CORPORATE SALE-LEASEBACK FOR ADDITIONAL INFORMATION, PLEASE CONTACT: INVESTMENT PROPERTY OPPORTUNITY 7319 NE 37TH AVE, VANCOUVER, WA 98665 STUART SKAUG, SIOR | +1 503 221 4822 | [email protected] | LICENSED IN OR & WA JAKE BIGBY | +1 503 221 4832 | [email protected] | LICENSED IN OR & WA
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CORPORATE SALE-LEASEBACK
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
INVESTMENT PROPERTY OPPORTUNITY 7319 NE 37TH AVE, VANCOUVER, WA 98665
STUART SKAUG, SIOR | +1 503 221 4822 | [email protected] | LICENSED IN OR & WAJAKE BIGBY | +1 503 221 4832 | [email protected] | LICENSED IN OR & WA
AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
CLOSE VICINITY AERIALCLARK COUNTY TENANT PROFILE SUMMARY • FINANCIAL ASSUMPTIONS
CASH FLOW • PRICING MATRIX
NOI SUMMARY • MARKET COMPARISONS
LEASE EXPIRATIONS • RENT ROLL
TABLE OF CONTENTS
3
01 EXECUTIVE SUMMARY
7319 NE 37TH AVE, VANCOUVER, WA 98665
4EXECUTIVE SUMMARY
57319 NE 37TH AVE, VANCOUVER, WA 98665
6
INVESTMENT HIGHLIGHTS
Lindberg Pipe & Grade’s Vancouver property represents a rare opportunity to acquire fee-simple interest in an industrial facility with a long-term leaseback from a strong regional entity. The property consists of approximately 8,420 total square feet on a 2.5-acre site, 100% leased by Lindberg Pipe & Grade (“Lindberg”). Lindberg works for some of the biggest builders in the Southwest Washington and Portland Metro area. Clients include DR Horton, New Tradition Homes, Pahlisch Homes, Summerplace Homes, GPB Construction, and Pulte Homes. The property is located in Clark County, less than 2.5 miles from I-5 and less than 3 miles from I-205. The site is strategic for Lindberg’s network to specialty contractors in the building and remodeling industry.
EXECUTIVE SUMMARY ASKING PRICE $1,760,000
CAP RATE 7.5%
RENTABLE SF 8,420
LAND AREA 2.5 acres
PRICE PER BUILDING SF $209
OCCUPANCY 100%
INITIAL LEASEBACK TERM 10 years
YEAR BUILT 1973 with major renovations in 2013/2014
ADDRESS 7319 NE 37th Ave, Vancouver, WA 98665
EXECUTIVE SUMMARY
7
CORE CHARACTERISTICS
POTENTIAL NEW DEVELOPMENT OR REDEVELOPMENT UPSIDE
RARE INDUSTRIAL PROPERTY WITH YARD
Long-Term Stable Triple Net Lease
The owner of Lindberg Pipe & Grade is also the owner of the building. They would like to focus on continuing to grow the business through capital investments and acquisitions and a sale of the property with a 10-year leaseback would allow them to make those investments and focus on the continued growth of Lindberg Pipe & Grade.
With approximately 2.5 acres of the land area and only 8,420 SF of improvements, there is always a chance for additional improvements down the road. Whether it be expansion for an existing tenant or adding another building on the site.
Difficult-to-find industrial property with only 7.8% coverage and ample yard area.
EXECUTIVE SUMMARY
7319 NE 37TH AVE, VANCOUVER, WA 98665
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EXECUTIVE SUMMARYPROPERTY DESCRIPTION
LAND AREA 2.5 Acres APN 149113000
ZONING IL – Clark County Light Industrial District
BUILDING FOOTPRINT SIZE 8,420 SF
OFFICE SIZE Approximately 2,500 SF
YEAR BUILT 1973 with major renovations in 2013/2014
LOADING 7 Drive-Ins
AUTO PARKING Abundant
CLEAR HEIGHT Up to 30’ in certain areas
EXTERIOR WALLS Metal skin
LIGHTING (WAREHOUSE) T8
HEATING SYSTEM Full HVAC in the office
WATER/SEWER SERVICE City water / Septic
EXECUTIVE SUMMARY
97319 NE 37TH AVE, VANCOUVER, WA 98665
10EXECUTIVE SUMMARY
11
02 PROPERTY SUMMARY
7319 NE 37TH AVE, VANCOUVER, WA 98665
12 PROPERTY SUMMARY
13
TAX LOT AERIAL
PROPERTY L O C AT I O N
BUILDING 8,420 SF
APN 149113000 | 2.5 ACRES
7319 NE 37TH AVE, VANCOUVER, WA 98665
14
NE ST JOHNS RD
NE 47TH
AV
E
NE 78TH ST
CLOSE VICINITY AERIAL
PROPERTY L O C AT I O N
SHUR-WAY BUILDING CENTER
FURNITUREWORLD
NUTTER CORP
ENTEK
RED-D-ARC WELDERENTALS
PACIFIC NW PLATING
WINTERCREEK BOTTLED WATER
HHH TEMPERING RESOURCES
KNEZBUILDING MATERIAL
WALASHEKINDUSTRIAL
MARINE
MOHAWK METAL
GTS INTERIOR SUPPLY
UPS CUSTOMER CENTER
MJLANDSCAPING
OMEGAINDUSTRIES
WRENCHMONKEYS
KING’S WAYCHRISTIAN SCHOOLS
NORTHWESTSELF STORAGE
UNITED RENTALS
PROBUILD
PROPERTY SUMMARY
15
03 AREA OVERVIEW
7319 NE 37TH AVE, VANCOUVER, WA 98665
16AREA OVERVIEW
177319 NE 37TH AVE, VANCOUVER, WA 98665
18
CLARK COUNTY
Clark County is located in southwest Washington on the Columbia River, roughly 100 miles upstream from the Pacific Ocean. It is the fifth most populous county in the state.
Clark County is part of the Portland Metropolitan Area. Its economy can be understood only in that context: one-third of the county’s labor force, over 50,000 workers, commutes to Portland on a daily basis, while only 11,000 commute in the opposite direction. The lack of a sales tax in Oregon has led to significant leakage of retail sales, lowering both retail investment and tax revenues for local governments. Clark County has excellent transportation linkages, including proximity to Portland International Airport, location on east-west and north-south rail lines and immediate access to Interstate 5 north-south and Interstate 84 heading east.
In the 1970s, the county began to attract investment in electronics, which became its most important industry in the 1990s and remains so today. Wafertech, Hewlett Packard, SEH America and Linear Semiconductor are important employers.
Major industry sectors in Clark County include healthcare and social assistance, professional and business services, retail trade, leisure and hospitality, and manufacturing. In addition, government employed 24,000, over half of which were in public education.
AREA OVERVIEW
AREA OVERVIEW
19
04 TENANT SUMMARY
7319 NE 37TH AVE, VANCOUVER, WA 98665
20TENANT SUMMARY
21
TENANT PROFILE
Lindberg Pipe & Grade, Inc. is a highly reliable, full-service excavation and underground utilities company performing on a variety of construction projects in the Greater Portland / Vancouver region. They are one of the area’s largest contractors to specialize in all aspects of excavating and underground utilities for residential single-family and multi-family projects. They have performed work on thousands of housing units in the region and continue to be the go-to company for the area’s best builders
TENANT SUMMARY
7319 NE 37TH AVE, VANCOUVER, WA 98665
22TENANT SUMMARY
23
05 FINANCIAL OVERVIEW
7319 NE 37TH AVE, VANCOUVER, WA 98665
24FINANCIAL OVERVIEW
25
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
SUMMARY
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY
PPRROOPPEERRTTYY DDEESSCCRRIIPPTTIIOONN
FS 024,8stnemevorpmI fo eziSlairtsudnIepyT ytreporPFS 071/1/6 fo sa tnacaV yltnerruCedarG & epiP grebdniLrenwO ytreporP%00.00171/1/6 fo sa ycnapuccO tnerruCeunevA ht73 WN 9137sserddA ytreporP%00.00171/1/9 fo sa ycnapuccO detcejorPAW ,revuocnaV
investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries.This is an opinion of value or comparative market analysis and should not be considered an appraisal.In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for
development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation.
5/26/2017 1:59 PM 2CBRE Financial Consulting Group
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY
PPRROOPPEERRTTYY DDEESSCCRRIIPPTTIIOONN
FS 024,8stnemevorpmI fo eziSlairtsudnIepyT ytreporPFS 071/1/6 fo sa tnacaV yltnerruCedarG & epiP grebdniLrenwO ytreporP%00.00171/1/6 fo sa ycnapuccO tnerruCeunevA ht73 WN 9137sserddA ytreporP%00.00171/1/9 fo sa ycnapuccO detcejorPAW ,revuocnaV
investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries.This is an opinion of value or comparative market analysis and should not be considered an appraisal.In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for
development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation.
5/26/2017 1:59 PM 2CBRE Financial Consulting Group
7319 NE 37TH AVE, VANCOUVER, WA 98665
26
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
FINANCIAL ASSUMPTIONS
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
NNootteess::All market rates are stated on calendar-year basis.[1] Real Estate Taxes are included in estimated expenses. It is the responsibility of the investor to reassess taxes in accordance with the projected purchase price.
5/26/2017 1:59 PM 3
This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group
FINANCIAL OVERVIEW
27
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
CASH FLOW
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.[3] Based on 8,420 square feet.[4] Net Residual Value is calculated by dividing Year 12 NOI by the Residual Cap Rate of 8.00% and applying a 5.00% Cost of Sale.[5] Market Debt based on 60% Loan-to-Value, 4.75% Interest Rate, 30-Year Amortization, and 1.00% Loan Fee.
5/26/2017 1:59 PM 4
This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group
7319 NE 37TH AVE, VANCOUVER, WA 98665
28
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
PRICING MATRIX
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
[1] Real Estate Taxes have not been reassessed in this analysis.[2] Based on 8,420 Square Feet.[3] Residual Value is calculated using a residual cap rate of 8.00% with a 5.00% cost of sale.[4] Market Debt based on 60% Loan-to-Value, 4.75% Interest Rate, 30-Year Amortization, and a 1.00% Loan Fee.
5/26/2017 1:59 PM 5
This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group
FINANCIAL OVERVIEW
29
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
NOI SUMMARY
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period
[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements as of September 2017, Annualized (with no General Vacancy Loss).In-Place NOI does not include vacant lease-up revenue, downtime due to near-term expirations, or future rent increases for existing tenants.
5/26/2017 1:59 PM 6
This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group
7319 NE 37TH AVE, VANCOUVER, WA 98665
30
FINANCIAL OVERVIEW
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
MARKET COMPARISON
LLiinnddbbeerrgg PPiippee && GGrraaddee11-Year Hold Period