Se Second Ave Ideal Owner-User Creative Office Opportunity with Supplemental In-Place Income
240SE SECOND AVE IDEAL OWNER-USER CREATIVE OFFICE OPPORTUNITY WITH SUPPLEMENTAL IN-PLACE INCOME
240 SE 2ND AVENUE, PORTLAND, OREGON 97214 Jones Lang LaSalle Americas, Inc. ("JLL") 2 EXECUTIVE SUMMARY WALK SCORE 80 80 TRANSIT SCORETRANSIT 93 93 100 100 BIKE SCORE THE OFFERING
JLL, as exclusive advisor for the seller, is pleased to present the opportunity to acquire the 100% fee simple interest in 240 SE 2nd (the “Property”) in Portland, Oregon. The fully renovated, 8,374 square foot creative office building is in one of Portland’s most sought-after submarkets. The Property offers potential owner-users and investors the rare opportunity to acquire move-in ready office space with strong in-place income, as it is 51.3% leased to a credit tenant with just under three years of remaining lease term. In addition to the office portion of the Property, 240 SE 2nd includes a 6,000 square foot covered, secure parking structure that houses 16 parking stalls and bike storage.
ALLISON + PARTNERS
PROPERTY INFORMATION
ADDRESS 240 SE 2nd Avenue, Portland, Oregon 97214 PARCELS R166742 R166741 ZONING IG1 – General Industrial 1 TOTAL BUILDING SIZE 14,374 RENTABLE SF 8,374 SF TOTAL LAND SIZE 0.27 acres (11,709 SF) OCCUPANCY 51.3% WALT 3.0 years PARKING SPACES 16 / 1.91 per 1,000 YEAR BUILT / RENOVATED 1928 / 2015 OPPORTUNITY ZONE Yes KITCHENETTE FOR THE 2ND FLOOR TENANT
240 SE 2ND | JLL | 3 INVESTMENT HIGHLIGHTS
OPPORTUNITY FOR BOTH INVESTORS AND POTENTIAL OWNER-USERS The Property allows prospective owner-users move-in ready space with solid in-place income from a credit tenant. Due to the size of the Property, in-place income, and the current state of the debt markets, ownership is a cost-effective alternative to leasing similar space in the submarket. Additionally, there is immediate creative office lease-up opportunity at minimal cost to future investors in a burgeoning submarket of Portland’s urban core.
UNMATCHED BUILDING DESIGN AND FINISHES Current ownership of the Property is an award-winning design and development firm with numerous well-known projects across the Portland MSA known for their impeccable finishes and unparalleled attention to detail in every aspect of their developments. The current ownership has occupied the second floor space at 240 SE 2nd since 2015 and have exceptionally maintained the Property ever since. 2ND FLOOR OFFICE SPACE
4 IN-PLACE INCOME FROM CREDIT TENANT Comprising 51.3% of the total rentable square footage, Allison + Partner (NASDAQ: MDCA) has three years of term remaining on their lease and one five-year option at FMV, providing buyers with stable cash flow and future upsides while offering owner-users the chance to offset their overall occupancy costs.
RECENTLY RENOVATED 240 SE 2nd was renovated in 2015 which included a full seismic upgrade, installation of new energy-efficient windows, and new electrical, plumbing, sprinkler, and mechanical systems that were carefully integrated into the building to reflect 2ND FLOOR CONFERENCE ROOM the raw character of the utilitarian architecture.
ABOVE-MARKET PARKING RATIO WITH FUTURE DEVELOPMENT OPPORTUNITY Parking is the Close-In Eastside's Achilles Heel, as the neighborhood's industrial past was less automobile dependent than the current creative office transformation requires. With a parking ratio of 1.91 per 1,000 square feet, 240 SE 2nd not only provides tenants with unmatched parking, but also provides future development potential on the 6,000 square foot garage parcel.
COVERED PARKING
240 SE 2ND | JLL | 5 INVESTMENT HIGHLIGHTS, CONTINUED PEARL DISTRICT DESIRABLE URBAN LOCATION WITHIN THE CLOSE-IN EASTSIDE NEIGHBORHOOD PORTLAND CBD OLD TOWN Located in one of Portland’s strongest urban-core submarkets, 240 SE 2nd provides E TOM MCCALL WATERFRONT PARK B DG U BRI E STEE NE IDG R L BRID OR BR N GE potential investors the rare opportunity TH N S W SO I HA WILLAMETTE RIVER RI D OR E M to acquire lucrative finished creative B R FORTUNE I D WESTWARD OLYMPIA G office space in a tight submarket. TECH E 5 WHISKEY PROVISIONS COMPANY EASTBANK ESPLANADE 5 HAIR OF THE WATER DOG BREWERY PRODUCE ROW AVENUE PROXIMITY TO TRANSIT COFFEE CENTRAL KITCHEN CORPORATE OFFICE AND AMENITIES CLOSE-IN EASTSIDE WAYFINDER BEER Close to the Portland Streetcar, TriMet TR IMET LIGHT RAIL TRIMET LIGHT RAIL NEXT J AND M CAFE Bus lines, food cart pods, numerous ADVENTURE 84 PHO BASIL NONG'S KHAO restaurants and bars, direct access to the MAN GAI east-side waterfront promenade, and an IRONSIDE assortment of retail options. 240 SE 2nd TRAINING TAQUERIA NUEVE provides unmatched amenity options SA NDY BAR CASA just steps away from the property. DANWEI CANTING BLVD BASECAMP VALE BREWING CO
CASCADE E BUR RISE OF THE CREATIVE CLASS BREWING BARREL HOUSE MT. TABOR BREWING N PORTLAND Traditional building class no longer SID ROCK GYM matters—instead, tenants are looking E ST for unique space in a compelling location SWEETPEA with a strong surrounding amenity base, BAKING CO. BUCKMAN NEIGHBORHOOD and 240 SE 2nd checks all the boxes.
COMPANIES
AMENITIES HEADQUARTERS
6 BEST-IN-CLASS PEARL DISTRICT CREATIVE OFFICE CONVERSION PORTLAND CBD OLD TOWN Originally built in 1928 as a cold storage warehouse for Safeway, 240 SE 2nd is now E TOM MCCALL WATERFRONT PARK B DG U BRI E STEE NE IDG R L BRID 8,374 square feet of creative office on two OR BR N GE TH N S W SO I HA WILLAMETTE RIVER RI D OR E levels. In 2015, 240 SE 2nd underwent M B R FORTUNE I D significant redevelopment transforming it G WESTWARD OLYMPIA TECH E 5 WHISKEY PROVISIONS COMPANY EASTBANK ESPLANADE 5 into a 21st century quality building while HAIR OF THE WATER DOG BREWERY PRODUCE ROW retaining a 20th century aesthetic. The one- AVENUE of-a-kind masonry and timber structure COFFEE CENTRAL KITCHEN was renovated and infused with modern WAYFINDER BEER CORPORATE OFFICE CLOSE-IN EASTSIDE structural upgrades and new building systems TR IMET LIGHT RAIL TRIMET LIGHT RAIL that rival newly constructed buildings. NEXT J AND M CAFE ADVENTURE 84 PHO BASIL NONG'S KHAO MAN GAI EXTERIOR BUILDING RESTORATION IRONSIDE TRAINING FULL SEISMIC UPGRADE TAQUERIA NUEVE SAND DANWEI CANTING Y BLVD BAR CASA BASECAMP VALE ENERGY-EFFICIENT DIVIDED LIGHT WINDOWS BREWING CO NEW 30 YEAR TPO ROOF CASCADE E BUR BREWING BARREL HOUSE MT. TABOR BREWING N PORTLAND HVAC SYSTEMS SID ROCK GYM E ST SPRINKLER AND FIRE/LIFE SAFETY SYSTEMS SWEETPEA BAKING CO. BUCKMAN NEIGHBORHOOD INTERIOR STRIPPED TO EXPOSE BRICK AND CONCRETE STRUCTURE
COMPANIES NEW WATER AND SEWER LINE / SERVICES AMENITIES HEADQUARTERS 80 93 100 WALK SCORE TRANSIT SCORE BIKE SCORE 240 SE 2ND | JLL | 7 PRESENTED BY
INVESTMENT ADVISORY LEASING ADAM TAYLOR, LEED AP ANNALORE RODMAN Director Vice President +1 503 449 4837 +1 503 546 3671 [email protected] [email protected] Licensed in OR Licensed in OR
JAMES "BUZZ" ELLIS, SIOR Managing Director +1 503 680 5100 [email protected] Licensed in OR
DEBT & EQUITY TOUR PLACEMENT SCHEDULING ZACH KERSTEN ALLI CASELLA Director Production Associate +1 503 807 9352 +1 206 336 5435 [email protected] [email protected]
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