521 SW 11TH AVENUE PORTLAND, OREGON

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1 521 SW 11TH AVENUE PORTLAND, OREGON

2 2 KIDDER MATHEWS THE CARLYLE BUILDING

3 EXECUTIVE SUMMARY The Offering The Carlyle Building is a four-story, 16,617-square-foot, historic office building located in the burgeoning West End District of Downtown Portland. Built circa 1909, this building with a four-story atrium and interior sky bridges provides the type of environment that is highly sought after by Portland s dominant creative office users. Few opportunities arise to acquire quality investment assets within Portland s high-demand urban core, and even fewer within this particularly well-positioned neighborhood and at this investment scale. With the combination of current 100% occupancy, desirable ground floor retail tenant, and long-term office tenancy history, this is a very desirable stabilized asset. In addition, the relatively short-term and below market office leases provide for a substantial value-add investment opportunity. Finally, the short-term leases and overall character of the asset makes it well suited for partial owner occupancy. ADDRESS 521 SW 11th Avenue, Portland, OR NO. OF STORIES Four (4) RENTABLE AREA 16,617 SF SITE AREA 5,000 SF / 0.11 AC ZONING RXd TYPICAL FLOOR PLATE 4,400 SF YEAR BUILT 1909 with Renovations NO. OF TENANTS Eight (8) OCCUPANCY 100% IN-PLACE NOI $223,348 PRO FORMA NOI (YEAR 3) $349,899 ASKING PRICE $4,450,000 OFFERING MEMORANDUM KIDDER MATHEWS 3

4 EXECUTIVE SUMMARY Investment Highlights Rare opportunity to acquire an office asset in the Portland CBD Portland is the #2 market in the U.S. to buy office property in 2018 according to ULI Emerging Trends in Real Estate 2018 Excellent value proposition relative to similar assets in other West Coast cities such as Seattle and San Francisco Classic Portland historic structure, which is highly desired by Portland s creative office culture Historic office buildings make up over one third of the Portland CBD and have been at the forefront of the burgeoning creative office movement Premier location within Portland s vibrant West End District, with a unique blend of historic and contemporary buildings with mixed density residential, retail, and office uses The West End District is nestled between the Pearl District, Core CBD, and South Park Blocks, home to Oregon s largest university, Portland State University Portland Streetcar stop adjacent to the property and MAX light rail stop within 1.5 blocks A FIT FOR ALL INVESTOR TYPES Stable investment that is 100% leased to multiple tenants providing a stabilized income stream Value-add opportunity with over 80% of existing office tneants in place for more than 10 years and existing contract rents on short term leases averaging 30% below current market rent»» Owner/user opportunity as relatively short-term leases allow for planned owner occupancy over time 4 KIDDER MATHEWS THE CARLYLE BUILDING

5 18% INCREASE in Portland CBD office rents in the past 3 years, reflecting a 5.98% average annual increase OFFERING MEMORANDUM KIDDER MATHEWS 5

6 6 KIDDER MATHEWS THE CARLYLE BUILDING

7 PROPERTY DESCRIPTION West End District The Carlyle Building is located in Portland s thriving CBD, situated in the revived historic West End. The booming West End has emerged as a center of creativity, fashion and nightlife, while being characterized as a downtown mixed-use and residential neighborhood. Bordered by Interstate 405 to the west, Southwest Park Avenue to the east, West Burnside to the north, and Southwest Yamhill Street to the south, the West End has a diverse and distinctive architectural character, a range of building ages and scales, and a wealth of historical, cultural, institutional and open space assets. Tucked between Powell s City of Books and the downtown retail core, the area is home to a growing number of local and international design shops, fashion boutiques, restaurants, cafes, and hotels (including a new, 15-story, 211 room Hyatt hotel breaking ground one block south). The area is also a food cart mecca. Its urban character is shaped by numerous historic buildings, new housing projects, many restaurants and retail activities, as well as a strong relationship with the South Park Blocks (home to Portland State University) and the Cultural District. The area has seen a tremendous amount of development and renovation in recent years, with more to come. One proposed project is Eleven West, a planned 24-story office and multifamily project adjacent to the north of the property. The City of Portland s Bureau of Planning and Sustainability expects the West End to grow by 3,000 households and 3,000 jobs (for a total of 6,800 households and 9,900 jobs) between 2010 and Ideally situated on Southwest 11th Avenue, in the heart of the vibrant West End, The Carlyle Building is well-served by public transportation and easily accessible by car. Additionally, there is a Portland Streetcar stop directly in front of the building, and access to the MAX within 1.5 blocks. There are multiple parking lots, both surface and structured, within a couple blocks in all directions. Access to Interstate 405, which connects to Interstate 5 going north and south, and Highway 26 heading west, is just a few blocks from the building. WEST END HOT SPOTS OFFERING MEMORANDUM KIDDER MATHEWS 7

8 99 WALK SCORE 92 TRANSIT SCORE 94 BIKE SCORE PORTLAND STREETCAR PORTLAND CBD PACIFIC HIGHWAY W MAX LIGHT RAIL SW 3RD AVENUE 8 KIDDER MATHEWS THE CARLYLE BUILDING SE MORRISON BRIDGE

9 26 GOOSE HOLLOW The Carlyle Building is a transportation bullseye ALPHABET DISTRICT Portland Streetcar STOP IS ADJACENT TO THE BUILDING W BURNSIDE STREET PEARL DISTRICT Max Light Rail 1.5 BLOCKS FROM THE SUBJECT PROPERTY Interstate Access 3 BLOCKS FR0M INTERSTATE FREEWAY ACCESS OFFERING MEMORANDUM KIDDER MATHEWS 9

10 EXCLUSIVELY OFFERED BY David T. Hill Senior Vice President Wendy K. Hill Vice President Kidder Mathews 1 SW Columbia Street, Suite 950 Portland, Oregon kiddermathews.com