Gateway Plaza
Grocery and drug store-Anchored
Neighborhood Shopping Center
100-200 N Gateway Blvd, Cottage Grove, OR, 97424
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Featured Photos
GATEWAY PLAZA | 2
Gateway Plaza
PRICE: $6,900,000
CAP: 7.00%
CASH-ON-CASH YIELD. . . . . . . 7.71%*
OCCUPANCY. . . . . . . . . . . . . . . . 98%
LEASABLE SF. . . . . . . . . . . . . . . ±86,826 SF
GATEWAY PLAZA IS A GROCERY OUTLET AND
DRUG STORE-ANCHORED SHOPPING CENTER
IN COTTAGE GROVE, OR.
The offering provides an opportunity to acquire a 98% occupied,
86,826 square foot shopping center at significantly below
replacement cost. The Property sits directly off Interstate-5 on
the hard corner of Gateway Boulevard and Main Street. Both
of Gateway Plaza’s anchors play a complementary role in the
submarket and Grocery Outlet is one of only three grocers in
the trade area. The Property has exhibited a strong historical
tenure with 43% of the center having occupied the premises
for ten-plus years.
PRICE PER SF. . . . . . . . . . . . . . . $79
LAND AREA. . . . . . . . . . . . . . . . . ±308,840 SF
DEBT. . . . . . . . . . . . . . . . . . . . . . Free & Clear
AVG CURRENT RENTS . . . . . . . $6.19/SF
YEAR BUILT. . . . . . . . . . . . . . . . . 1978
PARKING. . . . . . . . . . . . . . . . . . . ±340 Spaces or 3.9/1,000 SF
ANCHORS. . . . . . . . . . . . . . . . . . Grocery Outlet, Bi-Mart
*Debt quote information is available on page 11.
ADDRESS:
100-200 N Gateway Blvd, Cottage Grove, OR, 97424
GATEWAY PLAZA | 3
Core Characteristics
MULTI-ANCHOR SHOPPING CENTER
Gateway Plaza is a Grocery Outlet & Bi-Mart anchored shopping center with a
diversified tenant mix that includes a variety of food, retail, health, personal and
professional service users. Grocery Outlet is one of only three grocery stores in
Cottage Grove, and one of only two located west of Interstate 5. Bi-Mart has little
to no competition in the market as it’s the only major outdoor sport and hunting
retailer in the city. Notably, Bi-Mart has a 37-year occupancy history at Gateway
Plaza.
LOW CONTRACT RENTS
Gateway Plaza’s rental rates range from $3.60/SF to $20.00/SF, with an average of
$6.19/SF. The lower contract rents limit lease and NOI exposure, lessening risk for a
prospective buyer. The terms of Grocery Outlet and Bi-Mart don’t expire until 2024.
LONG TERM TENANCY WITH STAGGERED LEASE ROLLOVER
The Property is 98% leased and occupied by long term tenants. Roughly 43% of the
building’s GLA has been occupied for ten-plus years. The Property offers a staggered
lease rollover schedule with 60% of the occupied square footage not expiring until 2024.
Roughly 73% of the total square footage is occupied by regional and national brands.
PROMINANT RETAIL CORRIDOR
The Property’s location benefits from excellent co-tenancy with several major national
retailers along Main Street, O’Reilly’s (NAP), Walgreens, and Safeway directly west. The
Property is situated within one mile of the Cottage Grove Community Hospital and Walmart,
two of the city’s largest employers.
HIGHWAY PROXIMITY
The Property benefits from excellent exposure on the hard corner of Gateway Blvd and Main
Street, located directly off Interstate 5, providing convenient local and regional access to the
site. Roughly 24,320 vehicles pass the Subject each day on Interstate 5.
DESIGNATED ENTERPRISE ZONE
The city of Cottage Grove is actively working on diversifying the local economy by offering
incentives to businesses opening in the city, and has officially been designated an Enterprise
Zone. PakTech, a plastic manufacturer, is slated to relocate from Eugene to Cottage Grove 1-mile
east of the Subject to an 89,000 square foot factory and is estimated to provide 200+ positions
in 2017.
CLICK HERE FOR MORE INFO
GATEWAY PLAZA | 4
ANCHOR TENANTS
Grocery Outlet operates 260 locations in six states (Oregon,
Washington, California, Pennsylvania, Idaho, and Nevada), with plans
to expand to a total of 376 locations by 2020. Founded in 1946 and
recognized as an “extreme-value” retailer, Grocery Outlet has grown
strategically, and is recognized as the nation’s leading value grocery
chain.
Grocery Outlet is a third-generation family-led company with a highly differentiated
sourcing model that enables the company to offer significant savings to its customers as
products are sold at a 40% to 70% discount off regular stores’ prices, by offering surplus
items, seasonal closeouts, and discontinued items.
Hellman and Friedman acquired Grocery Outlet in 2014. H&F is a leading private equity
investment firm founded in 1984, with offices in San Francisco, California, and London. H&F
has managed over $25 billion of committed capital over the course of the last 32 years with
a focus on investing in superior business franchises and serving as a value-add partner to
management in select industries.
Bi-Mart is an employee-owned Northwest retailer similar
to Costco and Sam’s Club as it’s a membership-only vendor,
although membership costs $5 for a lifetime membership. Currently 75 locations are in
operation throughout Oregon, Washington, and Idaho, typically in close proximity to
major freeways and in secondary markets. Alongside the sale of electronics, clothing,
etc., a predominant focus of Bi-Mart’s retail is focused on the sale of sporting and hunting
supplies.
TRADE AREA
Bi-Mart and Grocery Outlet are expertly positioned west of Interstate 5 amidst
a dense retail corridor. The unique low-cost structure of Grocery Outlet and
Bi-Mart’s sale of wide-ranging products with a focus on outdoor/ hunting
goods, make Gateway Plaza a destination retailer in the Cottage Grove MSA.
The nearest outdoor sports retailer is roughly a 15-minute drive north of the
Property, outside Cottage Grove in the city of Creswell.
EUGENE
CRESWELL
COTTAGE GROVE
GATEWAY PLAZA | 5
QUICK STATS
OCCUPANCY
LONG TERM TENANCY
TENANT MIX
2%
AVAILABLE
73%
98%
REGIONAL &
NATIONAL BRANDS
10+ YEARS - 43%
51%
5+ YEARS - 8%
5+ YEARS
1+ YEARS - 37%
Occupied
25%
<1 YEAR - 10%
LOCAL
TENANTS
AVAILABLE - 2%
TENANT MIX
RETAIL
PROFESSIONAL SERVICES
FOOD
GROCERY
HEALTH & FITNESS
PERSONAL SERVICES
52%
24%
6%
6%
7%
5%
GATEWAY PLAZA | 6
Aerial
5
24,320 DAILY
COTTAGE GROVE
COMMUNITY HOSPITAL
COTTAGE GROVE
STATE AIRPORT
5
GATEWAY PLAZA
Limited Grocery Competition
Cottage Grove provides only three grocery stores, including the
Grocery Outlet located at the Subject Property. Despite the close
proximity to one another, Grocery Outlet does not compete directly
with Safeway or Walmart, as Grocery Outlet has a niche in the
market and is focused on discounted overstocked products. Grocery
Outlets are often purposely positioned near a Walmart, Kroger, or
Whole Foods as they offer a smaller, more accessible store format
and competitive pricing.
GATEWAY PLAZA
GATEWAY PLAZA | 8
Site Plan
260
240
220
PARCEL OUTLINE:
LAND AREA:
±308,840 SF
BUILDING AREA: ±86,826 SF
GATEWAY PLAZA:
AVAILABLE:
NOT A PART:
INGRESS/EGRESS:
Site Plan not to scale
TENANT
30Available
40/50
Gateway Laundry Service
60
Bruddah & Sista’s Hawaiian Kitchen
70
Perfection Nails & Hair
80
H&R Block
100Bi-Mart
118
Sears Hometown Store
130Allstate
136Available
140Arby’s
142
Department of Transportation
148
Grove Medical Equipment
154
Papa Murphy’s
160
Zen Paws, LLC
166
Jasper’s Deli
172
Bortz’s Bargain Barn
178
Discount Smokes & Cigarettes
200
Grocery Outlet
220/240/260
Emerald Fitness Club
PAD 1
Bank of America ATM
PAD 2
O’Reilly Auto Parts
TENANT
Monument
Sign
178
172
166
4,456 Daily
SUITE #
160
154
148
142
136
130
Redwood hwy
SITE PLAN KEY
PARCEL #
O’Reilly Auto Parts (NAP)
2003284104900
Arby’s2003284102619
Greater Shopping Center 2003284104800
Bank of America ATM
2003284102621
80
Monument
Sign
60
ATM
30
40
50
70
RECENT LEASING ACTIVITY
Gateway Plaza has recent new leasing activity, increasing
the occupancy rate to a stabilized level of 98%. The
Property has seen 15.4% of the GLA leased in 2015-2016.
BRUDDAH’S AND SISTA’S HAWAIIAN KITCHEN
TENANT SIZE:
COMMENCEMENT: EXPIRATION: RENT: ESCALATIONS: 1,200 SF
12/1/2016
11/30/2021
$11.57/SF
3% Annually
BORTZ’S BARGAIN BARN
TENANT SIZE:
COMMENCEMENT: EXPIRATION: RENT: ESCALATIONS: TENANT SIZE: 1,740 SF
COMMENCEMENT: 1/1/2015
EXPIRATION: 12/31/2019
RENT: $5.86/SF
ESCALATIONS: $.017/SF Annually
PAPA MURPHY’S
2,175 SF
11/1/2016
10/31/2021
$5.40/SF
3% Annually
EMERALD FITNESS CLUB
TENANT SIZE:
COMMENCEMENT: EXPIRATION:
RENT:
ESCALATIONS:
GROVE MEDICAL EQUIPMENT
TENANT SIZE: 1,740 SF
COMMENCEMENT: 12/30/2015
EXPIRATION: 12/31/2020
RENT: $10.21/SF
ESCALATIONS: 3% Annually
ZEN PAWS
4,800 SF
11/1/2017
10/31/2019
$3.72/SF
+$0.12/SF Annually
TENANT SIZE: 1,740 SF
COMMENCEMENT: 9/16/2015
EXPIRATION: 9/30/2021
RENT: $6.00/SF
ESCALATIONS: 2018 $0.51/SF Increase
GATEWAY PLAZA | 10
IN-PLACE
PRICE
Financial Analysis
$6,900,000
Capitalization Rate
7.00%
Price Per Foot
LOAN SUMMARY
The following loan summary is for consideration
purposes only, and not a guarantee of loan terms. The
rates and terms are subject to market fluctuation.
For more information please contact Darryl Horowitz
at National Investment Finance Corporation.
PROPOSED CMBS TERMS
LOAN TO VALUE:70%
TERM:
10-Year Term
INTEREST RATE:4.5%
AMORTIZATION:25-Year
RECOURSE:
Yes, unless a loan at a 60%65% LTV. Loan with a life
company lender is preferred.
FOR MORE INFORMATION
DARRYL HOROWITZ
National Investment Finance Corporation
(360) 750-1031
[email protected]
$79
IN-PLACE
NET OPERATING INCOME SUMMARY
SCHEDULED INCOME
Scheduled Rent:
6/1/2017
Plus: Rent Increases Through
5/31/2018
Plus: Expense Reimbursement
Equals: Scheduled Gross Income
Vacancy Factor
5%
Equals: Effective Gross Income (EGI)
Per SF
$6.19
$0.03
$1.48
$7.69
($0.38)
$7.31
$537,278
$2,296
$128,547
$668,121
($33,406)
$634,715
Less: OPERATING EXPENSES
CAMS
Property Taxes
Insurance
Management Fee
Reserves
Total Operating Expenses
Per SF
$0.48
$0.74
$0.18
$0.26
$0.10
$1.76
$41,480
$63,970
$15,862
$22,957
$8,683
($152,952)
$5.55
$481,763
3.5% of EGI
Equals: NET OPERATING INCOME
LEVERAGED RETURN CALCULATION
Proposed New Loan :
Interest Rate
Amortization
Payment - Principal & Interest:
Start Date
70.00%
4.50%
25
($322,161)
Jun-17
$2,070,000
1.50
6.67%
$481,763
($322,161)
$159,603
7.71%
Equity Requirement:
Debt Coverage Ratio:
Debt Constant:
Net Operating Income:
Less: Total Annual Debt Service
Equals: Pre-Tax Cash Flow
Pre-Taxed Leveraged Cash-on-Cash Return:
This information has been secured from sources we believe to be reliable but we make no representations or3/20/2017
warranties, expressed
or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
$4,830,000
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<
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GATEWAY PLAZA | 11
Rent Roll
37 YEARS
BI-MART TENANCY
Rent Roll
TENANT INFO
Tenant Name
Novedades Romero
LEASE TERMS
CURRENT RENT
Suite
Size
% of SF
Occupancy
Date
Lease
Expiration
Monthly Base Rent
Rent/SF/YR
30
1,200
1.4%
2/1/17
1/31/18
$540
$5.40
5/1/05
8/31/18
$1,626
$8.13
9/1/17
12/1/16
11/30/21
$1,157
$11.57
12/1/17
$1,192
$208
Annual 3% Increases
10/1/13
9/30/18
$954
$9.54
10/1/17
11/11/11
4/30/21
$800
$8.00
5/1/18
7/1/19
Date
Monthly
Additional
Annual
1-1 Yr
60 Days' Notice
3% Increase
Comments: Landlord has a relocation right to move Tenant to another space in the shopping center.
Lease is Personally Guaranteed.
Gateway Laundry Service
40/50
2,400
2.8%
LEASE
TYPE
OPTIONS
RENT INCREASES
$1,658
$293
NNN
NNN
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
Bruddah's and Sista's Hawaiian Kitchen
60
1,200
1.4%
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
Lease is personally guaranteed.
Perfection Nails & Hair
70
1,200
1.4%
$973
$153
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
H&R Block
80
1,200
1.4%
Comments: Tenant has exclusive use for operating as a tax preparation/electronic filing purposes at the
shopping center.
Bi-Mart
100
30,000
34.6%
7/1/79
6/30/24
$12,705
$5.08
$824
$24
Annual 3% Increases
2-5 Yr
180 Days' Notice
FMR
1-5 Yr
180 Days' Notice
FMR
1-5 Yr
30 Days' Notice
FMR
$13,975
Gross
NNN
NNN
NNN
Comments: Tenant has exclusive use for the sale of prescription drugs.
Sears Hometown Store
118
6,090
7.0%
10/1/10
5/31/18
$1,644
$3.24
Allstate
130
1,740
2.0%
8/1/14
8/31/19
$870
$6.00
$1,862
$12.84
NNN
1-5 Yr
120 Days' Notice
FMR
Comments: Lease is Personally Guaranteed by leaseholder. Landlord has a relocation right to move
Tenant to another in space in the shopping center.
Available
136
1,740
2.0%
Arby's
140
1,500
1.7%
2/1/90
1/31/20
$1,996
$15.97
5/1/87
2/28/17
$2,011
$13.87
Comments: Tenant has "gone dark," yet is still responsible for all terms and conditions of lease, including
rent and NNN reimbursement. Ground Lease.
Department of Transportation
142
1,740
2.0%
Comments: Base rent excludes set monthly NNN reimbursement, as outlined in lease.
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.
NNN
NNN
2/1/18
$2,056
$240
Annual 3% Increases
NNN
1-2 Yr
90 Days' Notice
1.5% Annual Increases
NNN
GATEWAY PLAZA | 12
Rent Roll Continued
Rent Roll
Tenant Name
Grove Medical Equipment
Suite
Size
% of SF
Occupancy
Date
Lease
Expiration
Monthly Base Rent
Rent/SF/YR
148
1,740
2.0%
1/1/15
12/31/19
$850
$5.86
1/1/18
$875
$125
Annual $300 Increases
12/30/15
12/31/20
$1,480
$10.21
1/1/18
9/16/15
9/30/21
$870
$6.00
10/1/18
Comments: Tenant has a one-time Early Termination Right by providing 90 days' notice - termination
right must be exercised between 1/1/2017-1/31/2017. Landlord has a relocation right to move Tenant to
another in space in the shopping center. Lease is personally guaranteed.
Papa Murphy's
154
1,740
2.0%
Date
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
Lease is personally guaranteed.
Zen Paws, LLC
160
1,740
2.0%
Monthly
Additional
Annual
1-5 Yr
180 Days' Notice
FMR
$1,525
$222
Annual 3% Increases
NNN
NNN
$925
NNN
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
Lease is personally guaranteed.
Jasper's Deli
166
1,740
2.0%
12/1/93
11/30/20
$1,559
$10.75
12/1/17
$1,606
$281
Annual 3% Increases
Bortz's Bargain Barn
172
2,175
2.5%
11/1/16
10/31/21
$979
$5.40
11/1/17
$1,008
$206
Annual 3% Increases
10/15/14
10/31/19
$930
$5.13
11/1/17
$960
$210
Annual $360 Increases
1/16/14
1/31/24
$9,000
$5.45
2/1/19
$9,900
11/1/16
10/31/19
$1,440
$3.60
11/1/17
11/1/18
$1,488
$1,536
8/6/14
8/31/24
$1,500
$20.00
9/1/19
$1,725
Comments: Landlord has a relocation right to move Tenant to another in space in the shopping center.
Discount Smokes & Cigarettes
178
2,175
2.5%
Comments: Tenant has exclusive use for the purpose of a tobacco shop at the shopping center. Landlord
has a relocation right to move Tenant to another in space in the shopping center. Lease is personally
guaranteed.
Grocery Outlet
200
19,806
22.8%
Comments: Co-Tenancy with Bi-Mart. Tenant has exclusive use for the sale of wine and beer at the
shopping center.
Emerald Fitness Club
220/240/260
4,800
5.5%
Comments: Analysis does not reflect Rent Abatement of monthly rent until 11/1/2017. Tenant may
sublease suite 220 to Shane May real estate without Landlord apprival. Lease is personally guaranteed.
Landlord has a relocation right. Lease is personally guaranteed.
Bank of America ATM
PAD1
900
1.0%
$336
Comments: Tenant has a right of termination at any time, so long as 180 day's prior written notice is given
to Landlord. Tenant has co-tenancy with Bi-Mart and may pay reduced rent if Bi-Mart "goes dark" for 180+
days, and may terminate the lease 1 year after paying reduced rent if Tenant is still dark.
O'Reilly Auto Parts - Not Included
PAD2
6,721
1-5 Yr
180 Days' Notice
FMR
1-5 Yr
180 Days' Notice
3% Annual Increases
1-5 Yr
90 Days' Notice
FMR
NNN
4-5 Yr
180 Days' Notice
10% Increase
2-3 Yr
180 Days' Notice
Stepped
NNN
3-5 Yr
120 Days' Notice
15% Increase
MG
7.25%
NNN
NNN
NNN
NNN
Comments: Pad site is not included in the offering, yet contributes to CAM reimbursements of the greater
shopping center. Prorata share is based on total shopping center GLA excluding 900 SF Bank of America
ATM.
Totals:
Occupied
Leasable
86,826
85,086
1,740
100%
98%
2%
$44,773
$42,911
$1,862
$6.19
$6.05
$12.84
$2,296
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.
GATEWAY PLAZA | 13
Operating Expenses
Operating Expenses
PROJECTED OPERATING EXPENSES
Total
/SF
REIMBURSEMENTS
Notes
CAMS
$41,480
$0.48
1
$45,444
Property Taxes
$63,970
$0.74
2
$59,367
Insurance
$15,862
$0.18
1
$11,531
Management Fee
$22,957
$0.26
3
$12,205
Reserves
$8,683
$0.10
4
Total Expenses
$152,952
$1.76
$128,547
Notes:
1) Based on 2016 Budget with assumed 3% Increase. Reimbursements include Capped Mgmt/Admin fee.
2) Based on 2016-2017 Tax Assessment.
3) Based on 3.5% of EGI.
4) Methodology: $0.10/SF.
3/20/2017
[ 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.
>
GATEWAY PLAZA | 14
Reimbursements
Reimbursements
Tenant Name
Pro Rata
%
Expense Totals
Pro Rata CAM
Pro Rata
Property Taxes
Pro Rata
Insurance
Pro Rata
Management
$41,480
$63,970
$15,862
$22,957
Notes
Tenant Totals
Novedades Romero
1.4%
$573
$884
$219
$324
1
$2,001
Gateway Laundry Service
2.8%
$1,075
$1,657
$411
$975
1
$4,118
Bruddah's and Sista's Hawaiian Kitchen
1.4%
$0
$0
$0
$0
Perfection Nails & Hair
1.4%
$537
$829
$205
$573
1
$2,144
H&R Block
1.4%
$537
$829
$205
$480
1
$2,051
Bi-Mart
34.6%
$13,432
$20,714
$2,072
$0
2, 7
$36,218
Sears Hometown Store
7.0%
$2,727
$4,205
$1,043
$987
1, 8
$8,961
Allstate
2.0%
$779
$1,201
$298
$522
1
$2,800
Available
2.0%
$831
$1,282
$318
$1,117
1
$3,548
Arby's
1.7%
$672
$1,036
$104
$372
2, 11
$2,183
Department of Transportation
2.0%
$1,024
$964
$0
$0
3
$1,987
Grove Medical Equipment
2.0%
$779
$1,201
$298
$510
1
$2,788
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.
$0
GATEWAY PLAZA | 15
Reimbursements Continued
Reimbursements
Pro Rata
%
Pro Rata CAM
Pro Rata
Property Taxes
Pro Rata
Insurance
Pro Rata
Management
Notes
Tenant Totals
Papa Murphy's
2.0%
$779
$1,201
$298
$888
1
$3,166
Zen Paws, LLC
2.0%
$779
$1,201
$298
$522
1
$2,800
Jasper's Deli
2.0%
$779
$1,201
$298
$936
1
$3,214
Bortz's Bargain Barn
2.5%
$974
$1,502
$372
$587
1
$3,435
Discount Smokes & Cigarettes
2.5%
$974
$1,502
$372
$558
1
$3,406
Grocery Outlet
22.8%
$12,735
$13,675
$3,391
$0
4, 5
$29,802
Emerald Fitness Club
5.5%
$2,149
$3,314
$864
$1,189
1
$7,517
Bank of America ATM
1.0%
$300
$0
$0
$0
6, 12
$300
O'Reilly Auto Parts - Not Included
7.3%
$3,009
$968
$464
$1,665
2, 9, 10, 11
$6,107
TOTAL
100%
$45,444
$59,367
$11,531
$12,205
Tenant Name
$128,547
Notes:
Reimbursements are based on prorata share based on square footage of entire shopping center including O'Reilly Auto Parts.
1) Management Fee is capped at 5% of base rent.
2) Tenant reimburses liability insurance only, and pays fire/casualty direct.
3) Tenant pays $960 annually for taxes and $1,013.64 annually for CAM (which includes insurance and mgmt) for base years 3/1/2015-2/28/2017 and the percent of increase for each year
thereafter. Analysis estimates percent of increase based on 2016 Budget with assumed 3% increase.
4) Admin capped at 10% of CAM (excluding taxes and insurance).
5) CAM (excluding utilities, taxes, insurance) is capped at 5% year-over-year. Capped CAM includes Management reimbursement and Admin Fee based on 10% of CAM.
6) Tenant reimburses $25/month for waste disposal only.
7) Tenant does not reimburse roof or HVAC repair/maintenance, or management fee.
8) Effective June 2015, CAM and insurance capped at $9,744 annually.
9) Tenant is a pad site not included in the offering and situated on a different parcel. Tenant reimburses their prorata share of the total shopping center in CAM.
10) Tenant reimburses their prorata share of Land Tax, based on the Property Tax bill.
11) Tenant pays taxes for their parcel directly to taxing authority and reimburses their share of taxes for the larger shopping center.
12) Tenant pays taxes for their parcel directly to taxing authority.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed
3/20/2017
[ www.CapitalPacific.com ]
or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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GATEWAY PLAZA | 16
Lease Abstract - Bi-Mart
TAXES
Tenant is responsible for reimbursement of their prorata share of property Taxes
to Landlord.
INSURANCE
Tenant is responsible for maintaining an “all-risk” insurance policy protecting the
Property against fire and other perils and for reimbursing their prorata share of
Landlord’s policy.
PREMISES/TERM
TENANT
SQUARE FEET
LEASE TYPE
LEASE COMMENCEMENT
LEASE EXPIRATION
GUARANTEE
BI-MART CORPORATION
30,000 SF
NNN
July 1, 1979
June 30, 2024
Corporate guarantee by
The Bi-Mart Company
UTILITIES
Tenant is responsible for their share of all utilities used at the Premises.
TENANT’S OBLIGATIONS
Tenant is responsible for all non-structural maintenance and repair to their portion
of the building, parking lot, and for reimbursing their prorata share of all common
area expenses.
LANDLORD’S OBLIGATIONS
Landlord is responsible for maintaining all common areas of the Premises, and
maintaining all structural portions of the building, including the roof, exterior
plumbing system, and utility lines up to the building.
BASE RENT
10% increases every 5 years.
Date Range
Monthly
Annually
7/1/2014 - 6/30/2019
7/1/2019 - 6/30/2024 $12,705
$13,975
$152,460
$167,700
LEASE PROVISIONS
EXCLUSIVE USE
Landlord agrees to not lease any portion of the Shopping Center to be used for
the sale of prescription drugs throughout term of Bi-Mart lease.
GATEWAY PLAZA | 17
INSURANCE
Lease Abstract - Grocery Outlet
Tenant is responsible for maintaining a general liability, property, tenant worker’s
compensation, and self-insurance policies, and for reimbursing Landlord’s general
liability and “all-risk” policies.
UTILITIES
Tenant is responsible for their share of all utilities used at the Premises.
TENANT’S OBLIGATIONS
Tenant is responsible for all non-structural maintenance and repair to their portion
of the building, parking lot, and for reimbursing their prorata share of all common
area expenses.
PREMISES/TERM
TENANT
SQUARE FEET
LEASE TYPE
LEASE COMMENCEMENT
LEASE EXPIRATION
OPTIONS
GROCERY OUTLET, INC.
19,806 SF
NNN
January 16, 2014
January 31, 2024
Four, five-year Options; 180 Days’ Notice
BASE RENT
Date Range
Monthly
Annually
1/16/2014 - 1/31/2019
2/1/2019 - 1/31/2024
$9,000
$9,900
$108,000
$118,800
LANDLORD’S OBLIGATIONS
Landlord is responsible for maintaining all common areas of the Premises, and
maintaining all structural portions of the building, including the roof, exterior
plumbing system, and utility lines up to the building.
CAM REIMBURSEMENTS
CAM reimbursement (excluding taxes, insurance, and utilities) are capped at 5%
year-over-year.
LEASE PROVISIONS
EXCLUSIVE USE
OPTION PERIODS
Tenant has the exclusive use to sell grocery items and beer and wine in the
shopping center and within one mile at any property owned, managed, or
controlled by Landlord.
Rent increases 10% every five years.
CO-TENANCY
Date Range
Monthly
Annually
#1 2/1/2024 - 1/31/2029
#2 2/1/2029 - 1/31/2034
#3 2/1/2034 - 1/31/2039
#4 2/1/2039- 1 /31/2044
$10,890
$11,979
$13,177
$14,495
$130,680
$143,748
$158,123
$173,935
TAXES
Tenant is responsible for reimbursement of their prorata share of property
Taxes to Landlord.
Lease has a co-tenancy clause requiring Bi-Mart to be fully operational. If BiMart “goes dark” for a period of 180 consecutive days, Tenant may elect to pay
alternative rent based on the lesser of (i) 2% of monthly Gross Sales or (ii) 50% of
regular payment of base rent and additional rent.
RIGHT TO CEASE BUSINESS
Tenant may elect to cease business operations at any time and at Tenants sole
discretion, yet Tenant will still be responsible for all terms and conditions of lease.
If Tenant “does dark” for a period of 180 consecutive days, Landlord will have the
right to terminate Lease.
GATEWAY PLAZA | 18
radius Demographics
POPULATION
ABOUT COTTAGE GROVE
Cottage Grove is located along Interstate 5, 20 miles south of Eugene and the University of
Oregon. The city is situated in Lane County which has an estimated population of 352,010. The
largest employers of Cottage Grove include South Lane School District, City of Cottage Grove,
PeaceHealth Cottage Grove Community Hospital, Weyerhaeuser Company, Starfire Lumber,
Pacific Yurts, Wal-Mart, Safeway and Kimwood Co. Popular industries include manufacturing,
health and medical services, professional services, and a variety of agricultural businesses.
Cottage Grove has been designated an Enterprise Zone by the state, offering incentives to
businesses that expand or locate in the community.
1-Mile3-Miles 5-Miles
2010 6,20013,23316,131
2016 6,29213,55916,473
2021 6,42513,92916,894
HOUSEHOLD INCOMES
1-Mile3-Miles 5-Miles
Average$46,483 $52,001 $54,613
Median $36,036
$40,328
$42,114
EUGENE
Gateway Plaza
25 Mins
21.2 Miles
1 MILE
3 MILES
5 MILES
COTTAGE GROVE
GATEWAY PLAZA | 19
Q&A With capital pacific
Q: IS ARBY’S IN OPERATION?
Q: IS O’REILLY’S INCLUDED IN THE OFFERING?
A: No. Arby’s has “gone dark” and is no longer in operation, yet is still 100%
responsible for the terms and conditions of their lease agreement, including rent
and NNN reimbursements.
A: No, the O’Reilly’s pad is not included in the offering. O’Reilly’s was built-to-suit in
2015 and benefits from a reciprocal access and parking agreement and pays into
CAM pools of the greater shopping center.
Q: HAS THERE BEEN ANY ENVIRONMENTAL TESTING PERFORMED AT THE PROPERTY? Q: DO ANY TENANTS HAVE EXCLUSIVE USE CLAUSES WITHIN THEIR LEASE?
A: Yes, a Phase I environmental site assessment was completed by ECS Wagner
Environmental in December 1998. The conclusion of such assessment revealed
there is no evidence of recognized environmental conditions affecting the Property.
Q: DO ANY TENANTS HAVE EARLY-TERMINATION CLAUSES?
A: Yes, Grove Medical Equipment has a one-time termination right that can only be
exercised between January 1, 2017 and January 31, 2017 by providing Landlord
90 days’ prior written notice of termination alongside a termination fee based on
three months’ base rent.
A: Yes, the following tenants have exclusive use clauses:
H&R Block: Tax preparation, electronic filing, refund anticipation loans.
Discount Smokes & Cigarettes: Sale of cigarettes, e-cigarettes, cigars, and any
related legal accessories.
O’Reilly’s pad (not included in the offering): Sale of auto parts at the shopping
center.
The Bank of America ATM may terminate their lease at any time with 180 days’ prior
written notice to Landlord specifying the date of termination.
GATEWAY PLAZA | 20
WE SELL COMMERCIAL REAL ESTATE
BUT WE VALUE PEOPLE
Contact Information
FOR MORE INFORMATION ON
GATEWAY PLAZA PLEASE CONTACT:
KEVIN ADATTO
MICHAEL HORWITZ
SCOTT FRANK
SEAN MACK
PETER DUNN
SEAN TUFTS
[email protected] | (503) 675-7726
[email protected] | (503) 675-8383
[email protected] | (503) 607-0197
DAVID GELLNER
[email protected] | (206) 693-3349
[email protected] | (503) 675-8381
[email protected] | (503) 675-8378
[email protected] | (206) 693-3352
Capital Pacific is a Commercial Real Estate
Brokerage Firm specializing in Retail Investment
Sales in the Pacific Northwest as well as
Nationally.
Our goal is to deliver results for our clients while
providing a level of service that will earn repeat
business. We have a very human approach that
we call the Capital Pacific Experience - CPx. Our
team works together on every single assignment,
which ultimately benefits our clients.
Today Capital Pacific has offices in Seattle,
Portland & San Francisco.
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A unique HUMAN
RESULTS-DRIVEN
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[ Copyright © 2017 Capital Pacific LLC ]
The information contained in this document has been obtained from sources Capital Pacific believes to be reliable.
Capital Pacific makes no representation or warranty in respect to its accuracy. It is your responsibility to confirm its
accuracy and completeness.
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