russell fellows historic office portfolio · 2019-11-25 · square feet. 75%. leased . 5. parcels ....

cushmanwakefield.com

Russell Fellows

H I ST O R I C O F F I C E P O RT FO L I OVALUE-ADD OFFERING LOCATED IN AN OPPORTUNITY ZONE

PORTLAND, ORE. CENTRAL BUSINESS DISTRICT

JIM [email protected]

TOM [email protected]

GARY [email protected]

6 | Cushman & Wakefield

EXECUTIVE SUMMARY

38,131SQUARE FEET

75%LEASED

5PARCELS

5BUILDINGS

Cushman & Wakefield, as exclusive advisor, is pleased to present the opportunity to acquire 100% fee simple interest in the 5-building Russell Fellows portfolio of historic office buildings.

The portfolio totals 38,131 square feet of office properties, which are 75% leased* to a diverse group of tenants including Verizon and the Western Rivers Conservancy. The 5 buildings are contiguous to each other and located in the highly coveted Central Business District adjacent to Portland’s renowned MAX Light Rail line.

Two of the buildings, the Fechheimer at 233 SW Naito Pkwy and the adjoining Hallock McMillan at 237 SW Naito Pkwy are gems of Portland’s Cast-iron era. Both building facades have been painstakingly restored to their original Italianate design and are on the National Registry of Historic Places.

*Includes a new 7,885 SF lease for the entire 240 SW First Avenue Building that is out for signature with a national tenant.

Cushman & Wakefield | 7


EXECUTIVE SUMMARY

Willamette River

N SKIDMORE ST

N RUSSELL ST

NE BROADWAY ST

NW NORTHRUP ST

NW LOVEJOY ST

NW EVERETT ST

W BURNSIDE ST

NW THURMAN ST

NW FRONT AVE

NW NAITO PKWY

NW GLISAN ST

BROADWAY BRG

N GREELEY AVE

INTE

RSTA

TE A

VE

SW WASHINGTON ST

SW TAYLOR ST

SW JEFFERSON ST

NW 2

3RD

AVE

NW 2

1ST

AVE

NW 1

9TH

AVE

NE FREMONT AVE

SE MORRISON ST

NW 1

1TH

AVE

MAR

TIN

LUTH

ER K

ING

JR B

LVD

GRAN

D AV

E

NW YEON AVE

405

405

5

5

5

30

26

84

SW OAK ST

SW FI

RST S

T

SW N

AITO

PKW

Y

PEARL DISTRICT

SOUTHWEST

NORTHWEST

MAX LIGHT RAIL LINE

MAX LIGHT RAIL LINE

MA

X L

IGH

T R

AIL

LIN

E

CLOSE-IN EASTSIDE

LLOYD DISTRICT

OLD TOWN

PORTLAND CENTRAL BUSINESS DISTRICT


INVESTMENT HIGHLIGHTS

The historic portfolio is located in downtown Portland’s Qualified Opportunity Zone. Significant capital can be invested post-closing to take advantage of the tax benefits associated with the OZ designation. As indicated on page 46 table of comparable Portland urban land sales, the average price paid for similar land over the past 3 years averaged $346.96 per square foot. With a total of 12,500 square feet of land, that equates to a total value of $4,337,000 for the subject land, which could be deducted from the overall sales price to determine the Capex investment requirement outlined in Opportunity Zone regulations.

The Russell Fellows portfolio of properties is currently 75% leased to a diverse roster of tenants. The average annual office rent currently stands at $22.11 per square foot on a modified gross basis. This rate is at least 20% below comparable rents which average above $25.00 per square foot on a NNN basis. With an average remaining lease term of less than 24-months, a new owner can quickly mark leases to market.

Additionally, the 5,000 square foot 237 SW Naito building (13.1% of portfolio) is currently vacant. The exterior has been recently renovated, including the historic Cast-Iron facade; the building interior is a raw shell. Once the interior is totally renovated and built-out, we estimate rent should be at least $30.00 per square foot NNN due to its superior corner location on SW Naito Parkway across from Waterfront Park and the Willamette River.

The historic portfolio is ideally located in Portland’s CBD, within the Tech Triangle, home to a high and growing concentration of technology companies. The portfolio’s location adjacent to the MAX light rail line and across from Waterfront Park and the Willamette River result in near perfect transportation scores, easily reached by car, foot, bike and public transportation. In addition, the highly traveled Morrison Bridge converges in the CBD near the historic portfolio affording easy access to Portland’s dynamic close-in Eastside.

OPPORTUNITY ZONE LOCATION

SIGNIFICANT UPSIDE POTENTIAL: NEAR TERM MARK-TO-MARKET

STRATEGIC LOCATION


Walk Score: 97Walker’s Paradise

Bike Score: 99Biker’s Paradise

Transit Score: 95Rider’s Paradise

PACWEST

PIONEERSQUARE

MEIER &FRANK

FOX TOWER

RITZ CARLTON HOTEL (UNDER CONSTRUCTION)

PARK AVEWEST

PROVIDENCEPARK

BLOCK 300

INDIGO

BREWERY BLOCKS

US BANCORPTOWER

EMBASSYSUITES

PEARLWEST

PORTER HOTEL

SITE

GROVE HOTEL

Morrison Bridge to I-5 and Central Eastside

to I-5 South

Naito Parkway

Tom McCall Waterfront Park

Portland Central Business District


PORTFOLIO OVERVIEWPortfolio Overview The Russell Fellows Properties portfolio consists of five historic adjacent office buildings, ideally located on SW Naito Parkway and directly on Portland’s MAX light rail line. The five properties have recently undergone or are undergoing significant upgrades to cutting edge creative office space. The existence of some vacancy and below market rents creates an excellent value-add investment opportunity for a savvy investor.

38,131TOTAL NRA

12,500TOTAL LAND


240 SW FIRST240 SW First Portland, OR 97204

LAND AREA 2,500 SQUARE FEET

ASSESSOR’SPARCEL NUMBER

R246005

ZONINGCXD, CENTRAL

COMMERCIAL

YEAR BUILT MID 1990’S REPLICATION

NUMBER OF STORIES

1, PLUS A MEZZANINE

AND BASEMENT

NET RENTABLE AREA

7,885 SQUARE FEET

STRUCTURE

STEEL AND REINFORCED

MASONRY WITH

COMPLETE SEISMIC

UPGRADE

EXTERIOR WALLS

BRICK AND GLASS


79 SW OAK79 SW Oak Portland, OR 97204


ASSESSOR’S PARCEL NUMBER

R246006

ZONINGCXD CENTRAL

COMMERCIAL

YEAR BUILT MID 1990’S REPLICATION

NUMBER OF STORIES

1, PLUS MEZZANINE

NET RENTABLE AREA

4,872 SQUARE FEET

STRUCTURESTEEL AND MASONRY

WITH COMPLETE SEISMIC

UPGRADE

EXTERIOR WALLS

BRICK AND GLASS


71 SW OAK71 SW Oak Portland, OR 97204



R246007

ZONINGCXD, CENTRAL

COMMERCIAL

YEAR BUILT 1859

NUMBER OF STORIES

3

NET RENTABLE AREA

9,185 SQUARE FEET


WITH PARTIAL SEISMIC

UPGRADE

EXTERIOR WALLS

BRICK AND GLASS


233 SW NAITO PKWY233 SW Naito Pkwy. Portland, OR 97204



R246003

ZONINGCXD, CENTRAL

COMMERCIAL

YEAR BUILT 1885

NUMBER OF STORIES

2, PLUS BASEMENT

NET RENTABLE AREA

11,189 SQUARE FEET


WITH PARTIAL SEISMIC

UPGRADE

EXTERIOR WALLS

CAST IRON, STONE AND

GLASS


237 SW NAITO PKWY237 Naito Pkwy Portland, OR 97204



R264004

ZONINGCXD, CENTRAL

COMMERCIAL

YEAR BUILT 1857

NUMBER OF STORIES

2

NET RENTABLE AREA

5,000 SQUARE FEET

STRUCTUREMASONRY REINFORCED

CONCRETE AND BRICK

EXTERIOR WALLS

CAST IRON, STONE

INTERIORWALLS

COMPLETE RENOVATION

AND BUILD-OUT YET TO

BE COMPLETED


CONFIDENTIALITY & CONDITIONSThe information contained in this Offering Memorandum is confidential, furnished solely for the purpose of review by a prospective purchaser of Russell Fellows Historic Portfolio, Portland, Oregon (the “Property”) and is not to be used for any other purpose or made available to any other person without the expressed written consent of Cushman & Wakefield, Inc. (“Cushman & Wakefield”) or Owner. The material is based in part upon information supplied by Owner and in part upon information obtained by Cushman & Wakefield from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all inclusive but rather only an outline of some of the provisions contained therein. No warranty or representation, expressed or implied, is made by Owner, Cushman & Wakefield, or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business or affairs of the Property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site.

This Offering Memorandum was prepared by Cushman & Wakefield and has been reviewed by Owner. It contains select information pertaining to the Property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Offering Memorandum, certain documents and other materials are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.

This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Cushman & Wakefield or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

Owner and Cushman & Wakefield expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any interested party reviewing this Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed and delivered by the Owner and such party and any conditions to Owner’s obligations thereunder have been satisfied or waived and then only to the extent expressly provided for therein. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Owner.

This Offering Memorandum is the property of Cushman & Wakefield and may be used only by parties approved by Cushman & Wakefield and Owner. The Property is privately offered and, by accepting delivery of this Offering Memorandum, the party in possession hereof agrees (i) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Owner.

CAPITAL MARKETS

For More Information Please Contact:

JIM LEWISLic. #200412086ph | [email protected]

TOM USHERLic. #780301841ph | [email protected]

GARY GRIFFLic. #970200340ph | [email protected]

LEASING

russell fellows historic office portfolio · 2019-11-25 · square feet. 75%. leased . 5. parcels ....

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