Offered at $3,765,000

Transcription

1 Presenting A 9-Unit Commercial Property in the Heart of Historic Fairhaven Offered at $3,765,000 All information contained herein is supplied by the seller to the best of his/her knowledge, but is subject to verification by the purchaser, and the broker assumes no responsibility for the correctness thereof, 2219 Rimland in accordance Drive, Suite 301, with Bellingham, the WA law This property is offered without respect to race, gender, color, creed, familial status, national origin or handicapable access.

2 The Investment Rare Opportunity to Acquire Commercial Property in the Heart of Historic Fairhaven, with 9 Retail / Office Condos that Cash Flow and Promise Excellent Long-Term Appreciation Potential Historic, Ground Floor Commercial, in one of Fairhaven s Most Iconic Settings The Waldron was one of the original mixed-use properties built in Fairhaven before the turn of the century. Completely rebuilt in 2008 by Summit Construction, it s iconic brick, rock-faced masonry, and unique underground passageways were all maintained, and the building now lives on as one of Fairhaven s most beloved landmarks, with a historic property designation granted by the City of Bellingham. During renovation, the property was expanded, with the addition of the Young building. Together, these 2 mixed-use buildings house the 9 retail / office commercial condos on the lower levels, directly in the commercial core of Fairhaven, surrounded by the most affluent communities in Bellingham. The Waldron building was once home to the Bank of Fairhaven, a legacy carried on today by Heritage Bank, the property s primary anchor tenant. Photo courtesy City of Bellingham General - Neighborhood: Fairhaven - Zoning: Commercial (Urban Village) - Year Built: Current Condition: Good - Building Square Footage: 14,275 SF - Parking spots: 8 (covered) - View: Territorial Tenants - Heritage Bank - Rustic Cafe and Winebar - Melvin s Tap room - Jimmy s Personal Care - Best Buds Gaming Lounge - Moonbase Comics - Elephant in the Room Boutique Retail / Office at the Center of Fairhaven s Commercial Core Imagine being able to acquire an iconic property such as the Waldron in the center of Seattle s commercial core for only $280 a square foot today. It would be impossible. CoStar data shows most Seattle retail properties being marketed for well over $500 a square foot currently. In San Francisco, downtown commercial retail along Market Street is being marketed for almost $1,000 per square foot, and well over $1,500 a square foot along Franklin Street. In downtown Vancouver B.C., retail properties in the commercial core are being marketed from $500 to $1,500 a square foot $US, depending on location. The Investment - Net Operating Income forecast to increase to $264,000 by fall 2018, with conservative rent forecast - Financing available through Glacier Financial, with rates as low as 4.8% for qualified buyers (10-yr fixed, 25-year amortization) 1970s Photo courtesy Ken Imus Strong cash flow and appreciation potential.the ability to force immediate equity in the near term without significant capital improvements. Boutique retail and office within walking distance of luxury residential, Amtrak, the Boating Center, the Waterfront, and Boulevard Park. Affluent demographics. Some of the fastest growing densities in Whatcom. This is the opportunity. This is.

3 Financial Forecast At Conservative Leasing Rates for this Market, only 3% Annual Appreciation, and a Standard 5% Vacancy Rate, This Opportunity Would Return almost $3M in 10 Years Cash Flow 2018 (Proforma) Year (Stabilized) Year Year Year Year Year Year Year Year Year 10 Net Operating Income (1) $250,411 $257,924 $265,662 $273,631 $281,840 $290,296 $299,004 $307,974 $317,214 $326,730 Appreciation Forecast (2) $3.77 M $3.88 M $3.99 M $4.11 M $4.24 M $4.36 M $4.50 M $4.63 M $4.77 M $4.91 M Annual Debt Service (3) $181,216 $181,216 $181,216 $181,216 $181,216 $181,216 $181,216 $181,216 $181,216 $181,216 Cash Flow After Debt $69,195 $76,708 $84,446 $92,415 $100,624 $109,080 $117,788 $126,758 $135,998 $145,514 Equity (Proforma) (Stabilized) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Appreciation Forecast (2) $3.77 M $3.88 M $3.99 M $4.11 M $4.24 M $4.36 M $4.50 M $4.63 M $4.77 M $4.91 M Down Payment (30%) $1.13 M - Loan Payoff Balance (3) $2.64 M $2.58 M $2.52 M $2.46 M $2.40 M $2.33 M $2.26 M $2.19 M $2.11 M $2.03 M Total Equity Gain - $.17 M $.35 M $.52 M $.71 M $.90 M $1.10 M $1.31 M $1.53 M $1.75 M (1) 2018 NOI forecast based on 2018 Proforma ($264K), less a standard 5% vacancy rate. (2) Assumes a conservative 3% appreciation to keep pace with inflation. Appreciation could be much higher. (3) Based on Glacier Financial terms: 10-year fixed interest rate of 4.8%, 25-Year Amortization. Available to qualified buyers with 30% down payment. Total 10-Year Cash Flow Forecast: $1,058,527 Total 10-Year Equity Gain Forecast: $1,750,845 Total 10-Year Gains Forecast: $2,809,372

4 Location Increasing density, affluent demographics, and an interstate transportation hub characterize the Fairhaven Commercial Corridor Fairhaven Harbor 65 new households Summer 2018 Waldron Young Commercial Fairhaven Tower 35 new households Summer 2019 Alaska Ferry Amtrak Greyhound / Bus Terminal Fairhaven Boat Launch Located within minutes of some of the most exclusive real estate in Whatcom County, in Edgemoor, South Hill and Chuckanut Drive Neighborhood Median Sale Price Price / Sq Ft Sold Fairhaven $587K $250 South Hill $1M $282 Edgemoor $736K $340 Neighborhood Waldron Young Commercial Median Sale Price Price / Sq Ft List N/A $280 Fairhaven Annual Events Dirty Dan Harris Festival Ski to Sea and Fairhaven Festival Winterfest and Holiday Art Walk Recreation Northwest Expo Dirty Dan Day Seafood Festival Fairhaven Summer Solstice Art Walk Holiday Port Festival & Gingerbread House Contest

5 Property Details, Continued