Confidential Offering Memorandum Exclusive development investment opportunity $1,500,000 614-616 5th Ave South Edmonds, Washington
1 | 614 - 616 5th Ave S | Edmonds, Washington Table of contents
01 Investment summary 03
02 Market overview 09
CONTACT INFORMATION
MARK THYGESEN ROB NIELSEN Vice President Executive Vice President Capital Markets - Investments Tenant Representation +1 206 607 1737 +1 206 607 1722 [email protected] [email protected]
2 | 614 - 616 5th Ave S | Edmonds, Washington 01 Investment summary
3 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
The Offering JLL is pleased to exclusively present the opportunity to acquire a premium development site in downtown Edmonds, WA. The property consists of two parcels totaling 17,187 square feet of land with two buildings totaling 2,940 square feet of leasable space. The property is zoned Downtown Convenience Commercial which offers a wide variety of commercial and residential uses.
The property boasts an infill location within Edmonds’ downtown commercial district. The local area is walkable, bike-able, conveniently accessible by transit and offers a thriving shopping experience with excellent local eateries throughout the downtown core.
Currently the site has design review approval for plans to construct a two-story building, including a drive-thru retail space with second floor office space totaling approximately 7,087 square feet of gross square footage.
INVESTMENT HIGHLIGHTS PROPERTY SUMMARY • Premium 5th Avenue South location, one of downtown 614 – 616 5th Ave South Address Edmonds major thruways. Edmonds, WA 98020
• High barrier to entry submarket with strong tenant Parcel Numbers 27032600100900; 27032600102900 demand, resulting in solid market fundamentals with over 5% market year over year rental growth. Product Type Office/Land/Retail • Supply constrained market with an office vacancy rate of Square Footage 2,940 / 7,087 just 2.7%. (Current / Proposed) • Current development plans that have received design Lot Size 17,187 SF Total review approval, which will significantly reduce the permitting and entitlement timeline. Year Built 1970, 1977 • Close proximity to major transit including Sound Transit Stations, Washington State Ferry system via Edmonds/ Occupancy Vacant Kingston Ferry, Amtrak Cascades rail station easy access Parking/Ratio TBD to SR 104 with direct access to Interstate 5. (Current / Proposed) Investment summary
Property description
Located in Downtown Edmonds the property benefits from approximately 130 feet Zoning of prominent frontage on 5th Ave South. The property is situated on two parcels Downtown Convenience Commercial - BD3 totaling 17,187 square feet of land with two commercial buildings totaling 2,940 square feet of leasable area. This zoning allows for a wide variety of commercial and residential uses to promote Downtown Edmonds as a setting for retail, office, entertainment and associated Just west of Interstate 5, Edmonds is conveniently located just 16 miles north of businesses supported by nearby residents and the larger Edmonds community, Seattle and 18 miles south of Everett, WA. The property offers lively pedestrian and as a destination for visitors from throughout the region. Maximum height limits activity in a bourgeoning marking with unique amenities such as several art are 30 feet and multifamily development is restricted to second floor or behind first galleries and performance halls, a historic downtown, sandy beaches and a strong 45 feet from sidewalk or rights-of-way. transit system via Sound Transit, Amtrak Cascades Rail Station and the Washington State Ferry System.
5 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
6 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
Site summary
SITE DETAIL
Location 614 - 616 5th Ave S, Edmonds, WA 98020
Lot size 17,187 SF
Parcel number 27032600100900, 27032600102900
# of buildings Two howell way Zoning BD3
EXISTING BUILDING SUMMARY - BUILDING 1
Location 614 5th Ave S
Stories One 1 5th Ave S Ave 5th Year Built 1970
Lot Size 0.17 acres
4th Ave S Ave 4th 2 Building Size 990 square feet
EXISTING BUILDING SUMMARY - BUILDING 2
Location 616 5th Ave S
Stories One
Year Built 1977
Lot Size 0.22 acres
Building Size 1,950 square feet
7 | 614 - 616 5th Ave S | Edmonds, Washington Property overview
Development option
Currently the property has design review approval from the City of Edmonds for a two story, 7,087 square foot, office over retail commercial building. The property will include a new two-story office building with drive-through access on the 1st floor and approximate 3,479 square feet of leasable office space on the 2nd floor.
DEVELOPMENT OPTION SUMMARY
Height limit 30 feet
Buildable SF 7,087
Units 2
8 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
Development option site plan
9 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
Development option site section
10 | 614 - 616 5th Ave S | Edmonds, Washington Investment summary
Development option elevations
11 | 614 - 616 5th Ave S | Edmonds, Washington 02 Market overview
12 | 614 - 616 5th Ave S | Edmonds, Washington Market overview
Area overview
Mountlake Terrace Lake Washington
Lake Ballinger
yost park 614 5th Ave S
Woodway
Downtown Edmonds Edmonds City Park
Puget Sound
Edmonds - Kingston Ferry Terminal Port of Edmonds Marina
13 | 614 - 616 5th Ave S | Edmonds, Washington Edmonds office market o 1 submarket profile Q2 2019 364,016 SF Total net absorption Inventory • • TheThe Edmonds Edmonds o ceoffice submarketsubmarket is 364,016 s.f. 18,314 is comprised of 364,016 square 13,030 14,330 comprised of 364,016 square feet of Inventory feetassets of assets10,000 10,000square feetsquare and feet larger, 6,032 andexcluding larger, medical excluding and medical owner-user and owner-user buildings. 0 SF buildings. Under -2,804 -3,240 • Total vacancy dropped 950 basis construction0 s.f. -6,339 -8,960 -8,083 • pointsTotal vacancy since its dropped last peak 950 in basis 2012, Under construction SF -14,106 topoints the current since its rate last ofpeak 2.7 in percent, 2012, to 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Averagethe current asking rate ofrate 2.7%. is up Average 5.1 rents $26.86 Total vacancy rate percentare up 5.1% year-over-year, year-over-year, currently currently Average direct asking atat $26.86 $26.86 perper square foot, foot, full full service. 0 s.f. 12.2% service. rate (FS) 11.1% New delivery SF 10.5% 8.6% • • NetNet absorption absorption was negative negative through 5.8% 6.6% 6.1% throughthe first thehalf rstof 2018, half ofwith 2018, 7,629 square withfeet 7,629of space square put back feet on of the space market. 2.1% 2.7% +5.1% 0.5% putHowever, back on the the submarket market. remains very YOY$26.86 rent growth space constrained. Average direct asking rate • As it grows increasingly di cult 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 for tenants to nd available • As it grows increasingly difficult for Class A space in the Downtown Direct average asking rent ($ p.s.f.) tenants to find available Class A space Seattle and Eastside market, 1 in the Downtown Seattle and Eastside Available-8,083 Class A block $25.99 $26.23 $26.86 Edmonds could gain traction as $22.50 $23.01 $22.17 markets, Edmonds could gain traction $20.61 $20.82 $22.03 an a ordable alternative. YTDgreater total net than abso 15,000rption SF SF $19.06 as an affordable alternative. • However, Edmonds will continue • attractingEdmonds small-to-midwill continue attracting size 2.7% companiessmall-to-mid as size there companies is just one as there 2.7%Total blockis just of one space block over of space 15,000 over 15,000 Totalvacancy vacancy squaresquare feet feet available. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Analysis14 | 614 based - 616 5th on Ave prope S | Edmonds,rties over Washington 10,000 s.f., excluding owner/user and medical building. Edmonds/Lynnwood Q2-2019 retail market
Q2 2019 10.96M SF Total net absorption Inventory • The Edmonds/Lynnwood retail submarket totals 10,959,632 square feet, or 6.1% of all Puget Sound retail space. 5,600 SF Under • The submarket currently has a construction vacancy rate of 3.5% percent, which represents a decrease of 201 basis points year-over-year. $25.03 Total vacancy rate • Average rental rates for retail space in Overall average direct Edmonds/Lynnwood currently stand asking rate at $25.03 per square foot, full service. Given limited space options and low 3.5% vacancy, rents will likely continue to trend upward in 2019. change in asking rate YOY • After eight consecutive quarters of negative net absorption, in Q2 2019 Direct average asking rent ( p.s.f.) 6 Edmonds/Lynnwood posted its strongest quarter since Q3 2016 with Available Class A block 269,861 square feet of net absorption. greater than 20,000 SF • Of the nine signed Q2 leases, the largest was for 11,818 square feet at 4.6% 5615 188th St SW – also the largest Total lease by square feet year- to-date. vacancy
15 | 614 - 616 5th Ave S | Edmonds, Washington Market overview
Northend transit options
FREEWAYS 20-30 minute drive from Downtown Seattle to the Northend. Interstate 5 and Hwy 99 are the primary freeways serving Seattle’s Northend and provide access to all surrounding areas. Waterfront Park is conveniently located near entrances to both freeways.
SOUND TRANSIT EXPRESS BUS 35 minute travel time The Edmonds station bus stop is a short 3 minute walk from Waterfront Park Departing from the Edmonds Station bus stop, a short 3 minute from Waterfront Park, Route 416 provides direct access to Downtown Seattle in just 35 minutes with convenient stops in South Lake Union, Seattle CBD and Pioneer Square.
SOUNDER TRAIN The Sounder Train provides direct access to Seattle via the Sounder Rail stop across the street from Waterfront Park. A short 33 minute train ride drops riders at the main Seattle transit hub, King Street Station. The Sounder continues impressive growth across the region, evidenced by the 2.9% year-over-year rider growth (4.45 million riders in 2017).
AMTRAK TRAIN The Amtrak Train provides direct access to Seattle in just 40 minutes. The Amtrak Train stop across the street from Waterfront Park services regional stops as far South as Eugene, OR and as far North as Vancouver, BC via the Cascade line.
Increased attraction to the Northend is being propelled by its incredible talent pool, proximity to superior transportation infrastructure, flexible and increasing commute patterns, and a diverse residential inventory
16 | 614 - 616 5th Ave S | Edmonds, Washington Market overview
Northend transit options (continued) Downtown Everett P Everett »» Submarkets with public transportation access have significantly stronger office fundamentals Evergreen compared to those without transit. P Mukilteo Way P Eastmont » National trends show that vacancy in transit-accessible submarkets is 370 basis points lower » P South Everett than in non-accessible ones, while rents are 79.5% higher. Distance from Sounder and Amtrak Stations: 0.7 Miles
Ash Way P »» Driven by demographic shifts, initiatives to expand public transportation and increased Distance to Edmonds Park infrastructure investment have been highly successful in recent years across the country. and Ride: 2.5 Miles »» The Greater Seattle Area leads nation in 2017 transit ridership growth year over year. Alderwood Mall
P Lynnwood P Canyon Park P Edmonds Mountlake Terrace P Kenmore Lake P P P Woodinville 614 5th Ave S Forest Park Bothell Shoreline P Brickyard NE 145th P 2017 KING COUNTY METROridership Lake City 2017 ridership up 10% P Northgate P Totem Lake totalled 122M Redmond P Kirkland Green Lake P P Bear Creek Proposed light rail NE 45th South Edmonds Park & Ride to 614 5th Ave S: University of P Washington Kirkland 8 minutes via 212th St SW Under construction light rail Sammamish P P Overlake/ Montlake Evergreen NE 40th Sounder Station to 614 5th Ave S: SOUNDER COMMUTER RAIL Point 15 minute walk provides access to Everett Overlake P&R P and Mukilteo to the North and Seattle, Everett-Seattle Sounder Tukwila, Kent, Auburn, Sumner, Puyallup, Capitol Hill Bellevue Tacoma and Lakewood to the South. Westlake LINK LIGHT RAIL University St Amtrak Station to 614 5th Ave S: South South 15 minute walk provides access to Everett, Seattle Pioneer Sq P Link (SeaTac /Airport-Westlake/Seattle) Bellevue Sammamish International District/Chinatown P Stanwood, Mt Vernon, Bellingham and & King St P I-90/ Mercer Eastgate Vancouver to the North and access to Stadium Rainier Island P Seattle, Tukwila, Tacoma, Olympia, Issaquah RAPID RIDE SODO Beacon Hill Newport Centralia, Kelso, Vancouver, Portland, P Highlands Hills Oregon City, Salem, Albancy, and Eugene to P Mount Baker P the South. Multiple Routes Issaquah Columbia City Downtown Kingston Ferry to 614 5th Ave S: Issaquah Limited Service Sea-Tac Airport 32 minutes via Kingston-Edmonds Ferry and Othello P Kennydale 11 minute walk from ferry terminal. Westwood Village P Park & Ride Amtrack Rainier Beach Renton Landing Tukwila/ Ferry Terminal International BlvdP P Renton Burien P Tukwila P 17 | 614 - 616 5th Ave S | Edmonds, Washington SeaTac/Airport
Kent- Des Moines P
P Kent
Star Lake P
Auburn Park & Ride P Federal Way P P Auburn Tacoma Theater District/S 9th P Commerce Street/S 11th Lakeland Hills Convention Center/ S 15th P Tacoma Union Station/ S 19th Community S 25th College P P P Sumner Tacoma Dome Puyallup
South Tacoma P P P Bonney Lake P SR-512 P
Service to Lacey and Olympia is funded by Market overview
18 | 614 - 616 5th Ave S | Edmonds, Washington Market overview
Demographics
1-Mile 3-Mile 5-Mile
2018 Population 10,367 71,334 171,146
614 5th Ave S 2023 Population 10,904 75,173 180,811
2018 Households 5,074 30,356 69,199
2018 Daytime Population 11,490 69,990 151,226
2018 Median Age 56.5 46.1 42.9
Source: 2018 ESRI -U.S. Census Bureau
$79,811 48.5% 4.4% 2,952
Median Bachelor’s+ Unemployment Total Bellevue household income Degree rate businesses
SEATTLE * 3-Mile radius 32,699 Total Employees
19 | 614 - 616 5th Ave S | Edmonds, Washington Contact information
MARK THYGESEN ROB NIELSEN Vice President Executive Vice President Capital Markets - Investments Tenant Representation +1 206 607 1737 +1 206 607 1722 [email protected] [email protected]
JLL | 601 Union Street, Suite 2800 | Seattle, Washington 98101
www.us.jll.com/capitalmarkets
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20 | 614 - 616 5th Ave S | Edmonds, Washington