OFFERING MEMORANDUM MARION BUILDING 2829 RUCKER AVENUE Everett, WA 98201
Advisory & Transaction Services | Offering Memorandum AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT
CBRE, Inc. operates within a global family of written authorization of the owner of the Property information contained herein, to consult with companies with many subsidiaries and related (“Owner”) or CBRE, Inc., and (iv) you will not use independent legal and financial advisors, and entities (each an “Affiliate”) engaging in a broad any part of this Memorandum in any manner carefully investigate the economics of this range of commercial real estate businesses detrimental to the Owner or CBRE, Inc. transaction and Property’s suitability for your including, but not limited to, brokerage services, needs. ANY RELIANCE ON THE CONTENT OF property and facilities management, valuation, If after reviewing this Memorandum, you have no THIS MEMORANDUM IS SOLELY AT YOUR investment fund management and development. further interest in purchasing the Property, kindly OWN RISK. At times different Affiliates, including CBRE return it to CBRE, Inc. Global Investors, Inc. or Trammell Crow The Owner expressly reserves the right, at its sole Company, may have or represent clients who This Memorandum contains select information discretion, to reject any or all expressions of have competing interests in the same transaction. pertaining to the Property and the Owner, and interest or offers to purchase the Property, and/or For example, Affiliates or their clients may have or does not purport to be all-inclusive or contain all to terminate discussions at any time with or express an interest in the property described in or part of the information which prospective without notice to you. All offers, counteroffers, this Memorandum (the “Property”), and may be investors may require to evaluate a purchase of and negotiations shall be non-binding and the successful bidder for the Property. Your receipt the Property. The information contained in this neither CBRE, Inc. nor the Owner shall have any of this Memorandum constitutes your Memorandum has been obtained from sources legal commitment or obligation except as set acknowledgement of that possibility and your believed to be reliable, but has not been verified forth in a fully executed, definitive purchase and agreement that neither CBRE, Inc. nor any for accuracy, completeness, or fitness for any sale agreement delivered by the Owner. Affiliate has an obligation to disclose to you such particular purpose. All information is presented Affiliates’ interest or involvement in the sale or “as is” without representation or warranty of any purchase of the Property. In all instances, kind. Such information includes estimates based however, CBRE, Inc. and its Affiliates will act in on forward-looking assumptions relating to the the best interest of their respective client(s), at general economy, market conditions, competition arms’ length, not in concert, or in a manner and other factors which are subject to uncertainty detrimental to any third party. CBRE, Inc. and its and may not represent the current or future Affiliates will conduct their respective businesses performance of the Property. All references to in a manner consistent with the law and all acreages, square footages, and other fiduciary duties owed to their respective client(s). measurements are approximations. This Memorandum describes certain documents, Your receipt of this Memorandum constitutes your including leases and other materials, in summary acknowledgement that (i) it is a confidential form. These summaries may not be complete nor Memorandum solely for your limited use and accurate descriptions of the full agreements benefit in determining whether you desire to referenced. Additional information and an express further interest in the acquisition of the opportunity to inspect the Property may be made Property, (ii) you will hold it in the strictest available to qualified prospective purchasers. You confidence, (iii) you will not disclose it or its are advised to independently verify the accuracy contents to any third party without the prior and completeness of all summaries and
© 2018 CBRE, Inc. All Rights Reserved. THE MARION BUILDING
TABLE OF CONTENTS
01 EXECUTIVE SUMMARY
02 PROPERTY OVERVIEW
03 MARKET OVERVIEW
04 FINANCIAL INFORMATION
05 SUPPLEMENTAL INFORMATION
CONTACT US
RIC BRANDT Senior Vice President +1 425 462 6901 [email protected]
JOHN BAUER Senior Vice President +1 425 462 6906 [email protected]
ERIK LARSON Vice President +1 425 462 6954 [email protected] EXECUTIVE SUMMARY THE MARION BUILDING
THE OFFERING
The Marion Building consists of a three-story, 21,921 square foot multi-tenant office building situated on 0.34 acres, including a 20-stall parking lot. Built in 1895 and last renovated in 2004, the stand-alone building is available either as a vacant building or as a stabilized sale-leaseback opportunity. This historic asset provides excellent exposure to the busy Rucker and Hewitt Avenue thoroughfares and a strategic downtown Everett location. The three story over lower level office building provides rare abundant parking with multiple suite sizes and configuration flexibility. Located on the heavily travelled Rucker and Hewitt Avenue corridors, The Marion Building offers a strategic location just minutes from I-5 and Highway 99 providing convenient freeway access. The landmark building is also within walking distance to the numerous downtown residential, retail and financial amenities. THE OFFERING
INVESTMENT HIGHLIGHTS
SALE-LEASEBACK OR FULL-BUILDING USER OPPORTUNITY Rare opportunity to acquire a 100% leased or vacant user office building with parking lot centrally located in Everett.
EXCELLENT ACCESS The property is strategically located near I-5 & Highway 99/Rucker Avenue.
WELL MAINTAINED - PRIDE OF OWNERSHIP The asset maintains the characteristics of best in class product for this submarket with a diverse multi-tenant base. Recent project updates will require minimal near-term capital requirements.
MARKET LEADING PARKING The property includes a 20 stall parking lot with opportunity to lease another 26 stalls in a nearby parking lot, a significant competitive advantage over other buildings in the market.
HIGH VISIBILITY LOCATION The property features prominent corner exposure to Hewitt and Rucker Avenues.
TOP PRIVATE SECTOR EMPLOYERS Top private sector employers in greater Snohomish County include Boeing, Providence Medical Center, Premera Blue Cross, Fluke Electronics/Danaher, Aviation Technical Services, CEMEX, Crane Aerospace, Sonosite, Panasonic Avionics, B/E Aerospace, and Intermec/ Honeywell and Funko.
HIGH BARRIERS TO ENTRY Geographic and zoning constraints in Everett have created significant barriers to entry and limited the availability of developable office building parcels.
CORE PROXIMITY The property is about 30 miles north of both Seattle and Bellevue which are the core business centers in the region.
AIRPORTS AND PORTS The property is 43 miles north of Sea-Tac airport, 30 miles to the Port of Seattle, 10 miles north of Paine Field (commercial air service starting in 2019) and just 0.8 miles east from the Port of Everett and Naval Homeport. PROPERTY OVERVIEW THE MARION BUILDING
PROPERTY OVERVIEW
2829 Rucker Avenue CONSTRUCTION ADDRESS: Brick/Masonry Everett, Washington 98201 TYPE:
004391-669-006-00 - Parking lot PARCEL NUMBER: YEAR BUILT: 1895; Renovated 2001 and 2004 004391-669-009-02 - Building B3 - Commercial, City of Everett - ±14,811 SF (0.34 acres) Parking Lot TOTAL LOT AREA: ZONING: Building Lot: 5,663 SF C1 - Commercial, City of Everett - Parking Lot: 9,148 SF Building Approximately 20 stalls fee simple ±21,921 SF BUILDING TOTAL SF: PARKING: An additional 26 stalls are leased Three stories over lower-level (Hewitt lot)
TENANT: Coast Group of Companies FRONTAGE: Rucker and Hewitt Avenues
Potential Lease-back/ USE/ Multi-Tenant office building. Readily LEASE EXPIRATION: To be determined CONFIGURATION: divisible 1,000-6,000 SF. BUILDING HISTORY
THE COLORFUL HISTORY OF THE TONTINE SALOON AND MARION BUILDING
(much of this credited to the late David Dilgard).
The owner of the historic Marion Building is part of a heritage.
The Marion Building, at Hewitt & Rucker, was originally financed by investor Thornton Goldsby. Ground had been broken May 4, 1893, the very week Everett became an incorporated city and the same month the Silver Panic began.
Like the city itself, the Marion Building construction was halted. Half-finished because of adverse financial circumstancesm, Goldsby’s laborers roofed over the ground floor of the Marion as Billy Emerson, owner of the Tontine Saloon nearby, negotiated a lease on the west half of it, and it was there that the Tontine opened on October 4, 1893.
Construction resumed on the Marion Building in 1894 and after several noisy months for the Tontine, the upper floor was completed and fitted up as a hotel.
The Tontine Saloon offered billiards, a card-room, a reading room, and a buffet lunch. But economic times were hard and Emerson soon had enough of running the saloon. In the spring of 1896 he sold his interest in the saloon to Charlie Manning and took off for the Yukon in pursuit of gold.
The story might have ended there, with the curtain descending upon a troubled City and a cast-off Tontine Saloon. But the second act found The City of Smokestacks magically revived by the investments of Jim “The Empire Builder” Hill, who added Everett to his empire late in 1899 and reconstructed the ailing City through his Everett Improvement Company. It was boom times again and the Tontine Saloon and Marion Building were at center stage.
Manning used the good times to renovate the building from top to bottom with colored glass and mosaic tile, fancy THE MARION BUILDING
BUILDING HISTORY ceiling panels, incredible wallpaper, gleaming brass hardware and exotic floor coverings. A stuffed elk, bagged and mounted by Manning himself, stood majestically over the paneled booths at the rear of the place among the fancy lanterns and potted palms.
Soon, The Tontine became the poshest most “bon ton” saloon of Everett’s now thirty such establishments. Old timers recall that the Tontine was perhaps a bit too fancy for a hardy mill town like Everett. They wondered if Charlie Manning ever broke even in the saloon business.
Even though gambling was embraced at The Tontine under the skillful management of a dealer named Monte, there is no record of violence or indiscretion at the Tontine to compare with other Everett pubs early in the century.
Manning ran a genteel establishment, where a father might send a young son to fetch a bucket of beer to go. If Manning’s competitors had been as orderly, Everett might never have enacted a local option law in 1910 outlawing the sale of hard liquor. Perhaps as a test of enforcement policy, Manning continued to operate the Tontine as a “blind tiger” until he was arrested and fined, ending any illusions he may have had about permissiveness.
Concern over loss of revenue from liquor licenses was largely responsible for turning Everett “wet” again in 1912, but two years later a state initiative once more dried up the flow of spirits. And then came the Volstead Act. Other saloons, including the old Riverside Tontine, came back after the long, arid era between 1914 and 1933. In twenty years the parlance had undergone some modification - saloons and sample rooms reopened as beer parlors and bars. By then, the Marion Building had long since become a hardware store and the Tontine was no more than memorable stories. BUILDING HISTORY
The last echoes of the Tontine Saloon are to be found in the Marion Building at Hewitt and Rucker. Tucked away in a dark corner of the upper floor are some of the fancy ceiling panels Manning bought with his Alaska bankroll. Most nostalgic and appropriate of all are the windows that enclose the hardware store office. Twisting across panels of colored glass are clusters of rich, purple grapes. As part of the remodel that preceded State Historic Register status for the Marion Building in 1979, all the building’s stained glass was removed and sold.)
The Marion Building is a story about the West. The hardware store thrived after WW II. In the 1980’s, it changed hands and was leased out to the County for office use. In the 1990’s a “dot com” millionaire bought the building, made a number of very nice improvements, leased it out, and then, as the story of the West is told, he suffered his financial demise in the dot com bust of the early 2000’s, transferring ownership of the building to one of the tenants. Several years later, The Hoban brothers (Tom and Shawn) bought it and made it the headquarters of their real estate companies where they operate the Coast Group of Companies today. BUILDING PHOTOS THE MARION BUILDING
BUILDING PHOTOS BUILDING PHOTOS FLOOR PLANS
LOWER FLOOR
FIRST FLOOR THE MARION BUILDING
FLOOR PLANS
SECOND FLOOR
Third and Fourth Floor Plans Third and Fourth Floor Plans
THIRD AND FOURTH FLOORS