Offering Memorandum For Sale Investment Opportunity Sherwood Ice Arena 20407 SW BORCHERS DRIVE SHERWOOD, OREGON 97140 PRESENTED BY: Michael D. Holzgang Senior Vice President Corporate Services DIRECT +1 503 499 0055 EMAIL mike.holzgang@colliers.com Jon M. Rubey Broker Industrial & Flex Properties SHERWOOD ICE ARENA OFFERING MEMORANDUM DIRECT +1 503 499 0051 EMAIL jon.rubey@colliers.com COLLIERS INTERNATIONAL P. 1
Table of Contents > INVESTMENT SUMMARY Investment Highlights... 4 Property Photographs... 5 Property Aerial... 6 Nearby Businesses & Institutions... 7 Submarket Map... 8 > PROPERTY INFORMATION Physical Description... 10 Floor Plan, 1st Floor... 11 Floor Plan, 2nd Floor... 12 > TENANT OVERVIEW Tenant Roster, 1st Floor... 14 Tenant Roster, 2nd Floor... 15 > MARKET OVERVIEW Sherwood Market Overview... 17 > FINANCIAL OVERVIEW Pricing & Financial Summary... 19 Net Operating Income... 20 Rent Roll Summary... 21 Market Rent Analysis... 22 SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2
Sherwood Ice Arena Offering Memorandum For Sale Investment Opportunity > Investment Summary COLLIERS INTERNATIONAL
INVESTMENT SUMMARY Investment Highlights 2011 Colliers International The Sherwood Ice Arena is located at 20407 SW Borchers Drive in the city of Sherwood, Oregon. The property is a 37,500 square foot ice arena with 14,144 square feet of general commercial area on the second floor. There are two retail spaces on the ground floor containing 2,100 square feet. Built in the year 2000, the building is situated on 4.71 acres and located in the Six Corners area of northwest Sherwood, a location with significant commercial/retail development. The strategic positioning for the project is as follows: Close proximity to Highway 99 Easy access to downtown Portland Located in an affluent, family oriented market SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4
INVESTMENT SUMMARY Property Photographs 2011 Colliers International CLOCKWISE FROM TOP: Building Exterior Ice Rink Overview Retail/Lobby Area SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5
INVESTMENT SUMMARY Property Aerial SW Borchers Drive SW Edy Road NORTH SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6
INVESTMENT SUMMARY 8 5 1 2 6 3 4 7 SW Tualatin Sherwood Road Nearby Businesses & Institutions (WITHIN 2 MILES) 1 Safeway 2 Albertson s 10 9 SW Oregon Street 3 Safari Sam s 4 Target 5 Providence Medical Group 6 Regal Cinemas Sherwood 11 SW Sunset Boulevard 7 The Home Depot 8 Edy Ridge Elementary School 9 Sherwood Middle School NORTH 10 Sherwood High School 11 Middleton Elementary School SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7
INVESTMENT SUMMARY Submarket Map Vancouver ia Camas Maywood Park Portland Fairview Wood Village T Gresham Beaverton King City Tigard Durham Lake Oswego Milwaukie Johnson City Happy Valley Damascus Tualatin Rivergrove Sherwood Sherwood Ice Arena West Linn Oregon City Redland Wilsonville Canby Beaver Creek NORTH Barlow SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 8
Sherwood Ice Arena Offering Memorandum For Sale Investment Opportunity > Property Information COLLIERS INTERNATIONAL
PROPERTY INFORMATION Physical Description 2011 Colliers International Built in 2000, this building contains a National Hockey League regulation size ice rink with additional commercial/retail spaces. Although not directly located on Pacific Highway, the building is visible from this major thoroughfare. > BUILDING AREA 51,644 SF gross 43,761 SF leasable > PROPERTY ADDRESS 20407 SW Borchers Drive Sherwood, Oregon 97140 > YEAR BUILT 2000 > NO. OF FLOORS Two > PARKING 159 spaces 3.633 per 1,000 SF of rentable area > ZONING Retail Commercial (RC) > BUILDING EXTERIOR Tilt-up Concrete > TENANCY Multiple commercial suites > CHILLER UNITS 80/8R series copelametic 4-stage BR5300, 400 turbochillers > PLUMBING Domestic water provided from water main on Highway 68. > ELEVATORS One passenger elevator SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10
PROPERTY INFORMATION Floor Plan First Floor Commercial/Retail Space Locker Rooms Offices Tickets & Skate Rentals Concessions Lobby NORTH SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11
PROPERTY INFORMATION Floor Plan Second Floor Commercial/Retail Space NORTH SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 12
Sherwood Ice Arena Offering Memorandum For Sale Investment Opportunity > Tenant Overview COLLIERS INTERNATIONAL
TENANT OVERVIEW First Floor NW Skate Authorities 1,100 SF Description The pro shop located within Sherwood Ice Arena. They carry the largest selection of figure skating and ice hockey equipment in the Portland area. [Vacancy] 1,000 SF SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14
TENANT OVERVIEW Second Floor Sherwood Dance Academy 3,047 SF Description A local dance studio providing dance lessons to students of all ages. Their goal is to develop the love of the moving arts in their students. Industrial Sales Co. 500 SF Description A local company selling industrial and institutional boilers, chillers, and HVAC equipment. American Family Insurance 785 SF Description Dave Heironimus agency in Sherwood provides a wide variety of insurance plans and coverage including auto, home, business, and health. Freestyle Hair Studio 355 SF Description A local, full-service hair salon. Sherwood Family Eye Health 1,645 SF Description Eye care clinic providing diagnostic, surgical, and cosmetic services. This is a family focused practice that includes an optique shop with designer eyeglasses, frames, lenses, and contact lenses. Kort Chiropractic 2,553 SF Description A family chiropractic clinical care provider operated by Dr. Russell J. Kort. Provides a variety of services including massage, acupuncture, and naturopathic medicine. [Vacancy] 550 SF SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15
Sherwood Ice Arena Offering Memorandum For Sale Investment Opportunity > Market Overview COLLIERS INTERNATIONAL
MARKET OVERVIEW Sherwood Market Overview Household Income** Income Range % of Population Less than $15,000 4.2 $15,000 to $24,999 4.4 $25,000 to $34,999 5.0 $35,000 to $49,999 10.3 $50,000 to $74,999 21.9 $75,000 to $99,999 15.1 $100,000 to $149,999 31.0 $150,000 to $199,999 3.9 $200,000 and more 4.0 Sherwood, Oregon is a growing community of approximately 18,000 residents* located 15 miles southwest of Portland. In 2007, Sherwood was ranked 18 th in the nation among Money magazine s Best Places to Live and, in 2009, Family Circle named the city among its ten best communities for families. The city boasts a high median household income, with 31 percent of its residents earning between $100,000 and $150,000 annually**. The city effected the second highest rate of growth among Oregon cities over the last decade at 54.3 percent*. Continued growth is expected accompanied by increased demand for retail goods and services and entertainment options. Population by Age** Age Range % of Population Under 5 10.6 5-9 9.9 10-14 9.3 15-19 6.7 20-24 4.7 25-34 12.4 35-44 19.5 45-54 13.4 55-64 7.5 65-74 3.7 75-84 1.5 85 and Older 0.7 Demographics Overview** Category 2010 Estimate % Total Population 17,376 - Median Resident Age 32.1 - Households 6,202 - Owner Occupied Households 4,831 77.9 Renter Occupied Households 1,371 22.1 Families 4,706 - Persons Per Household 2.8 - Family Occupied Households 1,675 27.0 Median Household Income $80,358 - Average Household Income $90,955 - Per Capita Income $32,525 - Annual Growth Rate - 2.5 * Per U.S. Census Bureau ** Per City of Sherwood Economic Development Department SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17
Sherwood Ice Arena Offering Memorandum For Sale Investment Opportunity > Financial Overview COLLIERS INTERNATIONAL
FINANCIAL INFORMATION Pricing & Financial Summary 2011 Colliers International Property...Sherwood Ice Arena Property Address...20407 SW Borchers Drive, Sherwood, Oregon Property Size...205,114 SF Offering Price...$5,500,000 Price per Square Foot...$106 Cap Rate...7.75% 2010 Net Operating Income... $426,495.21* Building Size... 51,644 SF Number of Stories...2 Construction Year...2000 Lot Size...4.71 Acres No. of Parking Spaces... 159 *See NOI Summation Table on Page 20 SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 19
FINANCIAL INFORMATION Net Operating Income 2010 INCOME CAPITALIZATION APPROACH SUMMATION TABLE Size (SF) x Annual Rent Per SF = Annual Rent NW Skate Authorities 1,100 x $ 15.77 $ 17,352.00 Kort Chiropractic 2,553 x $ 13.62 $ 34,780.89 Sherwood Dance Academy 3,047 x $ 10.98 $ 33,441.00 Industrial Sales Co. 500 x $ 13.68 $ 6,840.00 Tradia - x $ - $ 4,500.00 Sherwood Family Eye Health 1,645 x $ 17.47 $ 28,740.49 American Family Insurance 785 x $ 14.04 $ 11,017.80 Freestyle Hair Studio 355 x $ 17.45 $ 6,193.26 Big Bang Fireworks - x $ - $ 2,500.00 Ground Floor Ice Arena 35,360 x $ 10.00* $ 353,600.00 *Estimated Rental Rate 2010 Gross Rental Income 45,345 $ 498,965.44 Reimbursable Income 45,345 $ 244,319.00 (Operating Expenses) Total Potential Gross Income $ 743,284.44 Less: Vacancy & Collection Loss 5% $ (37,164.22) Effective Gross Income $ 706,120.22 Less: Operating Expenses Reimburseable Real Estate Taxes $ 85,917.00 Insurance $ 16,729.00 Utilities $ 141,673.00 Non-Reimburseable % EGI Management/Administration 3.5% $ 24,714.21 Replacement of Reserves 1.5% $ 10,591.80 Total Operating Expenses $ 279,625.01 Net Operating Income $ 426,495.21 SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 20
FINANCIAL INFORMATION Rent Roll Summary Rent Roll & Current Term Tenant Summary As of May 2011 Tenant Name Lease Dates & Term Floor Square Feet Rate & Amount per Year per Month per Square Foot Changes on Changes to Operating Expense Reimbursements per Month Comments Northwest Skate Authorities 2000 - Present First 1,100 $14,844.00 $1,237.00 $1.12 - - $297.00 Month to month lease. Kort Chiropractic 2003 - Present Second 2,553 $27,144.00 $2,262.00 $0.89 - - $780.79 Month to month lease. Tenant completed their own office build-out. Sherwood Family Eye Health 2006 - May 31, 2012 Second 1,645 $21,570.48 $1,797.54 $1.09 6/12/2011 $22,217.52 $1,851.46 $1.13 $641.55 Tenant completed their own office build-out. Freestyle Hair Studio 2008 - May 31, 2013 Second 355 $4,788.00 $399.00 $1.12 - - $138.00 American Family Insurance 2008 - March 31, 2012 Second 785 $7,344.00 $612.00 $0.78 - - $306.15 Tenant took space as-is. Industrial Sales Co. 2004 - January 31, 2012 Second 500 $10,959.96 $913.33 $1.83 - - - Same owner as Sherwood Dance Academy. Sherwood Dance Academy 2004 - July 31, 2011 Second 3,047 $37,140.00 $3,095.00 $1.02 - - - Tenant continues to grow and expand their space. SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 21
FINANCIAL INFORMATION Market Rent Analysis Sherwood Asking Rates Average Rate/SF/Year $21.62 % Change from Prior Year 8.9% SHERWOOD OFFICE MARKET The Sherwood office market, with a more limited total inventory than its larger neighboring submarkets, has experienced a rapid recovery from its peak vacancy rate of 17 percent and a three year rental rate low of $19.36 in early 2010. Asking rates for all office properties in the Sherwood submarket averaged $21.62 per square foot in the first quarter of 2011, an increase of 8.9 percent from the first quarter of last year. Additionally, as only a handful of availabilities remain, rates will likely stay fixed at this level as the market continues to recover and space remains tight over the course of the year. Sherwood Vacancy & Rental Rates (2006-2011) $25.00 14.00% $20.00 12.00% 10.00% Rental Rate $15.00 $10.00 8.00% 6.00% Vacancy Rate 4.00% $5.00 2.00% $0.00 2006 2007 2008 2009 2010 2011 0.00% Rates Vacancy Rates SHERWOOD ICE ARENA OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 22
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 20407 SW Borchers Drive in Sherwood, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Sherwood Ice Arena, 20407 SW Borchers Drive, Sherwood, Oregon or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
CONTACT DETAILS Jon M. Rubey Broker Industrial & Flex Properties DIR +1 503 499 0051 jon.rubey@colliers.com Colliers International 601 SW Second Avenue Suite 1950 Portland, Oregon 97204 www.colliers.com