$7,700,000. Airport Business Center FOR SALE PROPERTY NE 80th Ave, 7820 NE Holman Ave, 6130 NE 78th Ct Portland, OR 97218

Transcription

1 $7,700,000 PROPERTY THOMAS MCDOWELL RAYMOND DUCHEK ±48,756 Rentable Square Feet 3 Building Complex Class B with Amenities Convenient Location High Quality Concrete Buildings Strong National/Regional Tenants

2 Investment Highlights OFFER PRICE $7,700,000 PROPERTY SIZE NUMBER OF BUILDINGS YEAR BUILT SITE AREA ±48,756 Rentable SF Three 1987, multiple renovations ±4.8 Acres ±209,088 SF OCCUPANCY 95.7% PRICE PSF - BUILDING $ NET OPERATING INCOME $528,406 CAPITALIZATION RATE 6.86%

3 # of Tenants Rentable SF Building A 5 ±18,069 Building B 7 ±14,320 Building C 4 ±16,367 Total 16 ±48,756 B C A Site Description YEAR BUILT 1986 & 1987; renovated many times PARKING 197 spaces on site Plus street parking on 3 sides HVAC Ground mounted heating & cooling systems RESTROOMS Throughout each suite HANDICAP ACCESSIBILITY Wheelchair ramps at each building All restrooms are handicap rated Handicap parking spaces at each building ZONING EG2 - General Employment, City of Portland Allows: Office, Retail AMENITIES On-site Cafe - Breakfast & Lunch Exterior Entrances for each space Well maintained landscaping Sprinklered

4 Parcel Map Additional Investment Highlights Debt Free Low risk due to multiple tenants -13 Flexible building layout for future tenant movement 85+% of leases have annual rent escalations Professionally managed Renewal options in 43% of leases Spread out lease expirations 54% of square footage occupied by national tenants Quick access to major freeways: I-205, I-84, US 30 Bldg B Bldg C Bldg A

5 Property Photos Left Building B, Right Building C Building B NE Holman Avenue Building C NE 78th Court Building A NE 80th Avenue

6 Major Tenants The U.S. Department of Agriculture (USDA) is made up of 29 agencies and offi ces with nearly 100,000 employees at more than 4,500 locations across the country and abroad. They provide the American people with leadership in food, agriculture production, natural resource conservation, rural development, nutrition, and related issues. 100,000+ Employees $24 Billion in Funding for 2017 Since 1947, Morrison Child and Family Services has partnered with families and communities to provide effective and responsive services for children and youth coping with adversity and trauma. Leased until 5/ Employees Annual Operating Budget $28 Million Serves Approximately 7,000 Children & Families Kantar is one of the world s leading data, insight and consultancy companies Employees Offices in 93 Countries on 6 Continents Represents Over Half of the Fortune Top 500 Companies 4,500+ Locations 24 Airport Cafe Occupant for 24 years! Occupant for 10 years! Leased until 7/2024

7 Site Plan

8 Building A Floor Plan A1 CAFE A2 A3 A4 A5 A6 A8 Note: Floor plans are not to scale and demising walls/partitions may vary. EXPIRE SF OPTIONS A1 6/2019 1,734 (2) 5 years A2 4/2022 1,540 (2) 5 years A3 10/2019 3,030 A4 12/2018 2,697 A5, 6, 8 6/2019 9,068

9 Building B Floor Plan B6 B7 B9 B10 B5 B3 B1 Note: Floor plans are not to scale and demising walls/partitions may vary. EXPIRE SF OPTIONS B1 8/2018 1,750 B3 3/2022 2,000 (1) 5 years B5* 5/2022 4,587 (1) 5 years B6 5/2022 2,150 (1) 5 years B7 vacant 857 B9 6/2022 1,749 * B5 - Tenant has right B10 vacant 1,227 of 1st refusal on all Building B suites

10 Building C Floor Plan C10 C11 C4 C2 Note: Floor plans are not to scale and demising walls/partitions may vary. EXPIRE SF OPTIONS C2 7/2024 5,500 C4 3/2024 2,706 C10 4/2022 5,307 (1) 5 years C11 9/2020 2,854

11 Investment Opportunity GLOBAL ACCESS Air service is easily accessible, with the Portland International Airport (PDX) less than nine miles from downtown Portland, linked directly to the city via light-rail. 249 nonstop daily departures Direct flights to New York, San Francisco, Washington, DC and Vancouver, BC 64 nonstop international and domestic destinations More than 15 million passengers annually MARKET OVERVIEW WEST COAST VALUE Greater Portland is a hub for innovation and a workforce talent magnet. With a metropolitan labor force growing at six times the national average, this region is home to a deep pool of skilled workers across all industry sectors. With global connections and the most competitive cost of doing business on the West Coast, Greater Portland is able to offer the talent, infrastructure, connectivity and an attractive quality of life that make the region a great place for business. In choosing a location for expansion, business leaders need to know that they will see a return on their investments and that future growth is certain. Greater Portland meets those demands, as indicated by recent, significant investments by industry leaders such as Nike, Intel, Boeing, and Daimler Trucks North America LLC. Affordable and diverse commercial real estate continually attract new businesses and retain established companies. Continued growth combined with limited supply options and long-term development pipeline timing has pushed the vacancy rates continually lower, making Greater Portland one of the tightest metros across the nation. Property Vacancies Q Market Industrial Office Flex Warehouse Class A Class B Austin 9.2% 5.1% 8.7% 9.5% Denver 9.2% 4.2% 13.1% 9.7% Phoenix 13.7% 9.1% 14.7% 16.7% Greater Portland 7.9% 3.5% 9.4% 8.3% San Francisco 5.6% 2.6% 8.2% 7.0% San Jose (South Bay) 8.7% 2.5% 9.8% 7.4% Seattle 5.2% 3.0% 9.0% 8.1%

12 COMPETITIVE TAX STRUCTURE & INCENTIVES Businesses will find that Oregon has designed their tax codes to attract and retain companies, ranking #11 in the nation for business-friendly tax structure. The following programs are available in certain areas of the region for qualifying companies: Workforce hiring and training assistance On-the-Job Training program reimburses 50% of a business' cost of wages up to $4,000 while the business trains new hires to meet specific needs Governor's Strategic Reserve Fund Flexible resources available to assist companies looking to expand Business Expansion Program Forgivable loans to certified employers to allow for expanded operations and increased hiring Enterprise Zones In qualifying locations, 3-5 year property tax exemption INFRASTRUCTURE COST-EFFECTIVE AND RELIABLE ENERGY The Greater Portland region is strategically located on the convergence of the Columbia and the Willamette Rivers, giving customers direct access to the largest hydroelectric power supply in the country. In 2013, over 40 percent of the region s net electricity generation came from conventional hydroelectric power plants and renewable energy sources. This is remarkable in comparison to the national average of 11.7 percent.

13 TALENT MAGNET The cost of living for Greater Portland, significantly lower than in Los Angeles, San Francisco or Seattle, attracts skilled workers from all over the country. WORKFORCE Greater Portland has the advantage of drawing on a widely talented and diverse workforce exceeding 1.02 million: 19.3% work in trade and transportation, 13.7% in professional and business services, and 11.5% in manufacturing. More than 30% of the region s workforce consists of the creative class, including scientists, entrepreneurs, artists, designers and professional workers. EDUCATION Greater Portland is home to 36 public and private non-profit colleges and universities within 50 miles of the city center. Collectively, the region s colleges and universities enroll nearly 150,000 students in degree programs. The region boasts an impressive 26 students for every faculty member, a ratio equivalent to those in Austin, Seattle, and San Francisco. And 34.2% of the workforce holds a bachelor s degree or higher, ranking Greater Portland 7th among all major U.S. metros for broad educational attainment. IN-MIGRATION Greater Portland attracts more than 95,000 new residents a year, one of the highest rates in the nation based on percentage of population. Perhaps more important for a knowledge-based industry, of the largest 50 U.S. metro areas, only Portland and Seattle ranked in the top 15 for each period analyzed 1980 to 2010 with the highest rate of attracting and retaining young, college-educated (YCE) migrants.1 This means the region consistently attracts desired talent, even throughout boom and bust cycle. PRODUCTIVE WORKFORCE Greater Portland workforce productivity outpaces leading markets across the country. Value-added per worker was $111,744 higher than leading West Coast and tech markets. Even more compelling, worker productivity growth is increasing at double-digit rates.