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OFFERING MEMORANDUM 9 Block Development Opportunity

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OFFERING MEMORANDUM 9 Block Development Opportunity OLD TOWN VILLAGE 1 CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party re- ceiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future pro- jected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information con- tained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE LISTING AGENTS FOR MORE DETAILS. ACTIVITY ID: OFFICES THROUGHOUT THE U.S. & CANADA www.marcusmillichap.com 2 OLD TOWN VILLAGE PRESENTED BY TIMOTHY UFKES Senior Vice President Investments SEATTLE Tel: (206) 826-5693 Fax: (206) 826-5710 [email protected] License: WA 13506 BRIAN MAYER Vice President Investments SEATTLE Tel: (206) 826-5716 Fax: (206) 826-5710 [email protected] License: WA 108682 RICH DAY Senior Associate SEATTLE Tel: (206) 826-5814 Fax: (206) 826-5710 [email protected] License: WA 110473 For Additional Information www.ufkesgroup.com OLD TOWN VILLAGE 3 INVESTMENT OVERVIEW The Old Town Village provides for a rare opportunity to acquire approximately 300,000 square feet (7-acres) of prime development land situated along the waterfront in Downtown Bellingham. The property consists of 5 full city blocks,4 half blocks and a large tract running the length of Whatcom Creek within the Old Town Neigh- borhood of Bellingham. The full city blocks (blocks 2, 3, 5 and 6) range from 27,597 to 39,861 square feet, while the half blocks (blocks 1, 4, 7 and 8) range from 17,028 to 22,009 square feet, and the waterfront tract measures 91,932 square feet. The property can be purchased as a portfolio or as separate blocks. Zoned Commercial and located within the Old Town Overlay District, the site provides for dense development with a variety of permitted uses including but not limited to multifamily, retail, office, mixed-use, and hospitality. There are no limits on density or lot coverage, and no requirement for open space or usable space. Height limits range from 40 – 75 feet with the exception of block 2, which allows for heights up to 130 feet. Additionally, structure height may not exceed 3-stories (40 feet) within 15 feet of a street right-of-way. The maximum Floor Area Ratio (FAR) for each block is 3.50, however, through FAR transfers and bonuses, this limit can be increased to 5.00. A portion of the property resides on top of the Holly Street Landfill, which was successfully remediated by the City of Bellingham from August 2004 to March 2005 per a Consent Decree and Cleanup Action Plan (CAP) between the Washington State Department of Ecology, the City of Bellingham and other private parties. Pur- suant to the CAP, a Restrictive Covenant was placed on portions of blocks 2, 3, 4, 5, 6 and 9, stipulating the property or any future development thereof, may not be used for ground floor residential or day care center uses, and a two-foot soil cap or equivalent structural cover (e.g., building or two-inch paving layer) must be maintained on the property. The city of Bellingham is eager to see Old Town Village be developed and has agreed to design and construct public infrastructure improvements per a Development Agreement dated February 19, 2019. Such improvements include, but are not limited to (1) improvements to C Street, such as street surfacing, curbs and gutters, and traffic signals; (2) street improvements to 820 linear feet of Astor Street and D Street; (3) maintaining water and sewer lines capable of supporting maximum development of the property; (4) installation of stormwater drainage and collection system. Bellingham is a rapidly growing city of nearly 100,000. Over the past decade it has grown nearly 15%. The city is expected to add nearly 25,000 residents over the next 15 years. To cope with the increasing population, nearly two dozen multifamily developments totaling over 2,000 units have been built in the past five years and several hundred more are expected to come online in the next 12 to 24 months. 4 OLD TOWN VILLAGE INVESTMENT HIGHLIGHTS CITY INFRASTRUCTURE RARE WATERFRONT CONTRIBUTIONS REDEVELOPMENT OPPORTUNITY Per a 2019 development agreement, the City of Bellingham 300,000 square foot (7-acre) development site, made up of has agreed to provide certain public infrastructure improve- 5 full city blocks and 4 ½ blocks, situated in the Old Town ments, such as a stormwater system, maintaining water and neighborhood along Downtown Bellingham’s waterfront. sewer lines capacity, street surfacing, curbs, gutters, traffic signals, and other street improvements. FLEXIBLE ALLOWABLE USES BLOCKS AVAILABLE AS PORTFOLIO The Old Town Overlay District of the Commercial Zone al- OR SEPARATELY lows for a wide variety of uses including, multi-family, retail, The property may be purchased as a portfolio or individual office, hospitality, medical and more. blocks may be purchased separately. DENSITY AND STRUCTURE HEIGHT CONSENT DECREE & ACTION PLAN Height limits range from 40 – 75 feet with the exception A portion of the property resides in the Holly Street Landfill, of block 2, which allows for 130-foot structures. Maximum which was successfully remediated in March 2005 per a FAR for each block is 3.50 with ability to increase to 5.0 with Consent Decree and Cleanup Action Plan approved by the bonuses. DOE and City of Bellingham. OLD TOWN VILLAGE 5 6 OLD TOWN VILLAGE OLD TOWN VILLAGE 7 HISTORIC GRANARY BUILDING Built in 1928, the Granary Building was the fo- ARCHITECTURAL INFLUENCES cal point of Whatcom County’s co-op movement. Conversion of this historic grain elevator began in WHATCOM MUSEUM 2015. The Granary is now a six-story over base- Originally built in 1892 as the city hall for the ment retail & office building, renovated and mod- for¬mer town of New Whatcom, the Victorian ernized after having been abandoned for years. style building served this purpose until 1936. The Building became part of the museum in 1941. Local architect George Bartholik completed res- toration in 1968 and with periodic maintenance, the Whatcom Museum continues to be the com- munity’s pride. PARBERRY IRON & METAL CO. BUILDING The Parberry family have been an integral part of Bellingham’s history, dating back to 1923, when they opened Parberry Iron & Metal Co. Today the Parberry Iron & Metal Co. Building remains a prominent focal point of the Old Town Neighbor- hood, and is currently undergoing a historic reno- vation by members of the Parberry family. 8 OLD TOWN VILLAGE LOTTIE ROTH BUILDING Built in 1890, the Lottie Roth Build- ing was constructed from Chuckanut HISTORIC sandstone, and its architecture was influence by the Richardsonian Ro- ARCHITECTURAL INFLUENCES manesque style. This building is the last remaining of its style in the en- tire city of Bellingham. The building was originally built as an office and TRAIN DEPOT BUILDING retail building, but was later convert- ed to a hotel in 1895, then to apart- The passenger station was built in 1927 by local ments in 1918. architect F. Stanley Piper. Great Northern Railroad utilized the station until 1969 at which point Bur¬- lington Northern began operating from this site. In the early 1980s this station was still used for passenger service by Amtrak, which now utilizes the terminal in Fairhaven. THE HELEN LOGGIE MUSEUM The two-story brick building was originally built in 1858 as the Territorial Courthouse. By 1877, a phar- macy was being run on the first floor. The build- ing was added to the National Register of Historic Places in 2003, and recently underwent a signifi- cant renovation. The Helen Loggie Museum is the oldest masonry building in Washington State. OLD TOWN VILLAGE 9 CASE STUDIES MIXED-USE WATERFRONT DEVELOPMENTS WATERFRONT PLACE CENTRAL - EVERETT, WASHINGTON Waterfront Place Central Redevelopment consists of a 65-acre mixed-use development will include five districts, up to 660 housing units, a 142-room hotel, commercial and retail spaces, and will support more than 2,000 jobs and $8.6 million in tax revenue.
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