The Carlyle Building. 521 SW 11th Avenue Portland, OR HISTORIC OFFICE BUILDING LOCATED IN PORTLAND S WEST END DISTRICT

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1 The Carlyle Building 521 SW 11th Avenue Portland, OR HISTORIC OFFICE BUILDING LOCATED IN PORTLAND S WEST END DISTRICT

2 THE OFFERING The Carlyle Building is a 4-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 4-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 also provide for a substantial value-add investment opportunity. Finally, the short-term leases and overall character of the asset makes it a well suited for partial owner occupancy. PROPERTY SUMMARY THE CARLYLE BUILDING 521 SW 11th Avenue, Portland, OR Number of Stories 4 Total Rentable Area Estimate 16,617 SF Site Area 5,000 SF Zoning RXd Typical Floor Plate 4,400 SF Year Built 1909 with Renovations Current # of Tenants Eight Occupancy 100% In-Place NOI $223,348 Pro-Forma 3rd Year NOI $349,899 Asking Price $4,450,000 1

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4 INVESTMENT HIGHLIGHTS Rare Opportunity to acquire an office asset in the Portland CBD Portland is identified by the ULI Emerging Trends in Real Estate 2018 as the #2 market in the U.S. to buy Office Property in 2018 Portland CBD office rents have increased nearly 18% in the past 3 years, reflecting a 5.98% average annual increase Excellent value proposition relative to similar assets in other West Coast cities of Seattle and San Francisco Classic Portland historic structure, 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, new, classic, contemporary, and 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. Highly rated for all means of transportation with high Walk Score ratings as Walker s Paradise (Walk Score 99), Rider s Paradise (Transit Score 92) and Biker s Paradise (Bike Score 94) Portland Streetcar stop adjacent to the property and MAX light rail stop within 1.5 blocks A FIT FOR ALL INVESTOR TYPES Stable Investment: 100% leased to multiple tenants providing a stabilized income stream Value-Add Opportunity: Over 80% of the existing office tenants have been in place for more than 10 years, with existing contract rents on short-term leases averaging 30%+ below current market rent Owner/User Opportunity: Relatively short-term leases allow for planned owner occupancy over time 3

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6 LOCATION: 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, SW Park Avenue to the east, West Burnside to the north, and SW Yamhill Street 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 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 WALK SCORE 99 Walker's Paradise BIKE SCORE 94 Biker's Paradise TRANSIT SCORE 92 Rider's Paradise Ideally situated on SW 11th Avenue, in the heart of the vibrant West End, The Carlyle Building is well-served by public transportation and easily accessible by car. 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 HOTSPOTS PORTLAND FOOD CARTS 5 Portland State University PORTLAND STREETCAR Portland CBD 5

7 26 Goose Hollow Transportation Bullseye Portland Streetcar stop adjacent to building 1.5 Blocks from MAX Light Rail stop 3 Blocks from Interstate Freeway access SW 12TH AVE MAX LIGHT RAIL Alphabet District SW 11TH AVE 405 THE CARLYLE BUILDING MAX LIGHT RAIL SW WASHINGTON ST SW STARK ST W BURNSIDE BLVD. PORTLAND STREETCAR Pearl District 6

8 The Carlyle Building 521 SW 11th Avenue Portland, OR EXCLUSIVE ADVISORS DAVID T. HILL Senior Managing Director D M dhill@ngkf.com WENDY K. HILL Associate D M wendy.hill@ngkf.com 760 SW 9th Street Suite 200 Portland, OR I