Embed Size (px)
Citation preview
8700 CREEKSIDE 8700 SW Creekside Pl • Beaverton, OR 97008
Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe 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 Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation 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 duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence onbehalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage otherprofessionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro formafinancial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,analyses, and decision-making.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
8700 CREEKSIDE Beaverton, ORACT ID Y0210123
BROKER OF RECORD: ADAM LEWIS, OR 201209561
P R E S E N T E D B Y
Brian Yank
Senior AssociateMember – National Office and Industrial Properties GroupPortland OfficeTel: (503) 200-2042Fax: (503) [email protected]: OR 201205718
3
8700 CREEKSIDE
4
8700 CREEKSIDE
OFFERING SUMMARY
• Creekside Corporate Park is an Award-Winning 500,000 Square Foot Office ParkWrapped Around a Beautiful Wildlife Refuge
• Two-Level 30,000 Square Foot Flex-Office Building, Elevator Served, 12 and 16Foot Ceiling Heights, Grade and Dock-Level Loading Options, Shower/ChangingRoom Amenities, Ample Outdoor Space (Including Adjacent Tennis and VolleyballCourts), and Abundant Parking, a 4/1,000 Ratio
• The Majority of the Park was Recently Renovated, Stabilized with Higher LeaseRates and Sold to an Institutional Investor, at an Average Price of $200 PerSquare Foot
• Located in the Heart of Beaverton, 7.5 Miles from Downtown Portland
• Starbucks, Subway, Other Major Retailers, and Hall/Nimbus WES TriMet Stationare within Walking Distance
• Easy Access to Highway 217, Interstate 5 and Sunset Highway 26
INVESTMENT HIGHLIGHTS
8700 Creekside is a tremendous owner-user or value-added investment opportunity. EAI Information Systems, the current owner-user, has downsized and is selling the building. They are willing to stay as a minor tenant or relocate. There’s currently 16,000 square feet, or 52 percent of space available for immediate occupancy and the current rent roll provides ultimate flexibility to accommodate space needs up to 24,000 square feet with 12 and 16 foot ceiling heights by 2021. Value-add investors can benefit by leasing up vacant suites, increasing below market in-place rates, and re-configuring the lower level to activate common areas. At the below-market list price of $142 per square foot, there is room for an owner-user or value add investor to make necessary improvements, providing an excellent opportunity for either.
The property is situated on a 2.88-acre parcel that is part of the Creekside Corporate Park, an award-winning 500,000 square foot officepark that wraps around a 12-acre protected wildlife refuge. The majority of the Creekside Corporate Park was recently renovated andsold to a Singapore-based investment group for an average of $200 per square foot. The tenant base included a mix of national,regional and local tenants and lease rates have escalated over the last two years, creating a healthy backdrop for new potentialowners.
INVESTMENT OVERVIEW
5
8700 CREEKSIDE
#
PROPERTY SUMMARY
OFFERING SUMMARY
THE OFFERINGPropertyPriceProperty Address
8700 Creekside $4,049,000
8700 SW Creekside Pl, Beaverton, ORAssessors Parcel Number 1S127AC-00400
SITE DESCRIPTIONNumber of Floors Two LevelsYear Built/Renovated 1984Rentable Square Feet 30,117Ownership Fee SimpleLot Size 2.88 acre(s)Parking 122 Free Surface Spaces Parking Ratio 4.00/1,000 SFTopography Flat, Landscaped Intersection/Cross Street SW Hall & Creekside Place
6
CONSTRUCTIONFoundation Reinforced ConcreteExterior 12 Foot Slab to Slab Parking Surface Asphalt Roof Built-Up Flat and Membrane Ceiling Height 12 and 20 Foot
MECHANICALFire Protection Sprinkler System Elevators Elevator Served Security Security Card Access System
The 8700 Creekside Building is a two-story, 30,620 squarefoot class B office building. Originally built in 1984, thesubject property is a multi-tenant building with 30,117 netrentable square feet and six flexible office suites. Theproperty is situated on a 2.88-acre parcel that is part of theCreekside Corporate Park, an award-winning 500,000 squarefoot office park that wraps around a 12-acre protectedwildlife refuge. It is located in the heart of Beaverton, 7.5miles from Downtown Portland and 1.5 miles fromWashington Square Mall, a major nationally anchored retailcenter. The property has easy access, within a half mile ofHighway 217, that connects Interstate 5 and the SunsetHighway/Highway 26 corridors. There is a Starbucks,Subway and other major retailers within walking distance ofthe Subject Property, and it is adjacent to the Hall/NimbusWES TriMet Station. The structure is reinforced concrete, withboth a built-up flat and new membrane roof. The building iselevator served, fully sprinklered and has a security system inplace. The roof, HVAC and parking lot are all in good workingcondition. Its attractive design has large windows and plentyof natural light, especially in the glass atrium. Features alsoinclude open floor plans, high ceilings for creative office use,elevated loading docks, garage doors, shower/changingrooms, a shared tennis court and spectacular views of theKroll Wetlands/Fanno Creek Greenway.
AERIAL PHOTO
8700 CREEKSIDE
7
AERIAL PHOTO
8700 CREEKSIDE
8
REGIONAL MAP
8700 CREEKSIDE
9
Marcus & Millichap closes
more transactions than any
other brokerage firm.
12
8700 CREEKSIDE
10
PROPERTY PHOTO
12
8700 CREEKSIDE
11
PROPERTY AND AREA PHOTOS
12
8700 CREEKSIDE
12
ADJACENT STARWOOD DAT RENOVATION
PARCEL MAP
8700 CREEKSIDE
13
8700
SITE MAP
8700 CREEKSIDE
14
BUILDING PLAN: 1ST FLOOR AVAILABLE SPACE
8700 CREEKSIDE
15
BUILDING PLAN: 2ND FLOOR AVAILABLE SPACE
8700 CREEKSIDE
16
8700 CREEKSIDE
17
FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
8700 CREEKSIDE
18
TENANT SUMMARY
As of July,2020
SquareFeet
%Bldg
Share
AnnualRent per
Sq. Ft.
FY(Jul) 2022Rent
Per YearLease DatesComm. Exp.
Total RentPer Month
Total RentPer Year
Changeson
Rent Increase
LeaseType
RenewalOptionsTenant Name Suite
Vacant (Old EAI Systems Space)
A 9,008 29.9% $0.00 $0 $0 $180,160 Jun-2021 $15,013 Full-Service Gross
Vacant (Old Oregon First Space)
B 5,852 19.4% $0.00 $0 $0 $117,040 Jun-2021 $9,753 Full-Service Gross
Global Media/AMP C 4,898 16.3% 4/1/17 7/31/23 $17.83 $7,276 $87,312 $97,962 Jul-2021 $7,276 Modified Gross None
Global Media/AMP D 2,507 8.3% 4/1/19 7/31/23 $17.83 $3,724 $44,690 $50,141 Jul-2021 $3,724 Modified Gross None
Vacant H 1,500 5.0% $0.00 $0 $0 $30,000 Dec-2020 $2,500 Full-Service Gross
Production Media Co. E&F 6,352 21.1% 1/1/16 2/28/21 $21.14 $11,188 $134,256 $135,599 Mar-2022 $11,524 Modified Gross None
Total 30,117 $8.84 $22,188 $266,258 $610,902
Occupied Tenants: 3 Unoccupied Tenants: 3 Occupied GLA: 45.70% Unoccupied GLA: 54.30%
Total FY(Jul) 2021 Rents: $22,705 Occupied FY(Jul) 2021 Rents: $22,705 Unoccupied FY(Jul) 2021 Rents: $0
Notes & Assumptions: Our projected FY(Jul) 2021 assumes that Production Media's lease for Suites E & F is renewed at its current rate of $21.14 PSF full-service gross, with 3% annual rent bumps, beginning in 2022. FY(Jul) 2022 assumes Suites A, B, and H are leased at $20 PS full-service gross basis, with 3% annual rent bumps. EAI's President and CEO (current owner) would like to downsize, sell the building, and lease-back 2,500 SF of space in the building. They currently occupy the entire upper level.
FINANCIAL ANALYSIS
8700 CREEKSIDE
OPERATING STATEMENT
19
Income FY(Jul) 2021 Per SF FY(Jul) 2022 Per SF Notes
Scheduled Base Rental Income 272,456 9.05 610,902 20.28
Expense Reimbursement Income
CAM 2,528 0.08 2,605 0.09 Requires
AdjustmentTotal Reimbursement Income $2,528 1.3% $0.08 $2,605 1.2% $0.09 Potential Gross Revenue 274,984 9.13 613,507 20.37
General Vacancy 0 0.00 (30,545) 5.0% (1.01)
Effective Gross Revenue $274,984 $9.13 $582,961 $19.36
Operating Expenses FY(Jul) 2021 Per SF FY(Jul) 2022 Per SF
Janitorial 22,862 0.76 23,548 0.78
Utilities: Gas & Electric 63,531 2.11 65,437 2.17
Utilities: Garbage 5,994 0.20 6,173 0.20
Utilities: Water & Sewer 11,372 0.38 11,713 0.39
General Maintenance 5,150 0.17 5,305 0.18
Landscaping 7,920 0.26 8,157 0.27 Insurance 6,823 0.23 7,027 0.23 Real Estate Taxes 57,887 1.92 59,624 1.98 Management Fee 13,749 5.0% 0.46 29,148 5.0% 0.97
Other Expenses - Non-Reimbursable 6,000 0.20 6,180 0.21
Total Expenses $201,288 $6.68 $222,313 $7.38 Expenses as % of EGR 73.2% 38.1%Net Operating Income $73,696 $2.45 $360,649 $11.97
FINANCIAL ANALYSIS
8700 CREEKSIDE
PRICING DETAIL
20
MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage
offices
$5.1 billion total national
volume in 2016
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,651 debt and equity
financings in 2016
ACQUISITION FINANCING
8700 CREEKSIDE
21
8700 CREEKSIDE
22
8700 CREEKSIDE
23
MARKET
OVERVIEW
PROPERTY NAME
MARKETING TEAM
8700 CREEKSIDE
DEMOGRAPHICS
Source: © 2019 Experian
Created on July 2020
POPULATION 1 Miles 3 Miles 5 Miles 2024 Projection
Total Population 14,146 156,007 367,689
2019 Estimate
Total Population 13,774 149,475 348,885
2010 Census
Total Population 12,944 137,559 316,240
2000 Census
Total Population 12,333 125,262 284,630
Current Daytime Population
2019 Estimate 21,078 166,989 374,281
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2024 Projection
Total Households 6,023 64,483 153,235
2019 Estimate
Total Households 5,833 61,543 144,804
Average (Mean) Household Size 2.33 2.41 2.39
2010 Census
Total Households 5,410 56,060 130,009
2000 Census
Total Households 5,211 50,578 116,194
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2019 Estimate
$200,000 or More 3.60% 7.59% 9.50%
$150,000 - $199,999 6.75% 8.19% 9.12%
$100,000 - $149,000 17.46% 19.68% 19.72%
$75,000 - $99,999 13.57% 14.22% 14.75%
$50,000 - $74,999 19.39% 15.39% 15.62%
$35,000 - $49,999 12.31% 11.77% 10.65%
$25,000 - $34,999 9.83% 8.34% 7.42%
$15,000 - $24,999 8.86% 7.57% 6.74%
Under $15,000 11.68% 10.20% 9.58%
Average Household Income $81,699 $99,517 $108,870
Median Household Income $63,552 $74,444 $80,043
Per Capita Income $34,872 $41,127 $45,313
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2019 Estimate Total Population 13,774 149,475 348,885
Under 20 22.62% 23.21% 22.96%
20 to 34 Years 22.09% 21.84% 21.35%
35 to 39 Years 7.23% 7.43% 7.49%
40 to 49 Years 12.58% 13.90% 13.78%
50 to 64 Years 18.31% 19.36% 19.57%
Age 65+ 17.14% 14.27% 14.83%
Median Age 38.59 38.29 38.75
Population 25+ by Education Level
2019 Estimate Population Age 25+ 9,843 106,057 249,456
Elementary (0-8) 2.03% 2.69% 2.18%
Some High School (9-11) 5.06% 4.30% 3.66%
High School Graduate (12) 19.22% 16.74% 15.23%
Some College (13-15) 23.66% 22.63% 21.65%
Associate Degree Only 10.51% 8.52% 7.95%
Bachelors Degree Only 26.95% 29.05% 30.51%
Graduate Degree 11.89% 15.27% 17.94%
24
PROPERTY NAME
MARKETING TEAM
8700 CREEKSIDE
DEMOGRAPHICS
Source: © 2019 Experian
Created on July 2020
POPULATION BY TRANSPORTATION TO WORK 1 Miles 3 Miles 5 Miles
2019 Estimate Total Population
Bicycle 1.51% 1.14% 0.97%
Bus or Trolley Bus 4.09% 4.86% 4.77%
Carpooled 10.67% 9.04% 8.58%
Drove Alone 72.17% 72.55% 73.74%
Ferryboat 0.00% 0.02% 0.01%
Motorcycle 0.20% 0.39% 0.34%
Other Means 0.98% 0.50% 0.53%
Railroad 0.18% 0.45% 0.54%
Streetcar or Trolley Car 0.19% 0.97% 0.71%
Subway or Elevated 0.55% 0.73% 0.78%
Taxicab 1.03% 0.24% 0.11%
Walked 3.42% 3.17% 2.59%
Worked at Home 5.00% 5.94% 6.35%
POPULATION BY TRAVEL TIME TO WORK 1 Miles 3 Miles 5 Miles
2019 Estimate Total Population
Under 15 Minutes 24.09% 21.63% 21.81%
15 - 29 Minutes 40.09% 39.25% 39.80%
30 - 59 Minutes 23.66% 25.67% 24.86%
60 - 89 Minutes 4.16% 3.56% 3.46%
90 or More Minutes 1.36% 1.38% 1.15%
Worked at Home 5.00% 5.94% 6.35%
Average Travel Time in Minutes 26 27 26
25
IncomeIn 2019, the median household income for your selected geography is$63,552, compare this to the US average which is currently $60,811.The median household income for your area has changed by 41.33%since 2000. It is estimated that the median household income in yourarea will be $74,199 five years from now, which represents a changeof 16.75% from the current year.
The current year per capita income in your area is $34,872, comparethis to the US average, which is $33,623. The current year averagehousehold income in your area is $81,699, compare this to the USaverage which is $87,636.
PopulationIn 2019, the population in your selected geography is 13,774. Thepopulation has changed by 11.68% since 2000. It is estimated thatthe population in your area will be 14,146.00 five years from now,which represents a change of 2.70% from the current year. Thecurrent population is 47.99% male and 52.01% female. The medianage of the population in your area is 38.59, compare this to the USaverage which is 38.08. The population density in your area is4,372.23 people per square mile.
HouseholdsThere are currently 5,833 households in your selected geography. Thenumber of households has changed by 11.94% since 2000. It isestimated that the number of households in your area will be 6,023five years from now, which represents a change of 3.26% from thecurrent year. The average household size in your area is 2.33 persons.
EmploymentIn 2019, there are 12,000 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that73.84% of employees are employed in white-collar occupations inthis geography, and 26.01% are employed in blue-collar occupations.In 2019, unemployment in this area is 3.47%. In 2000, the averagetime traveled to work was 26.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows:74.98% White, 2.57% Black, 0.76% Native American and 6.89%Asian/Pacific Islander. Compare these to US averages which are:70.07% White, 12.87% Black, 0.19% Native American and 5.66%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 17.32% of the current yearpopulation in your selected area. Compare this to the US average of18.17%.
PROPERTY NAME
MARKETING TEAM
8700 CREEKSIDE
HousingThe median housing value in your area was $328,320 in 2019,compare this to the US average of $212,058. In 2000, there were2,658 owner occupied housing units in your area and there were2,552 renter occupied housing units in your area. The median rent atthe time was $623.
Source: © 2019 Experian
DEMOGRAPHICS
26
8
8700 CREEKSIDE
DEMOGRAPHICS
27
P R E S E N T E D B Y
Brian Yank
Senior AssociateMember – National Office and Industrial Properties GroupPortland OfficeTel: (503) 200-2042Fax: (503) [email protected]: OR 201205718
28
