GRIFOLS BIOMAT USA - Net Leased Retail

GRIFOLS BIOMAT USA
PLASMA CENTER
8033 - 8035 SE HOLGATE BOULEVARD, PORTLAND OR 97206
www.netleasedretail.com
www.marcusmillichap.com
net leased disclaimer
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Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has
not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap
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or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value
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tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate
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no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the
lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to
market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her
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a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
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2
investment overview
PURCHASE PRICE | $ 2,350,000
CAP RATE | 6.58%
Net Operating Income:
Price Per Square Foot:
Lease Commencement Date:
$154,732
$155.00
4/22/2005
Lease Expiration Date: 7/31/2020
Lease Type:NNN
Increases:3% Annually
Options:(1) 5 Year Option
Guarantor:Biomat USA Inc.
Rentable Square Feet: 15,150 SF
Lot Size:1.44 Acres
Year Built:1971
address
8033-8035 SE Holgate Blvd, Portland, OR 97206
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3
investment overview
overview
The subject property is a 15,150 square foot facility. The
asset is 71% occupied to investment-grade tenant Biomat
USA, Inc. The lease includes annual three percent increases
and one, five year option left to renew. There is a 4,507
square foot vacancy providing a potential buyer for added
upside income.
drive nearby the property each day. Downtown Portland is
located less than 10 miles to the west.
The asset has easy access to I-205 and the Greater
Portland area. Portland is Oregon’s most populous city with
almost 600,000 people as of the 2015 census. The average
household income within a one mile radius is over $62,000.
The asset is off a densely populated retail corridor. It is
adjacent to a Walgreens and less than a quarter mile
from Walmart and multiple national retail chains, such as,
L.A. Fitness, U.S. Bank, Bank of America, Jo-Ann Fabrics,
Payless Shoes, GNC, and Ross. More than 43,000 cars
The parcel has been approved for zoning that would allow for future/
additional subdivision and development. It is zoned for an additional
6000 SF single floor commercial property as well as multi-level
multifamily/condos.
rent roll
TENANT INFO
lease terms
current rent
rent increases
TENANT
NAME
SQUARE FEET
COMMENCEMENT
DATE
LEASE
EXPIRATION
ANNUAL BASE
RENT
RENT/SF/YR
DATE
ANNUALLY
8033 - Biomat USA, Inc.
10,643
4/22/2005
7/31/2020
$166,700
$15.66
8/1/2016
$171,701
8035 - Vacant
4,507
total
15,150
$0.00
$166,700
options
lease type
LEASE
TYPE
(1) 5 Yr
NNN
3% Annual Rent Increases throughout
the Original Term and in Option Periods
$171,701
NOTE:
(1) Total Available is 4,507 square feet. Total Occupied is 10,643 square feet.
(2) Common area maintenance, capital expenses, taxes and insurance are
covered by landlord and reimbursed by tenant.
Seller may be willing to guarantee vacant space up to one year to qualified
buyer. Ask agent for details
4
highlights
investment overview
guaranteed by grifols, nasdaq (grfs)
standard & poor’s credit rating of bb +
3% annual increases - one 5 year
option remaining
ideal 1031 replacement property, low
equity requirement
located adjacent to a walgreens and
near multiple national retail chains
including walmart, U.S. Bank, Bank of
america, L.a. fitness, gnc, payless shoes,
jo-ann fabrics, and ross
growing demand worldwide for
plasma - derivatives products
easy access to i-205 and greater
portland area
dense population location with nearly
450,000 people within a 5 mile radius
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income & expenses
income and expenses |
PRICE
$2,350,000
CAPITALIZATION RATE
6.58%
PRICE PER FOOT
$155.00
NET OPERATING INCOME SUMMARY |
leveraged return calculation |
average psf
scheduled income
SCHEDULED RENT
(+) EXPENSE REIMBURSEMENT
$166,700
INTEREST RATE
4.50%
$2.64
$40,038
AMORTIZATION
240 MONTHS
(=) SCHEDULED/EFFECTIVE
GROSS INCOME
PAYMENT - PRINCIPAL & INTEREST
($10,407)
$206,738
EQUITY REQUIREMENT
$705,000
(REIMBURSABLE EXPENSES
COLLECTED)
$40,038
(VACANT SPACE EXPENSES NOT
REIMBURSED)
$10,453
(RESERVES FOR ROOF
AND STRUCTURE @ .10 PSF)
$1,645,000
$206,738
$52,006
TOTAL OPERATING EXPENSES
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70.00%
$15.66
(=) GROSS POTENTIAL INCOME
NET OPERATING INCOME
PROPOSED NEW LOAN
$1,515
$154,732
DEBT COVERAGE RATIO
DEBT CONSTANT
NET OPERATING INCOME
(-) TOTAL ANNUAL DEBT SERVICE
1.24
7.59%
$154,732
($124,885)
(=) PRE-TAX CASH FLOW
$29,847
PRE-TAXED LEVERAGING
CASH-ON-CASH RETURN
4.23%
(+) PRINCIPAL PAYDOWN YEAR ONE
$51,922
(=) CASH FLOW INCLUDING
PAYDOWN
$81,769
YIELD AFTER PRINCIPAL REDUCTION
11.60%
retail map
address | 8033-8035
SE Holgate Blvd
Portland, OR 97206
traffic counts |
15,246 VPD - Holgate Boulevard | 2014
43,842 VPD - 82nd Avenue | 2014
N
w
E
82 avenue
S
BIZTECH HIGH
SCHOOL
CENTURY 16
EASTPORT PLAZA
205
WALGREENS
holgate blvd
grifol’s
plasma center
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retail map
SE Holgate
address | 8033-8035
Portland, OR 97206
Blvd
WALGREENS
8 2 av e n u e
grifols
plasma center
holgate blvd
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property location
location
GRIFOLS PLASMA CENTER
S E
HO L G A TE
Portland’s main arterials are Interstate
5, which passes through the heart of
downtown, and Interstate 205, which
is a loop route that passes east of
downtown. Both routes intersect just
north of Portland in Vancouver, Wa.
B L V D
▲
8 033- 8 03 5
VANCOUVER
PORTLAND
GRESHAM
BEAVERTON
GRIFOLS PLASMA CENTER
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major employers
employers
Click On Business Name
To Learn More
*Sourced from MapNet, Marcus & Millichap
Portland State Univer sity
- Portland, Oregon -
Intel
17,500
OHSU
14,616
Nike
8,700
Legacy Emanuel Medical Center
6,300
Kaiser Permanente Sunnyside
Portland International Airport
5,000
4,000
Providence Portland Medical Center
3,408
Portland State University
3,000
Portland Community College
2,700
Trimet
2,625
household INCOMES 2014 |
1 Miles
3 Miles
5 MILES
5 Miles
AVERAGE
$50,933$60,383
$66,334
MEDIAN
$38,639
$48,222
$45,884
3 MILES
1 MILES
population |
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PORTLAND
1 Miles
3 Miles
5 Miles
2010
23,823
189,781
426,520
2014
24,779
199,198
446,974
2019
25,793
205,991
462,030
GRIFOLS PLASMA CENTER
8033-8035
SE
HOLGATE
BLVD
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area overview
portland OREGON
Portland, “The City of Roses” and also dubbed “Bridgetown”, is the
largest city in Oregon and the third largest city in the Pacific Northwest
after Seattle and Vancouver, British Columbia. Known for its local
breweries, coffee, and food carts, Portland has earned its reputation
as the Beer and Food Cart Capital of the World. Its population of
nearly 600,000, with an MSA of nearly 2.4 milion, boasts the most
extensive light-rail and streetcar system in the country. This lends itself
to Portland being voted as one of the top ‘Smartest Cities in the
Northwest’, often awarded the ‘Greenest City in America’ by Popular
Science, and rated by Travel + Leisure magazine as the number one
‘Most Pedestrian and Transit Friendly City in the U.S.’.
The city of Portland represents a range of employers, such as,
Adidas, Daimler Trucks, the Providence Health System and a top
Fortune 500 company, Precision Castparts. Athletic footwear giant,
Nike, is headquarted in Hillsboro, with Fred Meyers, Portland General
Electric, Bonneville Power Administration, and Columbia Sportswear
dominating the Portland Metro. Oregon Health & Science University
(OHSU), Oregon’s only public health and research center, claims an
economic impact of $4.3 billion. Global semiconductor R&D, Intel, has
been named the most philanthropic and admired technology company
in Oregon, employing nearly 17,500 people in mid-2014.
Portland’s location is also beneficial for several industries. Relatively
low energy cost, accessible resources, north–south and east–west
Interstates, international air terminals, large marine shipping facilities,
and both west coast intercontinental railroads are all economic
advantages. Portland is the largest shipper of wheat in the United
States, and is the second largest port for wheat in the world. The
marine terminals alone handle over 13 million tons of cargo per year,
and the port is home to one of the largest commercial dry docks in the
country. The Port of Portland is the third largest export tonnage port on
the west coast of the U.S., and being located about 80 miles upriver,
it is the largest fresh-water port.
| Moda Center
| Oregon Health & Science University
Providence Park, a 20,323 open-air stadium is home to the Portland
Timbers (MLS), while the Moda Center (formerly the Rose Garden)
hosts the Portland Trail Blazers (MLB). The city has a lovely blend
of historic and modern architecture and many lush parks, such as,
Forest Park’s 30-mile trail route and Washington Park, which includes
the International Rose Test Garden, the Japanese Gardens, and Hoyt
Arboretum.
| Hoyt Arboretum - Washington Park
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tenant overview
Grifols USA (NASDAQ-GRFS) is a lease guarantor and Talecris
Plasma Resources and the operator, BioMat USA, Inc. are
wholly owned subsidiary’s of Grifols USA. Grifols, Inc., is a
global health care company whose mission is to improve the
health and well being of people around the world. Grifols
carries an S&P Credit rating of BB+. Grifols specializes in
the production of medicines derived from human plasma, the
liquid portion of blood. Plasma contains many proteins that are
essential for normal physical and neurological function. Grifols
operates 147 plasma donation centers around the nation.
Grifols employs almost 11,200 people in 24 countries, who
share the mission of improving people’s health and wellbeing
through the research, development, manufacture and
distribution of plasma-derived medicines, technology for clinical
diagnosis and pharmaceutical preparations for hospital use.
Grifols is one of the leading companies in the world in the
manufacture of plasma proteins, and the largest European
company in this sector. It is one of only a few vertically
integrated companies, enabling it to control the entire
production cycle, from the collection of raw material in
the form of plasma through an extensive network of
150 donor centers in the United States, through to the
finished product.
Its head office is in Barcelona, Spain. Grifols embarked
on a new era in 2012 following its purchase of North
American company Talecris Biotherapeutics in 2011.
The success of this operation has doubled the size of
Grifols, strengthening its presence in regions such as
North America, and enabling it to expand its portfolio
of plasma-derived products for the benefit of patients.
Combining the expertise of both companies in the
plasmaindustry means that Grifols can look to the future
with even more ambition and the same entrepreneurial
spirit with which it began 70 years ago.
A WO R L D - L E A D I N G M A N U F A C T URER O F
P L ASMA - B A S E D B I O L O G I C A L M EDICINES
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in the news
investor RELATIONS
SALES IN THE FIRST HALF
OF 2013 GROW BY 4.9%
TO 1,381 MILLION EUROS
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ME!
FINANCIAL INFORMATION
GRIFOLS’ NET PROFITS
ROSE BY 36.9% TO 183
MILLION EUROS IN THE
FIRST HALF OF 2013
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confidentiality disclaimer
| Iconic Portland Sign
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus
& Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to
establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough
due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to
the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage
of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State
and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any
tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing
Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify,
any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no
warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must
take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
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Portland, Oregon |
CONTACT
JOSEPH P. BL ATNER
CHR IS T OPHER MIT CHEL
R YA N MOOR E
Vice President
Associate
Associate
of
Investments
joseph.blatner@marcusmillichap.com
christopher.mitchel@marcusmillichap.com
ryan.moore@marcusmillichap.com
P H: 503-200-2029
P H : 216-264-2049
P H : 216-264-2038