Offering Memorandum THE WALRUS BUILDING Leary Way NW Seattle, WA, Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum THE WALRUS BUILDING Leary Way NW Seattle, WA, Exclusively offered by Paragon Real Estate Advisors 1

2 Offering Summary Paragon Real Estate Advisors is pleased to exclusively offer for sale The Walrus Building. Perfectly situated in the quickly growing Frelard neighborhood between Fremont and Ballard, this high end retail building has exceptional street appeal and sought-after tenants with easy to manage NNN leases. This is an excellent opportunity for the investor to purchase a well located and highly renovated/new construction investment in one of the fastest growing neighborhoods in Seattle. Please do not contact tenants for any reason. Seek any additional information from the listing Brokers. Name Address Existing Use Tenants Built/Renovated 2014 Building Size Lot Size Zoning The Walrus Building Leary Way NW Seattle WA Two Restaurants Frelard Pizza Company Tarsan i Jane 4,130 Sq.Ft. (Per Plans) 8,787 Sq.Ft. IBU-45 Price $2,995,000 2

3 Investment Highlights Two well established neighborhood restaurants Complete renovation in 2014 and designed by Graham & Baba Architects Frelard Pizza includes new roof, plumbing and mechanical systems Frelard Pizza also includes all new roof, siding, building envelope, electrical, plumbing, HVAC, skylights, and garage doors Tarsan i Jane is newly constructed structure Inviting and popular outdoor seating areas Excellent street frontage and visibility Frelard has been discovered by residential developers and is quickly adding many residential units Frelard is also a destination location for millennials and those seeking quaint coffee shops, great restaurants and a hip nightlife 3

4 Aerial Map LAKE WASHINGTON SEATTLE CBD SODO ELLIOTT BAY WALLINGFORD BURKE FREMONT GILMAN QUEEN ANNE THE WALRUS BUILDING TRAIL MAGNOLIA 15TH AVE NW LEARY WAY NW BALLARD 4

5 Aerial View 5

6 Birdseye View 6

7 Leary Way Aerial FREMONT SEATTLE CBD QUEEN ANNE BALLARD 7

8 Nearby Development Address Development Planned NW Ballard Way New Seasons Grocery N 36th Retail, 36 Apartments and Parking rd Ave NW 5 Townhome Units NW 44th St 11 Townhome Units NW 41st St 3 Townhome Units nd Ave NW 2 Live/Work Structures ( 11 Units ) THE WALRUS BUILDING

9 Major Surrounding Employers SEATTLE CBD 300,000+ JOBS THE WALRUS BUILDING 9

10 Frelard Pizza Company -Lease Abstract and Highlights Industrial Pizzeria from Ethan Stowell Lease Information Highlights > 2,389 square foot net rentable area > 2,151 square feet of occupant area > $5,574 month fully NNN lease > 3% annual increases > 10 year lease signed through December 2024 > One, 5 year option to extend lease > Tenant maintains common area hallway and bathroom > Graham & Baba architecture design > Significant interior renovations from both ownership and tenant > All new roof, siding, building envelope, electrical, plumbing, HVAC, skylights, and garage doors > Structural upgrades to framing, foundation, and floor > Garage door windows opening to versatile patio 10

11 Tarzan i Jane -Lease Abstract and Highlights Modern Valencia cuisine influenced by the Pacific Northwest Lease Information > 1,741 square foot net rentable area > 1,568 square feet of occupant area > $4,523 month fully NNN lease > 3% annual increases > 10 year lease signed through April 2024 > One, 5 year option to extend lease > Tenant maintains common area hallway and bathroom Highlights > Ranked one of GQ Magazine s Best New Restaurants in America 2017 > Brand new construction in 2014 > Graham & Baba architecture design > Significant interior renovations by tenant > Outdoor seating area 11

12 Floor Plans Tarzan i Jane Common Area Frelard Pizza Company Frelard Pizza Company / 2,151 Sq.Ft. Tarzan i Jane / 1,568 Sq.Ft. Shared Common Area / 411 Sq.Ft. 12

13 Operating Summary Occupancy 100% Built/Renovated 2014 Price $2,995,000 Per Square Foot $ Rentable Area 4,130 Sq.Ft. Current CAP 4.05% Annualized Operating Data Current Scheduled Gross Income $149,964 Less Expenses $28,796 Net Operating Income $121,168 Annual Debt Service ($7,868/mo) $94,411 Cash Flow Before Tax 1.53% $26,757 Principal Reduction $29,498 Total Return Before Tax 3.21% $56,255 Tenant Size Monthly Rent Tarsan i Jane 1,741 Sq.Ft. $4,523 Frelard Pizza Company 2,389 Sq.Ft. $5,574 Total Monthly Income Monthly Scheduled Rent $10,097 Expense Reimbursement $2,400 Total Monthly Income $12,497 Annualized Operating Expenses Current RE Taxes 2017 Actual $11,002 Insurance 2017 Actual $2,770 Electricity 2017 $625 HVAC Maint & Repair 2017 $2,383 Management Fee 2017 $10,755 Miscellaneous 2017 $1,261 Total Expenses $28,796 13

14 Paragon Real Estate Advisors ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multifamily property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with. At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 20 years experience in the industry. Paragon s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships. The information found in this offering memorandum has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 14