Iconic Portland Urban Redevelopment Opportunity 33003324 NE BROADWAY AVENUE • PORTLAND, OREGON
OFFERING MEMORANDUM
EXCLUSIVE ADVISORS
DAVID HILL Senior Managing Director 503.972.5510 [email protected]
WENDY HILL Associate 503.972.5509 [email protected]
1120 NW Couch Street • Suite 350 Portland, OR 97209 www.ngkf.com
Procuring broker shall only be entitled to a commission, calcu- lated in accordance with the rates approved by our principal only if such procuring broker executes a brokerage agreement acceptable to us and our principal and the conditions as set forth in the brokerage agreement are fully and unconditionally satis- fi ed. Although all information furnished regarding property for sale, rental, or fi nancing is from sources deemed reliable, such in- formation has not been verifi ed and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or fi nancing, or withdrawal with- out notice and to any special conditions imposed by our principal. 1 INVESTMENT OPPORTUNITY 3300 NE Broadway (formerly known as Gordon’s commercial real estate. The close in Eastside of Portland Fireplace Shop building) presents an outstanding has seen a tremendous amount of development and opportunity to acquire one of the city’s best-known redevelopment in recent years due to its close proximity buildings. Located in the vibrant close-in east side and to downtown and vast transportation options. 3300 highly visible from Interstate 84, NE Broadway, and NE NE Broadway is only 3.5 miles from downtown and 33rd Avenue, this building is in a prime location for a easily accessed by car, mass transit, or bicycle. The wide variety of redevelopment opportunities. Built circa property is at the corner of NE Broadway and NE 33rd 1918, 3300 NE Broadway has the character and ‘cool Avenue, at the convergence of the Lloyd District and factor’ sought after for today’s creative offi ce, apartment, the Hollywood District. These areas are known for their retail, or mixed-use developments. abundance of services, retail shops, restaurants, and With rental rates skyrocketing in the Central Business wide-range of housing options. District and other close-in Westside areas, the close- The excellent location combined with this widely in Eastside submarket has become a highly desirable recognized building off ers a tremendous opportunity and sought-after place to locate and/or invest in for redevelopment.
PROPERTY SUMMARY: 33003324 NE BROADWAY, PORTLAND, OREGON Building Size Assessor’s Parcel Numbers (approximate) Year Built Site Area 3300 Broadway R263172 24,225 SF Circa 1918 8,975 SF 3324 Broadway R263173 2,775 SF NA 9,000 SF Combined 27,000 SF 17,975 SF
Current Zoning Planned Zoning Maximum FAR Maximum Height EX: CM3: 3:1 65 Feet Employment Commercial Mixed Use 3
OFFERED AT $3,875,000
2 PROPERTY HISTORY
The building at the corner of NE 33rd and Broadway has a rich history within Portland’s northeast neighborhood and business community. Oliver K. Jeff rey (O.K. Jeff rey) was a founder of Oregon Home Builders, Inc., a prolifi c early building fi rm responsible for many of the homes in nearby Alameda and Olmstead Park neighborhoods. Needing a workshop and warehouse near the market they were serving, and near transportation, in 1915 they built a 50 x 100 foot warehouse of wood with concrete fl oors on the corner of NE 33rd and Broadway. By 1917, Mr. Jeff rey’s attention had turned to airplanes, and he erected a three-story brick aircraft factory built for the purpose of making spruce parts for Army fl iers. The building has subsequently been home to a variety of other businesses—a few furniture stores, a pasta factory, and from 1990 through 2016, Gordon’s Fireplace Shop. Anyone who has lived in Portland for any length of time knows EXACTLY where the building is due to its very visible location.
3 Epitome of Creative Space 3300 NE Broadway off ers all the features desired for today’s creative space Historic Brick and beam High ceilings Wood fl oors Open concept Large windows that provide abundant 4 natural light PROPERTY OVERVIEW The off ering consists of two adjacent parcels. Parcel 3300 (western) is improved with a 3-story heavy timber and masonry building of approximately 24,225 SF, built circa 1918. The interior of the building generally has an open and unfi nished storage warehouse character, with high open beam ceilings and abundant perimeter windows. While eff ectively a building shell requiring extensive renovation, this structure has signifi cant potential for future residential, offi ce, retail and/or some combination use thereof. Parcel 3324 (eastern) is primarily improved as an asphalt parking lot, which is rare and coveted for the area. However, it is also improved with an addition to the primary building described above. This addition contains approximately 2,775 SF, is primary of wood frame construction, and includes three fl oors with the upper two fl oor not at grade with either of the main building upper fl oors.
BUILDING SUMMARY: 33003324 NE BROADWAY SITE DESCRIPTION: 33003324 NE BROADWAY Building Size 3300 NE Broadway (Western Parcel) (approximate) Year Built Address 3324 NE Broadway (Eastern Parcel) 3300 Broadway 24,225 SF Circa 1918 Assessor’s R263172 (Western Parcel) 3324 Broadway 2,775 SF NA Parcel #’s R263173 (Eastern Parcel) Combined 27,000 SF 8,975 SF (Western Parcel) Site Size (SF) 9,000 SF (Eastern Parcel) 17,975 SF (Total) The property is bounded by NE 33rd Avenue to the west, NE Broadway to the north, 3346 NE Broad- Streets/Access way to the east, and a railroad right of way to the south. Direct access is provided by NE Broadway. Good local/regional access to/from I-84, NE Broadway, and NE 33rd Avenue. Topography Predominantly fl at with some slope at the southern edge down to the railroad right of way NE Broadway at NE 33rd is a heavily-traveled intersection. The building is also highly visible from Exposure I-84 in both directions, providing exposure to an additional 187,279 vehicles daily. Street Parking Curbside parking is available along most of both sides of NE Broadway in the vicinity of the property.
5 6 Endless Opportunities With great natural light, heavy timber framing, extensive brick, and wood fl ooring, creative-use possibilities are endless. 7 LAND USE/ZONING Maximum Maximum Zone Floor Area Allowed Uses Building Height Ratio (FAR) EX Current 3:1 65 Feet Broad range of uses including residential, industrial, offi ce, retail, and service among others Central Employment Wide range and mix of commercial and residential uses, as well as employment uses that have lim- CM3 65 Feet Planned* 3:1 ited off -site impacts. Zone intended for sites in high-capacity transit station areas, in town centers, Commercial Mixed Use 3 6 Stories along streetcar alignments, along civic corridors, and in locations close to the Central City *The City of Portland is in the process of changing the zoning to accommodate the 2035 Comprehensive Plan. The plan is expected to take eff ect January 2018, but the zoning code amendments will take eff ect earlier.
8 LOCATION The property is located in “close-in” northeast Portland, Convention Center, the Moda Center, and Lloyd Center, COMMUTE TIMES just east of the Lloyd District and west of the Hollywood all less than 3 miles from the property. In addition to TO DOWNTOWN District. This area is easily accessible from Interstate 84, high-rise offi ce space, the area boasts a creative mix of PORTLAND the major freeway going east from downtown, which also boutiques, music venues, wellness centers, restaurants, connects with Interstate 5, the major west coast freeway coff ee shops, breweries, bars and attractions, all catering connecting north and south. Additional access is provided to an above average income demographic. by several major thoroughfares, including NE Broadway, Along with having good access by car, the properties CAR 8 MIN NE 33rd Avenue and NE Sandy Blvd. Portland International are easily accessible by alternative modes of Airport is approximately 9 miles from the properties, and transportation, making the area highly appealing to a downtown Portland is only 3.5 miles away. wide demographic. The Hollywood/NE 42nd Avenue The close-in northeast is home to many of Portland’s MAX Light Rail Transit Center is located nearby. BUS 18 MIN most popular destinations, including the Oregon
BIKE 17 MIN
WALK 54 MIN
Bike Score: 92 Flat, excellent bike lanes
Walk Score: 91 Walker’s Paradise
Transit Score: 67 Bus line 70 on NE 33rd Ave. Bus line 77 on NE Broadway Light Rail Transit Center at NE 42nd Ave.
9 SUBJECT
The neighborhood is made up of single and multi-family homes with a substantial variety of businesses and services, from small independent restaurants and retail shops to nation- al-name retailers like Starbucks and Rite Aid and large big-box stores like Fred Meyer and Orchard Supply Hard- ware. The area has seen tremendous development in the past few years. Most notable is Grant Park Village, a mixed use project anchored by New Seasons directly across NE 33rd from the property.
WITHIN ONE MILE Population (2016 est.) 28,204 Households (2016 est.) 12,941 Average Household income $101,260 10 Total Businesses 2,342 Employees 20,137 Property Description 11 SUBJECT
12 Property Description MARKET HIGHLIGHTS
18-Hour City of 200 Best Performing large Cities 2015 identifi es the With 24-hour gateway cities such as San Francisco, New Portland/Vancouver/Hillsboro MSA as #8 recognizing York and Los Angeles becoming highly competitive and job creation, wage gains, and technology trends among overheated, 18-hour cities such as Portland have quickly other criteria. risen toward the top of the list for corporate relocation, satellite operations, and real estate investment. Growing Low Vacancy/High Rent Growth Offi ce Market economies, strong technology base, lower cost of living, Multiple national offi ce surveys rank Portland as one of “cool” factor, and more favorable yields have bolstered the ten lowest offi ce vacancy markets, reported as low as these markets. the #3 market. CoStar reports a 4th Quarter 2016 vacancy rate of 7.5%. Portland was one of the only three markets Top 10 National Investment Market nationwide to post double-digit rent gains in 2016. Emerging Trends Real Estate 2016 published by the Urban Land Institute identifi ed Portland as: The March East #9 market nationally for real estate prospects While the Portland CBD offi ce market is the largest #10 for offi ce immediately after San Francisco and most dominant in the region, the fastest growing #3 US Offi ce Property Buy recommendations submarket is the Eastside submarket. Since 2015, more new offi ce projects have been delivered in the Portland #3 Happiest Cities to Work Index (behind Santa Clara eastside than the Portland CBD. These projects and and San Jose) - CareerBliss 2017 tenants tend to be more creative and technology oriented and are drawn by the more industrial and 2015 Best Performing Cities neighborhood character of these projects. The Milken Institute’s 2015 Best Performing Cities report,
13 EXCLUSIVE ADVISORS
DAVID HILL Senior Managing Director 503.972.5510 [email protected]
WENDY HILL Associate 503.972.5509 [email protected]
1120 NW Couch Street • Suite 350 Portland, OR 97209 www.ngkf.com I