Overview

The Offering

505 - 525 Puyallup Avenue consists of five, one and two story industrial and office buildings containing 46,200 SF of building on 47,255 SF of land.

The Tacoma CBD, the hub of the Pierce County market, consists of over 7,000,000 SF of Class A/Class B office space retail and multifamily. The Pierce County population is estimated at 843,954 people. The population of Tacoma increased by 6% between 2010 and 2015, due to residents and employees moving south from King County.

Tacoma is the economic engine of the South Puget Sound and the third largest city in Washington State. Tacoma’s economic drivers include the Port of Tacoma, the ninth largest container port in North America and MultiCare Health System, one of the largest healthcare providers in the country. In addition, the Puget Sound is home to the Boeing Company, Amazon.com, and Franciscan Health System.

Investment Summary

OFFERING PRICE $3,200,000
CURRENT OCCUPANCY 50.75%
PRICE / SF $69.26
LAND AREA 1.08 AC / 47,255 SF
NET RENTABLE AREA 46,200 SF
ZONING DMV

Tenants

NORTHWEST REFLECTIONS

Nth DEGREE CREATIVE

Property Details

ADDRESS 505 Puyallup Avenue, Tacoma, WA
507 Puyallup Avenue, Tacoma, WA
509½ Puyallup Avenue, Tacoma, WA
511-523 Puyallup Avenue, Tacoma, WA
525 Puyallup Avenue, Tacoma, WA
COUNTY / CITY Pierce / Tacoma
BUILDING SIZE 505: 16,950 SF
507: 6,500 SF
509½: 3,250 SF
511-523: 6,500 SF
525: 13,000 SF
YEAR BUILT / RENOVATED 1926 / 1985
NO. OF STORIES 505: 2
507: 1
509½: 1
511-523: 1
525: 2
BUILDINGS Five (5)

Location

Highlights

  • SOUND TRANSIT CENTER

    Sound Transit operates express bus, light rail, and commuter train services throughout King, Pierce, and Snohomish counties. The Tacoma Dome Station is directly across the street from 505 - 525 Puyallup Avenue which brings a lot of activity to the area. In January 2018 the Sound Transit saw over 3.8 million riders which were a 3.2% increase from January 2017, with more growth to be expected.
  • FREIGHTHOUSE SQUARE RENOVATION

    The Freighhouse Square train station in Tacoma has recently seen a renovation and is now the newest Amtrak Cascaded Station in the area.
  • TACOMA DOME

    The Tacoma Dome is a renowned arena in western Washington and home to countless world-class entertainment.
  • PACIFIC CHARTER SCHOOL

    Pacific Charter School bought the landmark building located at 409 Puyallup Avenue. The building saw a complete renovation as it is now a brand new charter high school.
  • KOZ DEVELOPMENT APARTMENTS

    Located at 304 Puyallup Avenue, will be 152 brand new apartment units set to become available in the summer of 2019.

Market Area

Pierce County Market Overview

In addition to being the home of the third largest city in Washington, Tacoma is located approximately equidistant between Portland and Seattle. This proximity to the two largest metro areas in the Northwest has in part, lead to recent development. First Industrial Trust completed construction in nearby DuPont, building a 1 million square foot fulfillment facility for Amazon.

Pierce County has been one of the fastest growing counties in the state of Washington since the 1960’s, and has consistently exceeded the state’s overall rate of growth. Pierce County supports manufacturers such as Boeing, Milgard Manufacturing, James Hardie Building Products, Toray Composites (America), Inc., and Medallion Foods. Recreational Equipment, Inc. (REI), Whirlpool, and Costco also have major distribution centers here. State Farm Insurance has a regional headquarters in Pierce County, and innovation thrives at the research divisions of Intel and Madigan Army Medical Center.

The majority of population increase has been due to the migration of people into the County. This continued migration is the result of Pierce County’s relatively stable economy and exceptional quality of life. The low-cost living, award-winning education, and lifestyle opportunities, combined with the area’s competitive cost of doing business, create an outstanding environment for businesses and residents to work, play, and live.

Economy

Two words best describe the business climate found in Pierce County’s economy: emerging opportunity. In part, this is because of the county’s strategic location at the mid-point between the major metropolitan areas of the central Puget Sound to the north, and Portland, Oregon to the south.

The presence of the military exerts a stabilizing influence on the Pierce County economy and employs nearly 57,000 residents of Pierce County. In the last several years, the county has noticed quite a dramatic shift in the regional diversification of its workforce. Professional services rank as one of the leading components of industry. These include a solid anchor of Intel, multiple web design firms, and legal and consulting companies.

State jobs and public education employ roughly 20,000 residents. Medical services that provide emergency and maintenance health care for the surrounding five-county region. Traditional manufacturing by many local producers that captures a significant piece of their specific global market. An emerging life sciences community has grown in the region within the last five years.

Fort Lewis and Lewis-McChord Air Force Base

Joint Base Lewis-McChord (JBLM) is the largest military installation in the western United States, and the second largest employer in the entire state of Washington. Its presence is recognized throughout Pierce and Thurston Counties and Washington State as a significant economic benefit to the South Puget Sound. In turn, communities surrounding JBLM enhance the quality of life for military personnel and families by providing high quality neighborhoods, schools, recreation opportunities, and retail services. JBLM has experienced significant population growth to support its mission. Since 2003, nearly 40,000 people have arrived at JBLM and more continue to arrive. The total military-connected population is estimated to reach 136,000 by 2016.

Port of Tacoma

The Port of Tacoma is an independent seaport located on more than 2,400 acres of land that are used for shipping terminal activity, warehousing, distribution and manufacturing. The Port plays the largest international trade role in the Pacific Northwest, handling between nine and thirteen million tons of cargo and more than $52 billion in commerce. Major imports include automobiles, electronics, and toys, while major exports include grain, forest products, and agricultural products. Based on tonnage, the Port’s largest export is grain (corn and soybeans) that come into the port by rail from the Midwest. In 2014, the Port of Tacoma’s top trading partner, based on two-way trade value, was China/Hong Kong.

China/Hong Kong was also the top partner ranked by volume imported and value imported. Japan was the top partner ranked by volume exported and value exported. The top commodities exported, by value, were cereals and grains. The top commodities imported, by value, were vehicles and parts, followed by industrial machinery and electronics. The port is among the top ten largest container ports in North America. Containers hold everything from computers and lawn furniture, to apples and frozen meat. Based on container volumes, China is the port’s largest trading partner. More than 70 percent of the containers imported through the port move by rail to markets in the Midwest and East Coast. The port is served by the BNSF Railway and Union Pacific railroads. Shoreline rail service is provided by Tacoma Rail, which is owned by the City of Tacoma. U.S. Oil and Refining operates an oil refinery in the Port of Tacoma. Oil tankers bring crude oil, which is refined into a variety of products, including JP-8 jet fuel for Lewis-McChord Field Air Force base. Port activities are related to more than 43,000 jobs in Pierce County, and 113,000 jobs in Washington.

Demographics

The region consists of approximately 3,898,720 (2015, U.S. Census Bureau Estimate) residents in King, Snohomish, Pierce, and Kitsap counties. The current figure represents a 1.6% increase over the 2014 as the region added 63,270 new people. This marks the fourth consecutive year of increased annual growth. Positive population growth in the region is expected to continue through the end of the forecast period. The Puget Sound Regional Council is estimating the area’s population to be 4,479,131 in 2030, an 11.9% increase.

The Seattle-Tacoma-Bellevue metropolitan area (MSA) is clearly the economic engine of Washington State. The MSA ranks 13th among 362 markets nationwide in terms of effective buying income (EBI or after-tax, discretionary spending power). The median household EBI in the Greater Seattle Area is 20% higher than the national median.

Approximately 56% of the population is in the prime workforce age of 25-64. Residents are among the most highly educated in the nation, with more than 35% having at least a bachelor’s degree and one-third of those holding a graduate or professional degree.

Long-term forecasts call for the Greater Seattle area to resume its historic strong growth patterns. The Puget Sound Regional Council expects the area to add approximately 855,000 new jobs by 2040.

Employment

The number of jobs in Pierce County totaled approximately 275,800 in 2015. The Auburn Boeing Plant, opened in 1966, is the largest airplane parts plant in the world with 2,100,000 square feet and 1,265,000 parts manufactured each year. With 5,179 employees, the Boeing plant is the largest employer in the area. Many businesses are small shops or small to medium service businesses, including The World Vision Headquarters, St. Francis Hospital, and United States Postal Service. Numerous companies with over 1,000 employees, including City of Tacoma, Weyerhauser, Xerox Commercial Services, State Farm, Muckleshoot Tribal Enterprises, Costco, & The Outlet Collection Seattle are located in Pierce County.

Due Diligence

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