esquire court · backlog of orders, and microsoft, amazon, and other technology companies are...

Esquire Court8407 South 259th Street, Kent, WA 98030

OWNER/USER OPPORTUNITY OR MULTI-TENANT INVESTMENT

Table of Contents

Exclusively offered by

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, current or past tax payments, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Joel [email protected]

kiddermathews.com

The OpportunityThe OpportunityProperty DetailProperty AerialParcel MapSite PlansKent Amenties AerialProperty Pictures

Proforma Financial AnalysisTenant RosterRevenue Projection

Location and Market OverviewKent OverviewLocation Map

01

02

03

ESQUIRE COURT

Executive Summary

01The Opportunity

Property Detail

Property Aerial

Parcel Map

Site Plans

Kent Amenities Aerial

Property Pictures

ESQUIRE COURT 3

INVESTMENT SUMMARY

OFFERING PRICE $1,200,000

CURRENT OCCUPANCY 95%

PRICE / SF $183.15

LAND AREA 0.69 AC

YEAR BUILT 1993

ESQUIRE COURT | OFFERING MEMORANDUM | KIDDER MATHEWS 4

The Opportunity

Esquire Court is a 6,562 square foot, three story, office building

built in 1993.

Located in Kent, Washington, this Victorian classic is three stories with ADA access on the first floor. Suite sizes range from 230 SF - 1,500 SF. The building lends itself naturally to an owner/user who needs to occupy all or a portion of the building. Ample parking with easy access too Highway 167 and the Sounder for office commuters.

Currently a Buyer could retain some or all of the existing tenants. Investors could also purchase based on a strong occupancy history and story tenant mix. The current owners can lease back, relocate or vacate the building, supporting the flexibility of the offering. The tenants are currently all on month-to-month to Leases.


ADDRESS 8407 South 259th Street Kent, WA 98030

BUILDING AREA SUMMARY

First: 3,161 SFSecond: 2,538 SFThird: 863 SF

NET RENTABLE AREA 6,562 SF

LAND AREA 30,016 SF/0.69 Acres

OCCUPANCY 95%

MUNICIPALITY Kent, King County

PARCEL NUMBER 0006600042

PROPERTY DETAIL

KING COUNTY ASSESSED VALUE

Land: $270,100 Improvements: $804,100 Total: $1,074,100

2017 TAXES $13,839.72

LOCATION South Central Avenue and 259th Street

PARKING 27 stalls

ZONING CM-2

MAJOR TENANT Law Firm(s)

YEAR BUILT 1993


ESQUIRE COURT

S 259th St

FIRST FLOOR

Entrance


SECOND FLOOR THIRD FLOOR


E Willis St

W James St

Kent Station

Sound Commuter Rail Station

King County Regional Justice Center

Riverbend Golf Course

MetroTransit Park & Ride

Showare Center

S Kent Des Moines Rd

Central A

ve S ESQUIRE COURT


Proforma Financial Analysis

02

Tenant Roster

Revenue Projection

LACEY CROSSROADS 12


TENANT ROSTER

TENANT TERM RATE

FIRST FLOOR

Harpold Thomas PC M/M $2,519.47

Julie A Christenson PS M/M $1,183.59

SECOND FLOOR

Jennifer Rydberg M/M $800.00

Gloria Janis M/M $1,130.00

Susan Beecher M/M $850.00

THIRD FLOOR

Tax Accounting M/M $930.00

Composites M/M $550.00

ESQUIRE COURT - EXISTING REVENUE

STATISTICS

Net rentable area in SF 6,562

Total Operating Expenses PSF/YR $5.26

GROSS REVENUE

Base Rental Revenue $95,556.72

Total Potential Gross Revenue $95,556.72

OPERATING EXPENSES

PSE $7,700

Landscaping $4,200

Insurance $1,162

Real Estate Taxes $13,838

Water $1,800

Pest Control $1,600

Fire Alarm $1,560

Garbage $2,676

Total Operating Expenses $34,536

NET ANNUAL INCOME $61,020

Location and Market

Overview

03

Kent Overview

Location Map

LACEY CROSSROADS 14


KENT

Kent is the sixth largest city in Washington State with a population of approximately 120,000 and covers a geographic area of 34 square miles. Named one of the “Best Places to Live” by Seattle Metropolitan Magazine, Kent is a culturally rich destination with well-established neighborhoods, award winning parks and great school systems making it a fantastic community to live and raise a family. Located in the heart of the Green River Valley, Kent’s breathtaking setting features views of Mount Rainier and the Cascade and Olympic Mountains.

Only seven miles from SeaTac International Airport, Kent is conveniently located 18 miles from both Seattle and Tacoma, with quick access to Interstate 5, State Route 167 and other major highways.

As the fourth largest manufacturing and distribution center in the United States, Kent’s vibrant and diverse economy has a well-earned reputation as the economic barometer for the region.

Home to over 4,500 businesses and approximately 78,000 jobs, Kent’s $8 billion gross business income is the highest among its peer cities in South King County.

SEATTLE/PUGET SOUND

The 75 million square foot Seattle/Puget Sound office market has demonstrated durability over the past few years, and is known as one of the more resilient markets in the nation with an office vacancy of only 8.9% in Q2 2015. The Southend Office Market, which includes Kent, is 11% vacant and has emonstrated an increase in rental rates of 8.6% in the past two years.

In the last four quarters the Seattle/Puget Sound market saw 2.1 million square feet absorbed in the office sector. As a result, this area is considered by many to be one of the nation’s top locations for investors of office real estate, according to ULI’s Emerging Trends in Real Estate.

Factors contributing to this overall healthy vacancy in the market are:

• Microsoft continuing to grow its footprint in the region with over 14 million square feet occupied and expectations of continued growth in the region. Amazon.com continues to grow in Seattle and is expected to deliver and occupy more than 4 million additional square feet by 2016.

• Primary regional employers that have not been affected as much as the national economy in general. Boeing and the aerospace industry have a long backlog of orders, and Microsoft, Amazon, and other technology companies are relatively stable, resulting in higher employment.

• Increased occupancy and rising lease rates kept investors active this past quarter. Facebook signed a 274,000 square foot lease at Dexter Station in downtown Seattle. King 5 News signed a 45,000 square foot lease at Home Plate Center in the Stadium District. Home Street Bank has signed a lease for 177,000 SF at Two Union Square in downtown Seattle.

MANUFACTURING EMPLOYMENT

The Puget Sound region’s economy is out-performing the rest of the nation, and manufacturing, construction and natural resource employment are forecasted to grow faster than the rest of the local economy. The State of Washington economist predicts goods-producing employment to grow by 1.7% per year between 2010 and 2020.

Location Overview


INTERNATIONAL TRADE

Because of its deep water port and the fact that it is one shipping day closer to major Asian Pacific Rim ports, the Port of Seattle handles over 25% of all Pacific Rim imports into the United States. China and Japan are Seattle’s top waterborne trading partners and on a per capita basis, Washington conducts more international trade than any other state in the nation. Nearly 75% of Washington’s trade traffic passes through the ports of Seattle and Tacoma.

TRANSPORTATION

Puget Sound’s economy is supported by a well-developed distribution network which offers excellent access to regional, national and international markets. The Seattle-Tacoma International Airport, is a major gateway joining Asia and Europe with the United States. The Seattle area is well served by a network of surface transportation routes, including two transcontinental railroads and three major freeway systems.

In addition, Metro and Sound Transit bus systems serve the greater Puget Sound area with approximately 1,200 buses and the largest public van-pool fleet in the country with over 700 vans. Sound Transit is responsible for connecting regional employment and population centers through a network of trains, buses and transit projects. Key features of this planned system include 25 miles of electric light-rail, 81 miles of commuter rail, more than 100 miles of HOV expressways, 20 new regional express bus routes, and region-wide coordination of all schedules and fares among all local and regional transit services.

PUGET SOUND ECONOMIC OVERVIEW

The Pacific Northwest has long been recognized as a highly desirable place to live and work because of the quality of life offered to its residents. A stable economy, beautiful natural environment, and a wealth of cultural and recreational opportunities define the Puget Sound region. There has been significant progress in retaining and expanding the employment base and diversifying the regional economy.

The presence of young, highly educated workers and a large “creative class” has been found to be uniquely associated with the development of new industries and jobs in the region. With this evolving technology-based economy, there has been continued progress in enhancing the viability and sustainability of some of the region’s designated growth and manufacturing industrial centers.


1 MILE 3 MILES 5 MILES

2017 3,810 34,148 90,270

2022 4,412 36,849 97,381

HOUSEHOLDS


2017 $57,659 $72,523 $78,069

2022 $67,030 $87,836 $95,425

AVERAGE HOUSEHOLD INCOME


2017 9,282 94,314 253,167

2022 10,169 102,147 274,177

POPULATION

$

DEMOGRAPHICS

1 MILE

5 MILES

3 MILES

ESQUIRE COURT

RENTON

ISSAQUAH

KENT

BURIEN

MERCERISLAND

BELLEVUE

REDMONDKIRKLAND

BOTHELL

LYNNWOOD

EVERETT

BREMERTON

SEATTLE

VASHON

GIG HARBOR

BAINBRIDGEISLAND

FEDERALWAY

AUBURN

TACOMA

PUYALLUP

LAKEWASHINGTON

PUGETSOUND


ESQUIRE COURT

Exclusively offered by

Joel Shabel 253.722.1406 [email protected] Kidder Mathews 1201 Pacific Avenue, Suite, 1400 Tacoma, WA 98402

kiddermathews.com

esquire court · backlog of orders, and microsoft, amazon, and other technology companies are...

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