Available
Cap Rate
8.00%
Offering Price
$8,673,000
Year Built
1981
Building Size
130,407 SF
Price Per SF
$55/SF
Type
For Sale
Status
Available
Location
Port Orchard, WA

Investment Summary

Kidder Mathews is pleased to offer for sale Towne Square Mall, located in Port Orchard, Washington. Port Orchard is approximately 20 miles west of Seattle and approximately 29 miles north of Tacoma, in the Olympic Peninsula. The 130,407 square foot retail center is situated on 8.97 acres of land on SE Mile Hill Drive and includes 729 shared parking spaces. Anchor tenants include Ace Hardware, which has been at the center 21 years, and Goodwill, which has been at the center 11 years. This center provides an 8% yield going-in with the ability increase net operating income through the conversion of gross leases to triple net and the streamlining of management and operations. The asset also offers the opportunity for future redevelopment, with a low price per-square-foot for the land and building. An investor may benefit from Port Orchard being qualified as an Opportunity Zone; a federal tax program aimed at encouraging investment in local economies. Details of this program are on pages 19 and 20 of the offering memorandum.

Investment Highlights

STRONG ANCHOR TENANTS

Ace Hardware and Goodwill are national brands that have been at the center for 10+ years, bringing stability and recognition to the center.

EXCELLENT VISIBILITY & ACCESSIBILITY

The property has great exposure with 887 feet of frontage on SE Mile Hill Drive, multiple points of access and large pylon signage.

OPPORTUNITY ZONE

The town of Port Orchard has qualified as an Opportunity Zone; a federal tax program aimed at encouraging investment in local economies. Details of this program are on pages 19 and 20 of the offering memorandum.

POTENTIAL TO INCREASE CASH FLOW

The majority of tenant spaces are on gross leases, allowing an investor the ability over time to increase cash flow through conversion to NNN leases.

FUTURE REDEVELOPMENT OPPORTUNITY

The center is priced below replacement cost at $68 per square foot.

HIGH TRAFFIC LOCATION

16,000 vehicles pass by Towne Square Retail Center on SE Mile Hill Drive every day.

Property Summary

Offering Price
$8,673,000
CAP Rate
8.00%
Year Built
1981
Building Size
130,407 SF
Price Per SF
$55/SF
Address
1700 SE Mile Hill Dr, Port Orchard, WA, 98366

Market Summary

Kitsap County is part of a fast-growing region in technology, which is partly linked to the close proximity to large military installations as well as local defense contractors. Current facilities include the Puget Sound Naval Shipyard, Naval Undersea Warfare Center Keyport, and Naval Base Kitsap (NSB Bangor & NS Bremerton). Collectively, these facilities represent the largest employer in the county as well as being a driver for both the technology and service economies. Additionally, Kitsap County is host to the only nuclear reactor overhaul facility on the West Coast. The Central Puget Sound Region has one of the most diverse maritime economies in the world with excellent shipping, fishing, food processing, maritime logistics, naval architecture, as well as ship-building, repair and maintenance. There are 7,700 people that live in an immediate one mile radius of Towne Square Mall, with over sixteen thousand vehicles per day passing by. The average household income in the immediate area is just over $55,000 annually.

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