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The Rhein Haus BuildingLEAVENWORTH, WASHINGTON
CAPITAL PACIFIC IS PROUD TO OFFER THE RARE OPPORTUNITY TO ACQUIRE THE ICONIC, NEW CONSTRUCTION RHEIN HAUS BUILDING in the heart of the tourist destination of Leavenworth, WA. This new construction building was built to the highest quality standards to match the town’s Bavarian theme and has instantly become a staple in the center of this nationally known destination. The upper floors, on grade with Highway 2, are occupied by the Rhein Haus restaurant, while the lower level that faces Front Street is leased to local shops and retailers, including Whistlepunk Ice Cream Co., J5 Coffee, and the Milbrandt wine tasting bar.
The Rhein Haus Building707 US HWY 2, LEAVENWORTH, WA 98826
■ Brand new Class A retail construction with impeccable attention to detail and quality - the building is the newest downtown construction within a tight retail market with a submarket vacancy rate of less than 1%.
■ Located right on Front Street in the heart of Leavenworth’s core, exposed to high numbers of pedestrian traffic with approximately 2 million annual tourists.
■ The Bavarian theme and adjacent hotels, restaurants, and boutiques complement the balance of local tenants at the building.
■ Accessible from Hwy 2 and Front Street, Rhein Haus provides the city’s largest biergarten, equipped with heated floors and three outdoor patios.
■ Rhein Haus is operated by two preeminent Puget Sound restaurateurs with a number of renowned restaurants in their portfolio, both Puget Sound residents.
■ Leavenworth’s Lodging Tax Fund has increased annually the last 12+ years, indicative of a historically stable economy based on tourism. The city’s popularity is expected to only increase with Leavenworth sitting on the top of most PNW “Top 10” lists and proximity to primary markets.
$6,500,000PRICE
5.40%CAP
Overview
LEASEABLE SF10,006 SF
LAND AREA7,000 SF / 0.16 AC
OCCUPANCY100%
SUBMARKET VACANCY<1%
YEAR BUILT2018
FRONTAGEHwy 2 & Front St.
NUMBER OF TENANTS6
ANNUAL VISITORS2 Million
RENT INCREASES3% Annual, All Tenants
Investment Summary
PAGE 5
Overview
Several large scale festivals held at least quarterly attract nearly 2 Million tourists
each year.TOURISMLeavenworth is a popular Bavarian-themed city in the eastern region of Washington, with a large tourist draw provided by a handful of annual festivals; the most popular of which is Oktoberfest, held in September-October. Leavenworth’s popularity is sustained year-round with numerous outdoor activities in the summer and winter months, wine tasting rooms, and bird-watching. The town is a short drive in the winter to Stevens Pass Ski Resort, Washington’s third largest ski area. The charm of Leavenworth and its European feel draw visitors from across the Nation.
About Leavenworth
CHU
MST
ICK
HW
Y
US HWY 2
THE RHEINHAUS
BUILDING
BAVARIAN LODGE
DOWNTOWN LODGING Adventure Inn
Bavarian Ritz Hotel Blackbird LodgeEvergreen Inn
Hotel Pension - AnnaInnsbrucker Inn
Leavenworth Village InnMrs. Anderson’s Lodging House
Obertal InnPosthotel Leavenworth
Solstice Suites
LEAVENWORTHFESTHALLE
CHAMBER OF COMMERCE &
VISITORS CENTER
BLUE SPIRITS DISTILLING & EVENTS CENTER
ICICLEBREWINGCOMPANY
ICICLE VILLAGERESORT
STEVENS PASS SKI RESORT
35 MILES NW
PUBLIC PARKING
PUBLIC PARKING
PUBLIC PARKING
PUBLIC PARKING
ICICLE JUNCTIONACTIVITYCENTER
LEAVENWORTHGOLF CLUB
HOWARDJOHNSON
BY WYNDHAM LEAVENWORTH
About Leavenworth
PAGE 7
OUTDOOR ENTHUSIASTSLeavenworth’s popularity extends year-round, well past their annual Oktoberfest and Christmas celebrations held in the fall and winter months, and is also recognized as an extremely popular destination for outdoor enthusiasts in the spring and summertime. Hikers are attracted to The Enchantments, a forest of glacier-carved granite and golden larch trees (also popular among photography enthusiasts), as well as rafting the Wenatchee River, skiing, camping, bird watching, wine tasting, etc.
POPULAR ANNUAL EVENTS
YEAR-ROUND POPULARITYThe Leavenworth region exports the largest amount of organic pears in the U.S. and has a robust amount of produce in the spring, including grapes that support a growing wine industry. The growing number of tasting rooms level of popularity has encouraged a number of wine tourism businesses, including organized tours and tasting events, with a handful of tasting rooms now open on Front Street.
JANUARYBavarianIce Fest
Timbrrr! Winter Music
APRILAle Fest
MAYMaifest
JULYIcicle Creek
Chamber Music Festival
SEPTEMEBERWashington
State Autumn Leaf Festival
OCTOBEROktoberfest
DECEMBERChristmas
Lighting Fest
About Leavenworth
LODGING TAX REVENUEThe Lodging Tax is a fee that helps track tourism, and is added to the cost of every hotel and motel room. The funds are then used to promote tourism and maintain Front Street. The Lodging Tax Fund has increased every year the last 12+ years.
NATIONAL AWARDS
Top 10 Places with Holiday Cheer
Time Magazine
18 Most Charming U.S. Small Towns
msn
Top 10 U.S. Climbing Cities
Rock & Ice Magazine
America’s Best Oktoberfest
Huffington Post
Leavenworth Lodging Tax Revenue
2007
$500,000
$800,000
$1,000,000$1,100,000
$1,200,000$1,300,000$1,400,000
$600,000$700,000
$900,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
LEAVENWORTH LODGING TAX REVENUES AT 5%
About Leavenworth
PAGE 9
RHEIN HAUSThe Tenant is one of four locations and is privately-owned by two extremely well known and highly respected Seattle restaurateurs, Deming Maclise and James Weimann. The Weimann Maclise Family of Restaurants includes Bastille, Stoneburner, Macleod’s, Poquitos, and Beer Star, all in the Seattle area.
The first Rhein Haus location opened in Seattle in 2013 as Von Trapp’s (the name was later changed), and subsequent locations were then opened in Denver, CO in 2015 and another in Tacoma, WA in 2017. Rhein Haus continues to expand, and the Leavenworth location will become the face of the brand as the Bavarian restaurant settles into the Bavarian Village of Leavenworth.
LOCATIONS • Leavenworth, WA (Subject)• Seattle, WA• Tacoma, WA• Denver, CO
4YEAR BUILT2018
About the Tenants
THE BLACK ORCHIDThe Black Orchid is a gift shop selling eccentric products ranging from leather bags to local jewelry. Recently established in 2018, the shop draws in tourists and is owned and operated by a local resident who wanted to provide a place to find unique gifts.
WHISTLEPUNK ICE CREAM CO. Whistlepunk Ice Cream Co. was established in 2016. The restaurant is known for developing small batch, premium ice cream made with high quality ingredients.
BOOK FOR ALL SEASONSA Book for All Seasons first opened in 1992 in a different location, and serves as the town’s only local, independent bookstore. The store recently relocated to their current space for increased exposure on Front St. in the heart of the city.
J5 COFFEEJ5 Coffee is an espresso bar serving specialty drinks, pour over coffee, and small batch roasted beans. J5 Coffee is a popular stop for pedestrians.
RYAN PATRICK WINES & MILBRANDT VINEYARDRyan Patrick Wines & Milbrandt Vineyards is a combined tasting room for the two Washington wineries, owned by the same operator. Ryan Patrick Wines is one of Washington’s fastest-growing operations, opening its wine production in 1999. Milbrandt Vineyards is in Prosser, WA and opened in 1997, both with 3 tasting rooms. In 2018, Milbrandt’s cabernet sauvignon was included in the Top 100 Wine List for Wine Spectator Magazine.
About the Tenants
PAGE 11
Rhein HausFeatures & Construction• THE LARGEST BIERGARTEN ON FRONT ST.; INCLUDES A LARGE
OUTDOOR PATIO AND THREE BARS ACROSS MULTI-LEVELS.
• CAPACITY: +/- 300 CUSTOMERS.
• UPPER DECK INCLUDES HEATED FLOORS.
ENVIRONMENTAL TESTINGA Phase I ESA was performed by Fulcrum Environmental Consulting, Inc in February 2017. No further testing was required.
CONSTRUCTION DETAILSCity codes enforce the Bavarian theme throughout the commercially zoned areas.
Site
OUTDOOR PATIO
THE BLACKORCHID
A BOOK FOR ALL
SEASONS
WHISTLEPUNK ICE CREAM CO.
RYAN PATRICK WINES & MILBRANDT VINEYARD
J5 COFFEE
RHEIN HAUSRHEIN HAUS
RHEIN HAUS
Rhein Haus Building Elevation
Parcel
HWY 2
FRONT ST.
SITE NOT TO SCALE
Site
PAGE 13
Featured Photography
Q&
A
Q: IS THERE PARKING AT THE PROPERTY?
A: Like most surrounding buildings in the downtown area, the Property does not include parking yet benefits from numerous street front parking stalls and city-owned public parking lots along Front Street.
Q: WHY DOES THE FINANCIAL ANALYSIS REFLECT PROPERTY TAXES ROUGHLY 3 TIMES THAT OF THE 2019 REAL PROPERTY TAXES?
A: Washington property taxes are adjusted annually based on the value of the property. The value of all commercial real estate is adjusted when it sells. To account for an assumed increase in property taxes, our Analysis reflects increased taxes of $38,000, as opposed to actual 2019 taxes of $15,750, to anticipate an expected increase.
Q: WHY ARE TENANTS ON MODIFIED GROSS LEASES?
A: The Property is located with frontage on Hwy 2 and Front St. in downtown Leavenworth where developable land is extremely rare; as such, the building extends up to the parcel boundary lines providing extremely limited common area and therefore limited common area expenses, if any at all. Tenants pay utilities directly, and Landlord maintains typical property and liability insurance policies, taxes, and is responsible for the building structure.
Questions & Answers
PAGE 15
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Income & Expense
PRICE $6,500,000
CAPITALIZATION RATE 5.40%
CASH FLOW SUMMARY
SCHEDULED INCOME PER SFBase Rent for the Period of: 1/1/2020 - 12/31/2020 $41.78 $418,035Rent Increases Over Base Rent $0.42 $4,180Equals: Scheduled Gross Income $42.20 $422,216Vacancy Factor 3% ($1.25) ($12,541)Total Effective Gross Income (EGI) $40.94 $409,675
OPERATING EXPENSES PER SFCAMS $0.17 $1,737Property Taxes $3.80 $38,000Insurance $0.55 $5,503Management Fee of EGI $1.48 $14,778Total Operating Expenses $6.00 $60,017
NET OPERATING INCOME $34.94 $349,657
3.5%
10/23/2019 [ <www.CapitalPacific.com> ]
TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE
THIS FORM.
Loan Summary
PROPOSED TERMS
LOAN TO VALUE: 70%
INTEREST RATE: 3.7%-4.1%
AMORTIZATION: 25 YEARS
TERM: 5-10 YEARS
RECOURSE: YES
LOAN QUOTE PROVIDED BY
DARRIN RYLAARSDAM
CASHMERE VALLEY BANK OF LEAVENWORTH
P: 509-548-2900
The following loan summary is for analysis purposes only and not a guaranty of loan terms. Loan dollars, rate, term, and amortization period are subject to fluctuation and are dependent on the investor.
Financial Summary
CAMS Tenant pays their prorata share of CAMs exclusive to snow removal, and pays separately-metered utilities directly to the billing authority; any non-separately metered utilities are billed to Tenant.
TAXESLandlord pays directly.
INSURANCELandlord maintains directly.
Maintenance& Repair
Expenses
TENANT’S OBLIGATIONSAll interior maintenance, repair, and replacement including those to the paint, wood floors, carpeting, and all operating systems – plumbing, electrical, mechanical, and replacement of broken or cracked glass, and snow removal.
LANDLORD’S OBLIGATIONSAll structural maintenance, repair, and replacement, including the roof and “Bavarian” façade and storefront, other than the windows.
TENANT Rhein Haus (RHLV LLC)
LEASE GUARANTY Two Personal Guarantees throughout the primary term.
Lease Abstract
Lease Abstract
PAGE 17
The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
Contact Us
SEAN [email protected]: 206.693.3352
KEVIN ADATTO
SEAN TUFTS
SCOTT FRANK
SEAN MACK
MICHAEL HORWITZ
PETER DUNN
DAVID GELLNER
LANCE SASSER
MICHAEL LOWES
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MEET THE ENTIRE TEAM HERE.
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