THE FRANCES BUILDING - LoopNetimages2.loopnet.com/d2/mt90E0bYIZNKnvb.../document.pdfThe Frances...

THE FRANCES BUILDING

Mixed-Use Investment Property

3632-3646 SE Hawthorne Blvd, Portland, Oregon 97214

MIXED-USE INVESTMENT PROPERTY – EXCLUSIVE OFFERING

136 NE 28th

Avenue

Portland, Oregon 97232

503-327-8237 Office

503-954-3087 Fax

www.equitypacificrealestate.com

http://www.equitypacificrealestate.com/


This information has been secured from sources we believe to be reliable, but Equity Pacific Real Estate LLC makes no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and

bears all risk for any inaccuracies.

Subject Property Neighborhood Photos

Hawthorne Fred Meyer Bagdad Theater & Pub

Powell’s Books 3 Doors Down Cafe

Starbucks Oasis Cafe




Subject Property Exterior Photos – Retail Tenants

Portland Cider House Rachel’s Ginger Beer

Harlow Cuisine Harlow Cuisine

Echo Theater Echo Theater




Subject Property Exterior Photos




Subject Property Interior Photos – Unit #2




Subject Property Photos – Common Space




Subject Property Photos – Basement




The Location _________________

The Frances Building is located in the heart of the Hawthorne District of Close-In SE Portland. This popular neighborhood is highly sought by investors and tenants alike. It features vintage commercial and residential buildings and has many locally owned shops and restaurants. Located on the corner of SE 37th Avenue & Hawthorne Boulevard, The Frances Building is situated across the street from the popular McMenamins Bagdad Theater & Pub. Starbucks Coffee is across the street to the north, and Powell’s on Hawthorne bookstore and Fred Meyer, Wells Fargo and Bank of America all within two blocks.

The Tenants __________________

Rachel’s Ginger Beer

Portland Cider Company Harlow Restaurant The Echo Theater

featuring Do Jump! a Non-Profit Organization Seven (7) Apartments

Historic Portland Landmark Building __________________

According to Wikipedia, The Frances Building is a property listed on the National Register of Historic Places. Built in 1911, it was added to the National Historic Register in 1994. The Frances Building is a two-story structure that faces Southeast Hawthorne Boulevard, while the Echo Theatre is a one-story structure facing SE 37th Avenue. The adjoining buildings, constructed as parts of a single project, are separated by a party wall. Investor Rudolph Christman, who financed construction of the project, named the Frances Building in honor of his wife. It was the first commercial structure built along Hawthorne Boulevard between Southeast 20th and 39th avenues. Other commercial development soon followed, enhanced by the growth of nearby residential areas and construction of trolley lines to serve them. The original first floor of the Frances Building was home to a barber shop, and a dry goods store, a candy store, and a drug store. The second floor included offices and living quarters. Through many decades, commerce has continued on the first floor; seven apartments occupy the second floor.




Echo Theater & DOJUMP Entered originally from Hawthorne via a passage through the Frances Building, the Echo Theater was once a movie house. Facing competition from the nearby Bagdad Theater which opened across the street in 1927, the Echo Theater closed, and its entrance was moved to the 37th Avenue side. Storage and plumbing companies used the space until 1984, when it again became a theater home to DOJUMP, a non-profit movement theater school. DOJUMP is a modern dance and trapeze company which was launched in 1983 in the historic Echo Theater. It uses clowning, aerial dance, tumbling and partner acrobatics to perform physical theater storytelling. DOJUMP performs across the country as well as holds workshops for schools and corporate events. The Echo Theater has been an important hub of arts and culture in the iconic Hawthorne District of SE Portland for a long time.




Price: $4,600,000

Down Payment: 50% $2,300,000

Number of Units: 11

Price/Unit: $418,182 $2,300,000

Building/SF: 20,330

Price/SF $226

Current Cap: 4.90%

Market Cap: 5.74% Parcel ID

Current GIM 13.2 Lot Size

Market GIM 11.7 Utilities paid by Tenant

Year Built: 1911

Current Market 2017 Estimate % EGI Per Unit

INCOME EXPENSES

Scheduled Rent Income $298,536 $344,484 Taxes $23,614 - $2,147

Additional Income $59,553 $59,553 Insurance $23,226 - $2,111

Scheduled Gross Income $358,089 $404,037 Water & Sewer $17,549 - $1,595

Less: Vacancy (3%) ($10,743) ($12,121) Trash/Recycling $3,164 - $288

Effective Gross Income $347,346 $391,916 Gas & Electricity $6,060 - $551

Less: Expenses ($122,068) ($127,862) Management $27,788 8.00% $2,526

Net Operating Income $225,278 $264,054 Maintenance & Repairs $10,420 3.00% $947

Turnover & Cleaning $6,947 2.00% $632

Year 1 Debt Service ($153,410) ($153,410) Reserves $3,300 - $300

Pre-Tax Cash Flow $71,869 $110,644

Principal Reduction $50,952 $50,952 Total Expenses $122,068 35.1% $11,097

Total Return 5.3% $122,821 7.0% $161,596

Cash Yield 3.1% $71,869 4.8% $110,644

Total Units Unit Type Rent Rent/PSF Rent Rent PSF

4 Storefront 1,040 - 4,085 SF $3,564 - $5,627 $0.99 - $3.74 $3,564 - $5,627 $1.01 - $3.74

2 2BR-1BA 800 SF $1,375 - $1,450 $1.72 - $1.81 $1,995 $2.49

4 1BR-1BA 600 - 700 SF $975 - $1,195 $1.63 - $1.71 $1395 - $1495 $2.33 - $2.14

1 Studio 250 SF $750 $3.00 $825 $3.30

11 $24,878 $28,707

Additional Information

R326486

Approximate SF/Unit

0.22 Acre (9,500 SF)

Electricity

Annualized Operating Data Annualized Expenses

Scheduled Income Current Market

3632-3646 SE Hawthorne Blvd

Portland, Oregon 97214

Financing Summary

New Multi-Family Loan in the amount of

Summary Location

Amortized over 25 Years

at 4.50% Principal and Interest

INVESTMENT SUMMARY


This information has been secured from sources we believe to be reliable, but Equity Pacific Real Estate LLC makes no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Subject Property – Apartment Floor Plans per City of Portland Microfiche



Subject Property – Parapet Brace & Roof Plans per City of Portland Microfiche (October, 1992)


This information has been secured from sources we believe to be reliable, but Equity Pacific Real Estate LLC makes no representations or warranties, expressed or implied, as to the accuracy of the information.

References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

RENT SURVEY – 2BR/1BA APARTMENTS




RENT SURVEY – 1BR/1BA APARTMENTS




RENT SURVEY – STUDIO APARTMENTS



RENT SURVEY - APARTMENTS

PROPERTY LOCATION

YEAR BUILT

TOTAL # OF

UNITS UNIT TYPE

UNIT SF

CURRENT RENT

RENT/PSF SOURCE PHOTO

The Frances Building 3632 SE Hawthorne Portland, OR 97214

*Subject Property

1911 11 2 – 2BR/1BA 4 – 1BR/1BA

1 – Studio

800 600 – 700

250

$1375 - $1450 $975 - $1195

$750

Plus + Utility Bill Backs

$1.72 - $1.81 $1.63 - $1.71

$3.00

Owner

1529 SE 20th Ave Portland, OR 97214

1927 Mixed-use Studio 400 $1100 $2.75

Craigslist 6/7/17

Mount Tabor Apts 4929 SE Hawthorne Portland, OR 97215

1923 46 Studio 300 $899 $3.00 Craigslist 4/25/17



PROPERTY LOCATION

YEAR BUILT

TOTAL # OF

UNITS UNIT TYPE

UNIT SF

CURRENT RENT

RENT/PSF SOURCE PHOTO

Virginia Lee Apts 2102 SE 12th Ave Portland, OR 97214

1927 12 Studio 400 $950 $2.38 Craigslist 4/17/17


1923 9 1BR/1BA 600 $1350 $2.25 Craigslist 4/4/17


1976 4 2BR/1BA

800 $1975 $2.47 Craigslist 3/30/17



LEASE SURVEY – COMMERCIAL RETAIL



LEASE SURVEY – COMMERCIAL RETAIL

PROPERTY LOCATION

YEAR BUILT

SPACE TYPE

UNIT SF

CURRENT RENT RENT/PSF SOURCE PHOTO


*Subject Property

1911 Echo Theater Harlow Cuisine

Portland Cider Co Rachel's Ginger Beer

4,085 2,456 1,300 1,040

$3,952 $5,627 $3,564 $3,890

(3) NNN Leases &

Echo Theater Non-Profit

$11.60 $27.50 $33.00 $45.00

Owner

Hollywood Market Square 4133 NE Sandy Blvd Portland, OR 97212

1950 Retail 1,760 $5,133

NNN Lease

$35.00 LoopNet 6/1/17

Hawthorne Theater Building 3862 SE Hawthorne Portland, OR 97214

1919 Restaurant 2,492 $6,645

NNN Lease

$32.00 LoopNet 6/1/17



PROPERTY LOCATION

YEAR BUILT

SPACE TYPE

UNIT SF

CURRENT RENT RENT/PSF SOURCE PHOTO

111 NE MLK Jr Blvd Portland, OR 97232

2016 Retail 1,347 $3,368

NNN

$30.00 LoopNet 6/1/17

The Geode 2502 SE Division Portland, OR 97202

2016 Retail 2,794 $6,985

NNN

$30.00 LoopNet 6/1/17

Hawthorne 31 1521 SE 31st Ave Portland, OR 97214

2016 Retail 2,293 $5,733

NNN

$30.00 LoopNet 6/1/17



RECENT SALES COMPARABLES



RECENT SALES COMPARABLES

PROPERTY LOCATION

YEAR BUILT

# UNITS / TOTAL SF UNIT MIX / COMMENTS PRICE

PRICE / UNIT

PRICE / SF SOLD PHOTO


*Subject Property

1911 11 20,330 SF

7 Apts &

4 Retail Spaces

$4,600,000 $418,182 $226 TBD

Hungry Tiger Complex 201 SE 12th Ave Portland, OR 97214

1909 9

10,533 SF

7 Apts &

2 Retail Spaces

$2,150,000

Cap: 5.60%

$238,889 $204 Under Contract

2937 E Burnside St Portland, OR 97214

1905 2

3,598 SF

1 SFH &

1 Retail Space

$1,025,000 $512,500 $285 April 2017



PROPERTY LOCATION

YEAR BUILT

# UNITS / TOTAL SF UNIT MIX / COMMENTS PRICE

PRICE / UNIT

PRICE / SF SOLD PHOTO

3319 SE Division St Portland, OR 97202

1911 5

5,440 SF

4 Apts &

1 Retail Space

$1,700,000 $340,000 $313 Nov 2016

3950 N Mississippi Ave Portland, OR 97227

1913 3

7,700 SF

3 Retail Spaces $2,825,000 $941,667 $367 Jan 2015



Significant Nearby New Construction

PROPERTY LOCATION

# UNITS UNIT MIX / COMMENTS

CONSTRUCTION STATUS

GROUPS PHOTO

LOCA @ The Goat Blocks Belmont & 11th Ave Portland, OR 97214

246

Six Buildings

Around a Central Plaza 97,000 SF Retail

Parking for 285 Vehicles

& 553 Bicycles

Under Construction

Killian Pacific

Modera Belmont 818 SE 6th Ave Portland, OR 97214

200 &

Office

Six Story Building

Ground Floor Retail & Creative Office Space


& 302 Bicycles

Under Construction

Mill Creek &

SERA Design

240 Clay SE 3rd & Clay St Portland, OR 97214

Office/Retail Retail &

Office Spaces

Under Construction

Killian Pacific &

Mackenzie Architects

811 SE Stark Portland, OR 97214

Office/Retail Four Story Building Ground Floor Retail

& Offices

Under Construction

Works Partnership



PROPERTY LOCATION

# UNITS UNIT MIX / COMMENTS

CONSTRUCTION STATUS

GROUPS PHOTO

Burnside Delta 1111 SE Sandy Blvd Portland, OR 97214

85 Six Story Building

w/ Ground Floor Retail

Approved Urban Development Group

& Vallaster Corl Architects

Jupiter Hotel Expansion 800 E Burnside St Portland, OR 97214

Hotel Six Story Building

w/ Ground Floor Retail & Restaurants

Under Construction

Works Partnership

710 E Burnside Portland, OR 97214

49 Eleven Story Building

w/ 10,628 SF of Office Space

Parking for 55 Vehicles & 78 Bicycles

Under Construction

Polyphon Architecture & Design

Grand Belmont 514 SE Belmont St Portland, OR 97214

133 Six Story Building

w/ 8,925 SF of Retail Spaces


Design Review

Urban Assets Advisors

& Vallaster Corl

Architects

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