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LISTING EVALUATION & PROPOSAL

RENTON RETAIL SPACE | 2019 BUILT

17630 108TH AVE SE

RENTON, WA 98055

 

17630 108TH AVE SE

RENTON, WA 98055

This Renton retail space will have the support of a 4 person project team.  Our team will execute a direct marketing and a public marketing campaign.  This will be followed by aggressive personal outreach and feedback acquisition.  We will report our progress to you every week or more frequently when needed. 

 

$3.24M to $3.51M

Stabilized Value Estimate

6%

listing commission

3

phase marketing execution

240-day

listing agreement

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*Stabilized Value Estimate based on a net operating income (NOI) of $210,644 and a 6%-6.5% cap rate range.

 

STRATEGY TO MAXIMIZE OWNER VALUE

Quality of tenancy is a major factor in securing the highest possible value of the property. A property which features premium tenants (national credit tenants ie - national chain retail such Starbucks or Wells Fargo) with long-term leases creates a low risk investment for any future buyer. The effect creates a value premium.

  • For example, the same property with premium tenants vs local tenants results in a 5% cap rate valuation ($4,212,880).

It is our aim to ensure that we attract national tenants or seek premium rents from local tenancy to fortify the client’s value.

  • For example, national tenants in the City of Renton have leased similar locations at $28/SF (highest comp in the market). If the decision were to lease to a local tenant, our aim would be to secure a lease at $33.6/SF. This is well above the highest comp, however, we could offer incentives to secure such a tenant at such a rate.

    • Example Incentives: several months of free rent and/or tenant improvement allowance

Certainly, we would evaluate the cost benefit for such incentives to ensure they align with the landlord’s investment goals. We would do this on a case by case basis since every business has custom requirements and restrictions.

 

DETAILS BELOW

 
 

EXECUTIVE SUMMARY

 
 

17630 108TH AVE SE

RENTON, WA 98055

 

CONSTRUCTION ACTIVITY: “Addition of 3,390 sf to vacant McDonalds 4,133 sf restaurant to create two restaurant spaces in single-story building at 17630 108th Ave S in the Commercial Arterial zone designation.” ~ City of Renton

PERMIT DATA

 

7,523

Building SF

37,874

Lot SF

$1,136,500

Tax Assessed Value

Multi-Tenant

Retail

NNN

Lease Type

MARKET SALES SUMMARY (COSTAR)

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 VACANCY

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RENT PER SF

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COMPS

Sold on Jan 11, 2018 | $2,600,000 | $102.83/SF

Patrick Rimmer sold 26920 & 27055 Pioneer Highway to Les Schwab Tire Centers of Washington on 1/11/2018 for $2,600,000 as an investment opportunity.

  • Total Size of 25,284 SF

Sold on Dec 2017 | $1,375,000 | 6.4% Cap Rate | $242.33/SF

1800 4th St. Marysville, WA 98270

  • N Snohomish County Submarket

  • Fully Leased Building 5,674 SF Class C Office Building Built in 1999

Sold on Nov 30, 2017 | $1,175,000 | $67.14/SF

7315 43rd Ave NE Marysville, WA 98270

The property was sold for $1,175,000. The property had high vacancy at the time of the sale but the buyer will occupy 12,500 square feet. The buyer was not at liberty to disclose when they would occupy the property.

  • N Snohomish County Submarket

  • 17,500 SF Class B Office Building Built in 2000

Sold on Jun 2017 | $1,223,150 | $76.59/SF

Smokey Point Business Administration Building - 3310 Smokey Point Dr Arlington, WA 98223

The Stillaquamish Tribe sold off their former administration building for $1.22 million. At the time of sale, the property was vacant after the Tribe moved to their new office building. We were told by the seller’s broker that the new owners were planning to lease out the property. However, we were unable to reach the new landlord. There was no deferred maintenance reported.

N Snohomish County Submarket - Fully Leased Building 15,970 SF Class C Office Building Renovated in 2012 - Built in 1985

Sold on Jun 2, 2017 | $415,000 | $126.83/SF

215 E 3rd St Arlington, WA 98223

  • N Snohomish County Submarket

  • 3,272 SF Class C Office Building Built in 1944

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LISTING PROPOSAL

DISCOVER A BETTER WAY

 

3 PHASE MARKETING EXECUTION

Comprehensive. Strategic. Aggressive.

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+ 1. Private Offering

-

Targeting: Top 10 Tenants

Timeline: 15 Days

We market your property privately & directly (one-by-one) to a hand picked pool of the most active buyers.

These highly qualified buyers provide us with the highest quality feedback. In many cases we capture key concerns necessary to be more effective with the next 40.

Furthermore, if they have completely passed on the opportunity and it’s solely due to price, we’ll ask: ”If it makes it past this round, the price may come down. At what price does this make sense to you?”

+ 2. Call for Offers

-

Targeting - Top 40 Clients/Tenants/Brokers

Timeline: 15 Days

Typically, this buying pool is comprised of 30 well known buyers and 10 newcomers (based on surprising recent deals or heavy activity in another market).

This is a larger list. For merchant developers, we may reach the majority of the buying pool.We'll set a deadline for receiving offers, we'll collect them as they come in, and we'll review each bid with you.

+ 3. Public Offering

-

Targeting - All Active Tenants

Timeline: 150 Days

We'll comprehensively market your property to all of the buyers, brokers, and financial institutions worldwide. We'll set a deadline for receiving offers, we'll collect them as they come in, and we'll review each bid with you.

CBA - The most relied upon marketplace and the best database to achieve maximum exposure. It features the most widely used contracts which are now the industry standard in Washington. Many of the property statuses are not up to date and financial data for investment properties can be questionable. This is because the barrier to entry is very low.

Costar - Features the highest quality transaction data where professionals run comps. Purchasers are in the market of the present, past, and future.

LoopNet - LoopNet is only fully utilized when a searcher pays for the service. It is the least trusted and updated database but it ranks very well in google search results.

NWMLS - NWMLS users are held to the highest standard. To avoid penalties, listing data must be accurate and up to date, the marketing remarks must be legally appropriate, and the listing must be connected to county records (most accurate). Listings cannot point to a flyer or any outside marketing. All listing data and marketing remarks must be manually entered to ensure accuracy and conformity.


PROPERTY MARKETING CAMPAIGN

Local.  Regional.  National.  International.

 

240-Day

Marketing Campaign

( Digital & Direct )

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OUR PROPRIETARY DATABASE

With 2 years of development and a multitude of contributors, we've built a comprehensive database of the world's most active buyers.  It's regularly updated and we filter through our database to find the most qualified investors for your asset.

 
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About the Companies

  • Markets of Interest

  • Property types

  • Min and max

  • Multiple contacts

  • How they close

  • Acquisition activity

  • Source of Funds

  • Yield objectives

  • Hold period

  • Portfolio size

  • What they own in WA

 
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About the People

  • Titles

  • Geographic focus

  • Direct phone #

  • Office phone #

  • Email addresses

  • CEOs to secretaries

  • Social media accounts

 


PROJECT TEAM

Diverse skill sets, roles, and responsibilities.

VP of Sales

2 Years of Experience

Sales Associate

Property Marketing Campaign Contributor

Property Analyst

 

President, Managing Broker

17 Years of Experience

Board Director for Rental Housing Association of Washington

Multifamily and Senior Housing Investor

Education: Massachusetts Institute of Technology (MIT)

MIT Center for Real Estate (Partner 2015)

Vice President, Account Executive

3 Years of Experience

Multifamily Specialist

Property Marketing Campaign Manager

Asian American Real Estate Association

 

VP of Sales

14 years of Capital Markets Experience

Goldman Sachs & Merrill Lynch Alumni

Associate Broker

Education: University of Washington

 

INTERNATIONAL

RENTON

Many companies have attempted to translate their listings to Mandarin via online translation tools (i.e. Google Translate).  It takes someone who dreams and expresses love in Mandarin to execute it correctly.  We have this advantage.

 

Interesting Data About Chinese Buyers

"Chinese money now accounts for about 55 percent of all homes purchased by foreigners in Washington."

National Association of Realtors

 

"Most of those purchases are still in the suburbs, particularly in wealthier areas on the Eastside."

Seattle Times

 

"Overall, buyers from China bought about $1.6 billion in homes across Washington last year"

National Association of Realtors

 

Chinese buyers are predominantly targeting luxury homes, with an average price of $1.2 million.

Juwai 

JUWAI - the MLS of China


ALLIANCES

We've hand-picked the best partners for this type of asset.  They are financing, closing, and managing transactions of investment sales.

 
Moncord - Top Transaction and Listing Coordination Team in the Region

Moncord - Top Transaction and Listing Coordination Team in the Region

Fidelity National Title and Escrow - #1 Title Company in the US

Fidelity National Title and Escrow - #1 Title Company in the US

#1 Institution in the World for Real Estate Finance, Development, Urban Design, and Architecture

#1 Institution in the World for Real Estate Finance, Development, Urban Design, and Architecture

Keller Williams - The #1 Real Estate Company and the #1 Training Organization in the World

Keller Williams - The #1 Real Estate Company and the #1 Training Organization in the World