Overview
SURPRISE LAKE SQUARE (“the Center”) is a dominant, dual grocery and drug-anchored shopping center located within the Seattle MSA in the 100% captive trade area of Milton, WA. The asset is anchored by Grocery Outlet, Dollar Tree and Rite Aid as well as a top-performing Safeway who owns their own store. Although not part of the offering, the Safeway is one of the top-performing store locations in the state providing significant draw to the center.
The Center benefits from $150k average household incomes (1-mile radius), below market rents, including an extremely low Rite Aid rent, strong anchor sales, five quality free-standing pads, significant Safeway draw, captive high barriers to entry and a trade area approximately 27 miles from Seattle/Bellevue.
Investment Highlights
DUAL GROCERY & DRUG ANCHORED CENTER
Surprise Lake Square is the dominant grocery & drug anchored shopping center in the Milton trade area. Grocery/drug anchored, daily needs shopping centers continue to outperform all other retail products.
BELOW MARKET RENTS
The Center benefits from below market rents providing rental upside and solid NOI growth profile.
ANCHOR TENANT ANNUAL RENT
- Rite Aid: $1.42/SF/Year
- Dollar Tree: $10.75/SF/Year
- Grocery Outlet: $16.00/SF/Year
CAPTIVE TRADE AREA/NO COMPETING GROCERY-ANCHORED CENTERS
The Center is the only grocery-anchored center in the Milton/Edgewater trade area and benefits from a captive neighborhood with no competing grocery-anchored centers.
NATIONAL CREDIT TENANT LINEUP
Rite Aid, Grocery Outlet, Dollar Tree and Safeway (NAP) are all nationally recognized providing credit, stability and regional draw to the Center.
EXCEPTIONAL VISITOR FOOT TRAFFIC
The Center's convenient access and synergistic tenant mix attracts 2.7M annual visits from 300k unique visitors. Surprise Lake Square ranks in the top 14% of shopping centers nationally by annual visits.
DOMINANT LOCATION
- Surprise Lake Square is the dominant shopping destination for the immediate trade area and is the top-performing shopping center within a 3-mile radius.
- 56% or 1.5M of the Center’s total visits come from the Milton, Puyallup, Auburn, and Federal Way zip codes, showcasing the firm grip the Center has on the trade area.
RITE AID RENT
Rite Aid’s rent of $1.42/SF/Year provides embedded upside upon lease roll-over.
SAFEWAY SHADOW-ANCHORED
Safeway owns their own store and creates significant draw to the Center as one of the top-performing locations in the state.
6.07 YEARS OF WALT
The Center benefits from long-term leases and recent lease extensions providing a WALT of 6.07 years.
LEASING MOMENTUM
Indigo MultiCare, MOD Pizza, The Joint, Sol Boba, HopsNDrops, The UPS Store, Eurporean Wax Center and Tony’s Tacos have all signed new leases in the past 2.5 years.
FUTURE BREAK-UP VALUE
The 5 free-standing pads, including 3 drive-thrus provide an immediate break-up opportunity if desired.
BELOW REPLACEMENT COST
The Center will trade below replacement cost providing the investor the opportunity to acquire a quality, high-performing asset at an extremely low basis.
DEAL INFORMATION
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