100% LEASED INVESTMENT

Transcription

1 State St Salem, OR PRESENTED BY: OR # PROPERTY HIGHLIGHTS 100% Leased to the State of Oregon which has an AA+ bond rating Build to suit building for these tenants and less than two blocks to the State Capitol and Supreme Court Renewal Options through 12/21/22 for 76% of the space 2.5% Annual Rental Increases All SVN Offices Independently Owned & Operated.

2 SALE OVERVIEW SALE PRICE: $19,100,000 CAP RATE: 6.52% NOI: $1,244,731 LOT SIZE: 0.42 Acres BUILDING SIZE: 77,384 SF BUILDING CLASS: A YEAR BUILT: 1996 ZONING: CO PROPERTY DESCRIPTION The asset is leased in its entirety to the State of Oregon (S&P AA+) Department of Justice ( DOJ ) who occupies 76% of the building and Judicial Department taking up the remaining 24%. These tenants, for whom the building was a build-to-suit for in 1996 and 2000, have leases running through 2017 with pre-negotiated extension options running through 2022 for DOJ. The leases include 2.5% annual base rent escalations. One block from the Oregon State Capitol and across the street from the Oregon Supreme Court and Willamette University. Computer networking equipment and cables run beneath 12th Street, which directly connects the subdivisions of the Judicial Department that are housed in the Robertson Building to the Judicial Department s computer system and the State Supreme Court. MARKET: SUB MARKET: CROSS STREETS: Salem CBD Salem State Street & 12th Street Northeast For those employees that have daily business at the State Capitol, main Justice Building or the Supreme Court, all three are one block of this location and allow for easy walking. These cost savings, unique to the Robertson Building, make it difficult for the tenant(s) to justify facility relocation.

3

4

5

6 INVESTMENT OVERVIEW ROBERTSON BUILDING Price $19,100,000 Price per SF $ CAP Rate 6.5% Cash-on-Cash Return (yr 1) 6.56 % Total Return (yr 1) $655,942 Debt Coverage Ratio 1.37 OPERATING DATA ROBERTSON BUILDING Gross Scheduled Income $1,788,080 Other Income $0 Total Scheduled Income $1,788,080 Vacancy Cost $0 Gross Income $1,788,080 Operating Expenses $543,349 Net Operating Income $1,244,731 Pre-Tax Cash Flow $334,611 FINANCING DATA ROBERTSON BUILDING Down Payment $5,100,000 Loan Amount $14,000,000 Debt Service $910,120 Debt Service Monthly $75,843 Principal Reduction (yr 1) $321,331

7 FOR SALE OFFICE OR # All SVN Offices Independently Owned & Operated.

8 Salem, OR Salem is the capital of the U.S. state of Oregon, and the county seat of Marion County. It is located in the center of the Willamette Valley alongside the Willamette River, which runs north through the city. The river forms the boundary between Marion and Polk counties, and the city neighborhood of West Salem is in Polk County. City Highlights Population: 156,244 (2011) Salem was founded in 1842, became the capital of the Oregon Territory in 1851, and was incorporated in Salem had a population of 154,637 at the 2010 census, making it the third largest city in the state after Portland and Eugene. Salem is less than an hour driving distance away from Portland. Salem is the principal city of the Salem Metropolitan Statistical Area, a metropolitan area that covers Marion and Polk counties and had a combined population of 347,214 at the 2000 census. A 2009 estimate placed the metropolitan population at 396,103, the state's second largest. Unemployment rate: 8.6% (Apr 2013) County: Marion Area: sq miles (125.5 km²) The city is home to Willamette University and Corban University. The State of Oregon is the largest public employer in the city, and Salem Hospital is the largest private employer. Transportation includes public transit from Salem-Keizer Transit, Amtrak service, and non-commercial air travel at McNary Field. Major roads include Interstate 5, Oregon Route 99E, and Oregon Route 22 which connects West Salem across the Willamette River via the Marion Street and Center Street bridges. source:

9 POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 13,397 46,554 96,372 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 5,283 17,785 36,563 # OF PERSONS PER HH AVERAGE HH INCOME $46,140 $48,144 $49,715 AVERAGE HOUSE VALUE $164,061 $178,662 $188,875

10