Target

SINGLE TENANT NNN LEASED INVESTMENT

TARGET

Portland, OR

Portland’s First “Small Format” Target Store

BLAKE D. FEDERINKO

MICHAEL A. JENKINS

BRANDI M. HO

JEFF OLSON

 360.823.5111

 360.823.5102

 360.823.5112

 503.595.7567

 Blake@MAJCRE.com

 Mike@MAJCRE.com

 Brandi@MAJCRE.com

 Jeff@CRA-NW.com

2

6727 NE Vancouver Mall Drive – Vancouver, WA

CONFIDENTIALITY DISCLAIMER This offering has been prepared solely for informational purposes. It is designed to assist a potential investor in determining whether it wishes to proceed with an in-depth investigation of the subject property. While the information contained herein is from sources deemed reliable, it has not been independently verified by the MAJ Commercial Real Estate affiliate or by the Seller.

The projections and pro forma budget contained herein represent best estimates on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to such projections.

This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal. The contents herein are confidential and are not to be reproduced without the express written consent.

Interested buyers should be aware that the Seller is selling the Property “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. Prior to and/or after contracting to purchase, as appropriate, buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of the buyer’s choosing.

The Seller reserves the right to withdraw the Property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be: (i) presented in the form of a non-binding letter of intent; (ii) incorporated in a formal written contract of purchase and sale to be prepared by the Seller and executed by both parties; and (iii) approved by Seller and such other parties who may have an interest in the Property. Neither the prospective buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and writings and shall constitute the sole agreement of the parties.

Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them.

TABLE OF CONTENTS Lease Summary

5

Property Summary

6

Lease Abstract

7

Rent Roll

8

Operating Statement

9

Demographics

11

Aerial

12

Site Plan

13

Elevations

15

Portland, OR

18

4 Target | Portland, OR

MAJ COMMERCIAL REAL ESTATE & CRA NW MAJ Commercial Real Estate and Commercial Realty Advisors is pleased to present the opportunity to acquire a single tenant net leased investment located in Portland, OR. The property is leased to Target Corporation on a 10-year initial term with +/-6.5 years remaining.

This location is Portland, Oregon’s first “small format” Target Store, which refers to the store’s size of +/- 32,000 square feet. This flexible designs lets Target bring the best of the Bullseye into urban neighborhoods where a full-size Target wouldn’t fit, but still provide excellent shopping experiences for locals. Target is ideally located on Powell Blvd which has a daily traffic count of approximately +/-58,000 VPD and is a prime location for an Urban Target. This location also features a CVS Pharmacy. Centered between Grover Cleveland High School and Cleveland Track and Sports Field, Target is also surrounded by, McDonalds, Burgerville, Starbucks and much more.

Target | Portland, OR 5

Lease Summary PROPERTY ADDRESS: 3031 SE Powell Blvd., Portland, OR 97202 GUARANTOR: Target Corporation

LEASE GUARANTOR: Target Corporation S&P CREDIT RATING: A NUMBER OF LOCATIONS: 1,926 US Locations

OWNERSHIP TYPE: Fee Simple

HEADQUARTERS: Minneapolis MN WEBSITE: www.Target.com

TERM: 10-Years EXTENDED TERMS: 6, 5-Year Options LEASE TYPE: NNN LANDLORD RESPONSIBLE: Roof and Structure Roof Warranty in place until March 19, 2038. Tenant to perform all routine maintenance to the Roof and HVAC. RENT COMMENCEMENT DATE: November 13, 2018 LEASE EXPIRATION OF INITIAL TERM: January 31, 2029

Target Corporation is an American big box department store chain headquartered in Minneapolis, Minnesota. It is the eighth largest retailer in the United States, and a component of the S&P 500 Index. Target established itself as the discount division of the Dayton’s Company of Minneapolis in 1962. It began expanding the store nationwide in the 1980s (as part of the Dayton-Hudson Corporation), and introduced new store formats under the Target brand in the 1990s. The company has found success as a cheap-chic player in the industry.

The parent company was renamed Target Corporation in 2000, and divested itself of its last department store chains in 2004. It suffered from a massive, highly publicized security breach of customer credit card data and the failure of its short-lived Target Canada subsidiary in the early 2010s, but experienced revitalized success with its expansion in urban markets within the United States.

As of 2021, Target operates 1,926 stores throughout the United States, and is ranked number 37 on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue. Their retail formats include the discount store Target, the hypermarket SuperTarget, and “small-format” stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

6 Target | Portland, OR

Property Summary ADDRESS

TENANT LEASE TYPE YEAR BUILT / REDEVELOPED BUILDING SIZE LAND SIZE PARKING ELEVATOR SERVED:

3031 SE Powell Blvd., Portland, OR 97202 Target NNN 1959 / 2018 ±32,100 SF ±1.18 ACRES +/-89 Spaces Yes

Investment Highlights

 10% Rent Increase in 2023

Corporate Guaranteed Target Lease

Target’s New “Small Format” Store

Target | Portland, OR 7

$16,616,000 PRICE

4.25% CAP

Why Small Stores are a Big Deal for the Retailer’s Future



CLICK HERE TO ENTER STREET VIEW

TAXES

TENANT RESPONSIBLE When Target unveiled its new strategic plan last month, along with a $4 billion annual spending commitment to make it happen, arguably the biggest part of the announcement was actually something small. Specifically, it was the retailer’s almost singular focus on continuing to build out its fleet of smallformat stores — particularly on college campuses and urban streets, where its famed red bullseye has been largely absent.

In fact, of the 30 new stores that Target opened last year, all but one of them was a small-format or college campus store, which CEO Brian Cornell said was a record for the company’s downsizing initiative, which took root in 2014 with the little local store it opened near the University of Minnesota.

In its ongoing bid to serve customers from new neighborhoods at a time when ease, safety and convenience are more important than ever, Target’s leadership said it planned to repeat the socalled tiny Target trend for years to come. source: https://www.pymnts.com/news/retail/2021/why-small-stores-are-a-bigdeal-for-targets-future/

INSURANCE

TENANT RESPONSIBLE

CAMs

TENANT RESPONSIBLE

UTILITIES

TENANT RESPONSIBLE

8 Target | Portland, OR

Rent Roll LEASE YEAR

ANNUAL

MONTHLY

Initial Term

1-5

$706,200.00

$58,850..00

Initial Term

6-10

$776,820.00

$64,735.00

First Extended Term

11-15

$854,502.00

$71,208.50

Second Extended Term

16-20

$939,952.20

$78,329.35

Third Extended Term

21-25

$1,033,947.42

$86,162.29

Fourth Extended Term

26-30

$1,137,342.16

$94,778.51

Fifth Extended Term

31-35

$1,251,076.38

$104,256.36

Sixth Extended Term

36-40

$1,376,184.02

$114,682.00

10 YEAR

Initial Term

 6, 5-YEAR OPTIONS

 NNN

Lease Type

Target | Portland, OR 9

LESS OPERATING EXPENSES CAMs

Tenant

Property Taxes

Tenant

Insurance

Tenant

TOTAL EXPENSES

$0.00

$706,200



NET OPERATING INCOME

4.25%



 $706,200 SCHEDULED INCOME

CAP

 $16,616,000 SALE PRICE

SE GRAND AVE (54,767 VPD)

10 Target | Portland, OR

OW ELL

BLV D (5 8,0 00 VP D)

SUBJECT PROPERTY

SLEATER KINNEY RD SE

SE P

Target | Portland, OR 11

Demographics 



POPULATION

AVG HOUSEHOLD SIZE

28,419 211,202 1 mile

mile

3

504,374

2.15

5 mile

2.03

1 mile

3 mile

2.17 5 mile





MEDIAN AGE

AVG HOUSEHOLD INCOME

37.7 1 mile

38.3 3 mile

38.4

$103,635 $105,814

$108,493

5 mile

3 mile

1 mile

5 mile

BUSINESS 



TOTAL BUSINESSES

TOTAL EMPLOYEES

1,293 1 mile

17,141 29,946 3 mile

mile

15,788 272,923 416,016

5

1 mile

3 mile

5 mile

INCOME



$1,191



CONSUMER SPENDING (IN THOUSANDS)

 AVG HOUSEHOLD INCOME

$108,493 1 mile

$103,635 $105,814 3 mile

5 mile

$560,131 MEDIAN PROPERTY VALUE

12 Target | Portland, OR

Photos

Target | Portland, OR 13

Site Plan

BUILDING

Floor Plan

14 Target | Portland, OR

Garage Plan

In 2018 the property was fully redeveloped to include a Full Seismic Upgrade, New Roof, New Electrical and Plumbing, New HVAC, a Building Expansion (to include a loading dock), an Elevator and much more!

Target | Portland, OR 15

Elevations

16 Target | Portland, OR

Portland Powell Target Location Named Store of the Year by Shop! Association The Lighting Practice is thrilled to announce that Target Portland Powell received the Gold Award and was named Store of the Year during the 2019 Shop! Design Awards.

Target transformed a former southeast Portland, OR bowling alley into their newest small format store. Target and the design team embraced the building’s original purpose in the fit-out for the retail destination. This nod to the past was accomplished in many ways – incorporating retro signage elements, using reclaimed wood from the bowling alley lanes as a feature ceiling, and creatively integrating used bowling balls into balustrades.

The Lighting Practice was tasked with designing the interior lighting for the store. Linear pendants highlight perimeter walls, murals, and signage, providing necessary wayfinding to the stairs and elevators while encouraging customers to explore. Small LED accent lights recessed into the feature ceiling emulate markers found on a bowling lane and draw attention to this unique detail. The barrel-vaulted ceiling, once covered above the bowling alley lanes, is now exposed and proudly featured in the design. Direct/indirect linear pendants suspended over the main sales floor softly illuminate this unique ceiling structure and the sales

floor below. Adjustable track lighting provides flexibility to highlight featured merchandise and product displays.

“Judges were charmed by the way Target’s design sensibility and brand were merged seamlessly into the unique environment of the neighborhood landmark,” design:retail notes in its coverage of the 2019 Shop! Design Awards. The Lighting Practice is proud to have been a part of the design team for this award-winning project.

Receiving the Gold Award is a true honor for the design team.

Representing more than 2,000 companies from 30 countries, Shop! is a global trade association dedicated to enhancing retail environments. The Shop! Awards Competitions is the premier retail design awards program recognizing the best new designs in the industry. Four award programs each celebrate a different area of design expertise. Click here to check out the full list of 2018 Design Awards winners. https://www.thelightingpractice.com/target-portland-powell-store-ofthe-year/

Target | Portland, OR 17

18 Target | Portland, OR

Portland, OR Portland is a city of regional importance to the Pacific Northwest and the largest and most populous city in the U.S. state of Oregon. Within Oregon it is the sub-regional seat of power for Multnomah County, the largest county in Oregon by population. It is also an inland port city in the Willamette Valley region of the Pacific Northwest, at the confluence of the Willamette and Columbia rivers in Northwestern Oregon. As of 2020, Portland had a population of 652,503,making it the 25th-most populated city in the United States, the sixth-most populous on the West Coast, and the second-most populous in the Pacific Northwest, after Seattle.

Approximately 2.5 million people live in the Portland metropolitan statistical area (MSA), making it the 25th most populous in the United States. Its combined statistical area (CSA) ranks 19th-largest with a population of around 3.2 million. Approximately 47% of Oregon’s population resides within the Portland metropolitan area.

Named after Portland, Maine, the Oregon settlement began to be populated in the 1830s, near the end of the Oregon Trail. Its water access provided convenient transportation of goods, and the timber industry was a major force in the city’s early economy. At the turn of the 20th century, the city had a reputation as one of the most dangerous port cities in the world, a hub for organized crime and racketeering. After the city’s economy experienced an industrial boom during World War II, its hard-edged reputation began to dissipate. Beginning in the 1960s,[11] Portland became noted for its growing progressive political values, earning it a reputation as a bastion of counter-culture.

Target | Portland, OR 19

Portland’s location is beneficial for several industries. Relatively low energy cost, accessible resources, north–south and east–west Interstates, international air terminals, large marine shipping facilities, and both west coast intercontinental railroads are all economic advantages.

The city’s marine terminals alone handle over 13 million tons of cargo per year, and the port is home to one of the largest commercial dry docks in the country. The Port of Portland is the thirdlargest export tonnage port on the west coast of the U.S., and being about 80 miles (130 km) upriver, it is the largest fresh-water port.

The scrap steel industry’s history in Portland predates World War II. By the 1950s, the scrap steel industry became the city’s number one industry for employment. The scrap steel industry thrives in the region, with Schnitzer Steel Industries, a prominent scrap steel company, shipping a record 1.15 billion tons of scrap metal to Asia during 2003. Other heavy industry companies include ESCO Corporation and Oregon Steel Mills.

Technology is a major component of the city’s economy, with more than 1,200 technology companies existing within the metro. This high density of technology companies has led to the nickname Silicon Forest being used to describe the Portland area, a reference to the abundance of trees in the region and to the Silicon Valley region in Northern California. studio Laika; commercial vehicle manufacturer Daimler Trucks North America; advertising firm Wieden+Kennedy; bankers Umpqua Holdings; child care and early childhood education provider KinderCare Learning Centers; and retailers Fred Meyer, New Seasons Market, and Storables.

TARGET

Portland, OR

Portland’s First “Small Format” Target Store EXCLUSIVELY MARKETED BY: BLAKE D. FEDERINKO  360.823.5111  Blake@MAJCRE.com

MICHAEL A. JENKINS  360.823.5102  Mike@MAJCRE.com

BRANDI M. HO  360.823.5112  Brandi@MAJCRE.com

JEFF OLSON  503.595.7567  Jeff@CRA-NW.com