Offering Memorandum Sunset Portfolio...Nathan Benedict .. nenedicteinandcar.co Roger Lorenze .....

Offering Memorandum Sunset Portfolio FOR SALE: Four-Parcel Property 23601-23635 Highway 99, Edmonds, WA 98026

For more information,please contact:

Nathan Benedict [email protected]

Roger [email protected]

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or rep-resentation about it. It is your responsibility to independently confirm its accuracy

and completeness.

2110 Western Ave., Seattle, WA 98121www.EwingandClark.com

Nathan Benedict 206.695.4829 [email protected] Lorenze 206.406.1547 [email protected] For more information, please contact:

23635 Washington 99

Executive Summary Details

This sale includes four tax parcels consisting of 2 buildings, one park-ing lot, and one vacant lot for a total lot size of 78,456 sf (1.8 acres), and 24,651 sf of rentable space.

The Sunset Building is a 3-story office building with recent common area upgrades and 92% occupancy. The 23601 Building is a mix of 2 offices and 1 retail space with 100% occupancy. The 9,148 sf parcel is the existing parking lot that runs behind the buildings and the 31,363 sf parcel is the vacant lot that runs south of the Sunset Office Building.

Located between the Swedish Medical Center Campus and Aurora Village (Costco), the property is highly visible on a main corri-dor with ample on-site parking as well as several mass transit options.

1 Sunset Portfolio (includes all 4 parcels)

2 Building Portfolio w/out Vacant Land

3 Vacant Land

• # of Buildings: 2

• # of Parcels: 4

• Total Rentable: 24,651 sf

• Total Lot Size: 78,456 sf (1.8 acres)

• Sale Price: $4,950,000

• NOI (Proforma): $243,862

• CAP Rate: 4.93%

• Zoning: CG

• Buildings Built: 1979 & 1968

• Sale Price: $3,950,000 • CAP Rate: 6.17%

• Zoning: CG

• Lot Size: 31,363 sf

• Price: $1,000,000

• Price per sf: $31.88 per sf

3This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness.

2110 Western Ave., Seattle, WA 98121 www.EwingandClark.com

Details Parcel Summary

Address Tax Parcel Lot ( acre) Lot (sf) Bldg ( RSF+/-) Floors Zone Year

Sunset Office Building 23607 /23611 PACIFIC HIGHWAY 99 451900100203 0.61 26,620 22,251 3 CG 1979

23601 Building 23601 PACIFIC HWY 99 451900100201 0.26 11,325 2,400 2 CG 1968

Parking Lot no address 451900100204 0.21 9,148 CG

Vacant Lot 23635 PACIFIC HIGHWAY 99 451900100202 0.72 31,363 CG

TOTAL 1.80 78,456 24,651


and completeness.



Buildings

Features• 2 buildings with 24,651 rsf combined

• 4 tax parcels with 78,45 sf combined lot size

• Sunset Building (3-story office building w/ 22,251 RSF)

• 23601 Building (2-story office & retail building w/ 2,400 RSF)

• Tenant mix inclues vibrant combination of professional businesses, including legal, medical, accounting, and service.

• Parking lot (9,148 sf)

• Prominent Signage

• Multiple mass transit options, including Rapid Ride

• Recent common area upgrades to Sunset Building including new carpet and paint, new tenant directory signage, and elevator cab remodel

• Combined occupancy: 92%



Operating Statement

Income Proforma

Base Rent 432,680 Vacancy Factor (5%) 21,634 Effective Gross Revenue 411,046

Operating Expenses

Property Taxes 38,685 Insurance 7,620 Janitorial 30,354 Landscaping 5,080 HVAC 8,890 Elevator 4,120 Repairs & Maintenance 12,700 Security 4,326 Utilities 35,524 Trash 5,047 Property Management 14, 838

TOTAL OPERATING EXPENSES $167,184 $/sf $6.78

Net Operating Income $243,862

Sunset Portfolio Cap Rate (@ $4.95m) 4.93%

Building Portfolio Cap Rate (@ $3.95m) 6.17% (w/out the Vacant Land)

Vacant Land (CG Zone) – 31,363 sf $1,000,000 ($31.88 per sf)


and completeness.



Vacant Lot

The portfolio includes a vacant lot with 31,363 sf. Zoned “General Commercial” which fronts Hwy. 99 (approx. 190 ft.) and has one curb cut.

ZoningThe City of Edmonds zone designation is Zone CG- General Commercial.

The site has approx. 110 ft. of frontage on Hwy. 99 and one curb cut. The use code is 910-undeveloped/vacant land.

“The CG zone has the following specific purposes: 1) Encourage economic vitality through businesses, investment, redevelopment, and efficient use of land 2) Encourage safe and comfortable access for pedestrians, transit, and motorists 3) Encourage attractive mixed-use development, affordable housing, and a variety of commercial uses and 4) Recognize the district’s evolving identity and sense of place, including distinctions between differ-ent parts of the district and adjacent residential zones.”

HUB Zone The portfolio is also located in a HUB Zone.The Historically Underutilized Business Zones (HUB Zone) program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Admin-istration. The program encourages economic development in historically underutilized business zones - “HUB Zones” - through the establishment of preferences.

The SBA regulates and implements the HUB Zone program. SBA maintains a listing of qualified HUB Zone small businesses that federal agencies can use to locate vendors. The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUB Zone-certified small busi-ness concerns.

HUBZone Map

Upper Lot Lower Lot



Market Highlights SummaryA part of the Edmonds/Lynnwood submarket, the property is ideally suited for improving the cap rate by bringing the base lease rate closer to the market rate.

Edmonds/Lynnwood Submarket 1-3 Star Office

Edmonds/Lynnwood Submarket Total Market

Gross Asking Rate/SF

Vacant SF

Office Buildings Sunset Edmonds/Lynnwood Seattle Building 1-3 Star

# of Buildings 1 331 7,842

Existing SF 24,651 4,515,796 197,845,442

Average Building SF 22,251 13,642 25

Under Construction - - 5,675,012

Leasing

Gross Rent Per SF $18.93 $24.03 $31.30

Vacancy Rate 8.38% 4.60% 7.50%

Available Spaces 3 112 21,345,082

Available SF 2,066 264,772 21,345,082

12 Mo. Absorption SF 11,199 108,761 4,315,707

12 Mo. Leasing SF 14,155 250,222 13,727,624

Sales Past Year

# of Properties 25 376

Sales Volume (Mil.) $117 $4,501

Avg Sale Price (Mil.) $4.95 $4.9 $13

Sale Price Per SF $200 $227 $395

Cap Rate(Proforma) 6.17% 6.60% 6.30%

Vacancy Rate

For more information about the Sunset Portfolio,

please contact agents Nathan Benedict or Roger Lorenze.

Offering Memorandum Sunset Portfolio FOR SALE: Four-Parcel Property 23601-23635 Highway 99, Edmonds, WA 98026

For more information,please contact:

Nathan Benedict [email protected]

Roger [email protected]

Offering Memorandum Sunset Portfolio...Nathan Benedict .. nenedicteinandcar.co Roger Lorenze .....

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