110 SE Main Street Portland, Oregon 97214

Transcription

1 FOR LEASE / FOR SALE / LEASE OPTION / SELLER CARRY / RARITY Central Eastside Commercial Condos 110 SE Main Street Portland, Oregon OPPORTUNITY FOR SMALL BUSINESSES TO OWN THEIR COMMERCIAL REAL ESTATE AND STAY IN CENTRAL PORTLAND A FLEXIBLE LANDLORD THAT IS FREE AND CLEAR ON THIS ASSET AND WILLING TO WORK WITH SMALL BUSINESSES LEASE AND TRANSITION INTO FUTURE OWNERSHIP PRESERVE WORKING CAPITAL 3 UNITS, EACH WITH A PORTION OF RETAIL AND OR OFFICE USE Commercial Black LLC John Gibson Licensed Oregon Principal Broker OR # NE 23rd Avenue Portland, Oregon Direct Mobile john.gibson@commercialblack.com EACH UNIT CAN BE SUBDIVIDED FOR MORE THAN ONE USE AND CREATE INCOME FOR THE OWNER Maximizing Value with Market Knowledge

2 Floor Plan UNIT 1 LEASED UNIT 1 UNIT 3 UNIT 2 UNIT 4

3 Unit 2 Concept: Retail with Flex - Industrial Space For Lease Conceptual Image The concept: A business owner with a preference to own their restaurant and not lease from a Landlord. As outlined above, this unit consists of 4,781 square feet total ownership area. We have illustrated this investment above separating the Unit into two (2) Suites. Suite A) of Unit 2, +/- 2,500 SF would be owner occupied. So, the owner operator purchases all 4,781 SF, they could occupy all 4,781 SF if needed or they could lease out 2,281 SF to a 3rd party tenant for $3,150 per month and subsidize their mortgage payment, as outlined about in Column #1 above. After the subsidy, the cost to own Unit 2 equates to $24.57 per square foot. Compare this rate to the leasing market. It should be noted that this rate is fixed for the term of the loan. This is before the benefits for building ownership such as, depreciation, interest deductions and operating expense reimbursement, that will lower your cost own even more. Seller financing (for qualified buyers) lowers the barrier of entry to purchase with lower down payment (10%) and no loan origination fees (can be up to 2.50% or more). Capital is preserved by the buyers allowing them to run successful businesses, hire more people, pay higher wages and create a better quality of life for themselves and others. Working to help small business. (115 Buildings sold to small businesses / Commercial Black ) PROPERTY TYPE OWNERSHIP TYPE UNIT SQUARE FOOTAGE Suite A) OFFICE OWNER OCCUPIED Suite B) INDUSTRIAL LEASED 3RD PARTY SALE PRICE - IMPROVEMENT COST ESTIMATE LANDLORD CREDIT TO BUYER AT CLOSING SALE PRICE PLUS IMPROVEMENT % DOWN DOWN PAYMENT AMOUNT FINANCED INTEREST RATE TERM (Months) MONTHLY PAYMENT Income from Suite B is proforma speculative OPTION I II $2,000,000 $2,000,000 $225,000 $235,000 ($50,000) ($50,000) $2,175,000 $2,185,000 ANNUAL DEBT SERVICE ANNUAL INCOME FROM SUITE B DIFFERENCE AFTER INCOME FROM SUITE B COST TO OWN PER SF (P&I) AFTER INCOME PRICE PER UNIT SQ. FT. Sales price less 10% down would be carried by seller. Cost to own per square foot is based on the 5,000 total ownership area for this unit Retail Condominium 4,781 2,500 2,281 10% 10% $217,500 $200,000 $1,957,500 $1,966, % 6.00% ($12,913) ($12,670) ($154,956) ($152,042) $37,500 $37,500 $117, $114, $ $23.96 $300 $325 The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warrant or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

4 Unit 3 Concept: Office with Flex - Industrial Space For Lease Conceptual Image The concept: A business owner with a preference to own their office space and not lease from a Landlord. As outlined above, this unit consists of 5,000 square feet total ownership area. We have illustrated this investment above separating the Unit into two (2) Suites. Suite A) of Unit 3, +/- 2,500 SF would be owner occupied. So, the office user purchases all 4,781 SF, they could occupy all 4,781 SF if needed or they could lease out 2,281 SF to a 3rd party tenant for $3,150 per month and subsidize their mortgage payment, as outlined about in Column #1 above. After the subsidy, the cost to own Unit 3 equates to $23.82 per square foot. Compare this rate to the leasing market. It should be noted that this rate is fixed for the term of the loan. This is before the benefits for building ownership such as, depreciation, interest deductions and operating expense reimbursement, that will lower your cost own even more. Seller financing (for qualified buyers) lowers the barrier of entry to purchase with lower down payment (10%) and no loan origination fees (can be up to 2.50% or more). Capital is preserved by the buyers allowing them to run successful businesses, hire more people, pay higher wages and create a better quality of life for themselves and others. Working to help small business. (115 Buildings sold to small businesses / Commercial Black ) PROPERTY TYPE OWNERSHIP TYPE UNIT SQUARE FOOTAGE Suite A) OFFICE OWNER OCCUPIED Suite B) INDUSTRIAL LEASED 3RD PARTY SALE PRICE - IMPROVEMENT COST ESTIMATE LANDLORD CREDIT TO BUYER AT CLOSING SALE PRICE PLUS IMPROVEMENT % DOWN DOWN PAYMENT AMOUNT FINANCED INTEREST RATE TERM (Months) MONTHLY PAYMENT Income from Suite B is proforma speculative OPTION I II $2,000,000 $2,000,000 $175,000 $200,000 ($50,000) ($50,000) $2,125,000 $2,150,000 ANNUAL DEBT SERVICE ANNUAL INCOME FROM SUITE B DIFFERENCE AFTER INCOME FROM SUITE B COST TO OWN PER SF (P&I) AFTER INCOME PRICE PER UNIT SQ. FT. Sales price less 10% down would be carried by seller. Cost to own per square foot is based on the 4,781 total ownership area for this unit Office Condominium 4,781 2,500 2,281 10% 10% $212,500 $200,000 $1,912,500 $1,935, % 6.25% ($12,616) ($12,765) ($151,394) ($153,175) $37,500 $37,500 $113, $115, $ $24.19 $300 $325 The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warrant or representation about it. It is your responsibility to independently confirm its accuracy and completen ess. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. Th e value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your adviso rs should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

5 Unit 4 Concept: Flex with Industrial Space For Lease The concept: A business owner with a preference to own their real estate and not lease from a Landlord. As outlined above, this unit consists of 5,770 square feet total ownership area. We have illustrated this investment above separating the Unit into two (2) Suites. Suite A) of Unit 4, +/- 2,500 SF would be owner occupied. So, the flex operator purchases all 5,770 SF, they could occupy all SF if needed or they could lease out 3,270 SF to a 3rd party tenant for $3,150 per month and subsidize their mortgage payment, as outlined about in Column #1 above. After the subsidy, the cost to own Unit 4 equates to $19.13 per square foot. Compare this rate to the leasing market. It should be noted that this rate is fixed for the term of the loan. This is before the benefits for building ownership such as, depreciation, interest deductions and operating expense reimbursement, that will lower your cost own even more. PRICE PER UNIT SQ. FT. Seller financing (for qualified buyers) lowers the barrier of entry to purchase with lower down payment (10%) and no loan origination fees (can be up to 2.50% or more). Capital is preserved by the buyers allowing them to run successful businesses, hire more people, pay higher wages and create a better quality of life for themselves and others. Working to help small business. (115 Buildings sold to small businesses / Commercial Black ). Conceptual Image PROPERTY TYPE OWNERSHIP TYPE UNIT SQUARE FOOTAGE Suite A) FLEX OWNER OCCUPIED Suite B) INDUSTRIAL LEASED 3RD PARTY SALE PRICE - IMPROVEMENT COST ESTIMATE LANDLORD CREDIT TO BUYER AT CLOSING SALE PRICE PLUS IMPROVEMENT % DOWN DOWN PAYMENT AMOUNT FINANCED INTEREST RATE TERM (Months) MONTHLY PAYMENT OPTION I II $2,000,000 $2,000,000 $175,000 $200,000 ($50,000) ($50,000) $2,125,000 $2,150,000 ANNUAL DEBT SERVICE ANNUAL INCOME FROM SUITE B DIFFERENCE AFTER INCOME FROM SUITE B COST TO OWN PER SF (P&I) AFTER INCOME Income from Suite B is proforma speculative Sales price less 10% down would be carried by seller. Cost to own per square foot is based on the 5,000 total ownership area for this unit Flex - Office Condominium 5,770 2,500 3,270 10% 10% $212,500 $200,000 $1,912,500 $1,935, % 6.00% ($12,322) ($12,467) ($147,867) ($149,607) $37,500 $37,500 $110, $112, $ $19.43 $300 $325 The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warrant or representation about it. It is your responsibility to independently confirm its accuracy and completen ess. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. Th e value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your adviso rs should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

6 110 SE Main Street Portland, Oregon Currently Zoning: IG1 Overlay: EZ Commercial Condos: 4 Tax Lots: (2) Parking: 7 Shared The commercial condos at 110 SE Main offer an affordable, low barrier entry opportunity for small businesses in Portland to get a chance to own their real estate. In a market that is increasingly unaffordable for small businesses, we want to provide a new opportunity to the market: real estate to the masses in the Central Eastside. At 110 SE Main, we can offer flexible terms: lease, a lease option and a sale. The seller will even finance the purchase for the right buyers.