upper hawthorne user / development opportunity...the “new urbanism” represented along the...
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UPPER HAWTHORNE USER / DEVELOPMENT OPPORTUNITYOFFERING MEMORANDUM4230 - 4236 SE HAWTHORNE BLVD | PORTLAND, OR
JORDAN CARTER
TONY RESER
Property Address 4230-4236 SE Hawthorne Blvd, Portland, OR
County Multnomah
Lot Size 10,000 SF (two 5,000 SF tax lots)
Year Built 1926
Total Building SF 4,200
Construction
Block/Masonry the building is listed as unreinforced masonry in the City of Portland URM database
Price (combined) $1,825,000
Parcel Numbers R176584, R176586
Street Frontage 50' on SE Hawthorne Blvd;50' on SE 42nd
Topography Level
Traffic Counts SE Hawthorne & SE 44th Ave -14,542 vehicles per day
The subject property, located at 4230-4236 SE Hawthorne Blvd, consists of a 2-story 4,200 square foot URM masonry building, built in 1926, as well as an additional 5,000 SF lot that adjoins the building’s lot in the rear. The lot facing hawthorne with the building is 0.11 acres and is zoned CM2. The rear lot facing SE 42nd is 0.11 acres, zoned R2.5, and is unimproved and currently used a driveway/parking to access the rear of the building.
This is a true mixed-use building, with two retail spaces on the ground floor and two offices on the second floor. One retail space is owner-occupied and will be vacated at closing. The second is occupied by a pet groomer who has been there for over 15 years. There are two office spaces on the second floor, both occupied by the same tenant. Each side has a bathroom and one side has a kitchen. Both were used as traditional apartments when built, and could be converted back to that use. All tenants are on month-to-month leases.
There are three street level entrances to the building, with the residential entrance leading to stairs in the middle and the retail entrances to either side. In the rear is a large deck for the upstairs units, as well as a role up door behind the pet groomer space. The lots have room to park 10+ cars, making this a rare vintage Hawthorne building with its own parking lot.
Situated in close-in Southeast Portland, in one of the Metro’s most popular and trendy neighborhoods, the Hawthorne District, the property is just steps away from popular restaurants, boutique cafes, and quirky shops, including New Seasons Market just a block away. It is in a highly walkable neighborhood, earning a walkability score of 95, and a bike score of 100 (bikers paradise), from walkscore.com.
1926YEAR BUILT
10,000SQUARE FEET OF LAND
4,200BUILDING NET RENTABLE
SQUARE FEET
4TENANTS
95WALK SCORE
100BIKE SCORE
53TRANSIT SCORE
EXECUTIVE SUMMARY
4230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS 2
THE BUILDING
HIGHLIGHTSSUITABLE for investor, user or redevelopment
CORE located just minutes from downtown Portland
LOCATED on Hawthorne Blvd - premier eastside retail corridor
MIXED USE BUILDING 2 retail spaces + 2 office spaces
2 TAX LOTS totaling 10,000 SF (CM2 + R2.5 zoning)
EXISTING RENTAL INCOME of $3,400 per month
TOP RENT GROWTH markets in the US (Axiometrics)
EXTREMELY TIGHT SUBMARKET with ±5% vacancy
THREE phase power
ONE BLOCK to New Seasons Market
4230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS 3
44230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
BUILDING TENANTS
Address Floor Space / Tenant Est. SF Rent Lease Type
4236 SE Hawthorne Blvd 1 Portland's Pampered Pets (pet grooming) 1,050 $1,600 MTM
4230 SE Hawthorne Blvd 1 Vacant (owner to vacate at closing) 1,050
4232 SE Hawthorne Blvd 2 Office (4 offices, 1 bathroom) 1,050 $1,800 MTM
4234 SE Hawthorne Blvd 2Office(4 offices, 1 bathroom, 1 kitchen)
1,050 (included in $1,800per month) MTM
Total 4,200 $3,400
*Total water / sewer bill for 2018 was $3,259
Utilities / Taxes Paid By Average Cost / Month Notes
Water / Sewer Landlord $272
4236 - tenant pays 65% of quarterly bill 4230 - landlord is tenant 4232 - $75 (reimbursed) 4234 - included
Electricity Landlord + Tenant
4236 - separately metered 4230 - separately metered 4232 - $25 per month paid to landlord 4234 - included in 4232
Trash Landlord $101
4236 - included in rent 4230 - 4232 - included in rent 4234 - included in rent
Landscaping Landlord + Tenant $76
4236 - $70 per month paid to landlord 4230 - landlord is tenant 4232 - included in rent 4234 - Included in rent
Property Tax Landlord $355
Annual* $6,666
*Annual property tax for lot with building is $4,265 and for rear unimproved lot is $2,401
54230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
LOTS + ZONING DESCRIPTION
Address 4230-4236 SE Hawthorne
SF 5,000
Zoning CM2 (Commercial Mixed Use 2)
FAR 2.5:1 - 4:1 (with bonus)
Max Height 45' - 55' (with bonus)
Building Coverage 100%
Overlay d (design)
Address SE 42nd entrance (shares same address as 4230)
SF 5,000
Zoning R2.5 (Residential 2,500)
Units Allowed 2 (one per 2,500 SF)
Max Height 35'
Building Coverage 45%
Overlay none
The property provides a number of options for a new investor. The building could be used or redeveloped by a single tenant or as an owner-user building. The vacant retail space could also be rented out and operated solely as an investment property. Additionally, the front lot’s CM2 zoning would allow for a completely new commercial development. With bonus provisions, the FAR goes from 2.5:1 to 4:1, allowing for 20,000 SF of new space and up to four stories high. A new apartment development could see up to upwards of 40 units built on the site.
The rear lot could continue to be used as access/parking for the building. However, should an investor want to develop on the rear lot, its R2.5 zoning could allow up to two units on that site, which is suitable for single family dwellings, rowhouses, duplexes, and ADUs. A creative architect could even reserve a driveway easement to maintain parking/access to the existing building while adding new residential units on the lot.
SE HAWTHORNE BLVD
4230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS 6
SPACE TO BE VACATED DOG GROOMER
APARTMENT / OFFICE SPACE
4230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS 7
84230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
AMENITIES MAP
21 Kaiser Health Clinic
23 Little Big Burger
24 Chase Bank
25 Bank of America
1 Fred Meyer
2 Safeway
3 Baghdad Theater & Pub
4 Grand Central Bakery
5 Jam on Hawthorne
6 Cinemagic Theater
7 Coava Coffee Roasters
8 House of Vintage
9 Dosha Salon Spa
10 The Waffle Window
11 Ben & Jerry's
12 Bread & Ink Cafe
13 Powell’s Books
14Hawthorne Theatre Performing Arts Venue
15 New Seasons
16 Key Bank
17 Apizza Scholls
18 Castagna Restaurant
19 Portland Cider House
20 Wells Fargo Bank
1
2 34
6 5 7 8 9 1011 1315 16
1718 19
23
24
2221
12 14
Bus Stops
Biketown
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30
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36
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COLONEL SUMMERS
PARK
SEWALLCREST PARK
HAWTHORNE DISTRICT: SELECTED RETAILERS
TRANSPORTATION
SUBJECT PROPERTY
94230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
LOCATION OVERVIEWHAWTHORNE BLVD
Southeast Hawthorne Blvd. is one of Portland’s major East/West arterial streets. Located just minutes from downtown Portland, the “Hawthorne” neighborhood is loosely defined as beginning at SE 22nd and extending Eastward to SE 60th Avenue. Development along this street is often at the forefront of Portland’s visionary urban planning and socially conscious development. The “New Urbanism” represented along the corridor appeals to every demographic, creating a demand that provides an economic foundation similar to the building of drivable suburbs in the mid-to-late 20th century. A walkable, vibrant neighborhood lined with bioswales, public transit, bike corridors, eclectic farm to table restaurants and startups, Hawthorne serves as a doorway to the future of Portland and the nation.
Development along Hawthorne Blvd is an eclectic mix of new, old and adaptive reuse buildings. Many of the newer buildings are LEED certified, lending credence to the value placed on sustainable development. The street’s wide appeal is driven in part by the neighborhoods mixed-use development where retail and offices adorn the street and residents reside above. The sense of place created by this blend of uses fosters a sense of place for residents who find walking to their grocery store or coffee shop is preferable to driving. Hawthorne Blvd corridor would be complete without mention of two of
the City’s most treasured spaces: Laurelhurst Park and Mt. Tabor Park. Laurelhurst Park, the first city park to ever be listed on the National Register of Historic Places, is located on SE Cesar E Chavez Blvd (39th Ave). A short walk from Hawethorne Blvd, the 31-acre park is host to summer concerts, a variety of recreational activities, and a beautiful lake full of fish, ducks, and turtles. Mt. Tabor Park, just east of SE 60th Ave, is a 190-acre park on a volcanic cinder cone. The park offers stunning views of downtown Portland and Mt. Hood and is a fitness enthusiast’s playground due to its extensive network of trails.
All this culminates in making the Hawthorne neighborhood what it is: a place where innovation and experimentation manifest in a pristine setting at various scales. From the artisans and the buildings they inhabit, to the residents and customers that spill out onto the streets rain or shine, the constant bustling is affirmation that Portland champions the places that lead.
SUBJECT PROPERTY
HAWTHORNE LOOKING WEST TO DOWNTOWN
HAWTHORNE STREET FAIR
104230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
AERIAL + NEW DEVELOPMENT EXAMPLES
SUBJECT PROPERTY HAWTHORNE 44HAWTHORNE 31
THE HAWTHORNE PDXTHE HUB
SE HAWTHORNE BLVD
SE
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LVD
SE
32
ND
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114230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
DEMOGRAPHICS
1 MILE
3 MILES
5 MILES
DEMOGRAPHICS
1 mile 3 miles 5 miles
Population 30,743 211,722 503,880
Average Household Income
$95,774 $84,394 $82,368
Daytime Employees 10,347 189,181 379,143
SUBJECT PROPERTY
124230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
Portland is considered one of the nation’s most livable cities.CITY OF PORTLAND
Located on the banks of the Willamette River only 90 minutes from snow-capped peaks and the Pacific Ocean, one might not realize Portland’s bustling downtown and waterfront are the heart of a metropolitan region with more than 2 million people. Twelve bridges span a wide elbow of the Willamette
River, connecting the east and west sides of town. Throughout the metro area are thriving neighborhoods filled with restaurants, record shops, bars, funky clothing stores, antique malls and art galleries.
Portland is known for its progressive bike-friendly attitude, lively music and restaurant scenes, food carts, farmers’ markets, and endless recreation possibilities. Beyond the metro area residents enjoy the Pacific Northwest’s natural beauty via slopes, sails, surf and trails.
Portland is a walkable and bikable city. Within walking distance of most
parts of downtown is the campus of Portland State University, the world-class Portland Art Museum, Waterfront Park, Pioneer Courthouse Square, the Oregon Historical Society, a performing arts complex and a concert hall. For the sports-minded, Portland is home of the MLS Timbers, NBA Trail Blazers, and WHL Winterhawks. Outdoor enthusiasts love Forest Park, the largest city park in the nation, with 5,000 acres of hiking and biking trails, a zoo, public gardens and beautiful old-growth woods. The downtown core is connected by one of the world’s leading public transportation systems, a combination of buses, streetcars, and light-rail trains, putting the entire metro area only a couple stops away.
LOCATION OVERVIEW
134230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
2,753,168POPULATION
$2.23 BEXPORTED SHIPMENTS
IN 2018
$423,200MEDIAN HOME VALUE
3.7%PORTLAND MSA
UNEMPLOYMENT RATE
#1 BEST PLACE FOR BUSINESS & CAREERS — FORBES
#1 MOST DESIRABLE PLACE TO LIVE — US NEWS, 2019
#1 IN US FOR PUBLIC PARK SPENDING — TRUST FOR PUBLIC LAND, 2018
#1 SAFEST PLACE TO LIVE— RENTAL HOUSING JOURNAL, 2017
#2 MOVING DESTINATION OF 2018— UNITED VAN LINES, 2019
Portland Rankings
LOCATION OVERVIEW
144230-4236 SE HAWTHORNE BLVD OFFERING MEMORANDUM KIDDER MATHEWS
INVESTING IN PORTLAND
ULI 2018 Investment Prospects ranks Portland #2 in the Pacific region
IN 2018, at 5.2% Oregon personal income growth was above the national average of 4.1%
PORTLAND ranked #6 on Business Insider's Top 50 Best Places to Live in 2018
PORTLAND MSA multifamily vacancy is below 4.95%
PORTLAND’S CURRENT unemployment rate is 3.8%, a 42-year low
INTEL announced plans for a multi-billion-dollar expansion of their Hillsboro lab
EMPLOYMENT
PORTLAND MSA employment is at an all-time high, employing more than 1,1240,000 workers
IN THE PAST YEAR, Portland has added 30,800 jobs, a 1.6% increase
OREGON WAGES averaged $26.16 at the close of 2018, a 1.9% increase over 2017
PORTLAND MSA is expected to add an additional ±48,000 jobs over the next two years
NIKE is in the midst of a $1 billion expansion
INTEL’S LAB expansion will add a predicted 1,750 jobs by 2022
GROWING POPULATION
OREGON was the #2 moving destination in 2018 for people moving from one state to another, according to a United Van Lines Study in 2019
PORTLAND has added 42,000 residents over the last three years, an increase of 1.7%; above national average
PORTLAND ranked 19th in the nation in population growth ahead of San Francisco, Boston, and New York City
PORTLAND was named the 25th largest city in the U.S. in 2019
MORE THAN 34% of Portland residents have a bachelor's degree or higher, above the national average of 28%
LOCATION OVERVIEW
AWARD-WINNING SERVICES
PSBJ Largest Commercial Real Estate Firms 19
PSBJ Fastest Growing Companies 6
Seattle Business 100 Best Companies 3
PSBJ Best Places to Work 12
OR Business Magazine 100 Best Companies 8
Bay Area News Group Top Work Places 7
SOUTH SEATTLE
PORTLAND
SACRAMENTO
OLYMPIA TACOMA
SEATTLE
BELLEVUE
RENO
SAN FRANCISCO
SILICON VALLEYREDWOOD SHORES
ROSEVILLE
PHOENIX
SAN DIEGO
PASADENA/TRI-CITIES
EL SEGUNDO
INLAND EMPIRE
ORANGE COUNTY
CARLSBAD
DOWNTOWN LA
WEST LA
PLEASANTON
KIDDER MATHEWS OVERVIEW
COMMERCIAL BROKERAGE
$9BANNUAL TRANSACTION VOLUME
400+NO. OF BROKERS
VALUATION ADVISORY
1,600+ASSIGNMENTS ANNUALLY
36/23TOTAL NO. OF APPRAISERS / MAIS
PROPERTY MANAGEMENT
53M+SF UNDER MANAGEMENT
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