EDMONDS WAY OFFICE COMMERCIAL INVESTMENT/DEVELOPMENT SITE OFFERING MEMORANDUM
23700 Edmonds Way, Edmonds, WA
Edmonds Way Investment & Development Site
Contents
Executive Summary ..................................03
Financials .................................................06
Property Details .......................................09
Location Overview ...................................11
Comparables ...........................................21
Exclusive listing broker Edward Krigsman
~11K SF FLAT LOT
WITH EXISTINGCOMMERCIAL BUILDING
7 NEW TOWNHOMES
POTENTIALLY PERMITTED (WITH UPZONING TO RM-1.5)
2.7 MILES TO ENCHANTINGDOWNTOWN EDMONDS
& KINGSTON FERRY
2024 PLANNED ARRIVAL OF
LINK LIGHT RAIL TO NEARBY LYNNWOOD & SHORELINE
“[A] great hometown doesn’t just happen. It takes a village: people spending endless hours in meetings; dedicated people caring for dimensions of our town that most wouldn’t notice until those jobs are neglected; people raising, contributing and spending hard-earned money to keep us safe and tidy and thriv-ing; and teachers, police, city servants, volunteers, and more — all working in concert to make Edmonds a wonderful place to raise our families as well as a great place to enjoy our golden years.”
European-travel guru Rick Steves, “Thankful to Call Edmonds Home (for 50 Years),” myedmondsnews.com, May 15, 2017
Edmonds Way Investment & Development Site
Executive Summary
EXECUTIVE SUMMARY 4
Edward Krigsman Real Estate Group offers an attractive investment/development opportunity for your consideration. The property stands on a well-traveled commuter route north of Seattle, between the Edmonds-Kingston ferry terminal and the Aurora Village Transit Center. Set back from the road and nestled in a grove of evergreens, the existing structure houses medical practitioners serving Edmonds, Lynnwood, Shoreline, and Seattle. The building could be preserved and leased or owner-occupied for a similar or other commercial purpose. Or it could be replaced with a single-family house, or a retail store or business unit with a dwelling above it. An application to upzone, likely to succeed, could permit the development, now or in the future, of up to seven townhomes (one per 1500 SF) and address the growing need for higher-density housing in the vibrant waterfront City of Edmonds.
Multiple investment/development scenarios add significant flexibility and opportunity to this offering, while minimizing risk. Take advantage of the site’s proximity to major retail, services, and rapid transit, as well as Edmonds’s many attractions as a recreational and cultural hub.
Address 23700 Edmonds Way
List Price $825,000
Submarket City of Edmonds
Parcel Number 00463300300402
Lot Size 10,890 SF
Year Built 1954
Building SF 2,500
Zoning Edmonds BN
Potential Upzone RM-1.5
2020 Assessed Property Taxes $5,425
Application Fee For Re-Zone $7,780
Parking Spaces 10-12
The Offering
Commercial/residential leasing or residential
development
Varied Investment Options
CommutingCrossroads
Arterial access to Seattle, Shoreline, Lynnwood and
Kitsap Peninsula
Potential Windfall Gains
Opportunity to profit from increase in land value due
to upzoning
Known for its spectacular Puget Sound coastline, its friendliness to independent businesses, and its welcoming community spirit, the City of Edmonds is also recognized as a regional arts hub. In November 2018 the Washington State Arts Commission named Edmonds the state’s first Certified Creative District. The newly established Cascadia Art Museum, occupying a handsome mid-century building near the ferry dock, celebrates the rich tradition of the visual arts and design in the Northwest during the period 1860-1970. Walkable downtown Edmonds scintillates with art galleries, a performing arts center, a well-preserved Art Deco movie theatre, and an independent bookshop – against the jaw-dropping backdrop of the Olympic Mountains presiding over ferries crisscrossing the Sound.
Four sandy beaches (including an off-leash area), a marsh trail and a 27-acre underwater park for scuba divers offer countless outdoor recreational opportunities. Edmonds enjoys a lively food scene and boasts some of the region’s finest seafood restaurants and a seasonal farmer’s market. The PCC Natural Market, supplied by local, organic and independent growers, anchors a retail corridor along Edmonds Way.
EXECUTIVE SUMMARY
Convenient Location
10 min DRIVE TO
PLANNED LYNNWOOD CITY CENTER STATION
28 min FROM PLANNED CITY CENTER TO
DOWNTOWN SEATTLE
68 minFROM PLANNED CITY CENTER TO SEATAC AIRPORT
28 min FROM PLANNED CITY CENTER TO
DOWNTOWN SEATTLE
10 min DRIVE TO
PLANNED LYNNWOOD CITY CENTER STATION
5
EDMONDS
LYNNWOOD
SHORELINE
SEATTLE BELLEVUE
KIRKLANDREDMOND
BOTHELL
MILL CREEK
Edmonds Way Investment & Development Site
Financials
FINACIALS 7
Rent TrendsMarket data from the last 10 years show a steady increase in rent per SF of both office and retail properties in Edmonds and a steady decrease in months on market. Given the Greater Seattle area’s diverse and resilient economy and entrepreneurial public-private partnerships, together with the scarcity of rental properties in Snohomish County, it would be reasonable to assume a continuation of these trends in the longer term.
GROSS REVENUE (CURRENT) GROSS REVENUE (MARKET)
SF MONTHLY ANNUALLY MONTHLY ANNUALLY
Currently Leased 1,800 $2,500 $30,000 $2,700 $32,400
Available To Lease 700 $1,000 $12,000 $1,500 $18,000
Rent/SF - $1.40 $16.80 $1.68 $20.16
TOTAL 2,500 $3,500 $4,200 $50,400
CURRENT PRIOR RATE OF CHANGE
Vacancy Rate 14.1% 16.2% - 2.1%
Market Rent/SF $33.46 $32.35 + 3.4%
Market Sale Price/SF $379.00 $356.00 + 6.4%
Market Cap Rate 6.0% 6.1% - 0.1%
OFFICE MARKET RENT PER SF OFFICE MARKET CAP RATE
AREA OFFICE LEASING FACTORS
RENT ROLL
FINANCIALS 8
Operating Statement23700 Edmonds Way assures high flexibility for the buyer. It invites use (as is or with small improvements) as offices or retail spaces for immediate occupation or lease at a higher rate per SF. (Current leases are month-to-month and informal.) Under existing Edmonds-BN zoning the building could be replaced with, or remodeled to accommodate, a lower-level office/retail space with a dwelling on the upper level for owner occupancy. As the lots on either side are zoned RM-1.5, preliminary inquiries indicate the viability of obtaining RM-1.5 zoning for 23700 Edmonds Way, paving the way for the development of up to 7 townhomes, projected to sell at $600,000 each (see Comparables Section).
EXPENSES
MONTHLY ANNUAL
WSG $200 $2,400
Electricity $50 $600
2019 Taxes $452 $5,424
Insurance $75 $900
Other $100 $1,200
TOTAL EXPENSES $777 $10,524
INCOME
CURRENT MARKET
Gross Annual Rent $42,000 $50,400
Vacancy Factor Loss (5%) -2,100 -2,520
Adjusted Gross Income $39,900 $47,880
Operating Expenses $10,524 $10,524
NET OPERATING INCOME $29,376 $37,356
Edmonds Way Investment & Development Site
Property Details
The Asset
PROPERTY DETAILS 10
PROPERTY HIGHLIGHTS
Built in 1954 and renovated in the 1970s, the existing 2-story 2500 SF building occupies a portion of the 10,890 SF level lot, with parking in front for 10-12 vehicles. It is located close to the intersection of Edmonds Way and SR 99 and a mile from PCC Natural Market, Safeway, QFC, Walgreens, Wells Fargo, and Starbucks. The location is convenient for car-commuting access to I-5 and SR 99 and less than 10 minutes from Edmonds Community College and Edmonds Swedish Medical Center. The property benefits from its situation on a busy commuter route (traffic count 21,000 vehicles per day) and equally from its proximity (less than 3 miles) to the cultural and recreational amenities of Edmonds.
EDMO
NDS W
AYOn major commuting route
Set back from road for privacy
Level lot
Evergreen foliage
Building configured for medical practice
Reception area on both floors
Offices, consulting rooms, exam rooms
Storage rooms
2 bathrooms
10-12 parking spaces
Current zoning permits most retail/office, or lower-level retail/office with upper-level dwelling unit.
EDMONDS-BN ZONING
Fastest-growing age group in Edmonds since 2010.
25-34 YEAR OLDS
This would allow development to maximize the buildable area on the ground and the overall massing and height
PROPOSED UPZONING TO RM-1.5
RM-1.5 would allow development of one townhome/1500 SD.
UP TO 7 TOWNHOMES WITH UPZONING
PROPERTY DETAILS 11
Exterior Interior
View Virtual Tour23700 EDMONDS WAY, EDMONDS, WA
PROPERTY DETAILS 12
FloorplansThe current configuration comprises offices, consulting rooms and exam rooms on both floors, some with verdant outlooks. Facilities include a bathroom on each floor and ample storage.
UPPER LEVEL MAIN LEVEL
Download Floorplan23700 EDMONDS WAY, EDMONDS, WA
Edmonds Way Investment & Development Site
Location Overview
Highway 99
Aurora Village Transit Center
20 miles to Downtown Seattle
LOCATION OVERVIEW 15
The SubmarketGrowth Potential Vital public-private alliances are actively engaged in augmenting Edmonds’s historic charm. In partnership with the City of Edmonds, the Edmonds Senior Center is developing the new Edmonds Waterfront Center, a sustainable community facility to promote health and wellness, recreation, and education for people of all ages. The Waterfront Center will include a thrift shop, multipurpose rooms, a commercial kitchen, administrative offices, clinic space, and a coffee shop. The new facility will optimize the waterfront location through demolition of the existing bulkhead and installation of a vegetated dune with beach access.
At the intersection of 100th Avenue W and Edmonds Way, the recently developed Westgate Mixed-Use Zone offers 91 rental units and 3,100 square feet of retail space. In addition to the Westgate Mixed-Use Zone, the City Council is providing direction around development of the Five Corners neighborhood of Edmonds. The two neighborhoods were part of a collaborative project with students at the University of Washington’s College of Built Environment and Green Futures Lab that included incentives for pedestrian-friendly spaces and affordable housing.
As the city of Seattle continues to see long-term growth, outlying suburbs will gain appeal for business owners, house hunters, and transplants to the region. Not to be dismissed as a sleepy suburb, the city of Edmonds has the best of many worlds – artistic small-town ambiance in a setting of great natural beauty, with swift access to the neighboring big city. Current projects like waterfront redevelopment will only make Edmonds’s urban core more enticing, and long-term transit plans and resilient global employers will buttress the area’s economic growth.
LOCATION OVERVIEW
Neighborhood Employers and Amenities
EDMONDS W
AY
PUGE
T SO
UND
SHORELINE
1. Dumpling Generation2. Hoosonyi Korean Restaurant3. Demetrios Woodstone Taverna4. Rusty Pelican Café5. Bucatini6. The Cheesemonger’s Table7. Wonton Noodle House8. Walnut St Coffee9. Starbucks10. Waterfront Coffee Company
11. Café Louvre12. Rila Bakery and Cafe13. Salish Sea Brewery14. Jack Murphy’s Bar15. Chopsticks16. Caravan Kebab17. Ono Authentic Hawaiian Poke18. Market Fishmonger and Eatery19. Salt and Iron20. Bar Dojo
Restaurants, Cafes & Bars
1. Edmonds Farmers Market2. PCC Community Market3. Safeway4. QFC5. Boo Han Oriental Market6. Fred Meyer7. Trader Joe’s8. Central Market
9. Walgreens10. La Placita Oaxaquena11. Indian Sweets and Spices12. The Papery13. Edmonds Hobby Shop14. Firdale Village Shopping Plaza15. Edmonds Bookshop16. Edmonds Bowl Ace Hardware
Grocery / Shopping
1. Hickman Park2. Ballinger Lake Park3. Richmond Beach Community Park4. Edmonds City Park
5. Yost Park6. Pine Ridge Park7. Jack Long Park8. Seaview Park
Parks
1. Anytime Fitness2. Edmonds Crossfit3. EJ Futbol Training4. Harbor Square Athletic Club
5. Snap Fitness6. Orangetheory Fitness7. Integrated Body Fitness8. 24 Hour Fitness
Fitness
16
EDMONDS
LYNNWOOD
11
14
15
16
1819
20
1312
View Interactive Map23700 EDMONDS WAY, EDMONDS, WA
2
9
10
6
1
7
11
12
16
13
14
8
4
515
3
17
2
3
6
5
71
4
10
8
9
1
2
3
45
6
7
8
4
5
6
7
8
1
2
3
LOCATION OVERVIEW
Demographics
17
RADIUS → 1 MILE 3 MILE 5 MILE
Population
2025 Projection 19,984 126,154 259,212
2020 Estimate 18,626 118,162 242,613
2010 Census 16,462 106,462 216,368
Growth 2020 - 2025 7.29% 6.76% 6.84%
Growth 2010 - 2020 13.15% 10.99% 12.13%
2020 Worker Travel Time to Job
< 30 minutes 4,403 28,105 60,333
30 - 60 minutes 4,106 25,571 49,870
60+ minutes 1,262 6,346 12,288
2010 Households by Size
1-Person Households 2,146 13,837 27,367
2-Person Households 2,446 15,320 30,780
3-Person Households 1,054 6,917 14,134
TOTAL 5,646 36,074 72,281
2020 Occupied Housing
Owner Occupied $139,167 $115,500 $119,988
Renter Occupied 2,987 18,123 37,989
TOTAL 7,848 49,334 99,934
2020 Households by Income
< $25,000 607 5,497 12,768
$25,000 - $50,000 1,177 7,262 15,377
$50,000 - $75,000 1,565 8,689 16,479
$75,000 - $100,000 1,513 7,305 13,559
$100,000 - $125,000 1,018 6,119 11,841
$125,000 - $150,000 481 3,760 7,562
$150,000 - $200,000 893 5,047 10,728
$200,000 594 5,657 11,620
Households
2025 Projection 8,415 52,643 106,606
2020 Estimate 7,848 49,334 99,934
2010 Census 6,952 44,606 89,952
Growth 2020 - 2025 7.22% 6.71% 6.68%
Growth 2010 - 2020 12.89% 10.60% 11.10%
RADIUS → 1 MILE 3 MILE 5 MILE
LOCATION OVERVIEW
2019 Highest Education Level
18
Traffic Count
STREET CROSS STREETCROSS STREET
DISTRICT COUNT YEARAVG DAILY
VOLUME VOLUME TYPEMILES FROM
PROPERTY
Edmonds Way 238th ST SW 0.03 N 2018 21,845 MPSI 0.16
2019 Population Age
POPULATION COUNTPERCENTAGE OF
POPULATION
< 20 12,473 20.0%
20 - 60 37,080 59.5%
65+ 12,729 20.4%
2019 Household Income
0.0%
16.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
60K-75K 75K-100K Above 200K150K-200K125K-150K 100K-125K
Radius Around Property Snohomish
Age 85+
Age 75-84
Age 65-54
Age 55-64
Age 45-54
Age 35-44
Age 25-34
Age 15-24
LOCATION OVERVIEW 19
Seattle is a nationally ranked top five investment market, and the city’s and region’s strong economy has cultivated a thriving market where the demand for rental units is expected to continue.
Similar to Manhattan, and the Bay Area’s peninsula effect, Seattle’s geographic and topographic barriers continue to limit land supply and concentrate demand in thriving urban villages and neighboring suburbs.
Over the last decade, the Puget Sound region outperformed the nation in employment, population, and personal income growth, and has enjoyed a commensurate low unemployment rate. A distinctly diverse, skilled and educated workforce has attracted established and burgeoning high-profile corporations, robust international trade, and the city and region have long been home to top-ranked research institutions.
Among others, the local demographic comprises educated high-income singles, and distinguished urban couples earning mid- to upper-scale incomes.
44%MILLENNIAL SHARE OF THE MARKET IN 2020
52,702PROJECTED NEW JOBS IN 2020
Investing in the Greater Seattle Area
Sounder Train carries commuters from Edmonds to Everett and Seattle, and fans to and from Seahawks, Sounders, and Mariners games. The RapidRide E line bus from Aurora Village Transit Center in Shoreline whisks passengers to downtown Seattle in 45 minutes. Already strongly connected by mass transit to the Greater Seattle area, Edmonds will benefit from the planned arrival in 2024 of the Lynnwood Link Extension, promising high-speed, sustainable light-rail transport to UW, downtown Seattle, and SeaTac Airport from four stations along I-5 in Shoreline, Mountlake Terrace, and Lynnwood.
Edmonds enjoys varied transportation links to the larger region as well. Washington State Ferries connects Edmonds to the Kitsap Peninsula. For rail connection to Oregon and British Columbia on the scenic Cascades route board Amtrak at Edmonds Station.
LOCATION OVERVIEW 20
Transit Times to Major Employment Nodes
SEATTLE
REDMOND87,500
EMPLOYEES
SEATTLE425,000
EMPLOYEES
BELLEVUE145,000
EMPLOYEESSEATAC151,400
EMPLOYEES
18 MINUTES
25 MINUTES
LAKE
WASHINGTON
EVERETT52,200
EMPLOYEES
35 MINUTES
24 MINUTES
5 MINUTES
30 MINUTES
DOWNTOWN EDMONDS
13,000EMPLOYEES
Edmonds Way Investment & Development Site
Comparables
Year Built ............................. 2006SF ........................................4,998Lease Rate / SF ..................... $28NNN Charge ..................... $9.41Parking Space ....................... Yes
COMPARABLES 22
Commercial Rent Comparables
20021 Ballinger Way NEShoreline, WA 98155
21727 76th Ave WEdmonds, WA 98026
21911-21919 76th Ave WEdmonds, WA 98026
Year Built ............................. 1990SF ........................................4,025Lease Rate / SF ..................... $25NNN Charge ..................... $8.02Parking Space ....................... Yes
Year Built ............................. 1980SF ........................................3,628Lease Rate / SF ..................... $16NNN Charge ..................... $4.00Parking Space ........................No
Office Space Medical/Dental Office
4 5
22001 Hwy 99 NEdmonds, WA 98026
23611 Hwy 99Edmonds, WA 98026
Year Built ............................. 1979SF ........................................4,541Lease Rate / SF ..................... $19NNN Charge ..................... $6.00Parking Space ....................... Yes
Year Built ............................. 1952SF ........................................1,900Lease Rate / SF ..................... $39NNN Charge ..................... $9.00Parking Space ........................No
Retail Space Office Space
Medical/Dental Office
1 2 3
EDMONDS WAY
SEATTLE HEIGHTS
5
4
2
1
3
Edmonds WayOffice Site
ESPERANCE
BALLINGER
COMPARABLES 23
Investment Property Comparables
5
4
2
1
3
23726 100th Ave WEdmonds, WA 98
Year Built ............................. 1954Sale Date ........................8/30/19Sale Price ..................$1,150,000Building SF .........................1,332Lot SF ................................22,216Price / Building SF .............. $863Price / Lot SF......................... $52Zoning ....................................BN
Gas Station
22009 76th Ave WEdmonds, WA 98
Year Built ............................. 1954Sale Date ......................12/04/19Sale Price ..................... $700,000Building SF .........................1,092Lot SF ................................11,761Price / Building SF .............. $641Price / Lot SF......................... $60Zoning ....................................CG
Preschool
2
23423 Highway 99Edmonds, WA 98
Year Built ............................. 1954Sale Date ........................4/01/19Sale Price ..................... $545,000Building SF ............................ 800Lot SF ..................................3,485Price / Building SF .............. $681Price / Lot SF....................... $156Zoning ....................................CG
Strip Retail
3
1
7302 210th Pl SWEdmonds, WA 98026
Year Built ............................. 1954Sale Date ........................3/16/20Sale Price ..................... $800,000Building SF .........................2,014Lot SF ................................10,890Price / Building SF .............. $397Price / Lot SF......................... $73Zoning ................................. CG2Cap Rate .............................. N/A
Duplex
3
551 Elm WayEdmonds, WA 98020
Year Built ............................. 1967Sale Date ........................6/19/19Sale Price ..................$1,077,000Building SF .........................3,384Lot SF ..................................7,000Price / Building SF .............. $318Price / Lot SF....................... $154Zoning ............................. RM-1.5Cap Rate ............................. 4.4%
Triplex
4
23007 Edmonds WayEdmonds, WA 98020
Year Built ............................. 1980Sale Date ........................6/27/18Sale Price ..................... $520,000Building SF .........................1,354Lot SF ..................................8,276Price / Building SF .............. $384Price / Lot SF......................... $63Zoning ............................. RM-1.5Cap Rate ............................. 4.4%
Duplex
1
6
Edmonds WayOffice SiteEDM
ONDS WAY
ESPERANCE
BALL
ING
ER
SEATTLE HEIGHTS
Edward Krigsman 206.387.6789 [email protected]
ekreg.com
This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for the Buyer’s thorough due diligence investigation. Windermere Real Estate Company makes no guarantees, representations or warranties of any kind, express or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Windermere Real Estate Company has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. References to square footage or age are approximate. Buyer must verify all information and bears all risk for inaccuracies. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation any property to determine to Buyer’s satisfaction with the suitability of the property for Buyer’s needs. Windermere Real Estate Company excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this documents and excludes all liability for loss and damages arising there from
Inquiries and tours are to be directed to the Exclusive Listing Agents. Please do not contact the Property, Property Manager, Owner or Tenants. Offers should be delivered to the office of the Exclusive Listing Agents, Windermere Real Estate Co. Edward Krigsman. To facilitate analysis of offers, offerors are encouraged to provide information relative to funding sources, experience in owning and operating similar properties, familiarity with the market and any other information which is likely to favorably reflect on the offerors ability to close this proposed transaction in a timely manner.
This publication is the copyrighted property of EK Real Estate Group and Windermere Real Estate Company ©2019. All rights reserved.