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MR. FORMAL BUILDING1205 SE Grand Ave / 1206 SE MLK Blvd
Portland, OR 97214
MARKET SUPPLY BUILDING139 SE Taylor St.
Portland, OR 97214
$5,500,000-
39,000 SF-
$141 PSF-
0.44 AC-
ZONED: EXD
$3,400,000-
30,000 SF-
$113 PSF-
0.23 AC-
ZONED: IG1
PORTFOLIO
$8,900,000-
69,000 SF-
$129 PSF
8
“Portland, Oregon is a designated Opportunity Zone, despite being one of the fastest-growth markets in the country.”
- Forbes Real Estate Council
920
20
MARKET SUPPLY BUILDING
Address: 139 SE Taylor StPortland, OR 97214 Market Assumptions:
GBA: 30,000 SF Market Rent – Second Level (10,000 SF) $26.00 NNN
NRA: 20,000 SF Market Rent – Main Level (10,000 SF) $26.00 NNN
Lot Size: 0.23 Acres
Zoning: IG1 – General Industrial 1
Income After Redevelopment
Gross Rental Income $520,000
Vacancy Allowance ($26,000)
Est. Gross Income (EGI) $494,000
Operating Expenses (NNN)
Reserves ($0.20 psf) ($4,000)
Total Operating Expenses ($4,000)
Net Operating Income (NOI) $490,000
Terminal Cap Rate 6.05%
Exit Sales Price $8,100,000
Price Per Sq. Ft. $270
Redevelopment Analysis
Building/Tenant Improvements $140 psf ($2,800,000)
Leasing Commissions 5-YR / 5% ($123,500)
Contingency Costs 20% ($560,000)
Sum of Redevelopment Costs ($116) psf ($3,483,500)
AS IS Sale Price ($170) psf ($3,400,000)
Total Project Cost ($345) psf ($6,883,500)
Exit Sales Price $410 psf $8,100,000
Exit Sales Commission 2.00% ($162,000)
Net Proceeds from Sale 265 psf $7,938,000
Developer Profit on Investment 15% $1,054,500
1020
20
SUMMARY
Address 139 SE Taylor StPortland, OR 97214
Year Built 1929
Gross Buildable Area 30,000 SF
Space Occupied by User 20,000 SF
Lot Size 0.23 Acres
Zoning IG1 – General Industrial 1
OWNER/USER ANALYSIS
Sale Price $3,400,000 $113.00
Down Payment $510,000 $17.00
Tenant Improvement Cost $2,800,000 $93.00
Total Acquisition Cost $3,310,000 $130.00
ANNUAL EXPENSES
Annual Mortgage Debt Service ($199,945) ($6.66)
Cost of TI’s Amortized / 10 Years ($280,000) ($9.33)
Cost of Down Payment Amortized / 10 Years ($51,000) ($1.70)
Total Owner Annual Expenses / NNN ($530,945) ($17.70) NNN
FINANCING TERMS
Down Payment $510,000 (15%)
Loan Amount $2,890,000
Loan to Value 85%
Interest Rate 4.75%
Amortization 25 Years
Monthly Payment ($16,476)
Term 7 Years
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– C E I D M A P –
N e w D e v e l o p m e n t
A n n o u n c e d
E a r l y A s s i s t a n c e
D e s i g n R e v i e w
P e r m i t R e v i e w
U n d e r C o n s t r u c t i o n
C o m p l e t e d P r o j e c t s
14
A n n o u n c e d
ODOT Blocks - SE Water Ave / 3 City Blocks
Redevelopment of the 3 blocks site on SE Water Ave
NIR Center - 920 Southeast Stark Street
New biotech campus with 2 connected buildings of 10 stories each for a total of 347,000 SF.
E a r l y A s s i s t a n c e
66 SE Madison St
New 2-story, 16,000 SF catering kitchen facility, an enclosed parking garage for about 13 cars on the ground floor
110 SE Main St
Proposal is the renovation of existing single-story concrete building for industrial office and retail sales/service tenants
210-226 SE Madison St
Project is a renovation of two buildings: 210 SE Madison Street and 226 SE Madison Street
1120 SE Main St
Total development to contain 72 apartments, 66,000 SF manufacturing and production, and 94 parking spaces
1006 SE Grand Ave
Project to include renovation of existing building and construction of a new multi-family on parking lot portion, land division is likely – with a shared access to parking with the existing curb cuts on SE Grand
Weatherly Building - 510 SE Morrison St
New office building and seismic retrofit of the Weatherly Building
L a n d / U s e R e v i e w
550 SE MLK
New mixed-use building development on this site with two options for height (8 and 7-stories) and 2 versions of parking (with and without a basement)
Modera Morrison - 1120 SE Morrison St
7-story market rate apartment building with 247 units, ground floor retail, and basement parking
U n d e r C o n s t r u c t i o n
7 Southeast Stark
New core and shell development of 5-story CIP concrete slabs and columns, 5-story steel frame with composite steel floor decks, mixed-use with ground floor industrial service, 6 floors of commercial parking and 4 floors of industrial and traditional office
District Office - 525 SE MLK
New construction of 6-story (above ground) building consisting of 90,400 SF with one level of underground parking consisting of 15,490 SF; 5 levels of office over ground floor retail, CLT floor system
Chamberlain Hotel – 509 SE Grand Ave
Change of occupancy from M to A-2 on ground floor. Seismic retrofit and major remodel to entire building including new storefront, entries, canopies, elevator, egress stairs, roof, stormwater facilities and demising walls
Tree Farm – 826 SE 3rd Ave
New 6-story commercial building with associated site work; 1st floor future retail tenant, lobby and trash room; floors 2 through 6 to accommodate F2 occupancy
Grand Belmont – 514 SE Belmont St
New 7-story mixed-use building, Type I construction and 5 stories of Type IIIA construction; level 1 commercial spaces and parking; level 2 through 7 for 131 residential units
Modera Buckman – 909 SE 12th Ave
Request for approval of a Type III design review to allow construction of a development of a 7-story mixed-use building with three modificatons to review
P e r m i t R e v i e w
129 SE Alder St / 110 SE Washington St
Demo existing 2-story warehouse and construct a new 9-story building with underground parking
808 SE Alder St
Full building renovation, change of use and occupancy; addition of 3rd story plus full seismic upgrade
Alder.9: 820 SE Alder St
9-story retail and multi-dwelling residential mixed-use building in the Central Eastside Subdistrict of the Central City Plan District. The proposal includes 176 apartments in the upper stories and approximately 5,350 SF of retail on the ground floor along SE Morrison St and SE 9th Ave
C o m p l e t e d P r o j e c t s
811 Stark – 811 SE Stark St
New 31,500 SF mixed-use building with retail space on the 1st floor, and an expected mix of creative office uses on the upper floors
Plow Works Building – 105 SE Taylor St
Conversion of furniture warehouse into Retail with restaurant, showroom and production space. Plaza de Toro restaurant to occupy ground floor
Modera Belmont – 685 SE Belmont St
6-story, mixed-use building by SERA Architects
Little LOCA – 915 SE Belmont St
6-story mixed-use building by Ankrom Moisan Architects
Goat Blocks – 1036 SE Belmont St
Mixed-use development with 97,000 SF of retail space and 247 apartments
The Redd on Salmon – 831 SE Salmon St
Major renovation of and addition to existing building. New 2nd floor addition and new 2nd floor mezzanines
Custom Blocks – 1340 SE 9th Ave
Core and shell improvements for industrial use; seismic upgrades, new roofing, thermal envelope, plumbing and parking lot improvements
Matterhorn Building – 940 SE Madison St
Demolition of interior structures and construction of 5 new tenant spaces for commercial food kitchens
Waterman Building – 80 SE Madison St
Conversion of existing warehouse into industrial office building including seismic upgrade
Pitman II – 1430 SE Water Ave
Conversion of existing warehouse into production kitchens on first floor with offices above by DECA Architects
1510 Technology Center – 1510 SE Water Ave
Conversion of existing building into offices for Viewpoint Construction Software
120 SE Clay St
New 3-story office building with basement level parking, rooftop deck and green roof.
Clay Creative – 240 SE Clay St
New industrial office building with structured parking at lower level
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139 Southeas t Tay lo r S t ree t , Po r t l and, OR 97214
Marcus & Millichap has been selected to exclusively market for sale the Market Supply Building, an urban-
infill, office and industrial property located in Portland, Oregon. The building was built in 1929 and consists of
approximately 30,000 square feet of gross building area. The building is situated on a 0.23-acre parcel of
land, which is zoned IG1 – General Industrial 1.
Opportunity Zones were created as a result of the 2017 Tax Cut and Jobs Act, and they are designed to
encourage private investment generally in certain areas of the country through deferral of capital gains taxes.
To benefit from the program, one has to make capital improvements into an asset equal to the basis of the
property less the land value and then retain ownership of that asset for up to 10 years. A large majority of
Portland’s Central Business District has been designated an Opportunity Zone including the location of the
Subject Property. Moreover, the Oregon tax code automatically mirrors the federal one, so Oregon is
effectively offering the same Opportunity Zone discount to investors a second time on Oregon tax bills.
“Oregon has the best quality Opportunity Zones of any state in the country. OZ designations were
based on 2010 census data. Oregon areas ripe for economic development at that time included
much of downtown Portland, the Pearl District, close-in Eastside...”
- Portland Business Journal
•
•
•
•
17
139 SE TAYLOR ST
GBA: 30,000 SF // Lot: 0.23 AC
Second Level: 10,000 SFMain Level: 10,000 SFLower Level: 10,000 SF
20
DN
A3003
A300
A300
A300
4
2
1
2
2
3
3
4
4
5
5
6
6
C C
D D
E E
F F
G G
H H
A A
7
7
1
1
B B
2.6
1
A301
2
A301
15' -
3"
14' -
6"
14' -
6"
14' -
6"
15' -
1"
26' -
2"
100' -
0"
17' - 0" 16' - 6" 16' - 6" 16' - 6" 16' - 6" 16' - 6"
99' - 6"
26' -
2"
OFFICE
OFFICE
DISPLAY ROOM
SALESROOM
TOILET
TOILET
TOILET
TOILET
MAILROOM LUNCHROOM
STORAGE
OFFICE OFFICE
RECEPTION
STAIRFREIGHTELEVATOR
3.5 1.8
Drawn by
Checked by
PRELIMINARY
NOT FOR
CONSTRUCTION
Brett Schulzarchitect, pc2500 NE Sandy Blvd. Suite DPortland, Oregon 97232www.brettschulz.comT: 503.222.9099
Print Date:
Issue Date:
Issue:
6/9/2019 5:36:07 PM
A102
EXISTINGCONDITIONS- SECONDFLOOR PLAN
LOVETT HOLDINGS INC
JD
BJS
6/3/2019
EXISTING CONDITIONS
139 SE TAYLOR
1/8" = 1'-0" @ 22"x34", HALF SCALE @ 11"x17"1
SECOND FLOOR PLAN
No. Description
0' 4' 8' 16' 32'
21
UP
DN
DN
DN
DN
UP
A3003
A300
A300
A300
4
2
1
2345
5
6
6
C C
D D
E E
F F
G G
H H
A A
7
7
1
1
BB
2.6
1' -
6"
1' -
6"
0' - 0"
6%
-3' - 3"
2
A301
15' -
3"
14
' -
6"
14' -
6"
14
' - 6
"1
5' -
1"
26' -
2"
100
' - 0
"
17' - 0" 16' - 6" 16' - 6" 16' - 6" 16' - 6" 16' - 6"
99' - 6"
15' -
3"
14
' -
6"
14' -
6"
14
' - 6
"1
5' -
1"
26' -
2"
100
' - 0
"
17' - 0" 16' - 6" 16' - 6" 16' - 6" 16' - 6" 16' - 6"
STAIR
6" OD WASTE
0' - 0"
0' - 0"
-2' - 1 1/2"
0' - 0" -3' - 0"
-2' - 6"
-3' - 10"
WH
PARTS
PARTS OFFICE TOILET TOILET
TRUCK WELL
WAREHOUSE
FREIGHTELEVATOR
STAIR
3.5 1.8
Drawn by
Checked by
PRELIMINARY
NOT FOR
CONSTRUCTION
Brett Schulzarchitect, pc2500 NE Sandy Blvd. Suite DPortland, Oregon 97232www.brettschulz.comT: 503.222.9099
Print Date:
Issue Date:
Issue:
6/9/2019 5:35:59 PM
A101
EXISTINGCONDITIONS- FIRSTFLOOR PLAN
LOVETT HOLDINGS INC
JD
BJS
6/3/2019
EXISTING CONDITIONS
139 SE TAYLOR
1/8" = 1'-0" @ 22"x34", HALF SCALE @ 11"x17"1
FIRST FLOOR PLAN
No. Description
0' 4' 8' 16' 32'
22
UP
A3003
A300
A300
A300
4
2
1
23456
C C
D D
E E
F F
G G
H H
A A
7
7
1
1
B B
2.6
1
A301
2
A301
15' -
3"
14
' - 6
"1
4' -
6"
14
' - 6
"1
5' -
1"
26' -
2"
10
0' -
0"
17' - 0" 16' - 6" 16' - 6" 16' - 6" 16' - 6" 16' - 6"
99' - 6"
STAIRFREIGHT
ELEVATOR
3.5
15' - 10" 12' - 6" 12' - 6"
1.8
Drawn by
Checked by
PRELIMINARY
NOT FOR
CONSTRUCTION
Brett Schulzarchitect, pc2500 NE Sandy Blvd. Suite DPortland, Oregon 97232www.brettschulz.comT: 503.222.9099
Print Date:
Issue Date:
Issue:
6/9/2019 5:35:48 PM
A100
EXISTINGCONDITIONS- BASEMENTFLOOR PLAN
LOVETT HOLDINGS INC
JD
BJS
6/3/2019
EXISTING CONDITIONS
139 SE TAYLOR
1BASEMENT FLOOR PLAN
No. Description
0' 4' 8' 16' 32'
30
(SUBJECT)
Madison Suites
Cline Glass Building
Expert Auto Building
66 SE Madison
Kennedy Restoration
302 SE 7th Ave
Portland Store Fixtures
Clay Creative
1420 SE Water Ave
The Glass Lab
Khanate Furniture
Custom Blocks
1
2
3
4
5
7
8
6
9
10
11
12
31
Avg. $176 PSF
$0.00
$30.00
$60.00
$90.00
$120.00
$150.00
$180.00
$210.00
$240.00
$270.00
$300.00
139 SE
Taylor
Madison
Suites
Cline Glass
Building
Expert Auto
Building
66 SE
Madison
Kennedy
Restoration
302 SE 7th
Ave
Portland
Store
Fixtures
Clay
Creative
1420 SE
Water Ave
The Glass
Lab
Khanate
Furniture
Custom
Blocks
Average Price Per Square Foot
SubjectProperty
32
2
Close Of Escrow: 8/13/2019
Sales Price: $1,840,000
Price/SF: $204
Zoning: EXD - OPZ
CLINE GLASS BUILDING1125-1135 SE Grand Ave, Portland, OR, 97214
Close Of Escrow: 8/13/2019
Sales Price: $6,500,000
Price/SF: $124
Zoning: IG1 - OPZ
MADISON SUITES210-226 SE Madison St, Portland, OR 97214
4
Close Of Escrow: 7/15/2019
Sales Price: $820,800
Price/SF: $200
Zoning: EXD - OPZ
3
EXPERT AUTO BUILDING1525 SE MLK Jr Blvd, Portland, OR 97214
1
5
Close Of Escrow: 7/3/2019
Sales Price: $3,000,000
Price/SF: $181
Zoning: IG1 - OPZ
KENNEDY RESTORATION BUILDING323 SE 7th Ave, Portland, OR, 97214
Close Of Escrow: 7/10/2019
Sales Price: $1,425,000
Price/SF: $200
Zoning: IG1 - OPZ
66 SE MADISON ST66 SE Madison, Portland, OR, 97214
4
Close Of Escrow: 7/3/2019
Sales Price: $2,800,000
Price/SF: $200
Zoning: IG1 – OPZ
6
302 SE 7TH AVE302 SE 7th Ave, Portland, OR, 97214
4
33
8
Close Of Escrow: 2/1/2019
Sales Price: $3,650,000
Price/SF: $193
Zoning: IG1
CLAY CREATIVE BUILDINGS633 SE Clay St, Portland, OR, 97214
Close Of Escrow: 5/13/2019
Sales Price: $3,900,000
Price/SF: $236
Zoning: IG1 - OPZ
PORTLAND STORE FIXTURES110 SE Main St, Portland, OR, 97214
4
Close Of Escrow: 10/7/2018
Sales Price: $1,475,000
Price/SF: $184
Zoning: IG1 - OPZ
9
1420 SE WATER AVE1420 SE Water Ave, Portland, OR, 97214
7
11
Close Of Escrow: 3/28/2018
Sales Price: $1,600,000
Price/SF: $114
Zoning: EXD
KHANATE FURNITURE BUILDING716 SE Grand Ave, Portland, OR, 97214
Close Of Escrow: 6/5/2018
Sales Price: $6,300,000
Price/SF: $137
Zoning: IG1
THE GLASS LAB350 SE Mill St, Portland, OR, 97214
4
Close Of Escrow: 11/3/2016
Sales Price: $6,130,435
Price/SF: $130
Zoning: IG1
12
THE CUSTOM BLOCKS1306-1340 SE 9th Ave, Portland, OR 97214
10
34
(SUBJECT)
The Glass Lab
The Grand
Red East Center
The Custom Blocks
The Creamery
Matterhorn Building
East Bank Lofts
Plow Works Building
4
7
8
4
7
8
1
2
3
5
6
8
35
$28.66 NNN
$0
$3
$6
$10
$13
$16
$19
$22
$26
$29
$32
MLK/Grand The Glass
Lab
The Grand Red East
Center
Custom
Blocks
The
Creamery
Matterhorn
Building
East Bank
Lofts
Plow Works
Building
SubjectProperty
36
3
THE GLASS LAB350 SE Mill St, Portland, OR 97214
Lease Rates @ $26.50 NNN
4
THE GRAND714 SE Grand Ave, Portland, OR 97214
Lease Rates @ $26.00 NNN
1
THE CUSTOM BLOCKS1306-1340 SE 9th Ave, Portland, OR 97214
Lease Rates @ $29.50 NNN
2
RED EAST CENTER537 SE Ash St, Portland, OR 97214
Lease Rates @ $31.00 NNN
37
8
EAST BANK LOFTSPortland, OR 97214
For Lease @ $29.00 NNN
5
THE CREAMERY240 SE 2nd Ave, Portland, OR 97214
Lease Rates @ $28.00 NNN
6
PLOW WORKS BUILDING105-117 SE Taylor St, Portland, OR 97214
Lease Rates @ $27.75 NNN
7
MATTERHORN BUILDING940 SE Madison St, Portland, OR 97214
For Lease @ $30.00 NNN