HOLLYWOOD STATION High Density Urban Location CLICK HERE 24 Hour Fitness Anchored Mixed-Use Investment for PROPERTY 4224 NE Halsey St, Portland, OR VIDEO
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HOLLYWOOD STATION High Density Urban Location CLICK HERE 24 Hour Fitness Anchored Mixed-Use Investment FOR PROPERTY 4224 NE Halsey St, Portland, OR VIDEO $23,510,000 6.75% CAP Rate | $1,586,975 NOI Listing Brokers: Blake D. Federinko Brandi M. Ho Michael A. Jenkins [email protected] [email protected] [email protected] 360.823.5111 360.823.5112 360.823.5102 While the information provided is not guaranteed it has been obtained from sources we deem reliable. It is provided without any representations, warranty or guarantee, expressed or implied as to its accuracy. Prospective buyer or tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other Professional advisor. THIS OFFERING PRESENTS the opportunity to acquire a mixed-use investment in the heart of Portland’s Hollywood District. The property is leased to office and retail tenants. The anchor tenant is 24 Hour Fitness, a Super-Sport gym with a spacious layout filled with energy and inspiration and features thousands of square feet of spectacular workout space, complete with premium gym equipment, unmatched amenities and some of the best studio classes around Portland. The property has eight additional tenants and includes a 220-stall parking garage for the added convenience to the building’s customers. HOLLYWOOD STATION Page 2 24 Hour Fitness extended their initial lease term at Hollywood Station for an additional 10-Years making a new initial term of +/-16.5-Years. With this location being in 24 Hour Fitness’ Top 5 busiest locations in the country, the lease extension shows their long-term commitment to the site. 167,000 VPD INVESTMENT OVERVIEW Price | $23,510,000 CAP | 6.75% Building Size 69,112+/- SqFt Parking Garage Size 83,814+/- SqFt Parking Spaces 220+/- Year Built 2006 County: Multnomah Elevator Served Yes Zoning CM3 - Commercial Mixed Use 3 Lease Type NNN/Gross Page 4 INVESTMENT OVERVIEW New 16.5 Year Lease with 24 Hour Fitness 220,000+ Residents within a 3-Mile Radius Projected 6.26% Increase in Population Density in the Next 5 Years Based on a 3-Mile Radius High Barriers to Entry Located in Portland’s Highly Desirable Hollywood District The Exterior Walls are made of Decorative Brick, Glass Storefronts and Windows The Structure is made of Concrete & Steel The Roof is a Flat Built-Up Composition RENT ROLL Unit Tenant SqFt % OF GLA Lease Term 100 & 24 HOUR FITNESS 48,499 3RD FLOOR 72% 9/1/18 - 1/31/25 2/1/25 - 1/31/30 2/1/30 - 1/31/35 THREE, 5-YEAR OPTIONS 300 & PORTLAND 310 DEVELOPMENT GROUP 3,376 5% 10/1/18 - 9/30/19 10/1/19 - 9/30/20 10/1/20 - 9/30/21 10/1/21 - 9/30/22 320 V2 10/1/22 - 9/30/23 2,299 3.5% 6/1/18 - 5/31/19 325 PACIFIC NW 6/1/19 - 5/31/20 WATERWAYS 1,800 2.7% 8/1/18 - 8/31/18 9/1/18 - 8/31/19 9/1/19 - 8/31/20 9/1/20 - 8/31/21 9/1/21 - 8/31/22 9/1/22 - 8/31/23 9/1/23 - 8/31/24 330 GRIDLEY DENTAL 9/1/24 - 8/31/25 ARTS 2,102 3.2% 2/1/18 - 1/31/19 2/1/19 - 1/31/20 2/1/20 - 1/31/21 2/1/21 - 1/31/22 2/1/22 - 1/31/23 2/1/23 - 1/31/24 335 VACANT 2/1/24 - 1/31/25 340 BLACK DIAMOND 3,670 5.5% -- PHYSICAL THERAPY 2,160 3.2% 9/1/18 - 8/31/19 9/1/19 - 8/31/20 9/1/20 - 8/31/21 9/1/21 - 8/31/22 4204 NE BIBIMBAP HOUSE 9/1/22 - 8/31/23 HALSEY 1,900 2.9% 4/1/16 - 3/30/21 4212 NE CENTURYLINK HALSEY 1,365 2% 6/1/16 - 5/31/21 ONE, 3-YEAR OPTION Page 6 Additional Annual Base Rent Rent Total Rent Rent PSF -- -- $111,719.50 -- $111,719.46 $1,340,634.00 $27.64 $122,891.42 $122,891.40 $1,474,697.00 $30.41 $135,180.58 $135,180,58 $1,622,167.00 $33.45 10% Increase Each Option TBD $7,127.60 $192.47TBD $7,320.07 $87,840.84 $26.02 $7,341.43 TBD $7,341.43 $88,097.16 $26.01 $7,561.67 TBD $7,561.67 $90,740.04 $26.88 $7,788.52 $7,788.52 $93,462.24 $27.68 $8,022.18 $8,022.18 $96,266.16 $28.51 TBD $4,471.55 $131.01 $4,602.56 $55,230.72 $24.02 $4,605.66 -- $4,605.66 $55,267.92 $24.04 -- $4,050.00 TBD $4,050.00 $48,600.00 $27.00 $4,050.00 TBD $4,050.00 $48,600.00 $27.00 $4,171.50 TBD $4,171.50 $50,058.00 $27.81 $4,296.65 TBD $4,296.65 $51,559.80 $28.64 $4,425.54 TBD $4,425.54 $53,106.48 $29.50 $4,558.31 TBD $4,558.31 $54,699.72 $30.39 $4,695.06 $4,695.06 $56,340.72 $31.30 $4,835.91 $4,835.91 $58,030.92 $32.24 TBD $4,928.79 $66.01TBD $4,994.80 $59,937.60 $28.51 $5,076.66 TBD $5,076.66 $60,919.92 $28.98 $5,228.96 TBD $5,228.96 $62,747.52 $29.85 $5,385.83 TBD $5,385.83 $64,629.96 $30.75 $5,547.40 TBD $5,547.40 $66,568.80 $31.67 $5,713.82 $5,713.82 $68,565.84 $32.62 $5,885.24 TBD $5,885.24 $70,622.88 $33.60 $9,175.00 $9,175.00 $110,100.00 $30.00 TBD $4,151.25 $66.22TBD $4,217.47 $50,609.64 $23.43 $4,255.03 TBD $4,255.03 $51,060.36 $23.64 $4,361.41 TBD $4,361.41 $52,336.92 $24.23 $4,470.44 $4,470.44 $53,645.28 $24.84 $4,582.20 -- $4,582.20 $54,986.40 $25.46 $4,275.00 $4,275.00 $51,300.00 $27.00 -- Fair Market -- Fair Market -- -- $3,185.00 $3,185.00 $38,220.00 $28.00 FINANCIAL SUMMARY GRoss INCOME $1,842,472.80 VACANCY AT 3% (OFFICE USE ONLY)* ($15,055.16) ERESERVESFFECTIVE AT G.10R PSFoss INCOME $1,820,506.44($6,911.20) OPERATING EXPENSES COMMONTAXES AREA MAINTENANCE ($257,273.83) INSURANCE ($29,862.00) JANITORIAL ($24,821.64) LANDSCAPING ($5,285.74) LIGHTING ($2,476.38) PARKING LOT ($12,842.00) REPAIR & MAINTENANCE ($75,797.44) SECURITY ($68,147.50) GARBAGE ($11,469.04) PROPERTY MANAGEMENT ($39,090.00) UTILITIESTOTAL OPERATING EXPENSES ($697,826.24)($161,751.67) MISC.TENANT REIMBURSEMENT ($9,009.00) NET OPERATING EXPENSES $233,531.30$464,294.94 NET OPERATING INCOME $1,586,975.14 CAP RATE 6.75% SALE PRICE $23,510,000.00 *No vacancy given to 24-Hour Fitness given the primary term of the lease. Page 8 PARKING GARAGE Hollywood Station includes a 4 story parking garage that consists of 220+/- Parking Spaces, giving plenty of parking for the customers that use the building. HOLLYWOOD STATION FLOOR PLANS 4212 NE Halsey 4204 NE Halsey 1ST FLOOR 2ND FLOOR Page 10 2ND FLOOR Suite Suite 320 325 Suite Suite 330 340 Suite 335 Suite 300 3RD FLOOR ABOUT THE HOLLYWOOD DISTRICT Is a mix of Commercial and Comprised of Residential Real Estate, Approximately 142 but serves primarily as a Acres shopping district. Annual Rose Festival Junior Parade takes place in the Hollywood district in Home to the Hollywood June. Farmers Market Page 12 ABOUT THE HOLLYWOOD DISTRICT HOLLYWOOD/NE 42ND AVE TRANSIT CENTER is a light rail station in the MAX Light Rail system and is located in the Hollywood District of Portland, Oregon. It is the 11th stop eastbound on the east side MAX main line. It is served by the Blue, Green and Red Lines, of TriMet. It is Is a mix of Commercial and also a transit center (bus station for local buses), served by three TriMet bus routes. Residential Real Estate, but serves primarily as a The transit center is located south of the intersection shopping district. of Northeast 42nd Avenue and Halsey Street. The MAX anstation elevator platform to a pedestrian is situated bridgebetween which Interstate connects 84 andto the a transitUnion Pacific center Railroadbus bays line to the and north is connected and neighborhoods by stairs and to the south, across the freeway. The platform is separated from the freeway only by the eastbound tracks and a low crash wall, causing the platform level of this station to be somewhat noisy most hours of the day. The station was located in TriMet fare zone 2 from its opening in 1986 until September 2012, at which time TriMet discontinued all use of zones in its fare structure. Home to the Hollywood Farmers Market ABOUT ADJACENT PROPERTIES Laurel 42 4242 NE Halsey Street Multi-Family Project Laurel 42 is a six story multi-family project that will offer 100 residential units comprised of studios, one-bedroom and two bedroom apartments. Laurel 42 will also have 2,000 sqft of retail and 60 parking spaces with an automated, three-stack, mechanical parking system.