OFFERING MEMORANDUM 7570 SW 74th Ave, Portland, OR GARDEN HOME CENTER GARDEN HOME CENTER Fully Leased Retail Investment with Excess Residential Parcel
LOCATION HIGHLIGHTS Highly visible corner location with great access, the subject property benefits from local neighborhood draw for residents of the Garden Home, Raleigh Hills and Portland s affluent Southwest Hills neighborhoods, as well as travelers passing through to downtown Portland from the heavily populated suburbs of Tigard and Beaverton. FULLY LEASED INVESTMENT OPPORTUNITY The 2-tenant retail property includes a well-established neighborhood pub and an ecommerce resistant retail dispensary with strong financials and long-term staying power. INCLUDES DEVELOPABLE PARCEL An investor has the opportunity for immediate upside through the development or resale of an R-1 zoned parcel totaling 5,650 SF included in the offering. The southerly parcel can accommodate a height of 75 feet and an FAR of 2:1. AFFLUENT DEMOGRAPHICS IN SOUTHWEST PORTLAND LOCATION 13,617 persons within a 1-mile radius and average household income of $114,214. 15-minute drive to downtown Portland. Investment Summary Offering Price $1,800,000 Cap Rate 6.47% NOI $116,380 Bldg Size 7,000 Year Built 1930 Site Size CM1-12,794 SF R1-5,650 SF Total: 18,444 SF, 0.42 acres Fully leased investment with residential parcel Rebecca Liddell, CCIM 503.221.2279 rliddell@kiddermathews.com Ryan O Leary 503.221.2294 roleary@kiddermathews.com kiddermathews.com Kidder Mathews Offering Memorandum 2
Annual Rent Escalations Amazon Proof Tenants High Traffic Area & Signalized Corner Garden Home Center Urban Growth Boundary 100% Leased Kidder Mathews Offering Memorandum 3
PARCEL AERIAL SW Olsen Rd PARCEL 1 CM1 12,794 SF SW Garden Home Rd PARCEL 2 R1 5,650 SF SW 74th Ave Kidder Mathews Offering Memorandum 4
AMENITIES AERIAL 12,053+ DAILY 7 MILES TO DOWNTOWN PORTLAND GARDEN HOME RECREATION CENTER SW Oleson Rd CEDAR LANE APARTMENTS OLD MARKET PUB & BREWERY SW Multnomah Blvd VILLAGE MANOR APARTMENTS LAMB'S THRIFTWAY SW Garden Home Rd 15,827+ DAILY SCOTSBORO SQUARE APARTMENTS BRITTANY SQUARE GARDEN HOME CENTER Kidder Mathews Offering Memorandum 5
TENANT PROFILES Garden Home Dugout is a neighborhood sports bar, and the owner/operator also has two other locations in the Portland metro area. Garden Home Dugout boasts 15 HDTVs, shuffleboard, pool and arcade games, karaoke, video lottery and breakfast served all day as some its highlights. I just love this place. The staff is amazing, the sandwiches are to die for and the patrons are pleasant. Yelp Reviewer, 5 Stars Tenant Since: 2011 http://www.gardenhomedugout.com With the OLCC ordinance which restricts the retail sales of controlled substances such as marijuana from operating within a 1,000-mile radius, the tenant has established itself as on the go-to location for nearby residents cannabis needs. Identified as the friendliest dispensary in Oregon, Local Leaf prides itself as being well-stocked with the most current and freshest products as well as the home to the Portland Cannabis Museum. Local Leaf has a current rating of 4.9 out of 5 stars on Leafly.com. Tenant Since: 2015 https://www.leafly.com/dispensary-info/local-leaf https://www.localleaf420.com/ Kidder Mathews Offering Memorandum 6
FINANCIAL ANALYSIS - Income Capitalization CURRENT INCOME SF $/SF $/Year The Dugout Bar 3,500 $16.41 $57,430 Local Leaf Dispensary 3,500 $17.14 $60,000 TOTAL INCOME 7,000 $16.78 $117,430 OPERATING EXPENSES $/SF Annual Real Estate Taxes Property Insurance Repairs & Maintenance Utilities Management NNN NNN NNN NNN NNN Reserves for Replacement $0.15 $1,050 TOTAL OPERATING EXPENSES $0.15 $1,050 NET OPERATING INCOME $16.63 $116,380 CAP RATE 6.47% ASKING PRICE: $1,800,000 Kidder Mathews Offering Memorandum 7
FINANCIAL ANALYSIS RENT ROLL Floor Tenant SF Lease Start Lease End Monthly Rent $/SF/Yr Increases Lease Structure Renewal Options Remaining Next Escalation The Dugout Bar 3,500 Sep-11 Sep-21 $4,786 $16.41 2% Annual NNN 1, 5-Year 10/1/2019 Local Leaf Dispensary 3,500 Jul-15 Jul-20 $5,000 $17.14 Flat NNN 2, 5-Year None Totals 7,000 $9,786 $16.78 GARDEN HOME CENTER Kidder Mathews Offering Memorandum 8
REGIONAL MAP POPULATION 1 MILE 3 MILES 5 MILES STREETS OF TANASBOURNE 2018 13,617 125,132 342,291 2023 14,606 133,284 365,908 HILLSBORO AIRPORT PORTLAND INTERNATIONAL AIRPORT 5 Miles HOUSEHOLDS 1 MILE 3 MILES 5 MILES Hillsboro 3 Miles Portland 2018 5,800 53,144 149,434 2023 6,199 56,480 159,604 Beaverton 1 Mile GARDEN HOME CENTER $ AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2018 $114,214 $104,482 $104,956 WASHINGTON SQUARE MALL Tigard DOWNTOWN TIGARD Lake Oswego Milwaukie TIGARD COUNTRY CLUB Oregon City Kidder Mathews Offering Memorandum 9
Rebecca Liddell, CCIM rliddell@kiddermathews.com 503.221.2279 Ryan O Leary roleary@kiddermathews.com 503.221.2294 Kidder Mathews 101 SW Main Street, Suite 1200 Portland, OR 97204 kiddermathews.com Kidder Mathews Offering Memorandum 10