low-Pitched Metal Frame Roof

Ceiling Height 20 Feet

Bay Height 14 Feet

Grade Level Bays 21

Sewer City Sewer

Electricity Separately Metered

HVAC Suspended Gas Heaters

Plumbing Each Unit Has At Least One Restroom

Sprinklers None

Parking Asphalt

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SITE PLAN

Parcel Number: 0319071009

Lot Size: 4.06 Acres (176,670 SF)

Lot Coverage: 33.6%

Parking: 3 per 1,000 (approx.)Zoning: Clear Zone (CZ)

PARCEL & LAND

Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA 6

NORTH CLEAR ZONE PROJECT OVERVIEW

During 2016 and 2017, the South Sound Military and Communities Partnership (SSMCP) developed a plan of action to bring the McChord Field North Clear Zone (NCZ) into compliance with federal guidelines for public and air safety. The NCZ, as shown in Figure 1 (right), is a federally-designated 3,000-by3,000-foot safety area adjacent to the north end of the McChord Field runway. It is partly within Joint Base Lewis-McChord (JBLM) and partly within the City of Lakewood. The part in Lakewood includes many light industrial business uses on privately-held properties. Based on federal guidelines, these uses pose public and flight safety risks and are incompatible with runway operations. Some of these uses are currently allowed under Lakewood’s zoning code, and some are nonconforming uses. The businesses are valued community members and contribute to Lakewood’s economy. SSMCP recently completed the JBLM Joint Land Use Study (JLUS). The JLUS was a collaborative process designed to create a collective regional dialogue around the sometimes complex issues of balancing military operational demands and mission changes with the region’s and local communities’ land use plans, economic development and infrastructure needs, and goals for environmental sustainability. The JLUS was completed in 2015. One of the highest priority recommendations to come out of the JLUS was to develop a strategy and plan for addressing land use incompatibilities in the NCZ.

Windmill Warehouse Park | Lakewood WA

Project Files

Visit the following for more information:

https://cityoflakewood.us/south-sound-military-and-communities-partnership/jblm-north-clear-zone/

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Subject Property

LOCAL MAP

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Joint Base Lewis-

McChord

DowntownTacoma

Sea-Tac International

Airport

Seattle

OlympiaSubject Property

PUGET SOUND REGION

Destination Distance Drive Time

Seattle 40 mi 50 min

SeaTac 31 mi 40 min

Downtown Tacoma 9 mi 15 min

Olympia 24 mi 28 min

Joint Base Lewis-McChord Adjacent

Bellevue

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LEASE COMPARABLES MAP


Windmill Warehouse Park

2000 S 109th St

10735 A St S Unit D

3419 Chapel St S

10713 A St S

11306 Steele St S

8016 Durango St SW

2710 104th St Ct S

2

3

4

1

5

6

3

6

5

2

1

4

7

7

4

13

LEASE COMPARABLES$1.00

$0.92

$0.83

$0.75

$0.67

$0.58

$0.50

Market Rent Asking Rent

Market Rent Per SF Per Month

Availability & Vacancy Rate

Availability Vacancy

30%

25%

20%

15%

10%

5%

0%


Re

nt/

SF

/M

o.

2000 S 109th St

10735 A St S Unit

D

3419 Chapel

St S

10713 A St S

11306 Steele St S

8016 Durango

St SW

2710 104th St

Ct S

2 3 4 5 61 7

$1.00

$0.80

$0.60

$0.40

$0.20

$0.00

Windmill Warehouse

Park

Avg. $0.70

Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data.

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Rentable SF 59,400

Avg. Rent/SF $0.42

Year Built 1997

Lease Type NNN

Rentable SF 12,205

Avalable SF 3,600

Rent/SF $0.59

Year Built 1999

Lease Type NNN

Rentable SF 15,000

Available SF 9,512

Rent/SF $0.89

Year Built 1985

Lease Type NNN

WINDMILL WAREHOUSE PARK 2624 112th St S, Tacoma, WA 98499

2000 S 109TH ST 2000 S 109th St, Tacoma, WA 98444

10735 A ST S UNIT D10735 A St S Unit D, Tacoma, WA 98444

SUBJECT 21

LEASE COMPARABLES

Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA

Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data. 15

LEASE COMPARABLES

Rentable SF 11,200

Avallable SF 4,480

Rent/SF $0.75

Year Built 1999

Lease Type NNN

Rentable SF 5,760

Available SF 5,760

Rent/SF $0.65

Year Built 1976

Lease Type NNN

Rentable SF 15,000

Available SF 2,234

Rent/SF $0.65

Year Built 1984

Lease Type NNN

3419 CHAPEL ST S - BLDG 3419 3419 Chapel St S Bldg 3419, Tacoma, WA 98499

10713 A ST S 10713 A St S, Tacoma, WA 98444

STEELE ST BUS PK BLDG A 11306 Steele St S, Lakewood, WA 98499

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Windmill Warehouse Park | Lakewood WAWindmill Warehouse Park | Lakewood WA

Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data. 16

LEASE COMPARABLES

Rentable SF 15,260

Available SF 7,500

Asking Rent/SF $0.60

Year Built 2009

Lease Type NNN

Rentable SF 30,496

Available SF 1,600

Asking Rent/SF $0.85

Year Built 1963

Lease Type NNN

8016 DURANGO ST SW 8016 Durango St SW, Lakewood, WA 98499

2710 104TH ST CT S 2710 104th St Ct S, Lakewood, WA 98499

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Note: All Lease comps represent executed leases, signed after 6/1/2019. Per Marcus & Millichap, Commercial Broker’s Association, and CoStar lease comps data.

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MARKET OVERVIEWTACOMA/PIERCE COUNTY, WASHINGTON

Located roughly 30 miles south of Seattle, the Tacoma metro comprises all of Pierce County. Joint Base Lewis-McChord, an amalgamation of the U.S. Army’s Fort Lewis and the U.S. Air Force’s McChord Air Force Base, is a major driver of the economy. Port operations, global companies and tourism attractions also fuel economic activity in the county. As a more affordable option to nearby Seattle, the metro is drawing residents and businesses.

METRO HIGHLIGHTS• JOINT BASE LEWIS-MCCHORD The U.S. military installation employs more than 66,000 civilian and military personnel and is the largest employer in the county.

• AIRCRAFT MANUFACTURING The composite vertical fin for the 777X jet is constructed in Frederickson, where Boeing employs more than 1,600 workers. • PORT OF TACOMA Marine cargo operations at the port of Tacoma generate more than 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 a branch at the University of Washington. A highly educated workforce, roughly 30 percent of the population have achieved a bachelor’s degree or greater.

• Deep-water terminals at the Port of Tacoma are equipped with modern cargo-handling equipment. The port merged with Seattle’s seaport in 2014 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 Car Museum and Point Defiance Zoo & Aquarium. These facilities and many others draw tourists to the area and contribute to the local economy.

ECONOMY

MT. RANIER

TACOMA DOME


PROJECTION 2023 POPULATION 9,438 93,566 232,201

ESTIMATE 2018 POPULATION 9,462 92,280 228,698

CENSUS 2010 POPULATION 8,992 87,757 216,360

CENSUS 2000 POPULATION 8,213 81,798 204,352

PROJECTION 2023 HOUSEHOLDS 3,693 36,428 89,875

ESTIMATE 2018 HOUSEHOLDS 3,640 35,257 86,784

AVERAGE 2018 HOUSEHOLD INCOME $48,225 $56,697 $64,568

MEDIAN 2018 HOUSEHOLD INCOME $37,830 $43,537 $50,034

In 2018, the population within a 5 mile radius of the subject

property was 228,698. This is a 15.2% increase since 2000. The

projected growth of this area in 5 years is about 1% to 232,201.

The median age of the population in this area is 29, compared

to the US average of 38. The population density is about 3,000

people per square mile.

DEMOGRAPHICS

1 MILE 3 MILE 5 MILE

5 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]

John MarksNational Office and Industrial Properties [email protected]

Stren LeaNational Office and Industrial Properties Group Senior [email protected] 20

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