BUCKNER ST APARTMENTS...The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and

7-Unit Apartment Building Located within walking distance to downtown CentraliaOFFERING MEMORANDUM | CENTRALIA, WA

BUCKNER ST APARTMENTS

http://www.kidder.com/


The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

KIDDER.COM

BRIAN RICHARDSON

Vice [email protected]

EXCLUSIVELY OFFERED BY

01OFFERING SUMMARY

Executive HighlightsInvestment OverviewCommunity SummaryProperty Photos

02LOCATION OVERVIEW

Regional OverviewTacoma Overview

03PROPERTY MAPS & AERIALS

04FINANCIALS

Unit MixCurrent Rents & ExpensesProforma Rents & Expenses

05COMPARABLES

Sale ComparablesRent Comparables

TABLE OF CONTENTS

http://www.kidder.com


3BUCKNER ST APARTMENTS OFFERING MEMORANDUM KIDDER MATHEWS

01OFFERING SUMMARY

EXECUTIVE HIGHLIGHTS

INVESTMENT OVERVIEW

APARTMENT BUILDING OFFERING MEMORANDUM KIDDER MATHEWS 4

7 apartment homes

VALUE-ADD opportunity

WALK SCORE of 66

BIKE SCORE of 68

WALKING DISTANCE to many of downtown Centralia's restaurants, shopping, daily errands, parks and nightlife

EXECUTIVE HIGHLIGHTS

WALKING DISTANCE to Centralia College Campus

POTENTIAL to subdivide property for future development of single-family home (buyer to verify)

7NUMBER OF UNITS

1910YEAR BUILT

66WALK SCORE

BUCKNER ST APARTMENTS OFFERING MEMORANDUM KIDDER MATHEWS 4


Property Buckner Street Apartments

Address 202-206 N Buckner St, Centralia, WA

Parcel Number 000879001000

Price $375,000

Number of Units 7 Apartments

Year Constructed 1910

Number of Floors 2

Number of Buildings 2

Land Area 3,626 SF

Building Size 13,068 SF

Zoning R8

INVESTMENT OVERVIEW INVESTMENT SUMMARY

$375,000PRICE

1910YEAR BUILT

2NO. OF BUILDINGS

2NO. OF FLOORS

3,626 SFLAND

473 SFAVG. UNIT SIZE

N BUCKNER ST

E P

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ST

DA

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BUCKNER ST APARTMENTS consists of two building centrally located walking distance to downtown Centralia. The building offers a mix of studios, one-bedroom and two-bedroom units. Buckner St Apartments is a value-add opportunity for an investor to take of advantage of below markets with a well located asset in a strong rental market.

On-site coin-operated laundry

Cable

Off-street parking

RENT SUMMARY

Unit Unit Type Avg Unit SF Avg Monthly Rents Avg Rents/SF

202-1 1 BD 465 $460 $0.99

202-2 Studio 288 $535 $1.86

202-3 Studio 350 $505 $1.44

202-4 Studio 347 $500 $1.44

206-1 1 BD 440 $490 $1.11

206-2 1 BD 512 $515 $1.01

206-3 2 BD 900 $775 $0.86

TOTAL / AVERAGE 3,302 $3,780 $1.14

COMMUNITY AMENITIES

COMMUNITY SUMMARY

Roof Granulated Shingle

Siding Wood

Windows Double Pane Aluminum & Double Pane Vinyl

Heating Baseboard


UNIT LAYOUT PLAN

206-3 2 BEDROOM

206-2 1 BEDROOM

206-1 1 BEDROOM

202-2 STUDIO

202-4 STUDIO

202-3 STUDIO

202-1 1 BEDROOM

202 N BUCKER ST202 N BUCKER ST LANE BACK TO ACCESS


02LOCATION

OVERVIEWREGIONAL OVERVIEW

TACOMA OVERVIEW


LOCATION OVERVIEWCENTRALIZED LOCATION & STRONG DRIVERS

Buckner St. Apartments is centrally located and within walking distance to downtown Centralia. Being only three block from the downtown Central puts it within walking distance to many of the cities restaurants, boutiques, museums, and nightlife. It is also within walking distance to the Centralia College campus.

The centralized location between Seattle and Portland and proximity to major freeways and highways, has contributed to Centralia’s strong growth in its light industrial and warehouse areas as well as is its core business district. Additional development of regional distribution and transportation facilities, along with in-migration from retirees from more populated counties to the north, have helped improve and diversify the local economy.

Buckner St. Apartments will further benefit from the strong local economy due to the high rental demand and no new rental supply coming to the market.

As residents continue to be priced out of core markets like Tacoma

and Olympia, they are choosing to live in outlying communities. Combined with net in-migration from other states, new employment growth, and the lack of new housing development is creating organic rent growth in these surrounding markets. According to Yardi Matrix, the greater Lewis and Thurston county market saw a Year-over-Year rent growth of 6%, almost double the national average.

Centralia

Centralia is located 25 miles south of Olympia, WA. The city was created because it was recognized by the owner of the land that it would be a central point between Seattle and Portland with the Northern Pacific Railroad passing through.

Located on Interstate 5, the West Coast’s major trade corridor, Centralia is well-positioned between Portland and Seattle and is a strategic business “hub.” Centralia is the largest city in Lewis County with just under 17,000 residents. Its close proximity to Seattle and

Portland and their international airports, as well as the deep water Port of Grays Harbor, make it easy to move goods in and out of the community.

With qualities of historic, small-town charm mixed with the assets of a vibrant city, Centralia offers a kaleidoscope of past and present. Each year Centralia draws thousands of participants and enthusiasts to its burgeoning Centralia Sports Complex. Others visit for the world-class antique shops, eclectic boutiques and energetic dining scene. Centralia exceeds expectations with a wide variety of activities ranging from antique and art festivals to a plethora of nearby outdoor activities.

CENTRALIA OFFERS

Close proximity to Seattle and Portland

A natural area

A historic downtown district

Outstanding schools

Close to several state parks, ocean beach-es, Mt. Rainier National Park, Mt. St. Helens National

Monument, ski resorts, and many other recre-ational opportunities

All types of cultural venues, including the vibrancy of being home to a two-year commu-nity college


LOCATION OVERVIEWREGIONAL OVERVIEW

Lewis County is at the center of it all. Situated centrally between Seattle and Portland, and between the mountains and the ocean, hundreds of thousands of travelers pass through our region each year.

This proximity to the two largest metro areas in the Northwest has in part, lead to recent development. Since 2014, the labor force in the county has steadily grown.

Economy

Now, nearly 10 years removed from the downturn, nonfarm payrolls are expanding and the unemployment rates in the county are at historic lows. Taxable sales for all industries are up over 31 percent since 2010. Newfound optimism has spurred development and job creation in construction, trade and leisure and hospitality.

The largest industries in Lewis County, WA are Retail Trade, Health Care & Social Assistance, and Manufacturing, and the highest paying industries are Utilities, Wholesale Trade, and Public Administration.

The Port of Centralia and Chehalis continue to expand as available warehouse space has continued to gobbled up in other markets. Recently, the Port of Centralia saw the completion of 1.2 Million square feet of warehouse space for food distribution.

PORT OF CENTRALIA AND CHEHALIS

Both the Centralia and Chehalis ports are property is situated with access to all of the important transportation networks serving the west coast. They are adjacent to Interstate 5, the main north-south Pacific Coast interstate, and are served by multiple Interstate 5 interchanges.COmbined they support over 3, 600 jobs and over 50 businesses.

The Port of Centralia is currently developing a 43-acre mixed-used project which will include, grocery, restaurants, other businesses and apartments called Centralia Station. Once Centralia Station opens, it's estimated the complex will employ 535 people in Centralia, with sales totaling an estimated $118 million annually.

HEALTHCARE

Providence Health & Services of Washington is the largest health provider in Lewis County. They have their largest hospital in the county located in Centralia. Providence Centralia is one of only 405 U.S. hospitals and critical access hospitals earning the distinction of top performer on key quality measures from The Joint Commission.

RECREATION OPPORTUNITIES

The The region offers an abundance of year-round outdoor recreational activities such as hiking, fishing, canoeing, golfing, and kayaking.

Discover endless hiking trails in the Gifford Pinchot National Forest, take a kayak down the Cispus River or fish and camp at Taidnapam Park.

ARTS AND CULTURE Centralia and Lewis County our home to numerous festivals, fairs, museums and antique districts. Chehalis has the much anticipated ChehalisFest. a day filled with fun for the whole family. Or the recently created annual Tour De Farms. A music festival and farmers market that occurs during the annual Ride the Willapa event.

CENTRALIA COLLEGE

As the oldest two-year public college in Washington (founded in 1925), Centralia College has a rich heritage of transfer, workforce and basic skills programs. The college serves Lewis and south Thurston counties and a population over 75,000.

EMPLOYMENT

The number of jobs in Lewis County totals approximately 29,789. The largest industries in Lewis County, WA are Retail Trade (4,453 people), Health Care & Social Assistance (3,599 people), and Manufacturing (3,025 people), and the highest paying industries are Utilities ($76,349), Wholesale Trade ($53,068), and Public Administration ($48,370). The county's largest employers are Providence Centralia Hospital and the TransAlta coal-fired steam plant, Lewis County government and Wal-Mart.

EMPLOYERS MAPLARGE EMPLOYERS

1 Walmart

2 Shop’n Kart

3 Hampton Lumber Mills

4 Safeway

5 Home Depot

6Pacific Cataract & Laser Institute

7 Pace Edwards Co

8 Woodland Urgent Care Center

9American Behavioral Health Systems

10 Cascade Mental Health Care

11 B & M Logging, Inc.

12 Aristocratic Cabinets

13 Applebee's

14 Awesome Ford

15 McDonald's

16 Corsicana Bedding

17 ZEV Technologies Inc.

LARGEST INDUSTRIES BY EMPLOYMENT - LEWIS COUNTY

4,453 RETAIL TRADE

3,599 HEALTH CARE & SOCIAL ASSISTANCE

3,025 MANUFACTURING

SALZ ER V

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WINLOCK

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SUBJECT PROPERTY



03PROPERTY

MAPS & AERIALS

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NEIGHBORHOOD AMENITIES

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CENTRALIA COLLEGE

CENTRALIA OUTLETS

PROVIDENCE CENTRALIA HOSPITAL

W CENTER STW MAPLE ST

W CHESTNUT ST

TILLEY AVE

W 1ST ST

W 3RD ST

W 5TH ST

W 6TH ST

MT VISTA ST

BROST AVE

RUSSELL RD

Forst Borst Park

Riverside Park

Seminary Hill Natural Area

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NEIGHBORHOOD AMENITIES

RETAIL

1 The Bath Depot

2 O’Reilly Auto Parts

3 Computer Connections

4 Bryant Auto Sales

5 Larry’s Cars

6 Mill’s Motors

7 Columbia Countertops

8 Dibbles Odds & Ends

9 Whalen Quilt Works

10 Centralia Pharmacy

11 Shop’n Kart

12 Cricket Wireless

13 New Balance Factory Store

14 Bath & Body Works Outlet

15 Nike Clearance Store

16 Gap Factory

17 Jiffy Lube

18 Safeway

19 Rite Aid

20 Verizon

HEALTH + WELLESS

1Embody Movement & Wellness Center

2 Help at Home Senior Services

3 Planned Parenthood

4 South Sound Oral Surgery

5 Assured Home Health

6 Dr. Michael D. Dujela, Podiatrist

7 Northwest Pediatric Center

8 Providence Centralia Hospital

9 Radiantcare

10 Washington Park Direct Care

EAT + DRINK

1 Boccata Restaurant

2 Tiki Tap House

3 Great Cuisine of India

4 O’Blarney’s at the Gibson

5 Azteca Mexican Restaurant

6 McMenamin’s Olympic Club

7 Hub Bar & Grill

8 Tower Tavern

9 Holley’s Place

10 The Branch Bar & Public Room

11 Taco’s El Rey

12 Subway

13 Fuji Teriyaki

14 KFC

15 Main Street Grill

16 La Tarasca

17 Peking House Restaurant

18 Dairy Queen

19 Pizza Hut

20 Burger King

21 Coach Factory Outlet

22 Chico’s Outlets

23 Under Armour Factory House

24 The Children’s Place Outlet

25 Van Heusen Factory Outlet

26 Aeropostale

27 Eddie Bauer Outlet

28 Polo Ralph Lauren Clearance

COFFEE

1 Centerville Cafe

2 The Station: Coffee Bar & Bistro

3 Berry Field Cafe

4 Avenue Espresso

5 Dutch Bros Coffee

6 Jimmie’s Espresso

7 Starbucks Coffee

8 Fiddlers Coffee

21 Thai Dish

22 Hometown Restaurant

23 Wendy’s

24 Burgerville

25 Jimmy John’s

26 Denny’s

27 Subway

28 Jack in the Box

29 McDonald’s

30 Arby’s



PROPERTY

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N DIAMOND STN DIAMOND ST

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BUCKNER ST APARTMENTS

CENTRALIA

LOCATION



04FINANCIALS

UNIT MIX

CURRENT RENTS & EXPENSES

PROFORMA RENTS & EXPENSES


FINANCIALS

$375,000PRICE

$53.571PRICE PER UNIT

$113.36$/NRSF

5.90%CURRENT CAP RATE

CURRENT RENT SUMMARY


202-1 1 BD 465 $460 $0.99

202-2 Studio 288 $535 $1.86

202-3 Studio 350 $505 $1.44

202-4 Studio 347 $500 $1.44

206-1 1 BD 440 $490 $1.11

206-2 1 BD 512 $515 $1.01

206-3 2 BD 900 $775 $0.86

TOTAL / AVERAGE 3,302 $3,755 $1.14

INCOME Current KM Proforma

Rent Income $45,060 $54,120

Utility Bill Back $0 $5,400

Laundry Income $420 $565

Vacancy @ 5.00% ($2,274) ($3,007)

Total Aggregate Gross Potential Revenue $43,206 $57,138

Other Income $0 $1,510

Effective Gross Income $43,206 $58,648

OPERATING EXPENSES

Property Management @ 5.%* $2,160 $2,932

Property Taxes $2,511 $2,511

Insurance $1,440 $1,750

Utilities $9,582 $9,870

Repairs & Maintenance $2,603 $2,975

Landscaping $390 $390

Turnover $700 $700

Reserves $1,750 $1,750

Total Operating Expenses $21,136 $22,878

Net Operating Income $22,070 $35,770

9.54%PROFORMA CAP RATE

MARKET RENT SUMMARY


202-1 1 BD 465 $595 $1.28

202-2 Studio 288 $550 $1.91

202-3 Studio 350 $595 $1.70

202-4 Studio 347 $550 $1.59

206-1 1 BD 440 $675 $1.53

206-2 1 BD 512 $695 $1.36

206-3 2 BD 900 $850 $0.94

TOTAL / AVERAGE 3,302 $4,510 $1.37


05COMPARABLES

RENT COMPARABLES

SALE COMPARABLES

COMPARABLES

COMPARABLE SALES

The comparable sales shown on the following pages indicate a range of 6.50% to 7.44% on a cap rate basis for recent relevant sales with an average of 7.02%. Additionally, pricing ranged from $50.06 per ft to $219.08 per ft. Each of the comparable sales were selected for their physical attributes, location, age of the building, improvements, and perceived upside.

COMPARABLE RENTS

The comparable rents shown on the following pages indicate a rent $/ft range of $0.82 to $2.60. Each of the comparable rents were selected for their physical attributes, location, age of the building, and improvements.

BUCKNER ST APARTMENTS2

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CHEHALIS

CENTRALIA


RENT COMPARABLES

Unit Mix SF Rent $ / SF

2-Bed / 1-Bath 650 $935 $1.44

1-Bed / 1-Bath 500 $735 $1.47


1-Bed / 1-Bath 295 $695 $2.45


1-Bed / 1-Bath 423 $790 $1.87

01

04 05 06

02 03LAKEVIEW APTS1510 & 1509 Lewis St Centralia, WA

Type Multifamily

Year Built 1970

# of Units 33

307 N IRON ST307 N Iron StCentralia, WA

Type Multifamily

Year Built 1922

# of Units 5

408 S IRON ST408 S Iron StCentralia, WA

Type Multifamily

Year Built 1910

# of Units 5

ST HELEN'S APTS438-448 M arket Blvd Centralia, WA

Type Multifamily

Year Built 1900

# of Units 40

CENTRALIAN APTS1405 Lewis St Centralia, WA

Type Multifamily

Year Built 1966

# of Units 33

TALL FIRS APTS1014 N Scheuber RdCentralia, WA

Type Multifamily

Year Built 1977

# of Units 64


2-Bed / 1-Bath 850 $925 $1.09

1-Bed / 1-Bath 762 $800 $1.05


2-Bed / 1-Bath 1,240 $995 $0.82

1-Bed / 1-Bath 663 $795 $1.20

Studio 269 $700 $2.60


2-Bed / 1-Bath 976 $975 $1.00

1-Bed / 1-Bath 696 $795 $1.14

Studio 420 $700 $1.67

SUMMARY

Avg Year BuiltTotal # of all Unit Types

# of Selected Unit Types Avg % of Total Avg SF Avg Rent Avg $/SF

1 BD / 1 BA 1941 180 114 73.33% 647 $780 $1.21

2 BD / 1 BA 1966 226 44 20.56% 827 $938 $1.13


SALE COMPARABLES

Total Bldg SF 3,650 SF

Sale Date October 2019

Sale Price $430,000

Sale $/Unit $71,667

Sale $/SF $117.81

Cap Rate 7.44%

217 W MAGNOLIA ST217 W Magnolia StCentralia, WA

Type Multifamily

Year Built 1973

# of Units 6


Sale Date September 2019

Sale Price $1,956,944

Sale $/Unit $59,301

Sale $/SF $127.94

Cap Rate 7.20%


Sale Date May 2019


Sale $/Unit $71,859

Sale $/SF $219.08

Cap Rate 6.66

01


Sale Date PENDING

Sale Price $875,000

Sale $/Unit $67,308

Sale $/SF $107.49

Cap Rate 6.50%

04


Sale Date April 2020


Sale $/Unit $52,083

Sale $/SF $43.15

Cap Rate 8.32%

05

02 03

7.22% AVG CAP RATE

$64,444 AVG $/PER UNIT

$123.09 AVG $/SF

LAKEVIEW APTS1510 & 1509 Lewis St Centralia, WA

Type Multifamily

Year Built 1970

# of Units 33

302 SOUTH ST302 South StCentralia, WA

Type Multifamily

Year Built 1970

# of Units 16

KULIEN APTS914 N Tower Ave Centralia, WA

Type Multifamily

Year Built 1920

# of Units 13

267 SE WASHINGTON267 SE WashingtonChehalis, WA

Type Multifamily

Year Built 1924

# of Units 24


KIDDER.COM

EXCLUSIVELY REPRESENTED BY

BRIAN RICHARDSON

Vice [email protected]



Documents

BUCKNER ST APARTMENTS...The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and