Shoreline Park Office Complex 19936 - 19944 Ballinger Way NE, Shoreline, WA 98155
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WWW.ORIONCP.coM Shoreline Park Office Complex 19936 - 19944 Ballinger Way NE, Shoreline, WA 98155 Scott Clements David Butler P 206.445.7664 P 206.445.7665 C 206.793.1074 C 425.890.7919 E [email protected] E [email protected] TABLE OF conTENTS 1 EXECUTIVE SUMMARY SITE OVERVIEW 2 3 LESSEE INFORMATION 4 VALUATION ANALYSIS 5 MARKET OVERVIEW 6 DEMOGRAPHICS Shoreline Park Office Complex | ORION Commercial Partners | 2 EXECUTIVE SUMMARY Investment Highlights The Property ORION Commercial Partners is excited to offer for sale the Shoreline Park Location(s) 19936, 19940 & 199494 Ballinger Way NE E Office Complex in Shoreline, WA This 100% leased NNN office park has been spruced up and stabilized over the last five years. Anchored by the construction Offering Price $3,775,000 company DP Incorporated (with a new five year lease), this three building Cap Rate 6.03% complex currently has 10 tenants with varying suite sizes and lease expirations. Total Building Area 13,503 SF Located along Ballinger Way NE, on one acre of land, Shoreline Park is highly visible and benefits from two elevated pedestal signs for the tenants. This Total Land Area 43,968 SF campus-like setting provides valuable office space in a submarket that has NOI $227,573 limited office product and almost no vacancy. Occupancy 100% Leased Shoreline Park also comes with ample parking and well designed traffic flow at no additional cost to the tenants. Parking Ample Parking Spaces This well located stabilized investment provides the passive investor with strong Year Built 1993 cash flow and upside through rental increases over time. Ballinger Way Traffic Counts 44,270 VPD Combined • Anchored by Safeway Inc. • Located on the bus Hwy 101 corridor This statement with the information it contains is given with the understanding that all negotiations relating to the purchase, renting or leasing of the property described above shall be conducted through ORION Commercial Partners LLC. The above information, while not guaranteed, has been secured from sources we believe to be reliable. • Added Value through lease-up Shoreline Park Office Complex | ORION Commercial Partners | 3 • Safeway Fuel - Gas on site • Priced below replacement cost SITE OVERVIEW Parcel Map 19944 Ballinger Way 19936 Ballinger Way 19940 Ballinger Way < 23,125 VPD | 21,145VPD> < 5,582 VPD> Shoreline Park Office Complex | ORION Commercial Partners | 4 SITE OVERVIEW Aerial SWEDISH Primary CARE N MAZATLAN MEXICAN R BALLINGER WAY NE SUBJECT PROPERTIES SHORELINE PARK OFFICE COMPLEX LUnchbox AUTO Northwest HAND LAKE Forest Orthopedics PARK montessori TeriyaKI PLUS Shoreline Park Office Complex | ORION Commercial Partners | 5 SITE OVERVIEW Photos Shoreline Park Office Complex | ORION Commercial Partners | 6 LESSEE INFORMATION Rent Roll Rentable Term Term Rent/ Monthly Annual Rent Option Tenant Suite Expenses Sq. Ft. Begins Ends SF Rent Rent Increases Periods Simplicity 19944 3.0% (1) 5 1,560 02/01/13 02/01/17 $21.00 $2,733.00 $32,796 NNN Med Spa STE 100 annually year American 19944 3.0% (1) 5 Medical 1,560 04/15/13 04/01/17 $15.12 $1965.85 $23,590 NNN STE 200 annually year Response DP 3.0% (2) 5 19936 3,500 03/01/16 02/28/21 $20.45 $5,964.58 $71,575 NNN Incorporated annually year DP 3.0% (2) 3 Incorporated 19940 1,048 03/01/16 02/28/19 $17.14 $1,496.89 $17,963 NNN annually year Admin 19940 3.0% (2) 3 DP Storage 840 03/01/16 08/31/16 $14.83 $1,038.10 $12,457 NNN B4-B5 annually year 19940 3.0% Advance Fire 535 mo/mo 10/05/20 $15.51 $691.49 $8,298 N/A NNN B2 annually 19940 3.5% AIM Electric 675 02/01/15 05/24/17 $16.04 $902.25 $10,827 N/A NNN B3 annually American 19940 3.5% Family 1,145 05/01/13 04/30/19 $17.69 $1,687.92 $20,255 N/A NNN B1 annually Insurance Rutledge Maul 19940 3.5% (1) 3 1,554 12/01/13 09/30/16 $17.14 $2,219.63 $26,636 NNN Architects A2 & A3 annually year Independent 19940 1,086 11/15/15 09/15/16 $17.00 $1,538.00 $18,456 N/A N/A NNN Living Inc. A4 Totals/Avgs: 21,000 $17.19 $20,237.71 $242,853 This statement with the information it contains is given with the understanding that all negotiations relating to the purchase, renting or leasing of the property described above shall be conducted through ORION Commercial Partners LLC. The above information, while not guaranteed, has been secured from sources we believe to be reliable. Shoreline Park Office Complex | ORION Commercial Partners | 7 VALUATION ANALYSIS VALUATION ANALYSIS Price: $3,775,000 Loan Information Proposed Down Payment: 25.00% $943,750 Proposed First Loan Amount: $2,831,250 Current Cap Rate: 6.03% Interest Rate: 4.50% Approximate Net Rentable SF: 13,503 sf Amortization: 25 Approximate Lot Size: 43,968 sf Annual Debt Service: $(188,844) Year Built: 1978/1988 Loan Maturity: Ten Years Cost Per Net Rentable SF: $279.57 Rent Per Net Rentable SF: $17.19 NNN 2015 Annualized Data Estimated 2015 Operating Expenses Gross Potential Rental Income: $242,853 Real Estate Taxes (2015): $3,077.00 Plus Recaptured Operating Expenses: $62,750 Insurance: Less Vacancy and Credit Loss @ 5%: $15,280 Repairs: $3,923.00 Gross Operating Income: $290,323 Maintenance: $10,713.00 Less Operating Expenses: $62,750 Utilities: $18,000.00 Net Operating Income: $227,573 Management @ 7.4%: Less Annual Debt Service: $(188,844) $- Pre-Tax Cash Flow: 4.10% $38,729 Total Non-Recaptured Expenses: $62,750 Plus Principal Reduction: $62,721 Total Estimated Property Expenses: $4.65 Pre-Tax Return: 10.75% $101,450 Property Expenses/Net RSF: $3.88 *as a percentage of down payment This statement with the information it contains is given with the understanding that all negotiations relating to the purchase, renting or leasing of the property described above shall be conducted through ORION Commercial Partners LLC. The above information, while not guaranteed, has been secured from sources we believe to be reliable. Shoreline Park Office Complex | ORION Commercial Partners | 8 MARKET OVERVIEW About Shoreline Shoreline is a city in King County, Washington, United States, 9 miles (14 km) north of Downtown Seattle bordering the northern Seattle city limits. As of the 2010 census, the population was 53,007, making it the 20th largest city in the state of Washington. Based on per capita income, one of the more reliable measures of affluence, Shoreline ranks 91st of 522 areas in the state of Washington to be ranked. The city of Shoreline is divided into 14 separate neighborhoods plotted out by the city. The neighborhoods range from Richmond Beach in the northwest to Briarcrest in the southeast. According to the United States Census Bureau, the city has a total area of 11.70 square miles (30.30 km2), of which, 11.67 square miles (30.23 km2) is land and 0.03 square miles (0.08 km2) is water. The city of Shoreline also contains a gated community, The Highlands. There are 330 acres of park land in Shoreline, divided among 25 parks. Boeing Creek and Shoreview Park, which abut Shoreline Community College, contain a ravine through which flows Boeing Creek on its way to Hidden Lake and Puget Sound. Shoreline began in 1890 with the platting of the neighborhood of Richmond Beach, on Puget Sound, in anticipation of the arrival of the Great Northern Railway the next year. Over the next two decades, Shoreline was connected to Seattle via the Seattle-Everett Interurban streetcar line (1906) and a newly paved North Trunk Road (now Aurora Avenue N., State Route 99) (1913), helping to increase its population. Shoreline began in 1890 with the platting of the neighborhood of Richmond Beach, on Puget Sound, in anticipation of the arrival of the Great Northern Railroad the next year. Over the next two decades, Shoreline was connected to City of Seattle via the Seattle-Everett Interurban streetcar line (1906) and a newly paved North Trunk Road (now Aurora Avenue N., State Route 99) (1913), helping to increase its population. Information courtesy of: https://en.wikipedia.org/wiki/Shoreline,_Washington Shoreline Park Office Complex | ORION Commercial Partners | 9 DEMOGRAPHICS Radius 1 Mile 3 Mile 5 Mile Radius 1 Mile 3 Mile 5 Mile Population: Households: 2020 Projection 15,865 142,239 337,899 2020 Projection 6,437 58,006 139,215 2015 Estimate 14,723 132,290 314,419 2015 Estimate 5,969 53,921 129,585 2010 Census 13,775 123,806 294,692 2010 Census 5,590 50,507 122,198 Growth 2015-2020 7.76% 7.52% 7.47% Growth 2015 - 2020 7.84% 7.58% 7.43% Growth 2010-2015 6.88% 6.85% 6.69% Growth 2010 - 2015 6.78% 6.76% 6.05% 2015 Population Hispanic Origin 1,237 10,861 24,630 Owner Occupied 4,107 34,582 81,919 2015 Population by Race: Renter Occupied 1,861 19,339 47,666 White 11,018 98,942 237,507 2015 Avg Household Income $81,728 $86,061 $87,718 Black 769 6,507 14,827 2015 Med Household Income $65,004 $67,602 $67,730 Am. Indian & Alaskan 164 1,341 3,160 2015 Households by Household Inc: Asian 1,898 18,294 42,521 Less than $25,000 967 8,760 23,110 Hawaiian & Pacific Island 65 634 1,384 $25,000 - $50,000 1,186 11,195 25,756 Other 809 6,572 15,020 $50,000 - $75,000 1,210 9,598 21,622 U.S.