By Meghan Hall
A recently developed retail asset known as the Olympic Towne Center has been posted for sale in Gig Harbor, Wash. Completed by WWR Properties in 2017, the developer and property manager is looking to offload the asset and give a new investor an opportunity to take advantage of the growing Gig Harbor market. Guidance for the property, according to an offering memorandum obtained by The Registry, is $63.9 million.
Located at 5118 Point Fosdick Dr. NW, the asset features 235,853 square feet of gross leasable building area and 17.97 acres of land area. The property was built out over a number of years, beginning with the first building occupied by Key Bank and Starbucks in 1982, followed by the Dairy Queen pad in 1986. Olympic Plaza, which totals 14,148 square feet was completed in 1999. The final phase, and the vast majority of the property–about 213,500 square feet–was added in 2017.
“Olympic Towne Center provides an investor solid in-place income from successful tenants, strong rental growth, and an unparalleled location in Gig Harbor, boasting approximately 7,000 visitors per day,” the offering memorandum explains.
Kidder Mathews’ Dave Speers, Arielle Dorman and Bruce Peart are marketing the property for sale on behalf of WWR Properties.
The center is anchored by Fred Meyer, a regional grocer for Kroeger Corporation. In June of 2015, Fred Meyer signed a twenty year ground lease for the grocery and adjacent gas service and. In all, the retail property is leased to 23 tenants. Other tenants include AutoZone, Kaiser Permanente, PetSmart and Jimmy Johns, among others.
The property is 98 percent leased, and 91 percent of the center is leased to what Kidder Mathews has deemed “e-commerce resistant” tenants. 63 percent of the tenants are also classified as credit tenants. The tenants also have staggered lease termination dates.
The property is located just off of State Route 16, between Commencement Bay and the Carr Inlet. Downtown Tacoma is about 20 minutes away by car.
“Gig Harbor known to locals as the gateway to the Olympic Peninsula and the Maritime City is both a bay on the Puget Sound and a harbor town that has been named one of the Smithsonian Magazines Top Five Small Towns for culture, heritage and charm,” the offering memorandum states. “Its unique location, close to metropolitan centers yet positioned on a quiet, beautiful and historic peninsula – provides visitors and residents with a beautiful historic waterfront town center, excellent site-seeing, and many cultural and dining opportunities.”
Demographics near the retail center are strong, with a population of 90,366 residents living within a five mile radius. The average household income is also high, at $119,360 per year. These fundamentals are expected to remain strong as Pierce County continues to grow. The implementation of public infrastructure, along with the presence of major employers such as Boeing, Joint BAse Lewis-McChord (JBLM), State Farm Insurance, MultiCare Health System and others, will continue to add to the demographic diversity and incomes needed to support major retail centers.