Offering Memorandum December 2019
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CLOSE-IN NE PORTLAND DEVELOPMENT OPPORTUNITY OFFERING MEMORANDUM DECEMBER 2019 100 MULTNOMAH NE PDX Jeff Falconer, SIOR McCoy Doerrie David Tabata Principal Broker Vice President Vice President 503.542.4346 503.517.7120 503.542.4348 [email protected] [email protected] [email protected] CONTENTS EXECUTIVE SUMMARY PG.3 MARKET OVERVIEW PG.15 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 1 EXCLUSIVE ADVISORS Jeff Falconer, SIOR McCoy Doerie David Tabata Principal Broker Vice President Vice President 503.542.4346 503.517.7120 503.542.4348 CAPACITY COMMERCIAL GROUP [email protected] [email protected] [email protected] 805 SW Broadway, Suite 700 Portland, OR 97205 + P: 503.326.9000 CONFIDENTIALITY & CONDITIONS The Memorandum is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property and is not to be used for any other purpose or made available to any other person without the express written consent of Capacity Commercial Group. The Memorandum is based in part upon information supplied by the Seller and in part upon information obtained by Capacity Commercial Group from sources it deems reasonably reliable. No warranty or representation, expressed or implied, is made by Seller, Capacity Commercial Group, or any of the respective affiliates, as to the accuracy or completeness of the information contained herein or as to engineering or environmental matters. Prospective purchasers should make their own projections and conclusions without reliance upon the material contained herein and conduct their own independent due diligence. An opportunity to inspect the Property will be made available to qualified prospective purchasers. The Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Capacity Commercial Group or the Seller. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing the Property and does not purport to be all inclusive or to contain all of the information which prospective purchasers may desire. It should be noted that all financial projections are provided for general reference purposes only, in that they are based on assumptions relating to competition, the general economy, and other factors which may or may not be accurate. The Seller and Capacity Commercial Group expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. Seller shall have no legal commitment or obligation to any purchaser reviewing this Memorandum or making an offer to purchase this Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived. The Seller will not consider uninvited proposals submitted by brokers and will not pay any commission or other consideration to any broker or intermediary. Capacity Commercial Group is not authorized to make any representations or agreements on behalf of Seller. The Memorandum is the property of Capacity Commercial Group and Seller and may be used only by parties approved by Capacity Commercial Group and Seller. The Property is privately offered and, by accepting this Memorandum, the entity in possession hereof agrees (i) to return it to Capacity Commercial Group immediately upon request of Capacity Commercial Group or Seller and (ii) that this Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of the Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Capacity Commercial Group and Seller. 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 2 SITE SUMMARY EXECUTIVE SUMMARY Site Size: 38,241 square feet/0.88 Acres Tax ID: R140977 100 Multnomah Opportunity: Approximately 120k SF Class A office tower, built (1075 NE 2nd Avenue) on the 442 stall parking structure and retail space Portland, Oregon Current Improvements: 97232 -442 Stall parking Structure (owned by Prosper Portland) -Approximately 1,500 SF Retail Space (owned by Prosper Portland) -Approximately 19,100 SF Condominium (owned and occupied by Trimet) Walking Score: Very Walkable (84) Biking Score: Bikers Paradise (96) Transit Score: Excellent Transit (89) 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 4 OFFERING SUMMARY EXECUTIVE SUMMARY Currently completed is a 7-story, 442 stall parking structure, of which 375 stalls will be made available on a first-priority basis to the Hyatt Regency and 50 stalls are owned and controlled by TriMet. Additionally, there is a 19,100 SF condominium on the lower two floors owned, occupied and managed by TriMet. OPPORTUNITY ›› CONDOMINIUM OWNERSHIP OF 9-STORY, CLASS A OFFICE DEVELOPMENT ADJACENT TO AND ON TOP OF A 442 STALL, 7-STORY PARKING STRUCTURE ›› DESIGNED: 120,000 SF 9-STORY CLASS A LEED GOLD OFFICE TOWER (FLYER PAGE 25) ›› CBD OPPORTUNITY ZONE OREGON4BIZ.COM/OPPORTUNITY-ZONES ›› CBD ENTERPRISE ZONE PROSPERPORTLAND.US/PORTFOLIO-ITEMS/PORTLAND-ENTERPRISE-ZONE ›› LOT SIZE: 0.88 ACRES ›› ZONING: CX (CENTRAL COMMERCIAL) ›› PARKING STRUCTURE: COMPLETED JULY 2019 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 5 DEVELOPMENT PARTNER EXECUTIVE SUMMARY IDEAL DEVELOPMENT PARTNER IDEAL DEVELOPMENT This development opportunity is located in what PARTNER was a predominantly African-American neighborhood. Residents and businesses in this area were subject to displacement through disciminatory practices. Prosper Portland’s Equity Policy encourages broadening economic opportunities and promoting wealth creation to People of Color and historically underrepresented and disadvantaged Portlanders. To this end, Prosper Portland’s ideal development partner and preferences are: DEVELOPMENT TEAM PREFERENCES • Local African-American developers and individuals in the real estate / leasing / development / construction industry. First Priority: • Local African-American owned businesses who may be potential tenants or investors • Local non-profits that provide service to the African- American community who may be potential tenants. • National African-American developers / development Second Priority: teams • Any / all interested, capable and resourced developers / Third Priority: development teams, both locally and nationally. 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 6 OFFERING SUMMARY EXECUTIVE SUMMARY TIMELINE MAR ‘19 50% COMPLETION OF SCHEMATIC DESIGN JULY ‘19 50% COMPLETION OF DD SEPT ‘19 100% COMPLETION OF DD / DESIGN REVIEW APPROVAL NOV ‘20 75% COMPLETION OF CONSTRUCTION DOCS JUN ‘20 ABILITY TO START CONSTRUCTION JAN ‘22 POTENTIAL CONSTRUCTION COMPLETION OFFERING TERMS Offers should be presented in the form of a nonbinding letter of intent, spelling out the significant terms and conditions, including, but not limited to: ‹ 1 › Asset Pricing, ‹ 2 › Due diligence and closing time frame, ‹ 3 › Earnest money deposit, ‹ 4 › A description of the debt/equity structure, and ‹ 5 › Qualifications to close: Financial capabilities to be described and experience in development projects of similar size and scope Offers and development plan should be delivered to the attention of Capacity Commercial Group. All terms of a Purchase and Sale Agreement shall first be approved by Prosper Portland. Any material submitted to Prosper Portland may be deemed a public record and may be subject to disclosure upon request. The purchaser of the Property will be required to comply with the Business Equity Program and the Workforce Equity Program. Prosper Portland’s construction and contracting business practices are designed to improve the success rate of local small businesses, support the growth of construction and development firms owned by women and people of color, and maximize apprenticeship and employment opportunities for women and people of color. The Business Equity Program is a commitment to creating equitable outcomes by ensuring that Prosper Portland’s contracts provide opportunities for minority, women and emerging small businesses. The overarching goal is to reduce obstacles to lasting prosperity by promoting economic growth, building capacity and expanding competition in the marketplace. The program has specific requirements for agency-supported, hard-construction projects as well as for real property sold to a private party involving hard-construction costs. The goal of the Workforce Equity Program is for the Contractor’s workforce to reflect the diversity of the workforce found in the City of Portland. https://prosperportland.us/portfolio-items/business-equity-program/ 100 MULTNOMAH | Portland, OR Offering Memorandum | PG. 7 ZONING SUMMARY EXECUTIVE SUMMARY OPPORTUNITY CX ZONE ZONE AND ENTERPRISE The CX Zone is a high-density commercial zone intended for ZONE development within Portland’s most urban and intense areas. The CX zone allows for intense development with high building coverage and large buildings placed close together. Development is intended to be pedestrian oriented with a strong emphasis on a safe and attractive landscape. (portlandmaps.com) ZONING CODE: High Density Commercial FAR: 12:1 HEIGHT RANGE: 250 feet max MIN BUILDING