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LAKE OSWEGO EXECUTIVE PARKBROCHURE5755-5795 Jean Road, Lake Oswego, OR
Contact Information
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, current or past tax payments, 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.
David HillSenior Vice [email protected]
Wendy HillVice [email protected]
kiddermathews.com
Kidder Mathews | Brochure 3
Executive SummaryEXCELLENT LOCATION
Lake Oswego Executive Park is located in highly desirable Lake Oswego, a premier business and residential address in the Portland metro area. The property is within one-half mile of the I-5 interchange at the confluence of the Cities of Tualatin, Durham, and Tigard. The Lake Oswego location provides the Portland metro areas largest base of decision-makers living in close proximity, providing a strong prospective tenant pool.
LOW-VACANCY AND STRENGTHENING SUBMARKET
The property is located in the high-demand I-5 Corridor submarket. This is the 4th largest of 10 flex submarkets tracked with a 4th quarter 2017 vacancy of 10.0%. The more directly competing flex submarket (2-mile radius) is even stronger with a 4th quarter 2017 vacancy at 4.4%. It’s worth noting that overall industrial vacancy for this submarket is a mere 3.0%, and 4.0% for the Portland market as a whole as of 4th quarter 2017.
STABILIZED ASSET WITH INCOME UPSIDE
Currently 97% leased, the property provides a solid income stream for the investor. Two of the largest tenants have recently signed 10-year leases, further increasing the security of the income stream. While occupancy is stabilized, existing contract rents are approximately 11% below market overall, providing significant income upside.
DESIRABLE MULTI-TENANT DESIGN
The property features appealing architectural design that includes a good functional mix of smaller office and flex spaces suitable for a broad range of prospective tenants. The park is currently leased to 14 tenants ranging in size from 832 to 4,716 square feet.
LACK OF COMPETITION
There is little directly competitive space in the immediate area that provides the quality, size, function and identity of the Lake Oswego Executive Park. There is also a lack of available sites for development of new competition. A new flex project under construction across the street is expected to be completed mid-year; however, lease rates for this project will be approximately 50% higher than average lease rates at Lake Oswego Executive Park, and thus not considered directly competing product.
LOW RE-TENANTING COSTS
Functional space layout minimizes tenant improvement costs at turnover.
LAKE OSWEGO EXECUTIVE PARK - FINANCIAL HIGHLIGHTS*
Sale Price $5,850,000
Currently Leased 96.8%
In-Place Year 1 Year 2 Year 5
Net Operating Income $418,165 $401,173 $446,796 $501,453
Capitalization Rate 7.15% 6.85% 7.64% 8.57%
Average Annual Leveraged Cash-on-Cash 10-Year Hold 9.65%
Leveraged IRR 10-Year Hold 15.76%
* See Financial analysis section for details
Property Summary
Property Type Multi-Tenant Business Center
Property Size 37,197 SF
Number of Buildings 3
Number of Tenants 14 (plus 1 vacancy)
Office Area Ranging from 40% to 100%
Year Built 1983 to 1986
Site Size 2.26 acres
Parking 3.35 spaces/1,000 SF
Currently Leased 96.8%
Kidder Mathews | Brochure 4
Property Overview
PROPERTY
Low
er B
oone
s Fe
rry
Rd
Jean Rd
LOCATION
Lake Oswego Executive Park is located in the highly desirable City of Lake Oswego, which is the premier business and residential address in the suburban Portland metro area. It is located within one-half mile of the Interstate 5 interchange at the confluence of the cities of Tigard, Durham, and Lake Oswego. The area is also located approximately 2 miles from Interstate 205 to the south and State Highway 217 to the north. It is strategically located approximately 10 miles south of the Portland Central Business District.
The immediate neighborhood includes a concentrated mix of both premium office, retail, industrial, and residential uses with no significant vacant land available for new development. Lake Oswego Executive Park is less than one mile from the highly-acclaimed Bridgeport Village, offering the area’s finest retailers and restaurants.
OSWEGO LAKE
Kidder Mathews | Brochure 5
Property Overview
Kidder Mathews | Brochure 6
DEMOGRAPHICS
$AVERAGE
HH INCOME
$107,090
HOUSEHOLDS
33,742
ESTIMATED POPULATION
80,8743 mile radius
Property Address 5755 – 5795 Jean Road, Lake Oswego, Oregon
Property Size 37,197 SF
Number of Buildings 3
Number of Tenants 14
Office Area Ranging from ±40% to 100%
Year Built 1983-1986
Site Size 2.26 acres
Parking 3.35 spaces/1,000 SF
Currently Leased 96.8%
PROPERTY SUMMARYProperty Overview
Kidder Mathews | Brochure 7
David HillSenior Vice [email protected]
Wendy HillVice [email protected]
kiddermathews.com
