i for sale or lease morris williams medical building
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MORRIS WILLIAMS MEDICAL BUILDINGOFFERING MEMORANDUM
FOR SALE OR LEASE
15 N Morris St, Portland, OR
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy.
KIDDER.COM
TABLE OF CONTENTS
PREPARED BY
MARK FRASER
SEAN BRENNECKE
KIDDER MATHEWS101 SW Main StSuite 1200Portland, OR 97204
01EXECUTIVE SUMMARY
02MARKET OVERVIEW
01EXECUTIVE
SUMMARY
THE OFFERING
PROPERTY OVERVIEW
Address15 N Morris Street Portland, OR 97227
Type Medical Office
Tenancy Single
Total Building SF 7,468 SF
Parking
25 spaces 3.35/1,000 ratio (10 on-site, 15 in adjacent lot, plenty on-street parking)
Date Available April 1, 2021
Year Built 1979
Floors 1 + Finished Basement
Building Wood Frame
Zoning CM3
Lot Area 0.33 acres (14,583 SF)
Max Height 65-75ft with bonus
FAR 3:1, increasing to 5:1 with bonus
OFFERING HIGHLIGHTS
OWNER-USER opportunity for healthcare provider
FULLY BUILT-OUT medical office space (Primary Care clinic)
HIGHLY VISIBLE location on corner of Morris and Williams Ave. (14,456 Daily Traffic Count)
LOCATED directly across from Legacy Emanuel Hospital and several MOBs
THE TIGHT SUBMARKET makes this building the only medical office space available in North Portland
IMMEDIATE ACCESS to both the I-405 and I-5 freeways
HIGH DENSITY RESIDENTIAL area with a projected populated growth of 5.22% between 2020-2025 (110,372 individuals) within 3 miles
$3MSALE PRICE
$25NNN RENTAL RATE
$401.71PRICE PER SF
7,468BUILDING RSF
Executive Summary
This is a rare opportunity for a healthcare provider to lease/own and occupy a 7,468 SF single-tenant medical office building in North Portland directly across the street from Legacy Emanuel Hospital. This well-located on public transit lines and offers immediate access to the I-405 and I-5 freeway. The building was formerly occupied by Native American Rehabilitation Association (i.e. NARA), as a primary health care clinic.
The building is being offered for sale below replacement cost.
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 4
FINANCING QUOTE
SBA LOAN STRUCTURE 90%
Building Purchase $3,000,000
Building Improvements (opt) $100,000
Apprisal & Phase I $5,500
3rd Party Cost-Escrow, Title, Legal, Etc $19,500
Total Project Costs $3,125,000
Borrower Down-Payment: * as little as $425,000
PWB Loan Amount $2,700,000
Estimated Appraisal: $3,000,000
LOAN TERMS & CONDITIONS
Loan Term 25 yrs Fully Amortized
Interest Rate 3.71%
Monthly Loan Payment $14,557
Prepayment Fee 10 yrs
Owner-Occupancy (Minimum) 51%
OWNERSHIP BENEFIT ANALYSIS (ASSUMING 35% TAX BRACKET)
Net Rental Income from Tenant (est) 0%
Tax Benefit - Deprecation ($1,989)
Average Monthly Principal Deduction (5 yrs) ($3,712)
Effective Monthly Ownership Costs $8,856
Executive Summary
$3,000,000PURCHASE PRICE
BRAD BENSON
Pacific Western Bank 503.784.0583
FINANCING QUOTE OFFERED BY
100% LTV FINANCING IS AVAILABLE
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 5
EXPENSE ESTIMATES
EXPENSES Per Year Per SF
Gas $1,600.00 $0.21
Electric $8,320.00 $1.11
Water Sewer* $4,303.93 $0.58
Trash $1,600.00 $0.21
MAINTENANCE
HVAC $6,500.00 $0.87
Roof* $200.00 $0.03
Building* $1,200.00 $0.16
OTHER
Landscaping $3,300.00 $0.44
Insurance* $2,554.84 $0.34
Taxes* $28,000.00 $3.75
Total $57,578.77 $7.71
*Estimate
Executive Summary
BUILDING OPERATING EXPENSE ESTIMATES & ACTUALS
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 6
BUILT-OUT MEDICAL OFFICE SPACE AVAILABLE
FIRST FLOOR7,468 RSF
FULLY BUILT-OUT medical office space (Primary Care clinic)
15 offices (several are still plumbed)
9 EXAM rooms
2 CONFERENCE rooms
1 PHARMACY
WAITING ROOM/LOBBY/RECEPTION area
1 PROCEDURE room
1 MA Station
1 LAB
SMALL STORAGE SPACE & Janitor Closet
Executive Summary
PHARMACY
CONFERENCE
OFFICE
OFFICE
EXAM
EXAM
EXAM
EXAM
OFFICE
OFFICE
EXAM
EXAM
OFFICE
OFFICE
OFFICE
OFFICE
EXAM
EXAM
EXAM
OFFICE
CONFERENCE
MED ROOM
WAITING
OFFICE
OFFICE
OFFICE
OFFICE
OFFICE
OFFICE
WAITING/LOBBY
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 7
BASEMENT FLOORSPACE FEATURES
BREAKROOM
2 offices
2 large storage rooms
1 restroom
BUILT-OUT MEDICAL OFFICE SPACE AVAILABLE
Executive Summary
STORAGE
STORAGE
OFFICE
OFFICE STAFF
EXTERIOR STAIRS
HVAC
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 8
SITE PLAN
Executive Summary
N WILLIAMS AVE
N M
OR
RIS
ST
EXISTING LANDSCAPE
10 PARKING SPACES ON PREMISES
15 ADDITIONAL PARKING SPACES IN ADJACENT LOT
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 9
LOCATION MAP
Executive Summary
MEDICAL OFFICE BUILDING LOCATIONS
1 Knott Street Dermatology
2 Legacy Health Outpatient MOB
3 Red Cross Blood Donation
LEGACY EMANUEL HOSPITAL AND MOB LOCATIONS
1 Legacy Emanuel Hospital
2 Randall Children’s Hospital
3 Legacy MOB
4 Legacy MOB
5 Legacy MOB
6 Legacy MOB
7 Kaiser Permanente MOB
8 Kaiser Permanente MOB2
1
1
1
2
Parks - Maps
Parks - Maps
Parks - Maps
STREETS - MAPS
STREETS - MAPS
ST
RE
ET
S -
MA
PS
ST
RE
ET
S -
MA
PS
ST
RE
ET
S -
MA
PS
ST
RE
ET
S -
MA
PS
ST
RE
ET
S -
MA
PS
MORRIS WILLIAMS MEDICAL BUILDING
3
1
2
3
4
56
7
8
GROCERY + SHOPPING
1 New Seasons Market
SERVICES
1 Unitus Community Credit Union
2 OnPoint Community Credit Union
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 10
Executive Summary
LOCATION AERIAL
MORRIS WILLIAMS MEDICAL BUILDING
15 ADDITIONAL PARKING SPACES IN ADJACENT LOT
10 PARKING SPACES
LEGACY EMANUEL MEDICAL CENTER
RANDALL CHILDREN’S HOSPITAL AT LEGACY
EMANUEL
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 11
PROPERTY PHOTOS
Executive Summary
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 12
02MARKET
OVERVIEW
CLOSE-IN NORTH EAST PORTLAND MEDICAL OFFICE MARKET
PORTLAND MEDICAL OFFICE MARKET - Q4 2020
VACANCY
7,468 SF (THIS BUILDING CONTAINS ALL OF VACANCY IN THE MARKET)
NET ABSORPTION
0 SF
RENTAL RATE RANGE
$22.00 NNN
EXISTING BUILDINGS
10
AVERAGE CAP RATE
5.3 - 5.7%
NET ABSORPTION
27,260 SF (PRIOR PERIOD -2,569 SF)
RENTAL RATE RANGE
OFF CAMPUS: $18.00-$40.00 FSE
ON CAMPUS: $32.00-$41.00 FSE
AVERAGE VACANCY
4.6% (PRIOR PERIOD 4.5%)
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 14
MEDIAN HOUSEHOLD INCOME: $80,223
MEDIAN AGE OF AREA RESIDENTS: 37
90-95% HEALTHCARE INSURANCE COVERAGE
POPULATION OF NORTH PORTLAND HAS GROWN 33.4% SINCE 2010 (1 MILE
RADIUS). IT IS PROJECTED TO GROW ANOTHER 6.4% BETWEEN 2020-2025
PROJECTED POPULATION GROWTH OF 5.22% BETWEEN 2020-2025
(110,372 INDIVIDUALS) WITHIN 3 MILES
THE LARGEST INDUSTRIES INCLUDE: HEALTHCARE, SOCIAL ASSISTANCE, RETAIL,
HOSPITALITY & FOOD SERVICE AND TECHNOLOGY SERVICES
DEMOGRAPHIC HIGHLIGHTS
MORRIS WILLIAMS MEDICAL BUILDING OFFERING MEMORANDUM 15
