CRI BUILDING PROPOSAL TO PROVIDE SELLER REPRESENTATION SERVICES

Transcription

1 CRI BUILDING PROPOSAL TO PROVIDE SELLER REPRESENTATION SERVICES PREPARED FOR// DUSTY DUNKLE 2108 SW 152nd St, Burien, WA PREPARED BY// SCOTT CLEMENTS P // sclements@orioncp.com DAVID BUTLER P // dbutler@orioncp.com

2 TABLE OF CONTENTS 1 // PROPERTY PROFILE PAGE// 3 2 // SALES COMPARABLES PAGE// 8 3 // VALUATION ANALYSIS PAGE// 12 4 // MARKETING PLAN PAGE// 15 5 // THE ORION TEAM PAGE// 19 2 // CRI BUILDING PROPOSAL

3 3 // CRI BUILDING PROPOSAL PROPERTY PROFILE

4 PROPERTY PROFILE ORION COMMERCIAL PARTNERS APPRECIATES THE OPPORTUNITY TO PRESENT OUR RECOMMENDATIONS AND QUALIFICATIONS TO REPRESENT CRI BUILDING. AFTER OUR IN DEPTH ANALYSIS OF THE PROPERTY WE ARE PLEASED TO PRESENT THE FOLLOWING VALUATION SW 152ND ST, BURIEN, WA ADDRESS 5,572 SF BUILDINGS SF 1987 RENOVATED 1990 YEAR BUILT MULTI-TENANT TENANT 11,993 SF SITE SIZE CN ZONING MARKET POSITION STRENGTH & HIGHLIGHTS PROPERTY INFORMATION 2108 SW 152ND ST, BURIEN, WA High-Quality Seahurst Office Building Legal Description: SEAHURST PARK ADD E 155 FT LESS E 70 FT OF S 120 FT THOF High Ceilings, Roadside Windows and Ample Parking APN (Parcel #): Quiet Neighborhood Setting Lot Area: 11,993 SF No Deferred Maintenance MODERATING THE CHALLENGES Building Area: 5,572 SF Burien Submarket Total Taxable Value: $935,600 4 // CRI BUILDING PROPOSAL

5 5 // CRI BUILDING PROPOSAL PROPERTY PROFILE PROPERTY PHOTOS

6 PROPERTY PROFILE FLOOR PLANS FIRST FLOOR SECOND FLOOR 6 // CRI BUILDING PROPOSAL

7 PROPERTY PROFILE AREA AERIAL 20 MINUTES TO DOWNTOWN SEATTLE SEAHURST PARK SALMON RAVINE PARK AMBAUM BLVD SW 1ST AVE S CRI BUILDING LAKE BURIEN DOWNTOWN BURIEN SEA-TAC INTERNATIONAL AIRPORT SW 160TH ST 7 // CRI BUILDING PROPOSAL

8 8 // CRI BUILDING PROPOSAL SALES COMPARABLES

9 SALES COMPARABLES PROPERTY ADDRESS PRICE BUILDING SF PRICE/SF (BUILDING) LAND SF PRICE/SF (LAND) CAP RATE CLOSE OF ESCROW 1 156TH ST CLINIC rd Ave SW Seattle, WA $1,500,000 7,808 $ ,732 $ % 3/27/17 2 FORMER SOUTHWEST SUBURBAN SEWER DISTRICT- ADMIN 431 SW Ambaum Blvd Burien, WA $810,000 4,256 $ ,200 $ /11/18 SUBJECT H & M VIDEO SERVICES 634 SW 149th St Burien, WA $700,000 4,050 $ ,721 $ /29/18 4 ELLIOTT OFFICE BUILDING 920 SW 152nd St Burien, WA $849,000 3,136 $ ,960 $ /02/ THREE TREE WELLNESS CENTER th Ave SW Burien, WA $785,000 3,591 $ ,507 $ /16/16 6 TRAVELLE FAMILY DENTISTRY 115 S 177th Pl Burien, WA $980,000 5,660 $ ,787 $ /01/ ARROW LAKE PLAZA st Ave S Normandy Park, WA $2,600,000 17,346 $ ,272 $ % 01/23/18 AVERAGES $1,174,857 $ $ % 9 // CRI BUILDING PROPOSAL

10 SALES COMPARABLES PROPERTY ADDRESS PRICE BUILDING SF PRICE/SF (BUILDING) LAND SF PRICE/SF (LAND) CAP RATE CLOSE OF ESCROW YEAR BUILT 1 156TH ST CLINIC rd Ave SW Seattle, WA $1,500,000 7,808 $ ,732 $ % 3/27/ FORMER SOUTHWEST SUBURBAN SEWER DISTRICT- ADMIN 431 SW Ambaum Blvd Burien, WA $810,000 4,256 $ ,200 $ /11/ H & M VIDEO SERVICES 634 SW 149th St Burien, WA $700,000 4,050 $ ,721 $ /29/ ELLIOTT OFFICE BUILDING 920 SW 152nd St Burien, WA $849,000 3,136 $ ,960 $ /02/ Upgrades // CRI BUILDING PROPOSAL

11 SALES COMPARABLES PROPERTY ADDRESS PRICE BUILDING SF PRICE/SF (BUILDING) LAND SF PRICE/SF (LAND) CAP RATE CLOSE OF ESCROW YEAR BUILT 5 THREE TREE WELLNESS CENTER th Ave SW Burien, WA $785,000 3,591 $ ,507 $ /16/ TRAVELLE FAMILY DENTISTRY 115 S 177th Pl Burien, WA $980,000 5,660 $ ,787 $ /01/ ARROW LAKE PLAZA st Ave S Normandy Park, WA $2,600,000 17,346 $ ,272 $ % 01/23/ // CRI BUILDING PROPOSAL

12 12 // CRI BUILDING PROPOSAL VALUATION ANALYSIS

13 PRO FORMA VALUATION ANALYSIS PRICE: $1,250,000 LOAN INFORMATION Proposed Down Payment: 25.00% $312,500 Proposed First Loan Amount: $937,500 Current Cap Rate: 6.24% Interest Rate: 5.00% Approximate Net Rentable SF: 5,572 sf Amortization: 25 Approximate Lot Size: 11,993 sf Annual Debt Service: $(65,766) Year Built: 1987 Cost Per Net Rentable SF: $ Rent Per Net Rentable SF: $15.00 NNN 2018 ANNUALIZED DATA ESTIMATED 2018 OPERATING EXPENSES Gross Potential Rental Income: $83,580 Real Estate Taxes (2018): Tenant Paid Plus Recaptured Operating Expenses: $27,860 Insurance: Tenant Paid Less Vacancy and Credit 5%: $5,572 Repairs: Tenant Paid Gross Operating Income: $105,868 Maintenance: Tenant Paid Less Operating Expenses: $27,860 Utilities: Tenant Paid Net Operating Income: $78,008 Less Annual Debt Service: $(65,766) Pre-Tax Cash Flow: $12, % Total Non-Recaptured Expenses: $ -- Plus Principal Reduction: $19,330 Total Property Expenses: $27,860 Pre-Tax Return: $31, % Estimated Property Expenses/Net RSF: $5.00 *as a percentage of down payment 13 // CRI BUILDING PROPOSAL

14 VALUATION ANALYSIS RECOMMENDED PRICING CRI BUILDING 2108 SW 152nd St, Burien, WA ,993 SF // Site Size Multi-Tenant // Tenant 1987 Renovated 1990 // Year Built 5,572 SF // Buildings SF CN // Zoning 5.2% PRO FORMA CAP RATE = $1,500,000 PRICE PER BUILDING SF = $ % PRO FORMA CAP RATE = $1,250,000 PRICE PER BUILDING SF = $ % PRO FORMA CAP RATE = $1,100,000 PRICE PER BUILDING SF = $ // CRI BUILDING PROPOSAL

15 15 // CRI BUILDING PROPOSAL MARKETING PLAN

16 MARKETING PLAN THERE IS MUCH MORE TO MARKETING PROPERTY THAN SIMPLY CREATING GLOSSY MARKETING MATERIAL, AND WE TAKE PRIDE IN THE FACT THAT OUR MARKETING PROCESS BEGINS ON A STRATEGIC LEVEL. THERE ARE THREE FUNDAMENTAL ELEMENTS THAT ARE REQUIRED FOR A SUCCESSFUL DISPOSITION: COMPLETE UNDERSTANDING OF THE CLIENT S OBJECTIVES AND THEIR REAL ESTATE CREATING A THOUGHTFUL MARKETING PROGRAM TARGETING THE RIGHT BUYER CATEGORIES AND SKILLFULLY PURSUING THEM. 16 // CRI BUILDING PROPOSAL

17 King Street Station S JACKSON ST Bailey Gatzert Elementary School SELLING THE STORY We provide a strategic platform to create the highest value for the property on the open market, effectively creating the story or value proposition for the asset. By establishing an investment theme or story, we have a much better chance of prospective buyers forming a similar underwriting belief versus drawing their own conclusions without any guidance. We view ourselves as the market experts and want to positively impact the buyers underwriting process. Developing a logical story for the asset will generate market excitement and value for the seller. Buyers need to understand there is a logical reason the property is being sold, and that there is reasonable value creation that the buyer can achieve. If that message is not clearly communicated in the marketing process, the pool of buyers will not understand the true value being offered and therefore will either not have interest in the offering and/or ultimately not pay maximum price for the asset. With our experience representing complicated, valueadded investments, we are confident in our ability to sell the story and maximize the highest price the market will bear for the asset. MARKETING MATERIALS Prior to beginning the selling process, ORION will develop a complete marketing package containing all pertinent information on the CRI Building, 2108 SW 152nd St, Burien, WA This comprehensive package will be distributed to pre-qualified buyers and interested brokers and will include the following: Property description Photographs of the property Location and area maps Site plans/parcel maps Income and expense analysis Sales Comparables Information & demographics for the area Articles of interest MARKETING PLAN Additionally, a concise flyer will be designed for CRI Building, which will include a photograph of the property, a location map and a brief summary of the investment offering. CLOSING The marketing campaign for CRI Building, will include both direct promotion to pre-qualified buyers and market-wide promotion to maximize contact with prospective buyers and agents. These activities will be evaluated weekly and modified to provide the most comprehensive and effective marketing plan for your building. DATABASE Our Buyer database includes contact information and acquisition criteria for all prospective Buyers who have bought, sold or own properties in the Northwest region as well as national Buyers who would be prospects for entering our market. DIRECT MAIL The property flyer and summary investment offering will be mailed, along with an introduction letter, to anyone that has bought or sold similar property throughout Washington State. Follow-up comprehensive marketing packages upon request. EvErGrEEn EyE CEnTEr Ambulatory Surgery Center th Avenue S, Federal Way, WA HIGHLIGHTS Offered at 5.75% Cap Rate New 10.5-year NNN Lease with annual rent increases Well established state-of-the-art eye surgery center Strategically located at the entrance of St. Francis Hospital Brokers: Scott Clements David Butler sclements@orioncp.com dbutler@orioncp.com Direct Mailer to Top Decision Makers FOR SALE $4,900,000 An HTML blast, including a downloadable property flyer will be ed to all Northwest regional brokers and prospective Buyers on a bi-weekly basis. FOR SALE: $7,500,000 Seattle Curtain Co. Building: th avenue, Seattle, Wa ,000 Square Foot of land redevelopment Site INTERNATIONAL DISTRICT Scott Clements P// sclements@orioncp.com PUGET SOUND / ELLIOT BAY RAINIER AVE S 159,192 VPD David Butler P// dbutler@orioncp.com 1218 Third Avenue Suite 2200 Seattle, WA YESLER TERRACE BOREN AVE S YESLER WAY SEATTLE CBD P// Established in 2010 SUBJECT PROPERTY FIRST HILL CENTRAL DISTRICT Property flyer for pre-qualified buyers and Interested brokers 17 // CRI BUILDING PROPOSAL

18 COMPANY BENEFITS MARKETING PLAN INTERNET ADVERTISING The property will be posted to several real estate listing sites, including LoopNet, CBA, CoStar, CREXi and Vertical . SUMMARY Well-planned, highly organized and discreetly controlled exposure to the maximum number of qualified buyers in a short period of time is the heart of our marketing strategy. This professional approach to the marketing of your property assures you that we will find the best buyer at the highest possible price for your property. AS A COMPANY, ORION COMMERCIAL PARTNERS OFFERS THE FOLLOWING ADVANTAGES AS YOUR LISTING BROKERAGE: SYNTHESIS OF COMPANY OPERATIONS, COMMUNICATIONS, OBJECTIVES MARKET KNOWLEDGE AND A WEALTH OF STRATEGIC PARTNERSHIPS. DEEP-ROOTED REPUTATION TIRELESS COMMITMENT TO OUR CLIENTS DIRECT PHONE FOLLOW-UP All prospective Purchasers expressing interest receive direct phone follow-up from the Listing Team. Upon entering into a purchase agreement, ORION Commercial Partners will coordinate all closing and escrow activities. These activities will be provided as requested and include: Recommendations of services, such as inspection services, attorneys, certified public accountants, leasing agents and property management personnel Preparation and delivery of Due Diligence materials, etc. Coordinate Title and Escrow materials Assist the purchaser in locating and securing financing Preparation of all documents required for closing, such as purchase and sale agreements, receipt of documents, acknowledgments, deposit increase agreements, deposit transfers, escrow agreements and all other escrow documents Coordinate and schedule on-site inspections Deliver contingency documents Assist purchaser during due diligence period JUST SOLD SOLD FOR: $8,600,000 Aggressive Cap Rate Building: 34,459 SF Land: 2.75 Acres 2 Transactions: Leasehold & Fee Simple Ground Lease Premiere Edmonds Retail Property 1st Sale in 37 Years! Targeted HTML Blasts PCC Natural Markets 9803 Edmonds Way, Edmonds, WA // CRI BUILDING PROPOSAL

19 19 // CRI BUILDING PROPOSAL THE ORION TEAM

20 THE ORION TEAM INVESTMENT SALES SERVICES ORION'S PARTIAL TRANSACTION LIST CenterPoint Corporate Park Kent, WA Office $54,200,000 Ross Center Portland, OR Retail $17,500,000 Auburn Marketplace Auburn, WA Medical Office $12,100,000 West Valley Business Park Kent, WA Office//Flex $10,400,000 Seattle Veterinary Specialists Kirkland, WA Medical $10,400,000 Walgreens Tacoma Retail $10,052,000 Kimball Creek Village Snoqualmie, WA Neighborhood Retail/Office $9,900,000 Edmonds PCC Edmonds, WA Retail $8,600,000 3 Property Grocery Portfolio Puget Sound Area Grocery Retail $7,700,000 Gateway Plaza Gig Harbor, WA Office $5,800,000 Tieton Village Yakima, WA Multi-Tenant $5,700,000 The ORION team is successful not only because of the depth and breadth of our individual experience but also our collective experience selling and leasing properties in challenging submarkets. From pension funds, insurance companies, corporate owners, private funds and syndications to individual owners of single buildings, our success and negotiations on behalf of owners in the local market can be backed by case study and client testimonials. Our team s daily interaction and everyone reading from the same sheet mentality sets the stage for effective representation. We fill a need for a new model in the industry one where real estate service providers truly understand the client s objectives and implement strategies focused on maximizing client returns and adding real estate value. We focus on quality, not volume. From the first conversation, you will notice what truly differentiates us from other brokerages and gives us our competitive advantage: we listen. When your objectives are understood, you have the highest probability of meeting and exceeding your goals. Furthermore, our commitment to long-term client relationships, high levels of transparency, and communication at each step in the process means you know you have a loyal advocate representing your interests. Our repeat client-base is evidence of this. Our nimble, team focused organization grants you access to the full attention of an experienced talent pool which is supported by a company ownership that is flexible and sensitive to our client s needs. Our clients reap the rewards of our experience and the wisdom we have gleaned from many years in the Investment Sales Market. Each broker at ORION has spent years in large national commercial real estate firms, but have matured to the point where relationships are more important than scale. Our mantra of maintaining responsiveness to each and every client, and achieving the highest level of service results in the highest level of satisfaction with our performance in the local market. Real estate is more than a commodity and evolving real estate markets require strategies that only the most forward-thinking can deliver. The dynamics of the commercial real estate market make local knowledge perhaps the most critical tool for capitalizing on market trends. We pride ourselves in our ability MAXIMIZING REAL ESTATE VALUE to stay ahead of the curve using the most up-to-date marketing and data analysis tools to achieve our clients goals. ORION investment brokers have sold over $520 million of property, including assets from all the major food groups in commercial real estate, in every form of evolution from development land to coupon clipper investments. Collectively, we draw on over 60 years of real estate experience when developing the best action plan for an acquisition and establishing the best market position for a property disposition. Add to this our hundreds of lease transactions and consultations, and you can be assured that your Team has the breadth of knowledge to face any set of circumstances. Evergreen Eye Center Federal Way, WA Medical Office $4,725, // CRI BUILDING PROPOSAL

21 THE ORION TEAM DAVID BUTLER Vice President Investment Sales P// C// E// RELEVANT EXPERIENCE David specializes exclusively in investment sales, representing both buyers and sellers throughout the Puget Sound region. Mr. Butler joined ORION Commercial Partners in 2012 from Grubb & Ellis, where he began his real estate career in September of He has gained the reputation throughout the industry as a skilled sales agent and has become an invaluable asset because of his persistence, professionalism, and his drive for premium levels of service. In his free time, David enjoys fly fishing, playing golf, and watching sporting events. ACADEMIC & ASSOCIATIONS BA, Geography (Economic and Geographical Information Systems), University of Washington Commercial Brokers Association Member SCOTT CLEMENTS Vice President Investment Sales P// C// E// sclements@orioncp.com RELEVANT EXPERIENCE Scott specializes in investment and owner/user sales in the greater Puget Sound area. He has extensive experience representing sellers and buyers of commercial real estate. This experience has enabled him to negotiate the most competitive deals on behalf of his clients on either side of a transaction. Mr. Clements began his commercial real estate career with Leibsohn & Company in July Since then, Scott has successfully represented numerous clients in the acquisition and disposition of their commercial properties. Scott joined ORION Commercial Partners in 2012 from Grubb & Ellis where he continues to specialize in office and retail investment sales. ACADEMIC & ASSOCIATIONS BS, Department of Building Construction, University of Washington Commercial Brokers Association Member SCOTT & DAVID'S PARTIAL LIST OF INVESTMENT SALES Auburn Marketplace Auburn, WA Seattle Veterinary Specialists Kirkland, WA Walgreens Tacoma, WA Kimball Creek Village Snoqualmie, WA Gateway Pointe Business Park Gig Harbor, WA Edmonds PCC Edmonds, WA Grant County Mall Moses Lake, WA 3 Property Grocery Portfolio Puget Sound Area Cherry Terrace Seattle, WA Walgreens Milwood, WA Landmark Building Seattle, WA Tieton Village Yakima, WA Walgreens Post Falls, ID Evergreen Eye Center Federal Way, WA Aaron s Rents Portfolio WA, ID, WY & MT International Blvd SeaTac, WA Shoreline Park Office Complex Shoreline, WA Medical $12,000,000 Medical $10,400,000 Retail $10,052,000 Neighborhood Retail/Office $9,900,000 Office $9,800,000 Retail $8,600,000 Retail Center $8,135,000 Grocery Retail $7,700,000 High-rise Zoned Development $6,450,000 Retail $6,296,875 Medical Office $5,750,000 Multi-Tenant $5,700,000 Retail $5,435,000 Medical $4,725,000 Retail $4,719,000 Office $4,000,000 Office $3,675,000 Edmonds Post Office Edmonds, WA Mixed-use Development $2,835, // CRI BUILDING PROPOSAL

22 ORION Commercial Partners maximizes real estate value through comprehensive project acquisition/disposition, property/ asset management, and leasing services. We are a progressive real estate services and investment firm constantly seeking a perfect alignment of interests between us as the service provider and our clients. ORION delivers a UNIFIED TEAM APPROACH to fulfill our client s objectives. Creativity, accountability and focused attention are the hallmarks of our business Third Avenue Suite 2200 Seattle, WA P// Established in 2010