Lambros Politis - LoopNet

One Pacific Building621 Pacific Ave, Tacoma, WA

OFFICE BUILDING 30,000SF

100%OCCUPANCY

$9,500,000

TO LEARN MORE, VISIT:

www.commercialadvantagerealestate.com

ONE PACIFIC BUILDING | TACOMA, WAwww.commercialadvantagerealestate.com

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EXCLUSIVELY LISTED BY

Richard ClausonCommercial Advantage Real [email protected] # WA 8953

Lambros PolitisCommercial Advantage Real [email protected]@gmail.comLicense # WA 26377

FOR MORE DETAILS, VISIT:



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OFFERING SUMMARYCommercial Advantage Real Estate is pleased to present the rare opportunity to acquire the One Pacific Building at 621 Pacific Avenue in Tacoma, Washington (the “Property”). The Property is a beautifully maintained historic office building in Tacoma’s CBD with dramatic views of Tacoma’s Commencement Bay Harbor.

Built in 1888, it originally served as the headquarters of Northern Pacific Railway Company’s Tacoma division. This distinctive Italian Renaissance building was constructed with brick, stucco, and stone, and adorned with cast iron.

The Property consists of a basement level with three floors above and a tower section extending an additional story. A beautifully paneled elevator serves all levels along with grand interconnecting staircases.

The Property is 100% occupied. There is an exquisite top floor suite that has 180 degree views of the Tacoma Harbor and CBD. The Property has approximately 31 office spaces and also includes an in-come-producing surface parking lot with reserved spaces for tenants.

The north end of Tacoma’s historic business district has been ex-periencing a renewed interest in its revitalization. About two blocks from the One Pacific Building is the Elks Lodge, a Beaux Arts building built in 1916. The Elks Lodge is the latest project of the McMenamin Brothers, successful developers and owners of 68 restaurant, brewe-rey, and hotel locations around Washington and Oregon. The newest McMenamins project is a restaurant and hotel with space for dining, meetings, weddings, live music, and is already bringing in additional parking revenue. Just across the street from One Pacific is yet anoth-er historic building, Tacoma’s old City Hall, built in 1893. McMenamins has expressed an interest in redeveloping it as well, after they com-plete the Elks renovation.

INVESTMENT OVERVIEW

Price $9,500,000

Cap Rate - Proforma 7.0%

NOI - Proforma $665,618

INVESTMENT HIGHLIGHTS

• Beautifully maintained historic office building in strong Ta-coma office market

• 100% occupied with a top floor penthouse with 180 degree views of Commencement Bay

• Opportunity to substantially increase rental rates to market levels with professional management

• New McMenamin’s restaurant and hotel completed approx-imately two blocks away and generating additional parking revenue

• Further due diligence information available upon submis-sion of a non-binding letter of intent


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PROPERTY OVERVIEW

Address 621 Pacific Ave, Tacoma, WA 98402

Property Type Office

Building Square Footage 30,000 SF

Land Area 17,424 (0.40 AC)

Year Built 1888 (Renovated 1983)

Occupancy (as of 9/7/19) 100%

Floors 5

Parking Spaces 44 (1.5/1,000 SF)


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COMPETITIVE SET

PROPERTY NAME ADDRESS SQUARE FEET STORIES YR BLT/RENOV. OCCUPANCY ASKING RENT

Heritage Bank Building 1119 Pacific Ave 86,739 16 1912/1986 82% $22.00

1102 Pacific Ave 1102 Pacific Ave 29,800 5 1925 83% $20.00

Provident Building 913-921 Pacific Ave 74,360 6 1903/2007 86% $18.00

Historic Post Office Building 1102 A Street 119,500 5 1919 95% $18.00

SUBJECT PROPERTY - ONE PACIFIC BUILDING 621 PACIFIC AVE 30,000 5 1917/1983 100% $22.00


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LOCATION OVERVIEW

Immediate vacinity

ONE PACIFICBUILDING

ONE PACIFICBUILDING


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ONE PACIFICBUILDING

NEW MCMENAMIN’SHOTEL & RESTAURANT

POTENTIAL FUTUREMCMENAMIN’S HOTEL


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DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

2022 Population 19,212 85,915 263,411

2017 Population 18,061 81,363 248,495

Pop Growth 2017-2022 6.37% 5.59% 6.00%

Pop Growth 2010-2017 10.47% 5.72% 7.24%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2022 Projection 9,283 35,455 109,959

2017 Estimate 8,690 33,538 98,090

HH Growth 2017-2022 6.82% 5.72% 5.98%

HH Growth 2010-2017 13.64% 6.50% 7.31%

INCOME 1 MILE 3 MILES 5 MILES

2017 Avg Household Income $50,773 $68,892 $72,275

2017 Median House-hold Income $36,445 $51,928 $55,532

1 mi3 mi

5 mi


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PROFORMA INCOME

Rental Income $660,000 $22.00/SF at 100% occupancy

Parking 12,000 44 spaces x $10 per day

CAM Reinbursements 120,000 $4.00 per square foot

TOTAL INCOME $792,000

PROFORMA EXPENSES

Taxes $46,964 $300K historic tax credit available

Utilities 30,995

Cleaning 17,544

Insurance 6,979

Maintenance & Supplies 18,885

Office/Professional 5,014

TOTAL EXPENSES $126,382

NET OPERATING INCOME

Total Income $792,000

Total Expenses $126,382

TOTAL $665,618

FINANCIAL PROFORMA


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TACOMA, WASHINGTONOFFICE MARKET OVERVIEW

Tacoma’s office market is making a steady recovery after vacancies increased from 10% to 18% amid the previous recession. Vacancies are currently down 150 bps from a year ago at 15.8% and net absorption has been positive in four of the last six quarters. Only 54,000 square feet of new completiions have been added since 2010, which has aided in the recovery. Tacoma office effec-tive rents are in the midst of a recovery and currently stand 2.1% higher than a year ago. This increase is 2.7% below the market’s 1Q2008 peak.

OFFICE ABSORPTION VS. COMPLETIONS AND VACANCY RATE, QUARTERLY OFFICE EFFECTIVE RENT LEVEL

TACOMA METRO EMPLOYMENT LEVEL


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EXCLUSIVELY LISTED BY

Richard ClausonCommercial Advantage Real [email protected] # WA 8953

Lambros PolitisCommercial Advantage Real [email protected]@gmail.comLicense # WA 26377

FOR MORE DETAILS, VISIT:


Limiting Conditions: This Offering Memorandum is confidential, and shall only be used for informational purposes by prospec-tive purchasers interested in the property described herein (the“Property”). No representations or warranties are being made as to the accuracy or completeness of the information in this Of-fering Memorandum. The information contained herein is only asummary, has been gathered from a variety of sources, and has not been independently verified by Ten-X. Each prospective pur-chaser should conduct its own due diligence and investigate allmatters relating to the Property. Neither Ten-X, listing broker, nor the owner of the Property shall be liable for any error in the in-formation provided herein or any information omitted herefrom.

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