yesterday s village buildings 1 & 3 offering

YESTERDAY’S VILLAGE

BUILDINGS 1 & 3 OFFERING

Bill

Alm

on, J

r., C

CIM

218

Eas

t A S

tree

t

509.

966.

3800

:Owc

alm

on@

alm

onco

mm

erci

al.c

om

Yak

ima.

WA.

9890

1

509.

965.

5225

:F

O�ered at: $3,000,000Size: 86,853SF

15 W Yakima Ave Yakima, WA

SUMMARY OFFERING

YESTERDAY’S VILLAGE BLDGS 1 & 3 2

Yesterday’s Village, a well-known, highly recognizable mixed-use project located in the absolute heart of down-town Yakima, WA, that fronts the main east-west commercial arterial, Yakima Ave.

Originally developed as a major warehousing/distribution center to serve its predominantly agricultural commu-

a time when its then owner successfully lured three large Washington State agencies to the project as long term tenants who in turn have since occupied approximately 85% of the improvements, those being the Dep of Ecolo-gy, Dep of Agriculture and Labor & Industries. Numerous boutique style, excessively creative attempts at supple-menting the center’s successes as a known regional hub for WA State have been made over the years, including a recently removed train-car & boardwalk retail project commonly known as Track 29.

Foreclosed on by Umpqua Bank in 2012 after a challenging 2.5-year bankruptcy, the property has been carefully -

ments otherwise made to the property, plus considering the success of a 10-yr extension of a major lease to the

represents the result of that loss by separating the most saleable asset (the Dep of Ag lease/bldg) from the

of freestanding improvements totaling 86,853 rentable SF (plus 18,212SF of unfinished 2nd & 3rd floor storage

basement) and Bldg 3, a 3-story retail/warehouse structure with a floorplate of 9,106SF, plus the entirety of the

improvement and associated dedicated parking areas leased to the Dep of Ag, which is being marketed separately at a price of $7.5M .

While 44,608SF will soon be vacant, the stabilized gross annual income currently flowing from the 36,164SF of leased areas (about 42% of the improved rentable areas) is $379,600, meaning enough income is in place to nearly cover the typically anticipated levels of debt service that might be appropriate in leveraging the purchase. At a conservative estimate of projected rental rates to be captured from the vacancies, the upside is both considerable and clear, such that a gross potential annual income near $924,861 is readily achievable given an adequate holding period, and a potential net operating income at stabilization should project as being well in excess of 20%.

OFFERED PRICE: $3,000,000

USABLE SF: 80,792SF

RENTABLE SF: 86,853SF

PRICE/RENTABLE SF: $34.54/SF

OCCUPIED/LEASED SF: 36,164SF

VACANT SF: 50,689SF

% LEASED: 42%

GROSS SCHEDULED INCOME: $379,600

POTENTIAL GROSS INCOME: $924,861

OPERATING EXPENSES: $233,191

CURRENT CAP RATE: 4.9%

PROJECTED CAP RATE: 20%+

LAND SIZE: 3.9 ACRES

ZONING: CBD

TEN A N T A D D RESS SPA C ELEA SE

C OMMEN C EDLEA SE

EXPIRESU SA BLE

SFREN TA BLE

SFA C TU A L

REN TPROJEC TED

REN T(A C TU A L)

PROJEC TED $/SFPA RKIN G

STA LLS

Dept of Labor & Industries Suite 100 Office 07/01/97 08/01/17 18,739SF 19,364SF $24,180.00 $24,180.00 $16.00 98

Dept of Ecology (vacating) Suite 200 Office 07/01/95 06/01/15 41,899SF 44,608SF $63,076.09 $37,173.33 ($16.97/SF) $10.00 193

Valley Enviro Lab, LLC Suite 210 Office 05/01/14 04/30/19 1,846SF 1,950SF $1,550.00 $1,550.00 $10.08 9

Integra Telecom (ATG) Suite 240 Office 11/01/99 10/31/19 4,776SF 5,044SF $4,203.33 $4,203.33 $10.00

Vacant office suite 2nd floor Office Vacant 1,409SF 1,488SF $1,174.17 $10.00

Vacant boutique retail retail suites Retail Vacant 2,317SF 2,317SF $1,930.83 $10.00

El Taco Loco retail suite Retail 01/01/09 MTM 700SF 700SF $600.00 $600.00 $10.29

Yesterday's Village Antiques Suite 140 Retail 12/31/97 MTM 9,106SF 9,106SF $1,100.00 $6,260.38 ($1.45) $8.25

$94,709.42 $77,072.04 300

ANNUAL PROJECTED GROSS RENT = $924,864

RENT ROLL & EXPENSES


2015 PROJECTED ANNUAL OPERATING EXPENSES - Bldg 1 & 3

DESCRIPTION TOTAL DESCRIPTION/COMMENTS

Property taxes $76,0502015 actual expenses , based upon a best estimate derived with the help of the County Assessor in establ i shing the tax assessed va lue after completion of the lot l ine adjustment that's been appl ied for.

Property and liability insurance $24,000

Based upon a recent proposal obta ined by Sel ler for private coverage, pro-rated to account for the upcoming divis ion of improvements to resul t from the lot l ine adjustment (Sel ler currently sel f-insurers ), which i s conservatively in favor of the purchaser, this being at the upper-end range of market normalcies on a price per foot bas is .

Utilities $15,498Inclus ive of sewer, water, garbage, telephone, recycl ing and internet (elevator specific) and based upon a 3% esca lation to the actual 2014 expenses . Tenants di rectly pays they're electric and gas bi l l s .

HVAC service contract $8,500

Based upon the actual contract in place, which cons iders the age and condition of the recently completed upgrade to the HVAC units and major components (late 2014/2015). Al l 152 tons of rooftop units were replaced at a cost of $288K. Service contract i s 2-years with bel ts and fi l ters covered. Warantees are 5-years for compressor and 1-year for parts/labor.

HVAC repairs & special maint $4,500 Estimated by the current HVAC contractor given the age and condition of the uni ts . Note, compressors have 5-yr warantee

Elevator service contract $4,471 Based upon the existing contract in place with Otis , which i s a ful l service/a l l inclus ive parts and maintenance contract.

Downtown improvement district $1,197 Fee i s based upon the tax assessed va lue of the improvements , therefore, this i s estimated based upon the above described property tax assessed va lue.

Parking lot sweeping/grounds maint $1,980 2015 scheduled expense.

Snow removal $2,055 Estimated from the 2014 actual expense and a lso from discuss ions with vendor.

Landscaping $1,800 Estimated from 2014 actuals , but based upon the planned landscaping areas to be added to the parking lot and discuss ions w/ vendor.

Fire system/alarm monitoring & insp $900 2015 actuals . Includes fire protection system & monitoring, l i censes/permits & annual fire extinguisher inspections .

Backflow testing $153 2015 actual expense.

Supplies $3,315 2014 actual expense plus 3% esca lation.

Window cleaning/pressure washing $1,600 2015 actual scheduled by-annual expense based upon 1/2 the current cost of the entire complex.

Maintenace & repairs $20,000 2014 actual expense plus 3% esca lation.

Common area janitorial $3,831Permits and licenses $1,441Property management $45,000BNSF ground lease $5,150Miscellaneous $2,500 2015 estimated.

Capital Replacement Reserve $9,250Estimated at 1% of the scheduled gross rents , which reserve i s derived partial ly due to the scope of work completed to the i tems and improvements of a capi ta l nature (new roof, new HVAC, new windows, new asphalt parking lot, etc).

TOTAL EXPENSES $233,191 Note, 2015 annual budgeted operating expenses are estimated to be approximately $2.68/SF, which i s wel l within market normalcies .233,191.00

SITEPLAN & AERIAL


BUILDING 1 • Dept of L&I • Dept of Ecology

BUILDING 3

PARKING FOR BLD 1 & 3

Bldg 3

Dept of Ecology (soon to be vacant space)

L & I

Retail Storefronts

Valley Enviro Lab

Integra

Ground Floor Second Floor Third Floor

FLOORPLANS



HIGHLIGHTS & PHOTOS An abundance of value-add opportunities potentially exist, including:

Opportunity to potentially extend the L&I lease early.

Opportunity to sell, build-to-suit or ground lease a pad or parcel large enough for a 4,000SF +/- retail building with drive-through fronting Yakima Ave. Potential market value of between $450,000 - $750,000.

Opportunity to continue the repositioning of the property by facade redo and through a more extensive use of aesthetics (perhaps high-lighting the historical industrial nature of the improvements by exposing the brick on the interior perimeter walls, raising and explos-ing the ceilings, etc).

Vacant spaces are all contiguous and can be leased together to a single tenant or demising opportunities are readily possible and have been considered (both the physical characteristics to such and the potential costs associated). Currently being marketed for lease at $10/SF, NNN, with between 20,000 - 48,000SF available. Vacant space is primed for a call center.

$1.4M+ of improvements made. No known deferred maintenance. The useful life of most every major capital component of the improvement has been replaced, including the roof, HVAC, HVAC controls, windows and so on. All invoices and detailed scope of work are readily available.

Total transparency employed with this offering. While the upside is obvious and is assumed known, the short-comings are also definitively known and have been or will be addressed to an investor’s reasonable satisfaction, and will be openly discussed.

Unique offering includes a broker with intimate knowledge of the offer-ing who also manages the property and has been directly involved and significantly responsible for much of the decision making employed by Umpqua Bank throughout the repurposing and holding period.


Bill Almon, Jr. CCIM218 SSgt Pendleton WayYakima, WA 98901(509) 966-3800www.almoncommercial.com

CONTACTS

yesterday s village buildings 1 & 3 offering

Documents