Offering Memorandum: Sale or Lease. Airplane Hangar and Office ANDY WEBSTER, REAL ESTATE BROKER COLDWELL BANKER BAIN

Transcription

1 Bellingham International Airport (KBLI) Offering Memorandum: Sale or Lease ANDY WEBSTER, REAL ESTATE BROKER COLDWELL BANKER BAIN

2 Section One Pricing and Sales Information Section Two Leasing Information Section Three Property Photographs Section Four... Property Description Andy Webster, Broker Page 2

3 Section One: Andy Webster, Broker Page 3

4 PRICING AND SALE INFORMATION: Offering Summary Price: $857,500 Down Pmt: (30%) $ Gross Square Feet: 8,765 Price / Square Feet: $97.83 Year Built: 2008 Type of Ownership: Leasehold-Estate Proposed Financing: First Trust Deed Loan Amount $600,250 Loan Type Proposed New Interest Rate 4.2 % Amortization 25 Years Program Recourse Loan to Value 70% LTV Annual Expenses: Property Tax 2015 $5,957 Insurance $3,440 Ground Lease $9,802 Andy Webster, Broker Page 4

5 Sales Comparison Approach The Comparison Approach is based upon the direct comparison of the subject property with those properties possessing similar qualities and characteristics. An investigation was undertaken to locate sales of similar properties. The following table summarizes the relevant sales and property type. In the case of the subject, the most appropriate unit of comparison is the price per square foot of building area. WHATCOM & SKAGIT SALES COMPARABLES CHART No. Address/City Seller/Buyer Property Type Yr Built Sold Date Price Bldg. SF $$/SF Mitchell Way #E Bellingham, WA Hagen/Select Wealth M/Hangar /31/2013 $375,000 4,200 $ W Bakerview Bellingham, WA Hi Five/Canyon Industries M/Hangar /18/2012 $304,000 3,600 $ Crosswind Dr Burlington, WA Holt Const. /HFM M/Hangar/Offices /31/2013 $2,175,000 24,800 $ Airport Rd Anacortes, WA Whidbey Is Bk/Anders M/Hangar /27/2013 $400,000 4,709 $84.94 WHATCOM & SKAGIT SALES CORRELATION: Sales Comparable No. 1 is a 4,200SF hangar located with small office and one bath and street access and parking. Subject property is superior. Sales Comparable No. 2 is a 3,600 SF, hangar of similar construction, road frontage, visibility office space and bathrooms. Subject property is superior. Sales Comparable No. 3 is a 24,800 SF, hangar/office, located at Skagit Regional Airport is in nearly new condition. The Subject property is superior. Sales Comparable No. 4 is a 4,700 SF hanger/office, located at Anacortes Airport is in nearly new condition. The Subject property superior. Andy Webster, Broker Page 5

6 SALES COMPARABLES SUMMARY The sales comparables support the value market value of the subject property, and establish necessary value bracketing for the subject property. Comparables No 1 and 2 are the most recent sales at BLI and are used to provide an indicator of value. Comparable No 3 and 4 are also useful to establish value of improvement. The Subject property is superior to all four of the sales and is adjusted accordingly. 8,765 square feet x $97.83/SF = $857,500 SALES COMPARABLE (ROUNDED): $860,000 ACTIVE OR EXPIRED LISTINGS: A limited number of recent sales are available; it is therefore useful to look at properties currently for sale. The following active listings help to validate the Sales Comparable Approach. ACTIVE LISTINGS No. 1 Address/City Paine Field th St. SW Everett, WA Seller: Property Type Tailwind M/Hangar/Office/Bath Yr Built Sold Date Ask Price Bldg. SF $$/SF 1990 N/A $1,295,000 10,835 SF $ Bremerton National Port Orchard For Sale M/Hangar/Office/ba 1998 N/A $649,000 6,000 $ Paine Field Everett, WA For Sale M/Hangar/Office 2009 N/A $3,500,000 27,000 SF $ Andy Webster, Broker Page 6

7 Section Two: Andy Webster, Broker Page 7

8 Leasing Information: Rentable Square Feet 8,765 Share of Condo Development 50.4% Base Rent: Annual Rent Monthly Rent Monthly Rent / SF $71,940 $5,995 $0.68 / SF Additional Rents: Annual NNN Monthly NNN Annual NNN / SF Estimated: $19,199 $1,560 $2.19 / SF The lease type is a triple net lease (NNN) where the tenant or lessee agrees to pay all real estate taxes, building insurance and maintenance on the property in addition to the pro rata share of the POB Ground Lease. Unit A premises are located within S.I.S. Flight Hangar Condominium and the tenant will be subject to the condo association CC&Rs and Bylaws. A copy of the CC&Rs is available for review on request. Base Rent per month is calculated as follows: $10.00/SF x 2180 SF = $1, $0.63/SF x 6585 SF = $4, Total per month: $5, NNN Estimated Triple Net/month $0.18/SF x 8765 = $1, Andy Webster, Broker Page 8

9 Section Three Andy Webster, Broker Page 9

10 Subject Photographs East Side of Units A (street side) from Mitchell Way. West side of Unit A from taxiway. Andy Webster, Broker Page 10

11 Street Scene: Southerly view of Mitchell Way. Street Scene: Northerly view of Mitchell Way. Andy Webster, Broker Page 11

12 Unit A: hangar side. Unit A: Office/Reception area. Andy Webster, Broker Page 12

13 ADA BATHROOMS HANGAR FLOOR 65 X 101 WITH RADIANT HEAT Andy Webster, Broker Page 13

14 Section Four Andy Webster, Broker Page 14

15 PROPERTY DESCRIPTION: UNIT A Airplane Hangar and Offices: Unit A is ideally suited for airport related businesses wanting public access and visibility. This is the former site of the Heritage Flight Museum, and has 2,180 SF of offices, 2 ADA bathrooms and 6,585 SF of hangar space. The bi-fold door opening is 58 wide with an overhead clearance of 20 feet. HVAC system provides air-condition and gas forced air heating for offices and radiant natural gas heating elements for the hangar. The hangar is insulated, and finished with sheet rock. The flooring is painted with durable epoxy paint and one additional half bath is located in the hangar. AIRPORT DESCRIPTION Bellingham International Airport is a public airport located three miles north of Bellingham, WA and is the third-largest commercial airport in Washington State. The airport has a single runway 16/34 which is 6701 x 150 and serves both Commercial and General Aviation. Major carriers include Alaska Airlines, Allegiant Air, Frontier Airlines and Horizon Air. Direct non-stop flights are available to Maui, Honolulu, Los Angeles, Palm Springs, San Francisco, San Diego, Phoenix, Denver, and Portland. Air taxi service, hangars, aircraft maintenance, fuel, flight instruction and US Customs are available. TOPOGRAPHY AND SIZE OF PARCEL(S) Topography is level. SIS Flight LLC executed a thirty year (30) Airport Lease dated September 25, The leased premises, as per the Modification of Airport Lease dated September 7, 2009 are 13C, BIA Binding Site Plan (Mod. 22) and non-exclusive Taxiway Lease area 13B (Mod. 19). Approximately 36,468SF. SUMMARY OF GROUND LEASE AND OPTION TO RENEW. Lease is for thirty (30) years commencing on November 1, 2005 and terminating October 31, The Ground lease may be renewed three (3) consecutive ten (10) year periods, provided the lease is in good standing. Annual increase of 3% with market re-assessed value every 5 years. GROUND LEASE CALCULATIONS Lease Rate with leasehold tax: Area 13C: $6.50/SF x 9% ROI x Leased SF (29,686) = $17,366/yr Non-Exclusive: $3.50/SF x 9% ROI x Leased SF (3,390) = $ 1,068/yr An additional lease-hold tax 12.8% is required to be paid by the tenant. Rents will be re-determined every 5 years for the remainder of the ground lease, with the next modification set for January 1, Unit A is approximately 50.4% of the total ground lease. Andy Webster, Broker Page 15