500 Naches Ave. SW, Renton, WA A 100% Boeing Leased Single ...
A 100% Boeing Leased Single Tenant Office Building.
Capital Markets - Institutional Group
500 Naches Ave. SW, Renton, WA
A 100% Boeing leased Class “A” Office Building Seattle Area (Renton, WA)
T HE OF F E R I NG CBRE, as exclusive advisor, is pleased to offer for sale a 100% fee simple interest in Rivertech Corporate Center, an architecturally appealing Class “A” office building 100% leased to The Boeing Company (S&P: BA). The Property, located in the Seattle suburb of Renton, Washington, consists of 70,101 square feet contained in an attractive three-story, steel-framed structure featuring a large two-story atrium. Rivertech Corporate Center is situated in the Blackriver Corporate Park, a fully developed master-planned office campus situated along a 100 acre riparian green belt. The Property has served as the corporate headquarters for Boeing Capital Corporation, a wholly-owned subsidiary of The Boeing Company, for the past fifteen years. Rivertech Corporate Center provides an excellent opportunity to acquire a statement property leased to one of America’s premier corporations located in a fundamentally strong and dynamic market.
The Property has served as the corporate headquarters for Boeing Capital Corporation, a wholly-owned subsidiary of The Boeing Company, for the past fifteen years.
inv e s tm en t h ig h l ig h t s Blue-Chip Credit Tenancy Fully leased by The Boeing Company (NYSE: BA), Rivertech Corporate Center is the corporate headquarters to Boeing’s wholly owned subsidiary, Boeing Capital Corporation. As the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, Boeing generated over $68 billion in annual revenue in 2011. Boeing has an investment-grade credit rating of “A” by Standard & Poor’s, “A2” by Moody’s, and is consistently ranked in the top 40 of Fortune’s Global 500. CAPTIVE TENANT Boeing has occupied Rivertech Corporate Center for over 15 years as Boeing first occupied 38,067 SF in mid-1997 and has renewed their lease of the building four times throughout that period with the latest renewal extending through August 2017. Boeing Capital’s top executives office in the Rivertech building where they enjoy a secure, high image location within the Renton office market close to Boeing’s Renton 737 assembly plant. Boeing is currently expanding the plant to accommodate its newest variant, the 737 MAX, and, within the next five years, anticipates hiring close to 1,000 new employees in Renton. A VIBRANT PUGET SOUND OFFICE MARKET The Puget Sound region is experiencing a broad-based economic expansion, adding more than 10,000 jobs in the Seattle Metro area alone over the past 12 months. As a result, the office market benefited from approximately 900,000 square feet of positive absorption in 2010 with an additional 2.0 million square feet of absorption in 2011, the majority of which was driven by the rapid expansion of Seattle-based organizations including Boeing, Amazon.com and the Bill and Melinda Gates Foundation. ROBUST SEATTLE JOB GROWTH Over the past four quarters, Seattle has averaged 2.1% annual growth in office employment. Over the next five years, CBRE Econometrics Advisors predicts Seattle will achieve continued positive office job growth of 2.2% per year. Furthermore, office employment is expected to reach its previous peak in 2013, considerably ahead of most markets on the West Coast. Net absorption is expected to average 1.1 million square feet per year while new supply is expected to average only 446,000 square feet over the next 5 years. Office rents, on average, are projected to grow 4.9% per year for the next 5 years. A key driver for this job growth is Seattle’s highly educated workforce, with nearly 56% of the Seattle adult population having obtained a college-level degree. IMPROVING MARKET FUNDAMENTALS The second quarter of 2012 marked the ninth straight quarter of positive net absorption in the Puget Sound region where the majority of new leasing has been concentrated in high quality office and flex buildings. Seattle was ranked as the second best office market for acquisitions nationally in the recent ULI Emerging Trends study and had the top overall buy versus sell market ranking differential. Rivertech Corporate Center is located in Renton, WA, a submarket within the 9.8 million square foot South Seattle Office Market. Renton comprises nearly 1/3 of the total South Seattle office market. Class “A” rents have increased substantially in Renton during 2012 with recent leasing activity driving overall Class “A” vacancy down to just 6.14%. KEY LOCATION Rivertech Corporate Center has good access to both I-5 and I-405 with driving times of approximately 10 minutes to downtown Seattle, 15 minutes to Bellevue and 5 minutes to Seattle-Tacoma International Airport. Westfield Southcenter, the largest mall in the state of Washington, is less than 5 minutes away from Rivertech Corporate Center. With nearly 1.8 million square feet of retail and service amenities, Southcenter recently completed a 450,000 square foot expansion. EXCELLENT YIELD AT Major Discount to Replacement Rivertech Corporate Center’s in-place income, leveraged with favorable available debt, offers an immediate double-digit cash-on-cash return at a basis that is significantly below replacement cost in the supply constrained Renton office submarket.
Rivertech Corp. Ctr.
INVESTMENT CONTACTS: STEVE SUTHERLAND First Vice President T 425.462.6927 [email protected] CRAIG WILSON Senior Vice President T 425.462.6922 [email protected]
MARKET CONTACTS: SCOTT SCHUMACHER First Senior Vice President Lic. 1078450 T 310.363.4903 [email protected] KEVIN SHANNON Vice Chairman Lic. 00836549 T 310.363.4910 [email protected]
GEOFF PENDERGAST First Vice President T 425.462.6950 [email protected] ED HOGAN First Vice President T 206.442.2715 [email protected] Capital Markets Debt and Equity JAMES BACH T 206.830.6475 [email protected]
PROPERTY INFORMATION – 500 N aches A venue R enton , WA
Year Built
1990
Description Building Size
Three story steel-framed office building featuring a two-story atrium, tinted glass bands.
70,101 SF
Number of Buildings
One
Site Area
217,800 SF (5.0 acres)
Occupancy
100%
Parking
331 Stalls 4.7/1,000 SF
FINANCIAL INFORMATION Offering Price
$11,890,000 ($170/psf)
Year One NOI
$950,970
Year One Cap Rate
8.0%
Three Year Average Cash-on-Cash
13.02%
Broker Lic. 00409987 2221 W. Rosecrans Avenue Suite 100 El Segundo, CA 90245 T 310.363.4900 F 310.363.4912
© 2012 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
Capital Markets - Institutional Group
500 Naches Ave. SW, Renton, WA
A 100% Boeing leased Class “A” Office Building Seattle Area (Renton, WA)
T HE OF F E R I NG CBRE, as exclusive advisor, is pleased to offer for sale a 100% fee simple interest in Rivertech Corporate Center, an architecturally appealing Class “A” office building 100% leased to The Boeing Company (S&P: BA). The Property, located in the Seattle suburb of Renton, Washington, consists of 70,101 square feet contained in an attractive three-story, steel-framed structure featuring a large two-story atrium. Rivertech Corporate Center is situated in the Blackriver Corporate Park, a fully developed master-planned office campus situated along a 100 acre riparian green belt. The Property has served as the corporate headquarters for Boeing Capital Corporation, a wholly-owned subsidiary of The Boeing Company, for the past fifteen years. Rivertech Corporate Center provides an excellent opportunity to acquire a statement property leased to one of America’s premier corporations located in a fundamentally strong and dynamic market.
The Property has served as the corporate headquarters for Boeing Capital Corporation, a wholly-owned subsidiary of The Boeing Company, for the past fifteen years.
inv e s tm en t h ig h l ig h t s Blue-Chip Credit Tenancy Fully leased by The Boeing Company (NYSE: BA), Rivertech Corporate Center is the corporate headquarters to Boeing’s wholly owned subsidiary, Boeing Capital Corporation. As the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, Boeing generated over $68 billion in annual revenue in 2011. Boeing has an investment-grade credit rating of “A” by Standard & Poor’s, “A2” by Moody’s, and is consistently ranked in the top 40 of Fortune’s Global 500. CAPTIVE TENANT Boeing has occupied Rivertech Corporate Center for over 15 years as Boeing first occupied 38,067 SF in mid-1997 and has renewed their lease of the building four times throughout that period with the latest renewal extending through August 2017. Boeing Capital’s top executives office in the Rivertech building where they enjoy a secure, high image location within the Renton office market close to Boeing’s Renton 737 assembly plant. Boeing is currently expanding the plant to accommodate its newest variant, the 737 MAX, and, within the next five years, anticipates hiring close to 1,000 new employees in Renton. A VIBRANT PUGET SOUND OFFICE MARKET The Puget Sound region is experiencing a broad-based economic expansion, adding more than 10,000 jobs in the Seattle Metro area alone over the past 12 months. As a result, the office market benefited from approximately 900,000 square feet of positive absorption in 2010 with an additional 2.0 million square feet of absorption in 2011, the majority of which was driven by the rapid expansion of Seattle-based organizations including Boeing, Amazon.com and the Bill and Melinda Gates Foundation. ROBUST SEATTLE JOB GROWTH Over the past four quarters, Seattle has averaged 2.1% annual growth in office employment. Over the next five years, CBRE Econometrics Advisors predicts Seattle will achieve continued positive office job growth of 2.2% per year. Furthermore, office employment is expected to reach its previous peak in 2013, considerably ahead of most markets on the West Coast. Net absorption is expected to average 1.1 million square feet per year while new supply is expected to average only 446,000 square feet over the next 5 years. Office rents, on average, are projected to grow 4.9% per year for the next 5 years. A key driver for this job growth is Seattle’s highly educated workforce, with nearly 56% of the Seattle adult population having obtained a college-level degree. IMPROVING MARKET FUNDAMENTALS The second quarter of 2012 marked the ninth straight quarter of positive net absorption in the Puget Sound region where the majority of new leasing has been concentrated in high quality office and flex buildings. Seattle was ranked as the second best office market for acquisitions nationally in the recent ULI Emerging Trends study and had the top overall buy versus sell market ranking differential. Rivertech Corporate Center is located in Renton, WA, a submarket within the 9.8 million square foot South Seattle Office Market. Renton comprises nearly 1/3 of the total South Seattle office market. Class “A” rents have increased substantially in Renton during 2012 with recent leasing activity driving overall Class “A” vacancy down to just 6.14%. KEY LOCATION Rivertech Corporate Center has good access to both I-5 and I-405 with driving times of approximately 10 minutes to downtown Seattle, 15 minutes to Bellevue and 5 minutes to Seattle-Tacoma International Airport. Westfield Southcenter, the largest mall in the state of Washington, is less than 5 minutes away from Rivertech Corporate Center. With nearly 1.8 million square feet of retail and service amenities, Southcenter recently completed a 450,000 square foot expansion. EXCELLENT YIELD AT Major Discount to Replacement Rivertech Corporate Center’s in-place income, leveraged with favorable available debt, offers an immediate double-digit cash-on-cash return at a basis that is significantly below replacement cost in the supply constrained Renton office submarket.
Rivertech Corp. Ctr.
INVESTMENT CONTACTS: STEVE SUTHERLAND First Vice President T 425.462.6927 [email protected] CRAIG WILSON Senior Vice President T 425.462.6922 [email protected]
MARKET CONTACTS: SCOTT SCHUMACHER First Senior Vice President Lic. 1078450 T 310.363.4903 [email protected] KEVIN SHANNON Vice Chairman Lic. 00836549 T 310.363.4910 [email protected]
GEOFF PENDERGAST First Vice President T 425.462.6950 [email protected] ED HOGAN First Vice President T 206.442.2715 [email protected] Capital Markets Debt and Equity JAMES BACH T 206.830.6475 [email protected]
PROPERTY INFORMATION – 500 N aches A venue R enton , WA
Year Built
1990
Description Building Size
Three story steel-framed office building featuring a two-story atrium, tinted glass bands.
70,101 SF
Number of Buildings
One
Site Area
217,800 SF (5.0 acres)
Occupancy
100%
Parking
331 Stalls 4.7/1,000 SF
FINANCIAL INFORMATION Offering Price
$11,890,000 ($170/psf)
Year One NOI
$950,970
Year One Cap Rate
8.0%
Three Year Average Cash-on-Cash
13.02%
Broker Lic. 00409987 2221 W. Rosecrans Avenue Suite 100 El Segundo, CA 90245 T 310.363.4900 F 310.363.4912
© 2012 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
