www.orioncp.com 14031 Ambaum Blvd SW, Burien, WA Evergreen Eye Center Burien Clinic Scott Clements P C E 206.445.7664 206.793.1074 sclements@orioncp.com David Butler P C E 206.445.7665 425.890.7919 dbutler@orioncp.com
14031 Ambaum Blvd SW, Burien, WA table of contents 1 Investment highlights 2 Tenant overview 3 Site overview 4 Financial snapshot/analysis 5 Market overview 6 DEMOGRAPHICS The information contained herein was obtained from sources believed reliable, however, ORION Commercial Partners LLC makes no guarantees, warranties, or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease, or withdrawal without notice. Evergreen Eye Center ORION Commercial Partners 2
Investment highlights: summary Investment Highlights Offering Price $1,500,000 Cap Rate 7.50% Total Building Area 5,099 SF Price Per Square Foot $294.18 Total Land Area 18,717 SF NOI $112,521 New 2 year NNN Lease Completely Renovated state-of-the-art eye clinic Evergreen Eye Center founded in 1989 The offering ORION Commercial Partners is excited to offer for sale the highly esteemed Evergreen Eye Center clinic located at 14031 Ambaum Blvd SW in Burien, WA. Evergreen Eye Center was originally founded in 1989 by Dr. John Jarstad. Jarstad s vision of a state-of-the-art surgery center serving the Pacific Northwest was realized in 1995 with the opening of the Evergreen Eye Surgery Center in Federal Way, WA. Since then, Evergreen Eye Center has expanded with three additional eye clinics which include the subject property in Burien, as well as locations in Auburn and Enumclaw. Originally purchased and completely renovated into an eye clinic in 2007, the total project costs, including the real estate, were just shy of 1.6 million. The tenant improvements alone were in excess of $200 per square foot. The Subject property is a condominium with Evergreen Eye Center occupying the entire top floor. The ground floor is occupied by a dental practice under separate ownership. Offered at a 7.50% cap rate and backed by a 2 year lease with (1) two year option, this investment provides for a great opportunity for an investor as well as a potential owner/user to own a state- of-the-art modern medical facility. Evergreen Eye Center ORION Commercial Partners 3
Investment highlights NNN Lease With Annual CPI Increases Evergreen Eye Center Inc. recently executed a 2 year NNN Lease with (1) two year options to extend. Strong Signature - Evergreen Eye Center, Inc. Founded in 1989, Evergreen Eye Center has been the leader in comprehensive vision care for the past 26 years. With four locations across the Puget Sound and over 80 dedicated and caring professionals, Evergreen Eye Center will continue its long-standing reputation of delivering cutting edge eye care for years to come. Strong Demographics Burien is a city in King County in the Puget Sound region of Washington State. A young city built from a 100-year-old waterfront community on the Puget Sound, Burien serves about 150,000 residents of the greater Highline area. With an average household income of around $72,000 the demographics are perfectly suited for the typical Evergreen Eye Center client base. Evergreen Eye Center ORION Commercial Partners 4
Tenant overview About Evergreen Eye Center Care at Evergreen Eye Center is offered by ophthalmologists trained at some of the top eye surgery programs in the nation. With a tradition of caring, competent service, they ve developed a long-standing reputation of delivering leading edge eye care with a personal touch. Their doctors are among the leading eye care professionals nationwide, and the entire team is focused on bringing you the most technologically superior care available in our supportive and attentive environment. Evergreen Eye Center s expertise has been called upon by local TV news, morning shows and radio broadcasts. Their above par staff has been awarded with top rating in service. Founder John S. Jarstad, M.D. completed both his medical residency and his internship at the world-renowned Mayo Clinic in Rochester, Minnesota, and was named one of America s top ophthalmologists by the Consumer Research Council. Recently, according to Seattle Magazine s July 2015 Top Doctor issue, Gary W. Chung, of Evergreen Eye Center, made the final Top Doctors list out of 459 doctors in the Puget Sound region from a variety of specialties. Evergreen Eye Center Testimonial My career in the big leagues hinges on terrific eyesight. That s why I went to Evergreen Eye Center. To play in the majors, I ve got to be able to see a 95 mph fastball and have great vision day or night. Dr. Jarstad and Evergreen Eye Center made this happen for me with LASIK eye surgery. I went from playing baseball for Federal Way High School to earning two championship rings playing major ball in San Francisco in 2010 and in 2014. My success took off following LASIK eye surgery with Dr. Jarstad. Just 5 minutes per eye and in 10 minutes I could see great. I wasn t nervous at all; I knew I was going to the very best. - Travis Ishikawa, Professional Baseball Player Evergreen Eye Center Procedures Visian Implantable Collamer Lens (ICL) For most patients seeking correction of their refractive error, LASIK is a safe and effective method of correcting nearsightedness, farsightedness and astigmatism. It is still the most common procedure to help those wishing to eliminate their dependence on eyeglasses and contact lenses. Cataract Surgery Evergreen Eye Center have a dedicated cataract surgical facility staffed with caring professionals who are dedicated to anticipate one s needs and provide a calm, low-stress surgical experience. LASIK Laser Eye Surgery LASIK Laser-assisted In Situ Keratomileusis is an outpatient procedure that can be used to correct myopia, hyperopia and astigmatism. LASIK surgery uses a small laser to reshape the cornea, improving its ability to focus light on the back of the eye, reducing or eliminating the need for corrective lenses. Premium Intraocular Lenses Intraocular lenses (IOLs) are artificial lenses that can be used to replace a patient s natural ones. Evergreen Eye Center offers several types of premium IOLs that can be used to treat a range of vision problems. Macular Degeneration Treatment Evergreen Eye Center offers fluorescein angiography and digital photography of the fundus, which aids in the diagnosis of the disease and helps them understand its progression over time. Corneal Transplant At Evergreen Eye Center, they combine the latest in innovative technology with thorough and compassionate care. Helping patients of vision loss due to injury, infection, scarring, congenital defect, including conditions such as keratoconus or Fuchs dystrophy, a corneal transplant may help to restore sight and quality of life. Information courtesy of: http://www.evergreeneye.com Evergreen Eye Center ORION Commercial Partners 5
tenant overview PHOTOS Evergreen Eye Center ORION Commercial Partners 6
site overview Aerial Map SUBJECT PROPERTY 509 N Ed Munro Seahurst Park Sea Mar Burien Medical Clinic & WIC/MSS Ambaum Blvd SW SW 148th St Burien Town Plaza Burien Transit Center Group Health Medical Center 518 Lake Burien Ambaum Blvd SW SW 152nd St Burien Town SQUARE 4th AVENUE SW 1ST AVENUE S 509 SW 152nd St Mosier Memorial Park SeaTac Airport Five Corners Shopping Center Photo Credit: http://www.aerolistphoto.com Evergreen Eye Center ORION Commercial Partners 7
site overview parcel map The Church of Jesus Christ of Latter-day Saints N SUBJECT PROPERTY Southwest Pediatrics 15,270 VPD Ambaum Blvd SW Aesthetic Rejuvenation & Spa by Dr. Brecht Simply Fit Cosmo Prof Hollywood Nails Supreme Bean Glamour Nails Kid s Country SW 142nd St Ambaum Plaza Evergreen Eye Center ORION Commercial Partners 8
Financial analysis Rent Roll Tenant Rentable Sq. Ft. Term Begins Term Ends Rent/SF Annual Rent Rent Increases Option Periods Expenses Evergreen Eye Center Inc. PS 5,099 09/01/2015 08/31/2017 $23.03 $117,420 Annual CPI (1) 2 year NNN Valuation Analysis Price: 1,500,000 Loan Information Proposed Down Payment: 25.00% $375,000 Proposed First Loan Amount: $1,125,000 Current Cap Rate: 7.50% Interest Rate: 4.75% Approximate Net Rentable SF: 5,099 sf Amortization: 25 Approximate Lot Size: 18,717 sf Annual Debt Service: $(76,966) Year Built: 1962-1980 5 Cost Per Net Rentable SF: $294.18 Rent Per Net Rentable SF: $20.29 NNN 2015 Annualized Data 2015 Operating Expenses Gross Potential Rental Income: $117,420 Real Estate Taxes (2015): Tenant Paid Plus Recaptured Operating Expenses: $45,891 Insurance: Tenant Paid Less Vacancy and Credit Loss : @ 3% $4,899 Repairs: Tenant Paid Gross Operating Income: $158,412 Maintenance: Tenant Paid Less Operating Expenses: $45,891 Utilities: Tenant Paid Net Operating Income: $112,521 Less Annual Debt Service: $(76,966) Pre-Tax Cash Flow: 9.48% $35,555 Total Non-Recaptured Expenses: $- Plus Principal Reduction: $24,047 Total Estimated Property Expenses: $45,891 Pre-Tax Return: 15.89% $59,602 Property Expenses/Net RSF: $9.00 *as a percentage of down payment Evergreen Eye Center ORION Commercial Partners 9
market overview about Burien Burien is a young city built from a 100-year-old waterfront community on the Puget Sound. With six miles of shoreline and expansive mountain views, residents take pride in their neighborhoods, actively preserve the marine biodiversity of the area, and protect their public spaces. Housing ranges from starter homes to high-end homes, condominiums and apartments of all sizes, including senior living. Residents and business people alike love the convenience of Burien s hub location and great connections. You can drive north to Seattle in about 12 minutes, east to Sea-Tac Airport in five minutes, and south to Tacoma or east to Bellevue in 30 minutes. The central location means that jobs and entertainment are convenient, the parking problems are elsewhere and a slower pace prevails in residential neighborhoods. Burien s downtown serves a large segment of the South King County population. Burien is noted for boutique retail, professional personal services and a large number of ethnic restaurants attracting dinners from near and far. Burien s unique cuisine originates in Australia, China, El Salvador, Germany, Greece, Italy, the Mediterranean, Japan, Korea, Mexico, Thailand and Vietnam. Burien s inviting downtown features the oldest and one of the best-attended July 4th parades in the region, in addition to a summer Farmers Market, monthly art walks, excellent local theater, and seasonal festivals generating year-round activity and excitement. Olde Burien, the historic town center, is bustling with new boutiques, businesses and restaurants serving 150,000 residents of the greater Highline area. Burien is also known for its thriving health care community. Per capita, Burien has a large number of health care providers, including hospitals, health centers, clinics, private practice doctors, dentists and various wellness specialists. The Puget Sound Regional Council designated Burien as one of the 25 Regional Growth Centers that will experience focused urban growth in the decades ahead. The community is embracing new approaches and technology in education, health care, development, and recreation. Information courtesy of: http://www.burienwa.gov Evergreen Eye Center ORION Commercial Partners 10
Demographics Burien Demographics Radius 1 Mile 3 Mile 5 Mile Population: 2020 Projection 24,720 107,579 234,188 2015 Estimate 21,550 97,754 214,699 2010 Census 14,272 83,965 193,213 Growth 2015-2020 14.71% 10.05% 9.08% Growth 2010-2015 50.99% 16.42% 11.12% 2015 Population Hispanic Origin 5,503 20,191 36,141 2014 Population by Race: White 15,673 65,865 128,391 Black 1,385 8,065 28,619 Am. Indian & Alaskan 704 2,360 4,306 Asian 2,370 14,191 37,306 Hawaiian & Pacific Island 332 1,929 4,113 Other 1,086 5,344 11,964 Radius 1 Mile 3 Mile 5 Mile Households: 2020 Projection 9,864 41,174 88,853 2015 Estimate 8,570 37,305 81,382 2010 Census 5,560 31,683 73,223 Growth 2015-2020 15.10% 10.37% 9.18% Growth 2010-2015 54.14% 17.74% 11.14% Owner Occupied 4,329 20,872 45,760 Renter Occupied 4,241 16,433 35,622 2015 Avg Household Income $66,682 $71,259 $73,576 2015 Med Household Income $49,307 $52,383 $54,143 2015 Households by Household Inc: Less than $25,000 2,216 8,504 17,633 $25,000 - $50,000 2,128 9,407 20,343 $50,000 - $75,000 1,670 7,053 14,851 $75,000 - $100,000 862 4,113 9,817 $100,000 - $125,000 626 2,993 6,643 $125,000 - $150,000 442 1,968 3,963 $150,000 - $200,000 337 1,713 4,540 $200,000+ 291 1,555 3,593 Evergreen Eye Center ORION Commercial Partners 11
demographics Demographic ring - 1, 3 & 5 Miles 5 Miles 3 Miles 1 Mile Evergreen Eye Center ORION Commercial Partners 12