SHORELINE POST OFFICE

Transcription

1 SHORELINE POST OFFICE PRIME DEVELOPMENT SITE 1.87 ACRE 1.87 ACRE DEVELOPEMENT OPPORTUNITY I TH AVENUE NE I SHORELINE, WA JLL 601 Union Street, Suite 1100 Seattle, WA jll.com/seattle OFFERED EXCLUSIVELY BY:

2 TABLE OF CONTENTS EXECUTIVE SUMMARY 3 PROPERTY DESCRIPTION 6 MARKET OVERVIEW 13 FINANCIAL SUMMARY 17 DISCLAIMER 19

3 EXECUTIVE SUMMARY THE OFFERING Jones Lang LaSalle is pleased to exclusively offer the Shoreline Post Office property for sale to the investment community. This premium development site consists of an 81,550 (1.87 acres) square foot parcel of land located in Shoreline, WA. The Property is well situated within the Shoreline marketplace on the prominent southwest intersection of 175th Ave NE and 15th Ave NE and offers developers an outstanding opportunity to build multifamily, office, or retail. The Property enjoys a unique combination of desirable benefits including: Stable Cash Flow The Property is currently leased to the United States Post Office and will provide cash flow during the development process. Premium Intersection Located on a signalized corner at the intersection of NE 175th St and 15th Ave NE where traffic counts exceed 37,000 vehicles per day. This location has direct access to I-5 via 175th Ave NE. This location is walking distance from major retailers, Safeway and Walgreens. Major Employment Center The area has a diverse product and tenancy type that has continued to mature over the last decade. The most prominent employers supporting this trade area include: Boeing, Amazon, Microsoft, Group Health, REI, Starbucks, Costco, UW Medicine, and Google. Regional Strength The Puget Sound Region is one of the most economically vibrant metropolitan areas in the nation. With a 5.6 percent unemployment rate, it boasts one of the strongest employment markets in the US. 3

4 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Accessibility & Visibility Direct access to I-5 (via 175th Ave NE) with on ramp located only 3/4 miles to the east (only a 2 minute drive). Stable In-Place Income - The United States Post Office currently leases 100% of the space, providing strong, stable income. The current lease expires on June 30, Strong Growth Market - Near term Shoreline up-zone affecting 500 acres surrounding the Property* that will increase density and the overall Shoreline landscape. Increased transportation infrastructure includes two new Light Rail stations with a projected delivery of PROPERTY SUMMARY Location: th Avenue NE Shoreline, Washington Parcel Number: Flexible Zoning Zoned CB (Community Business) The current CB zoning allows for up to 60 feet of residential, retail, office or mixed use structure development without any density limitations. The Property is located in a planned action area within the City of Shoreline, which is exempt from the SEPA review process. Land Size: Zoning: Max. Height - Residential: Development Options: 81,550 square feet / 1.87 acres CB - Community Business 65 Feet Mixed-Use, Multifamily, Office, Retail Income: The United States Post Office currently provides a monthly income through 6/30/2016 of $20, * Proposed rezone map located on pg. 11 4

5 EXECUTIVE SUMMARY ROBUST DEVELOPMENT MARKET The area surrounding the Shoreline Post Office saw recent deliveries of multifamily developments, such as Polaris (165 units) and Arabella (195 units), spurred by the affordable housing and neighborhood infrastructure improvements such as sidewalks, bikeways, and a revitalized city center. It is the city s goal to support and encourage development for Shoreline to be a neighborhood of regional significance with a concentration of amenities and housing for the vibrant employment base. With the addition of two Light Rail stations projected to be delivered by 2023, the City of Shoreline is planning to up-zone approximately 500 acres of land surrounding the Property to incentivize future higher-density development. 5

6 PROPERTY DESCRIPTION

7 PROPERTY DESCRIPTION AERIAL MAP NE 175th Street Shoreline Post Office 7

8 PROPERTY DESCRIPTION PROPERTY SUMMARY The Shoreline Post Office site is situated on the southeast corner of 175th Avenue NE and 15th Ave NE. The site offers unsurpassed convenience and visibility. The Property is near the entrance of the I-5 freeway which provides commuters with a quick route to downtown Seattle, Everett, and the Eastside. The intersection is also home to premium national retailers Safeway and Walgreens. The site is also in walking distance to public transportation via Seattle Metro and a future connection to a regional Light Rail station projected to be completed by Current Use The site is currently leased by the United States Post Office. Improvement of this site will allow developers to capitalize on the strength of its position within the local market and the region as a whole. PROPERTY DETAIL Address: th Avenue NE, Shoreline, WA Parcel Number: Existing Building: 21,782 square feet Land Area: Lot Shape: Zoning: 1.87 acres / 81,550 square feet Rectangular CB (Community Business) Occupancy: 100% Submarket: Shoreline/North City NOI: $197, Tenant: United States Post Office 8

9 PROPERTY DESCRIPTION SHORELINE COMMUNITY MAP Woodway Richmond Beach Community Park RB Saltwater Park Puget Sound Richmond Beach Innis Arden 8th Ave NW Edmonds Hillwood Park N 205th St Fremont Ave N HIllwood Richmond Highlands Lynnwood Echo Lake Park N 185th St City Hall N 175th St Meridian Echo Lake Shoreline Park 5th Ave NE Interstate 5 North City Mountlake Terrace Ballinger Way NE 24th Ave NE Ballinger Lake Forest Park Shoreview Park The Highlands Shoreline Community College Seattle Golf Club Richmond Highlands Park Highland Terrace Aurora Ave N Westminster Triangle Meridian Park N 155th St Parkwood N 145th St Ronald Bog Park Seattle Ridgecrest Park Ridgecrest 15th Ave NE NE 165th St Hamlin Park Fircrest 25th Ave NE Briarcrest 9

10 PROPERTY DESCRIPTION ZONING SUMMARY Conditions Please note that while the following zoning information is deemed reliable, it is provided only as a guide as it may be subject to errors and omissions. Prospective investors should make their own investigations into the Shoreline Municipal Code, permanent ordinance not contained in the Code, and all other due diligence materials necessary to determine the conditions of, as well as the past, present and future uses of the site. Zoning Summary Commercial Business The purpose of the community business zone (CB) is to provide location for a wide variety of business activities, such as convenience stores, retail, or personal services for the local community, and to allow for apartments and higher intensity mixed use developments. ZONING SUMMARY Standards Min. Front Yard Setback (Street) (1) (2) (see Transition Area Setback, SMC ) Min. Side and Rear Yard Setback from Commercial Zones Min. Side and Rear Yard Setback from R-4, R-6 and R-8 Zones (see Transition Area Setback, SMC ) Min. Side and Rear Yard Setback from TC-4, R-12 through R-48 Zones Base Height (3) Community Business (CB) 0 feet 0 feet 20 feet 15 feet 60 ft Hardscape 85% LINKS City of Shoreline Development Code: ( Potential Phased Zoning Boundaries: ( Transportation Impact Fees: ( 10

11 PROPERTY DESCRIPTION 11

12 PROPERTY DESCRIPTION PROPOSED ZONING MAP Shoreline Post Office 12

13 MARKET OVERVIEW

14 MARKET OVERVIEW PUGET SOUND MARKET OVERVIEW The Puget Sound market has enjoyed strong job growth (propelled by the Tech industry) pushing unemployment down and optimism forward. The metro area saw job growth of more than 2.8 percent, ranking it in the top 12 major metro areas in the nation. This gateway market has seen a strong surge in venture capital funding and prospects remain strong for the Aerospace and Tech industries. Enviable demographics propel technology hiring which perpetuates wage income growth. Continued declining vacancy and improving rents are expected through 2015, further strengthening market fundamentals. Seattle s presence on the global investment stage was solidified in 2013 when it emerged as a core market for foreign investment. The area saw new pricing levels in almost all commercial real estate product categories as other gateway markets became over-heated. The Seattle area has been a perennial top 10 favorite in PWC s Emerging Trends in Real Estate and 2015 is no different. The report ranks Seattle as the sixth best market in terms of overall real estate prospects, up one spot from the previous year, and a number four ranking for investment prospects. 14

15 MARKET OVERVIEW NORTH SEATTLE Overview The City of Shoreline offers classic Puget Sound beauty and the convenience of suburban living with the attractions of nearby urban opportunities. Shoreline is made up of 14 well defined neighborhoods, each with its own unique character. The Shoreline Post Office is located in the North City Neighborhood with close proximity to I-5 and the vibrant Lake Forest Park Neighborhood. Light Rail service is coming to Shoreline and is anticipated to begin in Sound Transit s preliminary design calls for two Shoreline Light Rail stations on the east side of I-5 at 145th Street and 185th Street. In anticipation for the impact of the Light Rail, the City of Shoreline has up-zoned approximately 500 acres of land next to the Shoreline Post Office property. Shoreline has a population of more than 53,000 residents. It is primarily residential with more than 70 percent of the households being single-family residences. Over the years, the Shoreline community has developed a reputation for strong neighborhoods, excellent schools, and abundant parks. Shoreline shares its south border with Seattle and is located just minutes from downtown Seattle via south I-5. Market Conditions Shoreline s retail market totals nearly 2.2 million square feet and currently has a vacancy rate of only 4.6%, down from 5.2% in the same period last year. Asking rental rates in the area have increase slightly over the past year and currently stand at $19.75 NNN, up 2.5% from year-ago numbers. The area offers employers access to: a talented labor pool, improving transportation infrastructure, flexible commute patterns, and a diverse residential inventory with over 237 new multifamily apartment units planned or under construction. 15

16 MARKET OVERVIEW DEMOGRAPHICS DEMOGRAPHIC SUMMARY - 1 MILE RADIUS Census Population 13,614 13,903 14,651 Households 5,439 5,573 5,884 Shoreline USPS Average Household Median Age Owner Occupied 3,909 3,893 4,106 Renter Occupied 1,530 1,680 1,778 Income Trends Median Income $69,237 $78,414 Average Income $81,998 $93, HOUSEHOLD INCOME 16

17 FINANCIAL SUMMARY

18 FINANCIAL SUMMARY VALUATION TENANT RENT SQFT EXP REIMB LEASE START LEASE EXP. OPTIONS RENT PSF EXP REIMB PSF United States Post Office $245, ,782 $40, /1/2011 6/30/2016 None $11.25 $1.85 Base Rent $245, Exp Reimb $40, Gross Potential Rent (GPR) $285, Vacancy (Based on 5% GPR) $14, EFFECTIVE GROSS INCOME (EGI) $271, Expenses: Real Estate Tax $40, Insurance $5, Management Fee (Based on 5% of the EGI) $13, Repairs & Maintenance $10, Reserves (Based on 15 cents per GLA) $3, TOTAL EXPENSES $73, NOI $197,

19 DISCLAIMER

20 DISCLAIMER The material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Real Estate described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material, and is not to be used for any purpose or made available to any other person without the express written consent of Jones Lang LaSalle ( Broker ). This Offering Memorandum was prepared by Broker solely for the use of prospective purchasers of Shoreline Post Office (the Real Estate ). Neither Broker, the Seller, nor any of their respective officers, employees or agents, make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this package or any of its contents. Seller reserves the right to eliminate any portion or all of the Real Estate from any offer for sale at any time prior to the completion of a binding contract of sale executed by both Seller and a prospective purchaser. Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of this Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Seller and, therefore, are subject to material variation. Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real Estate. The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate, and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Real Estate unless and until a written agreement satisfactory to the Seller has been fully executed, delivered, and approved by the Seller and any conditions to the Seller thereunder have been satisfied or waived. This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Seller or Broker. The terms and conditions stated in this section will relate to all of the sections of the package as if stated independently therein. If, after reviewing this package, you have no further interest in purchasing the Properties at this time, kindly return this brochure to Broker at your earliest possible convenience. 20

21 INVESTMENT CONTACTS: LORI HILL Managing Director MARK THYGESEN MARK THYGESEN Retail Associate Retail Associate / Capital Markets Group mark.thygesen@am.jll.com mark.thygesen@am.jll.com Union Street, Suite 1100, Seattle, WA tel fax Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.