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James R. Pearson, Associate Broker Commercial Real Estate, Development & Investments
402-708-2829
THE PAXTON PROFESSIONAL CENTER
$2,450,000 for Sale or $18.000 NNN Lease
Single or Multi-Tenant Class A 10,000 Square feet Office Condominium. Including 26 on site Parking Stalls
For Sale or Lease Units 440 & 450 (10,000 sf includes common area)
26 Exclusive Use Parking Stalls
Propriety and Confidential
This is a business plan outlining the sale/lease of the subject and is not an offering of securities
Location:
The subject is located mid downtown (eastern quadrant of the Omaha metropolitan area inside the
Central Business District of Omaha, Nebraska. Omaha is a stable economically diverse Midwestern
city that is a part of the five-county Metropolitan Statistical Area (MSA) consisting of Douglas,
Washington, Cass and Sarpy counties in Nebraska, and Pottawattamie County in Iowa.
In terms of population, Omaha is the largest city in Nebraska and 42nd largest in the Nation. All
counties in the Omaha MSA have a noted increase in population from the 1980, 1990, and 2002
Census with an estimated 9.1 percent increase according to the 2010 census from the 2002 census.
Omaha has long been a popular gathering place for residents and tourists alike. Omaha's historic (located east of the subject property) Old Market, with its one-of-a kind shops and restaurants, has steadily grown in scope and popularity since the mid-60s. The Old Market Omaha is a premier arts and entertainment district featuring fine dining, shopping, corporate meeting facilities, hotel accommodations, upscale night life and sought-after real estate. The Old Market is considered one of the most successful historic redevelopment areas in the nation and one of Omaha’s major tourist attractions.
Area
The property is bounded with Interstate 680 to the North, Dodge Street to the immediate North,
and Interstate on & 680 to the North and West and the Missouri river to the East. The primary
east/west thoroughfare and (North/South) dividing line is Dodge Street. All arterials mention is
major four to six lane street routes within access to all points of the Omaha Metro area.
The subject is zoned CBD (Central Business District) under Omaha’s jurisdiction. The CBD is
designed to provide appropriate development regulations for downtown Omaha. Uses within the
area are permitted in downtown Omaha which are consistent with the future development and
revitalization of the city’s core. Mixed uses are allowed and encouraged within the CBD. The
surrounding land use in the area is comprised of commercial properties with intensive retail, office
uses along the major intersections’ of the arterial roadways.
The main roads in the area include 10th Street, 14th Street 16th Street, Farnam, Harney, and Dodge Streets. These are mostly four lane one way and two way streets, serving the downtown area.
General Description
The subject property is part of a mixed use project that incorporates a variety of residential, retail and
condominium units together with a new parking structure to support the improvements. The entire
project involved total renovation of an existing twelve story building (Paxton Building) and construction
of a new four story building south of the existing building.
The existing (original) building has been renovated into 58 residential condominium units on levels three
through twelve, four main level retail/office condominiums, ten second floor office condominiums and a
ballroom condominium.
The new building has two main level retail/office condominium bays and two fourth level (subject) office
condominiums along with a total of 202 parking stalls. Each condominium unit along with the parking
stalls is a separate legal entity and is deeded in fee title along with an undivided interest in the common
area elements.
Subject
The building is located at 1414 Harney Street and is a four story plus full basement structure that serves
as both a parking garage and for additional retail and office. The structure consists of a pre-cast concrete
panels and flooring. Exterior walls are pre-cast concrete sandblasted finish with wall heights varying
from ten to fourteen feet. Windows are fund on both the south and east elevations of the building
which gives the structure the appearance of being a large office building as opposed to a parking garage.
The building has a calculated gross size as follows:
Level Gross SF Parking Stalls
Basement 20,024 53 Parking stalls
Main Level 20,344 12 Parking stalls plus drive way
Second Level 19,960 54 Parking stalls
Third Level 19,960 54 Parking stalls
Fourth Level 19,960 30 Parking stalls
Gross above grade 80,224
Gross w/Basement 100,248 202 Parking Stalls
The building’s main level consists of two retail bays having respective sizes of 4,000 sf and 2,178 sf. The
larger bay on the south side is owned by American National Bank. The smaller bay located on the north
side is occupied by a restaurant.
The basement, second and third levels of the building are entirely devoted to parking. There is a skywalk
connected to the third level which leads directly into the residential condominium units in the north
building
The fourth level has two office condominiums (the subject) on the south side of the structure and
parking on the north side of the structure.
Units 440 and 450
Unit 440 contains approximately 3,890 net square feet and consists of nine private offices, an open work
area, conference room and kitchen area. Finishes throughout Unit 440 are of good to high quality
materials.
Layout of existing space
Unit 450 contains approximately 5,346 approximate net square feet and consists of 13 private offices, an
open work area, conference room, and kitchenette area. Finish is of good quality and was completed in
2012 at a cost of over $250,000 for both units.
Front Door of 1414 Harney
Located between units 440 and 450 is a common area which consists of the elevator, private lobby area,
and men’s and women’s restrooms. Mens restroom has two stools, two urinals and two sinks. The
women’s restroom has three stools and two sinks.
With respect to parking, units 440 and 450 will have exclusive use of 26 parking stalls on the fourth level
of the building.
Hallway to elevator to Condomonium Units
Lobby area from elevator to front door and access to Parking on 4th Floor
Reception area
One of two Board or Conference Rooms
Second smaller conference room
Open work area
Private offices around perimeter
View of exclusive use 26 Parking stalls on fourth floor
All utlities except water are individually metered, each level of the building is accessible by elevator as
weell by two internal stairwells. The elevator is accessible from a central common area hallway which
has its entrance on Harney Street. Card reader access is functional to get to the units after hours.
The site is rectangular in shape (165 along Harney and 132 feet along 14th Street. The site is level and on
grade with adjoining streets. Site has access from each adjoining street. The property is within the City
of Omaha’s zoning jurisdiction and is zoned CBD – central business district, which allows a broad variety
of residential, retail, office and mixed use projects. Property is located in a Zone X flood management
area which is an area outside of the boundaries of a 100 year floodplain. No potential flooding threat
appears to exist for the property.
Adjacent Properties
North – An additional phase of the Paxton Condominiums, W. Dale Clark Library
South - Various older occupied commercial buildings
West - Recently renovated hotel property, various retail and office buildings
East – Three story government owned office buiilding.
DOWNTOWN OMAHA Development CENTRAL CORE (data obtained from Omaha Chamber of Commerce)
Five Fortune 500 companies maintain their headquarters in the downtown area: Union Pacific Corporation, Mutual of Omaha Companies, Peter Kiewit and Sons and Berkshire Hathaway. Other large companies with offices downtown include First National Bank, Omaha World Herald, Qwest-Century Link, Physicians Mutual Life and Woodmen of the World, among others. Omaha has over 40,000 people employed in its central business district and another 46,000 in the adjacent Midtown district.
In October of 1996, business and government leaders unveiled a 33-block redevelopment plan for the city's central business district downtown, which at the time was projected to lead to an estimated $1 billion in construction within 10 years. Leading the efforts were the Omaha World-Herald, with its $135 million printing plant, warehouse and parking garage; and First National Bank of Omaha and its $200 million, 40-story tower and $65 million high tech data center in 2000. Companies investing in this redevelopment area have a genuine commitment to change the character and structure of downtown Omaha. The projects themselves are well designed and have contributed to the appeal of the area, literally redefining the skyline.
R I V E R F RONT Abbott Drive to Airport
Omaha’s Riverfront was the next focus of inner city development in Omaha’s journey “back to the river.” With construction completed on the Lewis and Clark Landing, the Missouri River is an active feature of the city's revitalized riverfront. The Gallup Organization constructed an $81 million headquarters and the new Gallup University on the riverfront, which opened in October of 2003. In addition, the National Parks Service constructed a $13 million regional headquarters along the river. To the north of Gallup's riverfront campus is the refurbished River City Star, a riverboat open for public cruises and private parties. Omaha now welcomes visitors with a new entrance. Several north/south downtown streets feed into the revitalized Abbott Drive. With the expanding Eppley Airfield just five minutes from downtown, Abbott Drive has been transformed into a boulevard with beautiful landscaping and lighting, thanks to a $5 million grant from the Peter Kiewit Foundation.
E X PANDING the Vision
Omaha companies committed to downtown growth are determined to create a quality environment for their workforce. This includes adding day care, exercise facilities, and a high standard of physical design in the buildings, whether it be new construction or renovation. As a result of this growth, the Greater Omaha Chamber of Commerce and the City of Omaha hired HDR Planning to coordinate the development of a master plan for an 80-block area located directly between the Qwest Center Omaha and Creighton University. (our site is located within this development). A framework has now been established for future redevelopment of this prime area including recommendations for an entertainment district surrounded by urban, residential, and office and retail opportunities. In addition, this area is the preferred location for a large land use anchor such as a community ballpark or large museum district. To date, nine projects totaling $100 million have been announced and are under construction in North Downtown. Dodge is a major east-west thoroughfare for all of Omaha and much of it is an expressway without stoplights; Other than the interstate system, Dodge Street is the most trafficked east –west thoroughfare in Omaha. Highway 31 is a major north-south thoroughfare for the Western suburbs of Omaha. Every corner of Dodge Street from the Missouri River to Highway 31 (204th Street) is either developed or currently under development. Recent annexation of Elkhorn, Nebraska clearly shows Omaha’s expansion and westward growth. CO-Star Report According to the 1st quarter report on Office downtown there was a 33.3 K in net absorption in square feet and a vacancy rate of approximately 6.8%. Recent approval of the Landmark building (273,400 sf of space) for six floors to high end hotel facilities (floors 3 – 9, with the first floor being the hotel lobby and two restaurant/bars.