James & Hastings Building - PDF Free Download

James & Hastings Building PORT TOWNSEND, WA

MIXED-USE APARTMENT BUILDING IN HISTORIC DOWNTOWN

Overview James & Hastings Building 940 WATER ST, PORT TOWNSEND, WA 98368

PAGE 5 Investment Summary LEASEABLE SF/GROSS AREA 14,925/21,830 PRICE PER SF $140 AVG CURRENT RENT $20.17/SF YEAR BUILT 1889 OCCUPANCY 98% Total 100% Apartments PARKING Street Parking* * City parking lot adjacent to the rear of the Property. Overnight parking OK. $3,050,000 PRICE 7.80% CAP THE OFFERING provides an opportunity to acquire an established 98% occupied three-story mixed-use apartment building split between multifamily units comprising 49% of the GLA on the upper floors and retail suites making up the balance of the Property. The corner location in the downtown waterfront area recognizes significant foot traffic and high demand for multifamily housing. Overview

Investment Highlights The highlights HISTORIC LANDMARK IN DOWNTOWN CORNER LOCATION WITH HEAVY FOOT TRAFFIC. 100% OCCUPIED MULTI-FAMILY UNITS SHOWCASE IN-DEMAND UNOBSTRUCTED OCEAN VIEWS. RECENT $2.7M WATER STREET ENHANCEMENT PROJECT WAS COMPLETED IN 2018. CLOSE PROXIMITY TO WHIDBEY ISLAND FERRY ACCESS AND PORT TOWNSEND WATERFRONT.

PAGE 7 DOWNTOWN LOCATION WITH HEAVY FOOT TRAFFIC LONG STABILIZED RETAIL RENT ROLL EXHIBITS ONE SMALL VACANCY DUE TO RECENT ROAD CONSTRUCTION PROJECT. OWNERSHIP HAS RECENTLY INVESTED IN ROOF IMPROVEMENTS AND APARTMENT UPGRADES. THE MASONRY CONSTRUCTED BUILDING REPRESENTS A MAIN FOCAL POINT IN THE DOWNTOWN WATERFRONT AREA. LAUNDRY FACILITY PROVIDES ANCILLARY INCOME. Investment Highlights

History Historical Intel SITUATED ON THE SITE OF PORT TOWNSEND S FIRST SETTLERS CABIN. BUILT AS A SINGLE FAMILY LOG CABIN IN 1851 FOR THE FIRST SETTLERS OF PORT TOWNSEND. LATER THE CABIN WAS CONVERTED INTO A SMALL STORE. IN 1891, LUCINDA HASTINGS AND F.W. JAMES BUILT A FOUR-STORY BRICK BUILDING IN ITS PLACE. THE BUILDING HOUSED THE VIENNA HOTEL FOR MANY YEARS. THE JAMES & HASTINGS BUILDING WAS AND IS STILL AN IMPORTANT FOCAL POINT ON WATER STREET.

PAGE 9 JAMES & HASTINGS IS A MIXED-USE APARTMENT BUILDING Q & A Q: HOW DOES MANAGEMENT WORK AT THE PROPERTY? A: The Cellar Door tenant takes on management duties for the apartment tenants in exchange for an approximate rent credit of $350 monthly. Similarly, Wynwoods Gallery manages the commercial portion of the building for an approximate rent credit of $650 monthly. The total of these credits equals an amount typical of retail industry standard of 4% of gross income. Rent credits are added to tenant s monthly rent for purpose of this analysis. Questions & Answers

Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 105 846 1,034 Employees 2,986 5,730 6,888 Population 2,626 10,780 14,943 KEY 1-MILE 3-MILES 5-MILES DOWNTOWN RETAIL Alchemy Wine Bar Bazaar Yarn Shop Cellar Door Dogs A Foot Don s Pharmacy Elevated Ice Cream Fountain Cafe Golden Ocean Ichikawa Sushi Jeane Myers Art Studio Khu Larb Thai Lighthouse Cafe Pippa s Real Tea Pizza Factory PT Athletic Club Quench Waterfront Kitchen Silverwater Cafe Sirens Subway The Belmont Inn The Boiler Room The Broken Spoke Velocity Coffee House Waterfront Pizza

PAGE 11 JEFFERSON ST JAMES & HASTINGS BUILDING WASHINGTON ST WATER ST PORT TOWNSEND FERRY TERMINAL Surrounding Retail

Floor Plan Basement STORAGE STORAGE KITCHEN STORAGE RESTAURANT SPACE First Floor FLOOR PLAN NOT TO SCALE

PAGE 13 Floor Plan

Floor Plan

PAGE 15 Mezzanine Second Floor APT 207 APT 206 APT 201, 202 & 204 APT 205 FLOOR PLAN NOT TO SCALE Floor Plan

Floor Plan Third Floor APT 301 APT 304 APT 303 APT 302 FLOOR PLAN NOT TO SCALE

PAGE 17 Capital Improvement Update OWNERSHIP RECENTLY INVESTED APPROXIMATELY $10,000 INTO APARTMENT 302 Floor Plan

Financial Summary PRICE $3,050,000 CAPITALIZATION RATE 7.80% PRICE PER FOOT Bldg SF - 21,830 $140 CASH FLOW SUMMARY PROFORMA SCHEDULED INCOME PER SF Scheduled Rent - Retail Suites: 11/1/2018 $10.53 $157,116 Scheduled Rent - Multi-Family: $9.19 $137,220 Plus: Laundry Income¹ $0.15 $2,216 Equals: Scheduled Gross Income $19.87 $296,552 Current Vacancy 2% Total Effective Gross Income (EGI) $19.87 $296,552 OPERATING EXPENSES Per SF CAMS $1.74 $25,956 Property Taxes $1.03 $15,410 Insurance $0.26 $3,904 Management Fee² 4.0% of EGI $0.80 $12,000 Reserves $0.10 $1,493 Total Operating Expenses $3.94 $58,763 NET OPERATING INCOME $15.93 $237,789 1) Based on last previous 12 months income. 2) See page 9 for detailed explanation on current operation of property management. APARTMENT SUITES CONSISTENTLY 100% OCCUPIED This information 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. Buyer must verify the information and bears all risk for any inaccuracies.

PAGE 19 Rent roll TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM. Financial Summary

Featured Photography

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Featured Apartment Photography

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Location Port Townsend, Washington PORT TOWNSEND is a well-traveled tourist destination located 90 minutes west of Seattle known best for its idyllic Victorian seaport downtown. The average age of residents sits amongst the oldest in the state as the area draws more and more retirees.

PAGE 25 Economy PORT TOWNSEND IS A MECCA FOR PEOPLE WHO LOVE THE ARTS, and is home to many retired artists, videographers and designers. There is a multitude of service/tourismbased industry present in the area in addition to the mainstay employers, such as the hospital and medical services sector, which is growing to accommodate the influx of retirees. Increasing Popularity PORT TOWNSEND RECEIVES ONLY HALF AS MUCH RAINFALL AS SEATTLE and significantly more POINT WILSON LIGHTHOUSE sunshine due to the rain shadow effect created by the Olympic Mountains. Availability of housing, particularly rentals, has hit an all-time low as Port Townsend s popularity continues to increase and very little new construction is taking place. Although bustling with festivals, art walks, culinary events, and farmer s markets, Port Townsend retains its small town character and is truly low-key and relaxing. Location

Location FORT CASEY WHIDBEY ISLAND PORT TOWNSEND LOCATED 35 MINUTES VIA FERRY FROM WHIDBEY ISLAND

PAGE 27 Water Street Enhancement Project THE WATER STREET ENHANCEMENT PROJECT was a $2.7M project completed in 2018. The improvements made to Water Street include upgrading the streets, sidewalks, ferry terminal and moving overhead utilities underground. The upgrades will enhance the pedestrian experience along Water Street and also eliminate view obstructions for the Property s water view apartments. FOR MORE INFO Location

Demographics KEY 5 MINS 10 MINS 15 MINS Distance to Olympia, Washington Seattle, Washington 105 MILES 2 HRS 2 MINS 56 MILES 2 HRS 15 MINS

PAGE 29 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 1,895 7,051 10,014 2018 1,974 7,591 10,826 2023 2,057 8,040 11,490 2018 HH INCOME 5 MINS 10 MINS 15 MINS Average $81,287 $69,754 $69,206 Median $59,664 $49,400 $48,992 30,466 JEFFERSON COUNTY POPULATION (ESTIMATED) Demographics

We d love to hear from you. DAVID GELLNER dgellner@capitalpacific.com PH: 206.693.3349 SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 NATE FLIFLET nfliflet@capitalpacific.com PH: 206.457.8613 Listed in Conjunction With: JEFF ASHMORE Miller & Ahsmore ashmore.jeff@gmail.com PH: 360.531.4131 The information in this Executive Summary 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. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us