INVESTMENT or OWNER/USER OPPORTUNITY

Transcription

1 INVESTMENT or OWNER/USER OPPORTUNITY The Earth Building SPRING DISTRICT LOCATION BR-GC ZONING BLOCKS FROM FUTURE 130TH/BEL-RED LIGHT RAIL POSSIBLE REDEVELOPMENT OPPORTUNITY [ TH PL NE, BELLEVUE, WA ] w ww.ag m real es tate.com

2 INVESTMENT or OWNER/USER OPPORTUNITY THE EARTH BUILDING PRIME SPRING DISTRICT LOCATION Located at the eastern edge of the burgeoning Spring District - a 36- acre mixed-use urban neighborhood on the old Safeway Distribution Center site in the Bel-Red Corridor - the Earth Building features 36,234 SF of land and a 17,000 SF building in one of the fastest growing submarkets in the Seattle Metro area. ZONING In 2009, the City of Bellevue adopted new zoning and code ordinance for the Bel-Red corridor. Zoned Bel-Red General Commercial (BR-GC), the property enjoys a wide range of permitted uses with a maximum height limit of 45 feet. REPRESENTED BY JIM REED TSANG LIM jimr@agmrealestate.com tsangwlim@gmail.com TRANSIT LINKS Slated to begin operation in 2023, the East Link will connect downtown Seattle with Bellevue, the Spring District, and Bel-Red/Overlake. The 130th/Bel-Red Station is conveniently located just blocks from the Earth Building and will contribute significantly to the transformation and growth of the immediate vicinity. OPPORTUNITY With little affordable office opportunities available in the Bel-Red area, the Earth Building offers an investor a solid income stream into the future or offers an owner/user the option to occupy at least 7,410 SF in the building in the next two years. The location will be at the heart of all the bustle of the greater Spring District. PARKING Sound Transit has condemned a small portion of the property. Additionally, there will be a temporary construction easement that blocks the front parking lot during construction. Alternate parking is available next door at Columbia Business Park (see page 10). 02

3 THE SPRING DISTRICT Located between 130th and 132nd Avenues NE at NE Spring Blvd., the future 130th/Bel-Red station includes a 300-space park-and-ride. Current Character Mix of low-density commercial and industrial uses; Retail along Bel-Red Road and Northup Way/Northeast 20th Street; Some land uses already transitioning. Large, flat expanses of concrete and asphalt; and Auto-dependent, designed for larger trucks and buses. Future Character 2,350 new housing units in station area by 2030; Potential building heights at station node of 150 feet tall; Legacy uses coexisting with new development as area transitions will give area an interesting and eclectic character; A green and natural form of development, centered around transit; and Goff Creek restored with wetlands and public green space. 03

4 INVESTMENT OVERVIEW & SITE MAP PRICE: $6,000,000 CAP: 4.61% Occupancy: 100% TOTAL BUILDING AREA 17,897 SF PRICE PER SF $ LAND AREA 36,234 SF LAND PRICE PER SF $ LEASE TYPE NNN YEAR BUILT 1979/1990 PARKING 2.6/1,000 SF (Additional parking available at Columbia Business Park) 04

5 FINANCIAL OVERVIEW Price $6,000,000 Cap Rate 4.61% Price Per Foot $ MONTHS AFTER CLOSING 2018* Gross Rent $368, $384, $413, $459, $475, $490, Vacancy Factor - 2.5% ($9,214.38) ($9,616.05) ($10,342.18) ($11,495.99) ($11,894.81) ($12,255.76) Effective Gross Income $359, $375, $403, $448, $463, $477, Operating Expenses ($82,952.60) ($85,026.41) ($87,152.07) ($89,330.87) ($91,564.14) ($93,853.25) Annual Cash Flow $276, $289, $316, $359, $372, $384, Cap Rate 4.61% 4.83% 5.27% 5.98% 6.21% 6.40% * Estimated projections for 2018 and beyond. The information contained herein, while not guaranteed, has been secured from sources AGM Incorporated, a commercial real estate company, believes to be reliable and is considered the most current and correct data available. Prospective purchaser (or lessee) should verify all such information on their own behalf or have information verified by their attorney, accountant or business advisor

6 RENT ROLL SUITE EXISTING TENANT SF % OCCUPIED LEASE COMMENCE LEASE EXPIRY RENT/ MONTH CAM/ MONTH ANNUAL PSF RENT ANNUAL RENT OPTIONS 101 Sai Parivar Foundation $4, $25.00 $ (1) 1-Year Option 102 Eide Construction $1, $ $20.32 $21, None 103 Tri Med Ambulance $2, $26.00 $27, None 104 Asadal $1, $ $18.70 $28, (1) 5-Year with Market Rent 201 Earth Solutions NW $6, $2, $18.03 $98, None 204 Earth Solutions NW $1, $ $18.34 $35, None 206/207 Ultimate Salon Studios $5, $1, $18.00 $83,700.00* (2) 5-Year Options TOTALS $350, * Ultimate Salon has a rent increase to $19.50 PSF + NNN beginning December

7 OPERATING EXPENSES OPERATING EXPENSES 2017 BUDGET $/SF 2016 ACTUALS Water/Sewer/Metro $8,861 $0.50 $8,237 Garbage $3,634 $0.20 $3,597 Electricity $3,912 $0.22 $3,660 Janitorial $9,387 $0.52 $9,426 Landscaping $4,568 $0.26 $6,079 Repairs & Maintenance $7,500 $0.42 $9,528 HVAC $3,200 $0.18 $3,281 Fire & Life Safety $400 $0.02 $245 Management Fees $10,277 $0.57 $9,323 Real Esate Taxes $27,140 $1.52 $25,910 Insurance $2,645 $0.15 $2,190 TOTALS $81,523 $4.56 $81,476 07

8 OWNER/USER ANALYSIS BUILDING SF 17,897 PURCHASE PRICE $6,000,000 DOWNPAYMENT - 25% $1,500,000 LOAN AMOUNT $4,500,000 COST TO OWN / OCCUPY *BUILDING GROSS INCOME W/O OWNER/USER $265, BUILDING OPERATING EXPENSES ($82,953) ANNUAL OPPORTUNITY COST OF $1,500,000 DOWNPAYMENT 2% TAX FREE BOND RATE OF RETURN ($30,000) ANNUAL INTEREST COSTS (10 Years, 25-Year Amortization, 4.75%) ($213,750) TOTAL ANNUAL COSTS TO OCCUPY 7,410 SF AS OF ($61,703) $8.32 PSF GROSS TOTAL ANNUAL COSTS TO OCCUPY WITH PRINCIPAL PAYMENT ($157,892) $21.31 PSF GROSS Does not take into account depreciation for tax purposes, as well as appreciation of the property. The information contained herein, while not guaranteed, has been secured from sources AGM Incorporated, a commercial real estate company, believes to be reliable and is considered the most current and correct data available. Prospective purchaser (or lessee) should verify all such information on their own behalf or have information verified by their attorney, accountant or business advisor. 08

9 FLOOR PLANS FIRST FLOOR 09

10 FLOOR PLANS SECOND FLOOR 10

11 SOUND TRANSIT EAST LINK CONSTRUCTION IMPACT MAP 11

12 PROPERTY PHOTOS 12

13 PROPERTY PHOTOS 13

14 PROPERTY PHOTOS 14

15 AGM Incorporated th Avenue NE Suite 100 Bellevue, Washington tel fax The information contained herein, while not guaranteed, has been secured from sources AGM Incorporated, a commercial real estate company, believes to be reliable and is considered the most current and correct data available. Prospective purchaser (or lessee) should verify all such information on their own behalf or have information verified by their attorney, accountant or business advisor.