FOR SALE $7,579, th Parallel 2195 Hyacinth Street NE Salem, OR YEAR GROUND LEASE.

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1 45th Parallel 2195 Hyacinth Street NE Salem, OR YEAR GROUND LEASE FOR SALE $7,579,000 INVESTMENT REAL ESTATE SERVIES TOM MDOWELL (503) RAYMOND DUHEK (503)

2 INVESTMENT HIGHLIGHTS Passive Ownership Opportunity Seller will execute 99 year absolute net ground lease at closing. Ground Lessee to be responsible for all real estate taxes, insurance, maintenance, management and property leasing. Structured Rent Increases The initial annual rent will be $360,000. The rent will increase 5% every five years on the lease anniversary date. Secure Income Stream Lease payments are supported by multi-tenant industrial/ creative building. Over 40 tenant spaces with room to expand building square feet over time. Substantial Investment in Upgrades The current owner has invested approximately $2.5 million retrofitting the interior, bathroom upgrades, lighting, skylights, roof, seismic, insulation, and parking lot site work. Great Access and Exposure The site offers superb freeway access to I-5 via Portland Road NE and Salem Parkway. It also features great visibility at the corner of Hyacinth and 25th Avenue NE, as well as excellent ingress and egress from this signalized intersection. Experienced Operator Ground Lessee has been owner/operator of commercial property for 23 years. urrently has 8 projects in Oregon with over 320,000 square feet and 1 project in alifornia totaling 45,000 square feet. For more information on the operator, visit Highly Desirable Property Type The building s multi-tenant / incubator build-out caters to office, retail, and light industrial uses, from ,000 SF, thus providing a diverse and stable cash flow. Glass roll up doors, high ceilings, contemporary lighting, and shared loading docks have enhanced property functionality and aesthetics which have been very well received by the tenant market. Recent Up Zone The property has recently been up-zoned by the ity of Salem from Industrial General (IG) to Industrial ommercial (I), which allows for office, retail, and light industrial tenants, as well as live work. This flexibility will increase the diversity of tenants for the property as well as the ability to achieve higher rent structures. 45TH PARALLEL / 2

3 PROPERTY SUMMARY PRIE $7,579,000 ANNUAL RENT $360,000 AP RATE 4.75% YEAR BUILT 1964, Renovated in 2014, 2015, 2016 EXTERIOR Large Building - oncrete Tilt Small Building - Metal and Wood BUILDING SIZE Existing Main Building Storage Building Total LAND AREA 67,320 SF 3,840 SF 71,160 SF 4.70 Acres on 1 Tax Lot EILING HEIGHT Large Building lear Height Small Building - 20 lear Height DOKS & DOORS Grade Level 10+ Dock Level 8 Entrances 16+ SUBJET PROPERTY 4.70 A OUPANY 50% currently LOATION Southwest of I-5 and Portland Road NE; Only 3 minutes to I-5 45TH PARALLEL / 3

4 PHOTOS 45TH PARALLEL / 4

5 PHOTOS 45TH PARALLEL / 5

6 SITE PLAN TAX LOT 300 NOT PART OF SALE TH 25 AVE TAX LOT 200 APPROX A NOT BUILT REATIVE OFFIES / FOOD OURT NOT BUILT SOUTH RETAIL HYAINTH ST MAIN OFFIE / RETAIL BUILDING NORTH REATIVE OFFIES FUTURE REATIVE OFFIES TH 45 PARALLEL- SITE PLAN SALE: 1" = 30' ARHITETURE O M M U N I T Y 363 STATE STREET SALEM, OR P: TH PARALLEL / 6

7 AERIAL MAP SUBJET PROPERTY NE Marine Dr NE Airport Way 45TH PARALLEL / 7

8 SALEM OVERVIEW Salem is the capital city of Oregon with a population of more than 160,000. entrally located in the Mid-Willamette Valley, Salem is 45 miles South of Portland and 68 miles North of Eugene. Salem is a large hub in the West with a prime location on Interstate 5 between alifornia and Washington. Interstate 5 intersects with Highway 22 in Salem, providing additional connections east to Idaho and west to the Oregon oast. With sustained, steady growth, Salem is an ideal market for expanding businesses and commercial investors. Ongoing preservation of historic downtown buildings, along with a downtown core master plan for residential and commercial development, ensures managed growth. There is abundant land for development, a ready and willing workforce, great training programs, and a city that works hard to make doing business easy. Private sector employers and public officials aggressively collaborate on creative, industry-driven, and proactive approaches of supporting the workforce development needs of the region s employers. Source: cityofsalem.net % % 7.21% 2.68% Source: oregonprospector.com *2010 U.S. ensus Bureau 1.96% 100+ LOATION 60.70% 1-4 Number of Employees Per Business ity Distance Drive Time Population Portland Metro 45 miles 50 min 2,226,009* Eugene 68 miles 1 hr 5 min 165,291 Bend 134 miles 2 hr 30 min 88,920 36% of the population have a college degree 28% more homeowners than renters 23% decrease in unemployment rate since 2015 QUIK FATS POPULATION 165,599 1 IN 5 HOUSEHOLDS EARN $100,000+ LARGEST EMPLOYER State of Oregon LARGEST PRIVATE EMPLOYER Salem Health BUSINESSES WITHIN A 20-MILE RADIUS 15,665 MEDIAN AGE 35 UNEMPLOYMENT RATE 4.30% 45TH PARALLEL / 8

9 LOATION DOWNTOWN PORTLAND 45 miles - 50 minutes 5 MILE 3 MILE 1 MILE DEMOGRAPHIS 1 Mile 3 Mile 5 Mile 2017 Population 17, , , Population 18, , ,082 Median HH Income $32,492 $44,673 $48,008 45TH PARALLEL / 9

10 SITE & BUILDING PLANS 25TH AVE. NE SLOPE SLOPE EASEM LOADING DOK NEW DEVELOPMENT ENT 12 SPAES NT EASEME 71 SPAES NEW OMMERIAL 65 x 216 = 14,040 SF NEW OMMERIAL/ RESTAURANT 8,100 SF NOT PART OF SALE (2) LOADING LOADING 3,840 SF B LOADING ZONE EXISTING WAREHOUSE BUILDING A 67,320 S.F. TOTAL BUILDING 145A NEW WAREHOUSE 52 x 192 = 9,985 SF LOADING DOK LOADING ZONE DEK AREA LOADING DOK 145B LOADING ZONE (6) LOADING RIGHT - IN RIGHT - OUT ONLY DEQ EASEMENT SANITARY SEWER EASEMENT POWER EASEMENT Jan. 146 NEW DEVELOPMENT 192'-0" 19'-5" 96'-1" 15'-11" UNION PAIFI R/R A, B - Existing Buildings orridor Elec SPAES Mahoney ross Fit 150 UP orridor SPAES RR URRENT USES: WAREHOUSE: 15,930 S.F. 38,830 S.F. OFFIE: IR/STRUT.: 12,560 S.F. Mens Aquatic Day are ,320 SF 190 Shower EXISTING MIXED USE RETAIL / SERVIE BUILDING 12 SPAES 185 Style Rehab RR 96 SPAES 175 Future 162 RR Future 164 RR MV Transportation SPAES Future 168 Office 180 EXISTING DEVELOPMENT Elec. Office Office HYAINTH ST. NE 13 SPAES Development Potential orridor Entry Entry New Walkway Occupied ARBUKLE OSTI ARHITETS, inc. 45TH PARALLEL / 10