SODO INDUSTRIAL BUILDING 3628 E Marginal Way S Seattle, WA 98134 For more information contact: PROPERTY HIGHLIGHTS Well maintained warehouse & office space in the heart of Sodo Industrial District 1,734 sf office space and full kitchen with high-end finishes 18,715 sf property 22,215 sf lot (includes separate adjacent land parcel) Zoned IG1 U85 - Typical uses include manufacturing, commercial, transport, distribution, general production Offered at $3,200,000 NWMLS: 1354006 CBA: 601649 Phone: 425.531.7966 Fax: 425.732.3200 40 Lake Bellevue Dr. Suite 230 Bellevue, WA 98005 www.vreg.co
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $3,200,000 Investment - Cash $960,000 First Loan $2,240,000 Investment Information Purchase Price $3,200,000 Price per Tenant $3,200,000 Price per Sq. Ft. $170.99 Income, Expenses & Cash Flow Gross Scheduled Income $228,000 Total Vacancy and Credits $0 Operating Expenses ($49,979) Net Operating Income $178,021 Debt Service ($153,248) Cash Flow Before Taxes $24,773 Financial Indicators Cash on Cash Return Before Taxes 2.58% Debt Coverage Ratio 1.16 Capitalization Rate 5.56% Gross Income / Square Feet $12.18 Gross Expenses / Square Feet ($2.67) Operating Expense Ratio 21.92% Page 2
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PROPERTY DESCRIPTION Sodo Industrial Building Office & Warehouse Mix Located in the heart of Seattle's Industrial District, this 18,715 sf industrial building offers a rare opportunity for any investor or owner-user to purchase a quality construction mix of warehouse and office space in one of the fastest growing real estate markets in the country. 3628 E Marginal Way S is conveniently located at the intersection of some of the most heavily trafficked industrial thoroughfares in the SODO (South of Downtown) area including Highway 99, the West Seattle Bridge, South Spokane St and E Marginal Way South. Maximize exposure of your business with a traffic count of over 120,000 cars and trucks per day. Commercial shipping from the nearby Port of Seattle puts you right in the action of one of the main transportation and distribution areas for the Puget Sound. Originally built in 1924 with numerous updates and modernized retrofitting including a brand new roof in 2007, all new LED interior and exterior lighting, double paned windows and 12 security cameras covering the entire property. Quality construction with concrete walls and reinforced support beams in the basement allow for forklifts to transport heavy loads in excess of 10,000 lbs. The 5,965 sf basement can be used for additional storage with an overhead crane to safely lower equipment and supplies while naturally maintaining a year-round temperature of around 47 degrees Fahrenheit. The current owner has renovated the interior with beautiful hardwood floors to create an elegant waiting room and office space (1,734 sf). A large kitchen area has been installed using high end finishes and appliances along with two upgraded bathrooms. An additional office space is located in the mezzanine (1,044 sf) overlooking the warehouse space and provide auxiliary storage. The warehouse is 9,972 sf and has a ceiling height of 18 ft. Page 4
PROPERTY PHOTOS 1,734 sf office space with 10 ft ceiling height 9,972 sf warehouse space with 18 ft ceiling height Rear Loading Dock 5,965 sf basement with 7 ft ceiling height Front Loading Dock Full Kitchen with High-End Finishes Page 5
ANNUAL PROPERTY OPERATING DATA Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 Basement Rental $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 Storage Container Rental $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 GROSS SCHEDULED INCOME $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 GROSS OPERATING INCOME $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 Expenses Speed Analysis Expenses ($49,979) ($50,979) ($51,998) ($53,038) ($54,099) ($55,181) ($56,284) ($57,410) ($58,558) ($59,730) TOTAL OPERATING EXPENSES ($49,979) ($50,979) ($51,998) ($53,038) ($54,099) ($55,181) ($56,284) ($57,410) ($58,558) ($59,730) NET OPERATING INCOME $178,021 $177,021 $176,002 $174,962 $173,901 $172,819 $171,716 $170,590 $169,442 $168,270 Page 6
ANNUAL PROPERTY OPERATING DATA Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Rental Income $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 Basement Rental $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 Storage Container Rental $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 $32,400 GROSS SCHEDULED INCOME $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 GROSS OPERATING INCOME $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 $228,000 Expenses Speed Analysis Expenses ($60,924) ($62,143) ($63,385) ($64,653) ($65,946) ($67,265) ($68,610) ($69,983) ($71,382) ($72,810) TOTAL OPERATING EXPENSES ($60,924) ($62,143) ($63,385) ($64,653) ($65,946) ($67,265) ($68,610) ($69,983) ($71,382) ($72,810) NET OPERATING INCOME $167,076 $165,857 $164,615 $163,347 $162,054 $160,735 $159,390 $158,017 $156,618 $155,190 Page 7
CUMULATIVE WEALTH ANALYSIS $1,900,000 $1,710,000 $1,520,000 $1,330,000 $1,140,000 $950,000 $760,000 $570,000 $380,000 $190,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) Page 8
OPERATING INCOME ANALYSIS $230,000 $207,000 $184,000 $161,000 $138,000 $115,000 $92,000 $69,000 $46,000 $23,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) Page 9
LEASE COMPAREABLES Address 6321 7th Ave S Seattle, WA 98108 1550 4th Ave S Seattle, WA 98134 25-29 S Hanford St Seattle, WA 98134 820 S Adams St Seattle, WA 98108 6250 Stanley Ave S Seattle, 99 S Spokane St Seattle, WA 98108 WA 98134 Property Type Industrial Office Industrial Industrial Industrial Industrial Property Subtype Warehouse Warehouse Manufacturing Warehouse Manufacturing Rentable Building Area 15,960 SF 47,368 SF 35,400 SF 90,000 SF 13,044 SF 110,107 SF Year Built 1971 1974 1952 1956 1976 1926 Asking Rent $1.31 SF/Mo $1.00 SF/Mo $1.00 - $1.15 SF/Mo $1.15 SF/Mo $1.15 SF/Mo $0.85 SF/Mo Page 12