Lambros Politis - LoopNet
Transcript of Lambros Politis - LoopNet
One Pacific Building621 Pacific Ave, Tacoma, WA
OFFICE BUILDING 30,000SF
100%OCCUPANCY
$9,500,000
TO LEARN MORE, VISIT:
www.commercialadvantagerealestate.com
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
2
EXCLUSIVELY LISTED BY
Richard ClausonCommercial Advantage Real [email protected] # WA 8953
Lambros PolitisCommercial Advantage Real [email protected]@gmail.comLicense # WA 26377
FOR MORE DETAILS, VISIT:
www.commercialadvantagerealestate.com
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
3
OFFERING SUMMARYCommercial Advantage Real Estate is pleased to present the rare opportunity to acquire the One Pacific Building at 621 Pacific Avenue in Tacoma, Washington (the “Property”). The Property is a beautifully maintained historic office building in Tacoma’s CBD with dramatic views of Tacoma’s Commencement Bay Harbor.
Built in 1888, it originally served as the headquarters of Northern Pacific Railway Company’s Tacoma division. This distinctive Italian Renaissance building was constructed with brick, stucco, and stone, and adorned with cast iron.
The Property consists of a basement level with three floors above and a tower section extending an additional story. A beautifully paneled elevator serves all levels along with grand interconnecting staircases.
The Property is 100% occupied. There is an exquisite top floor suite that has 180 degree views of the Tacoma Harbor and CBD. The Property has approximately 31 office spaces and also includes an in-come-producing surface parking lot with reserved spaces for tenants.
The north end of Tacoma’s historic business district has been ex-periencing a renewed interest in its revitalization. About two blocks from the One Pacific Building is the Elks Lodge, a Beaux Arts building built in 1916. The Elks Lodge is the latest project of the McMenamin Brothers, successful developers and owners of 68 restaurant, brewe-rey, and hotel locations around Washington and Oregon. The newest McMenamins project is a restaurant and hotel with space for dining, meetings, weddings, live music, and is already bringing in additional parking revenue. Just across the street from One Pacific is yet anoth-er historic building, Tacoma’s old City Hall, built in 1893. McMenamins has expressed an interest in redeveloping it as well, after they com-plete the Elks renovation.
INVESTMENT OVERVIEW
Price $9,500,000
Cap Rate - Proforma 7.0%
NOI - Proforma $665,618
INVESTMENT HIGHLIGHTS
• Beautifully maintained historic office building in strong Ta-coma office market
• 100% occupied with a top floor penthouse with 180 degree views of Commencement Bay
• Opportunity to substantially increase rental rates to market levels with professional management
• New McMenamin’s restaurant and hotel completed approx-imately two blocks away and generating additional parking revenue
• Further due diligence information available upon submis-sion of a non-binding letter of intent
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
4
PROPERTY OVERVIEW
Address 621 Pacific Ave, Tacoma, WA 98402
Property Type Office
Building Square Footage 30,000 SF
Land Area 17,424 (0.40 AC)
Year Built 1888 (Renovated 1983)
Occupancy (as of 9/7/19) 100%
Floors 5
Parking Spaces 44 (1.5/1,000 SF)
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
5
COMPETITIVE SET
PROPERTY NAME ADDRESS SQUARE FEET STORIES YR BLT/RENOV. OCCUPANCY ASKING RENT
Heritage Bank Building 1119 Pacific Ave 86,739 16 1912/1986 82% $22.00
1102 Pacific Ave 1102 Pacific Ave 29,800 5 1925 83% $20.00
Provident Building 913-921 Pacific Ave 74,360 6 1903/2007 86% $18.00
Historic Post Office Building 1102 A Street 119,500 5 1919 95% $18.00
SUBJECT PROPERTY - ONE PACIFIC BUILDING 621 PACIFIC AVE 30,000 5 1917/1983 100% $22.00
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
6
LOCATION OVERVIEW
Immediate vacinity
ONE PACIFICBUILDING
ONE PACIFICBUILDING
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
7
ONE PACIFICBUILDING
NEW MCMENAMIN’SHOTEL & RESTAURANT
POTENTIAL FUTUREMCMENAMIN’S HOTEL
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
8
DEMOGRAPHICS
POPULATION 1 MILE 3 MILES 5 MILES
2022 Population 19,212 85,915 263,411
2017 Population 18,061 81,363 248,495
Pop Growth 2017-2022 6.37% 5.59% 6.00%
Pop Growth 2010-2017 10.47% 5.72% 7.24%
HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2022 Projection 9,283 35,455 109,959
2017 Estimate 8,690 33,538 98,090
HH Growth 2017-2022 6.82% 5.72% 5.98%
HH Growth 2010-2017 13.64% 6.50% 7.31%
INCOME 1 MILE 3 MILES 5 MILES
2017 Avg Household Income $50,773 $68,892 $72,275
2017 Median House-hold Income $36,445 $51,928 $55,532
1 mi3 mi
5 mi
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
9
PROFORMA INCOME
Rental Income $660,000 $22.00/SF at 100% occupancy
Parking 12,000 44 spaces x $10 per day
CAM Reinbursements 120,000 $4.00 per square foot
TOTAL INCOME $792,000
PROFORMA EXPENSES
Taxes $46,964 $300K historic tax credit available
Utilities 30,995
Cleaning 17,544
Insurance 6,979
Maintenance & Supplies 18,885
Office/Professional 5,014
TOTAL EXPENSES $126,382
NET OPERATING INCOME
Total Income $792,000
Total Expenses $126,382
TOTAL $665,618
FINANCIAL PROFORMA
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
10
TACOMA, WASHINGTONOFFICE MARKET OVERVIEW
Tacoma’s office market is making a steady recovery after vacancies increased from 10% to 18% amid the previous recession. Vacancies are currently down 150 bps from a year ago at 15.8% and net absorption has been positive in four of the last six quarters. Only 54,000 square feet of new completiions have been added since 2010, which has aided in the recovery. Tacoma office effec-tive rents are in the midst of a recovery and currently stand 2.1% higher than a year ago. This increase is 2.7% below the market’s 1Q2008 peak.
OFFICE ABSORPTION VS. COMPLETIONS AND VACANCY RATE, QUARTERLY OFFICE EFFECTIVE RENT LEVEL
TACOMA METRO EMPLOYMENT LEVEL
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
11
ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com
12
EXCLUSIVELY LISTED BY
Richard ClausonCommercial Advantage Real [email protected] # WA 8953
Lambros PolitisCommercial Advantage Real [email protected]@gmail.comLicense # WA 26377
FOR MORE DETAILS, VISIT:
www.commercialadvantagerealestate.com
Limiting Conditions: This Offering Memorandum is confidential, and shall only be used for informational purposes by prospec-tive purchasers interested in the property described herein (the“Property”). No representations or warranties are being made as to the accuracy or completeness of the information in this Of-fering Memorandum. The information contained herein is only asummary, has been gathered from a variety of sources, and has not been independently verified by Ten-X. Each prospective pur-chaser should conduct its own due diligence and investigate allmatters relating to the Property. Neither Ten-X, listing broker, nor the owner of the Property shall be liable for any error in the in-formation provided herein or any information omitted herefrom.