close-in ne portland development opportunity...commercial mixed-use zone allowing for both...

NE MLK JR. BOULEVARD

34,900 DAILY TRAFFIC COUNT

BUS STATIONLINES 6, 75

NE HOLLAND STREET

NE STAFFORD STREET

±200’±100’

7339 NE MLK JR. BOULEVARD±19,890 SF (0.46 ACRES)

HFF E XCLUSIVE INVESTMENT OPPORTUNIT Y

Close-in NE Portland Development Opportunity7339 NE MLK JR. BOULEVARD, PORTLAND, OR 97211

$1,999,000

NE M

LK JR

. BO

ULEVA

RD

34,900 DA

ILY TRA

FFIC C

OU

NT

BUS STATIONLINES 6, 75

PORTLAND CBDLLOYD DISTRICT

FRESENIUS MEDICAL CENTER

(2017)

(2018)


2

Close-in NE Portland Development Opportunity

Address 7339 NE Martin Luther King Jr. Boulevard, Portland, OR 97211

Site size ±19,890 SF/ 0.46 acres

Tax ID R209281

Zoning CM2 (Commercial Mixed-Use 2) Effective 2018

Allowed Uses Multi-Housing, Retail, Commercial, Industrial**

Current Improvements Yummy Mongolian BBQ - Restaurant

Maximum FAR 2.5:1 (maximum of 4:1 with bonus provisions)*

Maximum Height Limit 45' (maximum of 55’ with bonus provisions)*

*Bonus FAR is allowed up to the maximum of 4:1 for development that triggers the requirements of Inclusionary Housing. To qualify for this bonus, the applicant must provide a letter from the Portland Housing Bureau certifying that the regulations of Inclusionary Housing have been met.

**Limited or conditional use

Site Summary

5

405

NE MLK JR. BOULEVARD


MAX LIGHT RAIL

WILLAMETTE RIVER

PENINSULA PARK

PORTLAND CBD110,000 EMPLOYEES

VANCOUVER/WILLIAMS RETAIL CORRIDOR, 300,000 SF

MISSISSIPPI RETAIL CORRIDOR, 300,000 SF

FRESENIUS MEDICAL CENTER

(2017)

LLOYD DISTRICTSWAN ISLAND6.5M SF INDUSTRIAL

N LOMBARD STREET


(2018)


3,600 EMPLOYEES1,200 EMPLOYEES

7339 NE MLK JR. BOULEVARD, PORTLAND, OR 97211 3

Investment Highlights

HIGH VISIBILITY WITH TRANSIT ACCESS

NE Martin Luther King Jr. Boulevard

The property has high visibility and accessibility. 200 feet of the property fronts to NE Martin Luther King Jr. Boulevard, which serves approximately 35,000 vehicles per day. NE Martin Luther King Jr. runs through the Lloyd and Central Eastside Industrial Districts. NE Martin Luther King Jr. Boulevard is also one of North Portland’s primary retail corridors with over 300,000 square feet of commercial space and two bus routes.

Interstate 5

Interstate 5 (I-5) is a key arterial on the west coast with 175,000+ daily travelers. It is accessible within a few blocks of the subject property. Via I-5, one can reach downtown Portland in ≈10 minutes.

TriMet MAX Yellow Light-Rail Line

The North Lombard Transit Station is less than a mile west of the subject property. Transit lines served include the MAX Yellow Line, and bus lines 4 and 75. The MAX Yellow Line runs north-south from the Expo Center to Portland State University. Line 4 runs from North Portland to Gresham, and Line 75 runs from north Portland to Milwaukie (nearly 20 miles long, it is Trimet’s longest bus route). All three lines connect to major employment hubs like the Lloyd District and downtown Portland.

≈34,900 VEHICLES PER DAY

5

4


SURROUNDED BY POPULAR RETAIL CORRIDORS

North Vancouver/Williams, 1.0 miles

The North Vancouver/Williams corridor is comprised of nearly 300,000 square feet of retail space, including some of Portland’s top-rated restaurants such as Tasty n’ Sons and People’s Pig.

North Mississippi 1.0 miles

With over 60 shops, restaurants, bars and breweries within a half-mile stretch, North Mississippi is one of most concentrated retail corridors in Portland.

Alberta Arts District 1.25 miles

The Alberta Arts District has recently emerged into a popular entertainment district, with dozens of acclaimed bars, restaurants and boutique retailers. On the last Thursday of each month, the district hosts “Last Thursday”, Portland’s largest art event, which draws thousands of visitors every month.

PROXIMATE TO SEVERAL LARGE ECONOMIC DRIVERS

Adidas North American HQ 1,200 employees, 2.0 miles

Adidas announced in March 2016 that it plans to grow its Portland workforce 10% by the end of the year. The company acquired a 25,000 square foot building to accommodate the new growth, the company’s largest-ever recruiting initiative in Portland. Adidas expanded by 350 employees over the last 18 months, and the expansion would create approximately 120 new jobs at its North American headquarters in North Portland.

Daimler Trucks Headquarters 2,800 employees, 2.5 miles

Founded in the Pacific Northwest over 70 years ago, Daimler Trucks North America is now headquartered in Portland. In 2016, the company unveiled a $150 million improvement to its Swan Island headquarters campus, which includes a new state-of-the-art office building on the Willamette River.

Legacy Emanuel Medical Center 3,600 employees, 2.0 miles

The 554-bed facility provides a full range of services and is one of the region’s major employment drivers. In 2011, the $10 million Randall Children’s Hospital expanded, making it the costliest development in Portland’s inner-eastside since the reconstruction of the Lloyd Center in 1991.


FAVORABLE ZONING & DESIGN REQUIREMENTS

Through the site’s Commercial Mixed-Use (CM2) zoning, the potential development program has a favorable floor-area-ratio (FAR) of 4:1, and a maximum height limit of 55 feet for multi-housing usage. Developed to maximum FAR and height, nearly 80,000 square feet of buildable space is available, allowing for a myriad of improvement possibilities.

*Prospective investor to perform own due diligence regarding full development requirements and uses.

ECONOMY FIRING ON ALL CYLINDERS

The state of Oregon and the Portland MSA continue to be nationally recognized for their strong real estate investment potential. Drivers include employer expansion from top companies, strong net in-migration, and private sector job creation.

NO 3 BEST PL ACES FOR BUSINESS AND CAREERS (Forbes, 2016)

NO 1 STATE IN THE UNITED STATES FOR 2013, 2014, & 2015 NE T IN-BOUND MOVES (United Van Lines)

NO 1 CIT Y IN THE UNITED STATES IN HIGH-TECH GDP GROW TH FROM 2008–2013(Milken Institute)

TOTAL MSA EMPLOYMENT INCRE A SED 2 .0% OR 2 2 , 200 ANNUALLY (OLMIS, Mar-2017)

UNEMPLOYMENT RATE OF 3 .5% A S OF MAR-2017, DOWN 70 BA SIS POINTS YOY (OLMIS, Mar-2017)

NO 1 IN GDP GROW TH AMONGST 50 L ARGEST U. S . ECONOMIES FROM 2009–2014 (BEA)

6


ASKING RENTS

MONTHLY RENT RENT PSF

PROPERTY OCCUPANCY YEAR TYPE UNITS SF LOW HIGH AVG. LOW HIGH AVG.

7339 NE MLK Jr Boulevard7339 NE MLK Jr BoulevardPortland, OR 97211

N/A TBD 85 750 $1,588 $1,638 $1,613 $2.12 $2.18 $2.15

Totals/Average 85 750 $1,588 $1,638 $1,613 $2.12 $2.18 $2.15

1 13 Dekum Apartments1314 NE Dekum StreetPortland, OR 97214

96.0% 2016 Studio 14 499 $950 $1,000 $975 $1.90 $2.00 $1.95

1 Bed 14 499 $1,172 $1,222 $1,197 $2.35 $2.45 $2.40

Totals/Average 28 499 $950 $1,222 $1,086 $1.90 $2.45 $2.18

The Woodlawn909 NE Oneonta StreetPortland, OR 97211

94.0% 2014 Studio 10 704 $1,611 $1,661 $1,636 $2.29 $2.36 $2.32

1 Bed 8 915 $1,835 $1,885 $1,860 $2.01 $2.06 $2.03

Totals/Average 18 798 $1,611 $1,885 $1,736 $2.01 $2.36 $2.18

3 Bradley Commons432 NE Jessup StreetPortland, OR 97211

50.0% 2016 Studio 1 443 $934 $984 $959 $2.11 $2.22 $2.16

1 Bed 5 516 $1,136 $1,186 $1,161 $2.20 $2.30 $2.25

2 Bed 6 990 $1,877 $1,927 $1,902 $1.90 $1.95 $1.92

Totals/Average 12 747 $934 $1,927 $1,515 $1.90 $2.30 $2.03

4 The Verona460 NE Simpson StreetPortland, OR 97239

87.5% 2015 Studio 4 525 $1,262 $1,312 $1,287 $2.40 $2.50 $2.45

1 Bed 4 456 $1,262 $1,312 $1,287 $2.77 $2.88 $2.82

2 Bed 8 1,050 $2,030 $2,080 $2,055 $1.93 $1.98 $1.96

Totals/Average 16 770 $1,262 $2,080 $1,671 $1.93 $2.88 $2.17

Proforma Ask 85 750 $1,588 $1,638 $1,613 $2.12 $2.18 $2.15

Competitive Set 19 671 $934 $2,080 $1,440 $1.90 $2.88 $2.15

Rent Comparables

2


4

1

2

3

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

Average Monthly Rent Competitive Set Average

287

VANCOUVERLAKE

STURGEONLAKE

WILLAMETTE RIVER

5

5

5

5

205

205

205

84

84405

D OW N TOW NP O RT L A N D

T UA L AT I N

T I G A R D

G R E S H A M

B E AV E RTO N

L A K E O S W E G O

H I L L S B O R OC O R N E L I U S

VA N C O U V E R

WASHINGTONOREGON

3026

30

26

26

26

212

217

224

224

S AU V I EI S L A N D

COLUMBIA RIVER

COLUMBIA RIVERPORTLANDINTERNATIONALAIRPORT

4

2 1

3

$2.00

$2.02

$2.04

$2.06

$2.08

$2.10

$2.12

$2.14

$2.16

$2.18

$2.20

7339 NE MLK JR. BLVD. 13 DEKUMAPARTMENTS

THE WOODLAWN BRADLEYCOMMONS

THE VERONA$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

7339 NE MLK JR. BLVD. 13 DEKUMAPARTMENTS

THE WOODLAWN BRADLEYCOMMONS

THE VERONA

1 2 3 4

7339 NE MLK JR BLVD

13 DEKUM APARTMENTS

THE WOODLAWN

BRADLEY COMMONS

THE VERONA

Rent Comparables

AVERAGE MONTHLY RENT COMPARISON AVERAGE MONTHLY RENT PSF COMPARISON

1 2 3 4

N

8


Land Sales Comparables

$30

$50

$70

$90

$110

$130

$150

$170

$190

$210

$230

Price Per SF Competitive Set Average

PRICE PER LAND SQUARE FOOT

$30

$50

$70

$90

$110

$130

$150

$170

$190

$210

$230

Price Per SF Competitive Set Average

SALE DATE ADDRESS PRICE SF ACRES PSF $/ACRE UNITS $/UNIT ZONING*BASE FAR*

TBD 7339 NE MLK Jr Blvd. $2,200,000 19,890 0.46 $111 $4,782,609 85 $25,882CM–Mixed Commercial/Residential

2.5:1

2/24/2017 5009 N Interstate Ave. $1,040,000 7,840 0.18 $133 $5,777,778 70 $14,857EX–Central Employment

3:1

1/26/2017 N Skidmore St & N Montana Ave. $1,025,000 5,000 0.11 $205 $8,928,571 12 $85,417EX–Central Employment

3:1

1/9/2017 6123 Lombard St. $1,200,000 10,018 0.23 $120 $5,217,391 42 $28,571CM2–Commercial Mixed–Use 2

2.5:1

11/10/2016 7656 N Interstate Ave. $1,925,000 19,950 0.46 $96 $4,203,057 N/A ---RH–High Density Residential

3:1

9/2/2016 4119 NE MLK Jr Blvd. $1,092,677 10,454 0.24 $105 $4,552,821 112 $9,756RH–High Density Residential

3:1

7/27/2016 5020 N Interstate Ave. $2,000,000 20,037 0.46 $100 $4,347,826 N/A ---EX–Central Employment

3:1

Comp Set Total/Average $1,380,446 12,217 0.28 $126 $5,504,574 59 $34,650

*Zoning and FAR per 2035 comprehensive plan to take effect 2018


Zoning SummaryWhen the 2035 Comprehensive Plan takes effect in 2018, the subject site will be up-zoned to CM2. CM2 is a medium-scale, commercial mixed-use zone allowing for both commercial and residential uses. Buildings in CM2 zones are generally expected to be up to four stories (before bonus) and are intended to be pedestrian-oriented. The zoning allows for a wide variety of uses that include residential, commercial, and retail.

Site Size0.46 acres (19,890 SF)

Parcel IDR209281

Current Zoning CodeR1d (Residential 1,000)

New Zoning Code (Effective 2018)CM2 (Commercial Mixed-Use 2)

Maximum FAR2.5:1 (base)4:1 (with bonus)

Maximum Height45’ 55’ (with bonus and in design review overlay)

Minimum Density1 unit per 1,450 sq. ft. of site area

Minimum parking required0 for 1-30 units0.2 per unit for 31-40 units0.25 per unit for 41-50 units, 0.33 per unit for 51+ units.

Minimum building setbacks street lot lineNone, 0’

Minimum building coverage50%Ground floor window standards applyYes (see zoning code on HFF document center for more information)

Pedestrian standardsYes (see zoning code on HFF document center for more information)

Allowed UsesMulti-HousingHousehold LivingRetail Sales and ServicesOfficeVehicle RepairCommercial Outdoor RecreationBasic Utilities*Parks and Open AreasSchoolsCollegesMedical CentersReligious InstitutionsDaycare

Allowed with Limitations Quick Vehicle ServicingCommercial ParkingGroup Living*Manufacturing and Production*Wholesale SalesCommunity Service*Agriculture*Radio Frequency Transmission Facilities**Potential conditional use review required

Conditional Uses Review RequiredMajor Event EntertainmentIndustrial ServiceRail Lines and Utility Corridors

ProhibitedSelf-Service StorageWarehouse and Freight MovementRailroad YardsWaste-RelatedAviation and Surface Passenger TerminalsDetention Facilities Mining

1000 SW Broadway, Suite 900Portland, OR 97205 | 503.224.0444

Investment AdvisorsBRIAN [email protected]

ANTHONY PALLADINOReal Estate [email protected]

DEAN FERRISReal Estate [email protected]

Capital Markets AdvisorsTOM WILSONSenior Managing [email protected]

CASEY DAVIDSONManaging [email protected]

Close-in NE Portland Development Opportunity7339 NE MLK JR. BOULEVARD, PORTLAND, OR 97211

close-in ne portland development opportunity...commercial mixed-use zone allowing for both...

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