Hout Industrial Park 5121-5129 SW Hout Street, Corvallis, Oregon
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Hout Industrial Park 5121-5129 SW Hout Street, Corvallis, Oregon Ground lease through 2042 with options to extend PROPERTY OVERVIEW Address 5121-5129 SW Hout Street Corvallis, Oregon Hout City, State Multi-tenant industrial Product Type warehouse Industrial Park Rentable Square 68,500 SF Feet THE OPPORTUNITY Land Size 3.61 AC (157,252 SF) Colliers International is pleased to present the opportunity to purchase Hout Industrial Park (“the Property), a 68,500 square foot industrial Four Number of Tenants project. The property is located in the heart of the Willamette Valley, just four miles south of the City of Corvallis and one mile from the Occupancy 100% Corvallis Municipal Airport. Year Built 1998 The property allows for excellent truck staging and easy access to Hwy 99 via Hout and Lowe Streets. Ceiling Height 22 ft Lease Type Ground Lease Drive Ins 6 total / 10’w x 9’h Lessor City of Corvallis Lessee WKL Investments Hout, LLC Docks 2 exterior Site Size 157,420.6 SF (3.61 acres) Term Expiration June 30, 2042 with options to extend Construction Reinforced Concrete (Original Agreement dated June 2, 1997) Expenses Lessor provides the use and benefits of the 50 surfaces spaces; Parking public water, sewer, and drainage systems. 0.72/1,000 SF Lessee is responsible for payment of water, sewer and drainage charges and all other Year 1 NOI $307,555 utility charges. Sale Price $3,995,000 Cap Rate 7.7% P. 4 P. 5 North to Salem and Portland West to South to California Border SW Hout St SW Airport Ave P. 4 P. 5 PROPERTY OVERVIEW North to Salem and Portland 37 miles to Eugene 40 miles to Salem 56 miles to Woodburn 86 miles to Portland 236 miles to CA Border Target Distribution Center South to California Border P. 6 P. 7 Investment Highlights Rare opportunity to acquire nearly 68,500 square feet of industrial space adjacent to the Corvallis airport. Historically high occupancy, well performing asset. 100% leased. Diverse multi-tenant rent roll. Area labor force draws from Albany, Corvallis, Eugene, Lebanon and Salem. OSU, U of O and LBCC are all easily accessible. Two Town Cider and Lucidyne Technologies have both invested substantial capital recently into their premises. P. 6 P. 7 FINANCIAL SUMMARY Tenant Profiles 2 Towns Ciderhouse is an American artisan craft brewery based in Corvallis, Oregon. In 2010, three graduates from Oregon State University and University of Oregon launched the commercial enterprise specializing in the fermentation of apple cider to create hard cider. The brand name is a refrence to the two college towns of Corvallis and Eugene. During its first year of operations, the company sold approximately 100 cases a month. The company launched its own orchard in 2012 and in 2014, they signed on as an official sponsor of the Portland Timbers. 2 Towns products are available from multiple taps at all Timbers games and at other sporting events at Providence Park in Portland. 2townsciderhouse.com Precision Approach Engineering is an aviation engineering consulting firm with extensive experience in partnering with clients and the FAA to obtain funding, create designs, and develop airport improvement projects. The company was founded in 2008 and has offices in Corvallis and Medford, Oregon, and Bellingham, Washington. Precision Approach Engineering has completed projects at the following airports (and several others): Astoria Regional Airport, Corvallis Municipal Airport, Albany Municipal Airport, Lebanon Airport and the La Grande/Union County Airport. preappinc.com Lucidyne Technologies is a world-leading manufacturer of scanning technologies for the wood product industry. They focus on final grading solutions for mills, and provide solutions for mill operators and businesses. The company was founded in 1985 in Corvallis and is the industry leader in technological advances. Only Lucidyne delivers an automated lumber scanner that uses deep learning artificial intelligence to grade lumber for maximum fiber and value recovery. lucidyne.com PlasTech is a customer service oriented manufacturing company that offers complete turn key operation. Serving both small entrepreneurs and multi-billion dollar corporations, PlasTech assists clients in the manufacturing of products and provide injection molding, prototyping or machining. The facility in Corvallis manufactures products for use in industries such as medical, electronic, sporting goods, retail display items and several others. plastechinc.com P. 8 P. 9 MARKET OVERVIEW Corvallis, Benton County 18 Miles of Multi-use paths Average minutes of 17 Travel Time to Work Graduates Per Year from 6,000 Oregon State University Cost for Public 0 Transport Located in Oregon’s Willamette Valley, Corvallis is a dynamic university town with a culture that celebrates innovation, green values and close access to a variety of outdoor recreation. Corvallis is surrounded by mountain ranges containing, dense forests and wineries. Hiking and biking are among the favorite outdoor activities in Corvallis, which features an extensive network of pedestrian pathways. Oregon State University, Samaritan Health Services and AVI BioPharma are among the top employers in Corvallis. The city’s restaurants, bars, art galleries and shops tend to bend towards the artistic side of things. Corvallis is situated midway in the Willamette Valley, approximately 46 miles east of the Oregon Coast, 85 miles south of Portland, 30 miles south of Salem, and 10 miles west of Interstate 5. Oregon Route 99W, a secondary north-south route, also runs through Corvallis. Home to Oregon State University and its 26,000 students, Corvallis is at its core a university town. OSU was once primarily an agricultural college, but it now has more majors, minors, and special programs than any other university or college in Oregon. Other major employers include Samaritan Health Services, CH2M Hill, SIGA Technologies, Evanite Fiber, ONAMI, and HP Inc., which has the largest printing research and development operation in the northeast area of town. Corvallis is well-situated for those who enjoy outdoor recreation. Not only is it an hour from the coast (surfing, fishing, etc.), but it’s also 86 miles from the nearest ski slope, and there are over 60 miles of biking and hiking trails in town and close by. The average commute for Corvallis residents is 16.3 minutes, which is 34% shorter than the average commute for those in Portland. What do Corvallis residents do with all this free time? They drink craft beer, go birding, ride bikes, and invent new ways to commute to work. P. 14 P. 15 CONFIDENTIALITY AGREEMENT THIS CONFIDENTIALITY AGREEMENT (“Agreement”), is entered into as of , 2019 (“Effective Date”), by and between WKL Investments, Hout, LLC, a Delaware limited liability company, (“Provider”) and (“Recipient”) in order to record the assurance by the Recipient to maintain the confidentiality of certain proprietary or confidential information owned or possessed by the Provider, which may be disclosed by the Provider to the Recipient regarding evaluation of property located at 5121-5129 SW Hout Street, Corvallis, Oregon (“Evaluation”). This Agreement does not represent any obligation to proceed with any business transactions between Provider and Recipient. FOR GOOD AND VALUABLE CONSIDERTION, the parties hereby agree as follows: 1. Confidential Information. a. As used in this Agreement, the term “Confidential Information” means any information, material, data, knowledge, professional secrets or know-how (in whatever form or medium or however communicated) concerning the Provider, and each of their subsidiaries and affiliates or their respective businesses and operations disclosed or provided, directly or indirectly, by the Provider to the Recipient or any representative or agent of Recipient, whether prior to the execution of this Agreement or hereafter, and includes all summaries, reports, notes, analyses or other documents (in whatever form or medium and however communicated) containing, based on, or reflecting any of the foregoing. b. Confidential Information includes, but is not limited to financial data, real estate property data, real estate property financial data, employee or agent data, processes, marketing and business plans, computer programs, budgets, unpublished financial statements, information relating to customers, customer and supplier lists and access codes. c. Confidential Information does not include information or material of any nature, whether or not obtained pursuant to legal process or court order: (i) which was lawfully in the possession of Recipient prior to disclosure of such information by the Provider; (ii) which was, or at any time becomes, available in the public domain other than through the act or omission of Recipient; (iii) which is documented by Recipient as having been developed by it independently; or (iv) which is furnished to Recipient by a third party having a right to do so. 2. Restricted Use a. Recipient will use the Confidential Information for the sole purpose of the Evaluation. Recipient acknowledges that Confidential Information supplied by or on behalf of the Provider is the property of the Provider and the Recipient shall acquire no right, title or interest to such Confidential Information. b. Recipient and each Authorized Recipient (as defined below) will keep all Confidential Information confidential and will not disclose any Confidential Information, in whole or in part, in any manner whatsoever to any person or entity for any reason whatsoever, except that: (i) the Confidential Information may