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Sean TuftsKidder Mathews
206.296.9649
Erik SwansonKidder Mathews
206.296.9628
Exclusively represented by
For Sale - Retail Investment
Broadway Center | 206 Broadway E, Seatlte, Washington
www.ReCapNW.com
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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. Prospective Buyer or Tenant should conduct an independent investigation and
verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your
attorney, accountant, or other professional advisor.
Memorandum Disclaimer
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Table of Contents
1. Executive Summary
Investment Opportunity
2. Financial Analysis
Rent Roll
Income/Expenses
Pricing Summary
3. Comparables
Rent Comparables
4. Location Overview
Overview
Sound Transit Station
230 Broadway
5. Map, Aerials, Plat Map & Photos
6. Demographics
Broadway Center
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Executive Summary
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Broadway Center
Executive Summary
Kidder Mathews has been retained to exclusively market
and sell the Broadway Center located at 206 Broadway E,
Seattle, Washington.
THE OPPORTUNITY
The Broadway Center is a 4-tenant, 13,556 SF, retail &
office building located in one of Seattles oldest and most
vibrant neighborhoods. This opportunity is a leasehold
interest and is subject to a ground lease that expires in
August 2024. The property consists of two parcels totaling
12,800 SF of dirt and is currently 100% occupied with
additional income from Diamond Parking.
The Broadway neighborhood is one of the first areas
in Seattle to experience new development since the
recession began in 2008. The largest and most significant
project currently underway is the Capital Hill Sound
Transit Station on the adjacent block to the south. With a
scheduled completion in 2016, the subject property will
significantly benefit from the increased foot traffic the
station provides.
An additional significant development is underway on the
same street that will include over 235 new apartments
and additional retail. With a population of nearly 400,000
and an average income of $87,735 within five miles, the
Broadway Center represents a dense in-fill opportunity for
an investor.
The Broadway Center has four tenants and is anchored
by Castle Megastores, which operates 17 stores in from
Arizona to Alaska. Castle opened this location in 2003
and has two years remaining on their lease. They have
two 5-year options and benefitting from a below market
lease rate. The Highline Bar & Grill was opened last year by
successful local vegan restaurant operators.
All leases have annual increases between 2-4%.
The Broadway Center represents a strong cash-flow
opportunity for an investor. Financing a leasehold interest
may be a challenge and the buyer will likely be either
all cash or very low leverage. Based on the current and
projected income stream, the asking price (or Net Present
Value) is calculated using an 11% discount over the
remaining term of the ground lease.
INVESTMENT SUMMARY
Sale Price $1,695,000
Year Built 1987
Building Area 13,556 SF
Stories 3
Land Area 12,800 SF
Occupancy 100%
CAP Rate 12.94%
Price/SF $125.04
Ground Lease Expiration: August 31, 2024
Parking Stalls: 33
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Financial Analysis
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BroadwayCenter
RENTROLL
TenantName
Suite
Sq.F
t.
Monthly
Rent
Annual
Rent
Rent/
SF
%RSF
Mthly
NNN
NNN/
SF
Le
ase
Start
Lease
Expiration
Option
Periods
Re
ntal
Inc
reases
Notes
CastleMegaStore
1
6,085
$15,476
$185,715
$30.52
44.89%
$5,675
$11.19
9/1
0/03
10/15/13
Two5
Year
CP
I,2%
min-4%max
FMRatoption
Subway
2
710
$3,000
$36,000
$50.70
5.24%
$662
$11.20
10/15/00
10/14/15
One5
Year
3%
annual
FMRatoption
TheApothocary
2B
2,761
$3,000
$36,000
$13.04
20.37%
$2,577
$11.20
3/1
/11
3/31/14
None
4%
annual
HighlineBar&Grill
C
4,000
$5,837
$70,040
$17.51
29.51%
$3,731
$11.19
2/1
5/10
5/30/15
Two5
Year
3%
annual
FMRatoptions
DiamondParking
PK
$2,500
$30,000
0.00%
$0
$0.00
7/1
/07
MTM
13,55
6
$29,813
$357,755
$12,645
OCCUPIED
13,55
6
100.00%
FinancialAnalysis
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Broadway Center
SCHEDULED INCOME
Current
Scheduled Gross Income: $357,755 $26.39
CAM Recapture: $151,737 $11.19
Gross Operating Income: $509,492 $37.58
Less Vacancy: 5% ($25,475) ($1.88)
Less Reserves: $0.10 ($1,356) ($0.10)
Less Expenses: ($263,286) ($19.42)
Net Operating Income: $219,375 $16.18
SCHEDULED EXPENSES:Estimate $/SF
Property Tax $27,816 $2.05
Insurance $13,461 $0.99
Utilities $26,570 $1.96
R&M $20,000 $1.48
CAM $35,800 $2.64
MGMT 5% $17,888 $1.32
Land Lease Payment $121,752 $8.98
Total Expenses $263,286 $19.42
INCOME
EXPENSES
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Broadway Center
PRICING SUMMARY
Net Present Value Analysis
Price: $1,695,000
Down Payment: 100%
Current Net Operating
Income:
$219,375
Cap Rate 12.94%
Price/SF $125.04
Price/SF $216.18
Year Date Annual $ Total Cash Flow
1 9/1/2011 $219,375 $219,375
2 9/1/2012 $225,957 $445,332
3 9/1/2013 $232,735 $678,067
4 9/1/2014 $239,717 $917,784
5 9/1/2015 $246,909 $1,164,693
6 9/1/2016 $254,316 $1,419,009
7 9/1/2017 $261,946 $1,680,955
8 9/1/2018 $269,804 $1,950,759
9 9/1/2019 $277,898 $2,228,657
10 9/1/2020 $286,235 $2,514,892
11 9/1/2021 $294,822 $2,809,714
12 9/1/2022 $303,667 $3,113,380
13 9/1/2023 $312,777 $3,426,157
Assumed Growth Rate: 3%
NPV @ 11.11% $1,695,000
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Lease Comparables
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RETAIL COMPARABLES
Broadway Center206 Broadway E, Seattle, WA
Total SF 13,556
Land 0.29 acres
Available SF 0
Price/SF $32.63
% Occupied 100%
Year Built 1987
Notes Subject Property.
SUBJECT
Joule
523 Broadway E, Seattle, WATotal SF 26,000
Land 1.58 acres
Available SF 13,722
Price/SF $38-$45
% Occupied 47%
Year Built Under Const.
Notes New mixed use development. 55 exclusive parking stalls.
1
Lewis Building617 Broadway Ave E, Seattle, WA
Total SF 4,956Land 0.12 acres
Available SF 1,328
Price/SF $28
% Occupied 73%
Year Built 1931/2008
Notes 16 celiings - remodeled in 2008.
2
Broadway Market401 Broadway Ave E, Seattle, WA
Total SF 167,806
Land 1.64 acres
Available SF 2,500
Price/SF $40-$85
% Occupied 98%
Year Built 1971
Notes Anchored by QFC, Golds Gym & Urban Outfitters.
3
Harvard Market1401 Broadway Ave E, Seattle, WA
Total SF 87,495
Land 1.71 acres
Available SF 2,459
Price/SF $40
% Occupied 95%
Year Built 1996/2008
Notes Subway, Chase, Dominos with QFC and Bartells anchoring.
4
Broadway Center
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OFFICE COMPARABLES
Broadway Center206 Broadway E, Seattle, WA
Total SF 13,556
Land 0.29 acres
Available SF 0
Price/SF $15.68
% Occupied 100%
Year Built 1987
Notes Subject Property.
SUBJECT
Warn Building
501 E Pine St, Seattle, WATotal SF 13,229
Land 0.21 acres
Available SF 2,038
Price/SF $23
% Occupied 81%
Year Built 1912/2000
Notes On-site parking. Janitorial not included.
1
1000 E Pike1508 10th Ave, Seattle, WA
Total SF 49,314Land 0.51 acres
Available SF 5,641
Price/SF $25
% Occupied 89%
Year Built 1912/1998
Notes 19 ton HVAC. Open, creative work space.
2
231 Summit Avenue ESeattle, WA
Total SF 5,448
Land 0.10 acres
Available SF 2,541
Price/SF $23
% Occupied 53%
Year Built 1925/2009
Notes Classic brick building walking distance to transportation.
3
Broadway Building1620 Broadway, Seattle, WA
Total SF 175,300
Land 0.73 acres
Available SF 1,400
Price/SF $25-$26
% Occupied 97%
Year Built 2010
Notes New construction - Class A.
4
Broadway Center
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Location Overview
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Broadway Center Overview
LOCATION OVERVIEW
This investment opportunity is located at 206 Broadway
Avenue East in downtown Seattles Capitol Hill. The
Broadway business district is the most densely populated
residential neighborhood close to downtown and is the
central commercial street with an eclectic mix of shops,
restaurants, coffee houses and bars. The property benefits
from its frontage on a high traffic corridor. There are
nearly 20,000 cars per day and heavy pedestrian traffic to
nearby retailers including Rite Aid, QFC Grocery, American
Outfitters, Peets Coffee and historic Dicks Restaurant.
Nearby are the campuses of Seattle University, Seattle
Central Community College and Cornish College of the
Arts. Other notable attractions include the Cal Anderson
Park and the Capital Hill Farmers Market.
Planned area Growth
Directly adjacent to the subject property a six-story, 235
unit residential, retail and office building is being built and
scheduled for completion in 2012. It will include parking fo
250 vehicles located below grade.
According to the Puget Sound Regional Council, theCapital Hill area will experience strong residential and
employment growth. A key goal of the Citys Capitol Hill
Neighborhood Plan is to enhance the vibrancy of the
Broadway business district. At 1.6 miles long, Broadway
is the longest continuous pedestrian commercial street
in Seattle. The Plan recommends a number of actions
including expanding the mix of businesses, adding new
housing, and improving the environment for pedestrians.
See chart below.
Year HouseholdsHH
GrowthEmployment
Employmentgrowth
2010 13,385 4% 39,002 5%
2020 21,953 13% 41,806 7%
2030 24,120 10% 42,494 2%
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Capitol Hill Station - Transit OrientedDevelopment
Capitol Hills underground station is slated to open in
2016 and will be built just a half block south of the subject
property at East John Street, beneath Nagle Place.
The Capitol Hill Station includes three at-grade station
entrances: a north entrance on the east side of Broadway
at the corner of East John Street, a west entrance on the
west side of Broadway just south of East Denny Way,
and a south entrance at the corner of East Denny Way
and Nagle Place. The three station entrances lead to an
underground station mezzanine, basement and platform.
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Map, Aerials, Plat Map
& Photos
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Regional Map
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Aerial
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Plat Map
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Photos
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Demographics
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Demographics
STATISTICS
RADIUS 1 MILE 2 MILE 3 MILE
POPULATION
2015 Projection 52,865 209,034 408,600
2010 Estimate 48,466 190,749 381,618
2000 Census 45,422 175,480 357,471
Growth 2010-2015 4,399 18,286 26,982
Growth 2000-2010 3,043 15,269 24,147
2010 HOUSEHOLDS
2015 Projection 32,727 114,719 206,655
2010 Estimate 29,620 101,657 188,558
2000 Census 27,171 89,900 170,749
Growth 2000-2015 5,556 24,818 35,905
Growth 1990-2000 3,289 11,781 15,983Owner-Occupied 6,970 35,449 86,138
Renter-Occupied 22,650 66,208 102,420
2010 AVERAGE HOUSEHOLD INCOME $67,632 $89,963 $94,099
2010 MEDIAN HOUSEHOLD INCOME $40,783 $55,811 $64,238
2010 PER CAPITA INCOME $45,659 $51,597 $48,955
2010 HOUSEHOLD INCOME DISTRIBUTION
HH Income $200,000 or more 4.5% 8.1% 7.8%
HH Income $150,000 - $199,999 3.3% 5.2% 6.1%
HH Income $125,000 - $149,999 3.6% 4.8% 5.9%
HH Income $100,000 - $124,999 4.6% 6.8% 8.5%
HH Income $75,000 - $99,999 7.3% 9.3% 11.3%
HH Income $50,000 - $74,999 13.6% 13.6% 14.9%
HH Income $35,000 - $49,999 14.9% 12.4% 12.1%
HH Income $25,000 - $34,999 13.7% 10.6% 9.9%