|
EXCLUSIVE MULTIFAMILY OFFERING
a Berkshire Hathaway and Leucadia National company
57 Units | Price: Unpriced Development Opportunity
KENNY DUDUNAKIS
Senior Managing Director
206.521.7216
BEN JOHNSON
Associate Director
206.801.3144
DAVID SORENSEN
Associate Director
206.801.3102
[email protected]
[email protected]
[email protected]
12410 NE Totem Lake Way
Kirkland, WA 98034
For Real-Time Property Information go to:
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
PROPERTY HIGHLIGHTS
Adjacent to The Village at Totem Lake Lifestyle Shopping Center
Redevelopment
Kirkland Home Values Increased 14.5% in 2015
Kirkland Median Family Income - $90,455, 32% Higher than
Washington State Average
Comparable Market Occupancy - 97.3%
Totem Lake Market Rents Increased 37.6% Since 2011
Near the Shores of Lake Washington
For Real-Time Property Information visit:
TheCanopy.BerkadiaREA.com
KENNY DUDUNAKIS
Senior Managing Director
206.521.7216
[email protected]
BEN JOHNSON
Associate Director
206.801.3144
[email protected]
DAVID SORENSEN
Associate Director
206.801.3102
[email protected]
SEATTLE OFFICE
601 Union Street, Suite 3909
Seattle, WA 98101
206.521.7220 | Fax: 206.521.7222
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
TABLE OF CONTENTS
The Opportunity
5
The Property
11
Financial Analysis
22
Market Positioning
24
The Market
31
One of the Most Sought-After
Investment Markets in the Country
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE OPPORTUNITY
Well-Positioned around the Eastside’s Economic Growth
�
Steps from the The Village at Totem Lake
�
Leading technology, medical, marketing, and financial jobs nearby
�
Kirkland / Totem Lake is one of the fastest-developing and most desirable
�
Microsoft, Nintendo, Google, Overlake Hospital, PACCAR, and Symetra are
submarkets on the Eastside
�
�
THE OPPORTUNITY
One of the Newest Assets in a Thriving Eastside Market
all within eight miles of the site
Along the best walking trail in the State
�
Over 35,000 Microsoft employees are located less than seven miles away
Less than four miles from Google’s third-largest Engineering Campus in
�
Downtown Bellevue is seven miles, Seattle central business district is 15 miles away
the Country
The Village at Totem Lake
�
State-of-the-art lifestyle shopping center will be a regional destination
�
In total, the mall will be a 1,000,000-square-foot luxury mixed-use development
�
Less than a two minute walk from The Canopy Above the Lake
�
Will feature both Whole Foods and Trader Joe’s
�
Phase one set to be completed in the fall of 2017
A Rapidly Growing Downtown Kirkland Core
Sought-After Submarket
�
The Eastside, Kirkland included, features some of the best schools in the State
of Washington
�
The single-family home and condominium market is very strong; Ranked “Red
Hot” by Zillow.com
�
Additional retail - The Bellevue Collection, The Bravern, Redmond Town
Center - all within eight miles of the development site
Limited Supply of Development Sites Available
�
Minutes from Redmond and Bellevue
�
Rare investment opportunity in one of the strongest markets in the Nation
�
Microsoft world headquarters is seven miles from the development site
�
Lack of available large sites in the Bellevue and Kirkland markets will
�
Google’s engineering office is four miles from the development site
contribute to limited future supply, especially in this type of location with views
�
One of the Tightest Real Estate Markets in the Nation
�
of Lake Washington
Development sites within the immediate area have been sold in excess of
$70,000 per door
Kirkland median home value is $571,000, increasing 14.5% in the past year.
$343 per foot, $129 higher than the Seattle metro average
�
Kirkland is currently experiencing occupancy rates of 97.3% per Dupre +
Scott for multifamily properties
�
The five-year market occupancy is 95.4%
�
Market rents in the Totem Lake submarket have increased 37.6% since 2011
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
Zillow predicts an additional 6.7% increase this year. The median list price is
5
1
THE OPPORTUNITY
THE OPPORTUNITY
The Village at Totem Lake
feet of retail and 600,000 square feet of total development. This
The Village at Totem Lake is an open-air, lifestyle center that will combine
includes improvements to 120 Avenue NE
th
approximately 1,000,000 square feet of high-end retail and entertainment,
and luxury dwellings. This massive redevelopment will cover 26 acres and be
well over a $200,000,000 investment. This destination shopping center will
feature both gourmet grocers Whole Foods and Trader Joe’s which will play a
huge part in the development. National studies by Zillow show that home
values within a one-mile radius of a Whole Foods or Trader Joe’s increased
10% within two years of opening. Both Whole Foods and Trader Joe’s are
specific in selecting their locations, typically based on strong demographics,
Totem Lake is designated as an Urban Center, meaning Totem Lake is a hub
for planned regional growth, and expected to have high-density housing and
employment, specifically 15,000 jobs within a half-mile of a transit center.
The area currently is home to Kirkland’s largest employer, Evergreen Health,
and the city estimates the Totem Lake area will grow from 5,500 to 9,800
people by 2030 with housing rising up to 6,000 units. There is an expected
11,500 to 29,000 person growth in employment.
which is the case in Kirkland and the Totem Lake submarket. This revitalized
shopping center will become a regional destination and the ultimate
gathering place for Kirkland and other Eastside residents.
There are 2,117 residential units in review in and around the area. There
also are office and community proposals coming in, thanks in part to
excitement created by The Village at Totem Lake.

th
Development of 120 Avenue NE - pedestrian oriented, strategic
placement of trees and landscaping

The Canopy Kirkland views the mall as a key component of its
overall economic growth and has targeted the redevelopment as a
primary goal

Purchased by Totem Lake LLC - joint venture between CenterCal
6
THE CANOPY ABOVE THE LAKE
and PCCP, LLC

Mixed-use development totaling 1,000,000 square feet

538,600 square feet of retail and entertainment, 130,000 square
feet of office, 650-seat movie theater, 395 residential units, and a
parking structure

The city of Kirkland will contribute $15,000,000 in site
improvements once CenterCal completes at least 250,000 square
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE OPPORTUNITY
THE OPPORTUNITY
The Canopy Above the Lake will provide investors with a rare opportunity to develop a 57-unit, luxury apartment complex in
one of Kirkland's most rapidly growing and most desirable submarkets. This highly sought-after Eastside location is minutes
from downtown Bellevue, steps from The Village at Totem Lake, and near the shores of Lake Washington. The Totem Lake
submarket is positioned three miles north of downtown Kirkland and seven miles northwest of Redmond, home to technology
industry leader Microsoft.
The Canopy Above the Lake is a two-minute walk from the $200 million redevelopment, The Village at Totem Lake, set for
completion in the fall of 2017. Whole Foods and Trader Joe's will be two of the anchor tenants of the mall that will feature
roughly 300,000 square feet of retail and entertainment. Evergreen Hospital is also walking distance from the property and
the submarket's largest employer. Surrounded by a plethora of medical employers and in the heart of the Eastside's Tech
corridor, this central location will be highly sought after by both residents and investors alike for years to come.
Development Opportunity in a Premier Eastside Location
This irreplaceable location in Kirkland's Totem Lake submarket is one of the Nation's most highly sought-after locations to
own multifamily investors in the country. As land constraints continue to become more prevalent, this type of asset will
become increasingly rare.
Located in the heart of the High-Tech Corridor, this premier location offers a convenient commute to Boeing and the quickly
expanding cadre of aerospace suppliers in South Everett, as well as the UW Bothell Campus, Cascadia College, and the
Canyon Park and North Creek business parks. Bothell is only five minutes away and is redefining its historically quiet town
feel with vibrant new developments.
The burgeoning medical community in Totem Lake is led by Evergreen Health (King County Public Hospital District No. 2),
which is comprised of more than 1.1 million square feet and over 2,600 employees. There are numerous support services
and specialized practices nearby that provide both services and employment base. Virginia Mason's medical center with over
100 employees is directly across from the property. Other medical providers, such as Evergreen Radial Imaging, Proliance,
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
and Pacific Medical are also nearby.
7
1
THE OPPORTUNITY
THE OPPORTUNITY
Employment-Centric Location
Located in the heart of the Eastside that features more than 350,000
jobs, The Canopy Above the Lake is positioned in close proximity to
downtown Kirkland and provides immediate access to employment.
The property is only steps away from Evergreen Hospital and Medical
Center in addition to many other medical employers totaling over
4,500 jobs. Less than seven miles to Bellevue, Bothell, and Redmond,
the property is central to the Eastside's tech hubs. Industry leader
Microsoft's main campus is ten minutes southeast. Even closer to the
property in downtown Kirkland, Google is completing its campus
expansion making it the third-largest engineering office in the
country. This campus hosts nearly 2,000 employees. Furthermore,
downtown Seattle is just a 20-minute drive and contains over
500,000 jobs. With a steadily declining unemployment rate of 3.7%
and ranking among the nation's leaders in wage growth at 2.3%, the
positive forecasts for the greater Seattle area will continue. This
premier location provides easy access to a variety of employment
opportunities for residents.
In Seattle MSA - over 500,000 jobs
8
THE CANOPY ABOVE THE LAKE
Downtown Seattle - 300,000 jobs
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE OPPORTUNITY
THE CANOPY ABOVE THE LAKE
DEVELOPMENT NOTES
The canopy currently has SEPA and Traffic
concurrency approvals from the city of Kirkland to
support the site's development. Additionally, a
parking demand study has been completed,
supporting the project's unit count of 57. In total,
these studies will save the developer 3-4 months
and approximately $25,000, in addition to
providing certainty for the project density.
Intensive geotechnical explorations have been
completed and are available for review. This
information will help the potential developer obtain
reliable information as it pertains to the required
site retainage, as well as another several months in
time and $30,000 in cost savings.
The developer needs to go through the full design
and permitting process with the city of Kirkland.
With a phased permit approach, the development
site could be shovel-ready in summer of 2017.
There is a requirement for the site to participate in
60% of the AMI. In return, the developer will receive
an 8-year tax abatement.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
the ARCH program providing 10% of the units at
9
1
THE OPPORTUNITY
THE OPPORTUNITY
Exceptional Access to Major Transit
The Canopy Above the Lake is positioned less than one-half mile from I-405 and provides easy access to 120th Avenue and
Totem Lake Boulevard. This ideal location is a short walk to both the Kingsgate and Evergreen Hospital Park and Ride, two of
the most frequently traveled stops along the I-405 corridor, with over 500 parking spaces.
In 2007, King County invested over $80 million to develop the HOV direct access ramp above I-405 across 128th Street. This
provides residents with direct access to I-405 both north and south bound in addition to being a Sound Transit Express stop.
Metro Routes via Totem Lake Park & Ride
235 To Bellevue Departs
7:11 am - Travel Time 20 Minutes
238 To Downtown Kirkland Departs 7:33 am - Travel Time 15 Minutes
244 To Redmond Departs
7:43 am - Travel Time 30 Minutes
252 To Seattle Departs
6:48 am - Travel Time 36 Minutes
277 To U-District Departs
6:51 am - Travel Time 31 Minutes
Sound Transit Express Routes
Express Routes leave every 15 minutes during standard commute hours
535 Bellevue to Vue Kirkland - Travel Time 10 Minutes
10
THE CANOPY ABOVE THE LAKE
532 Vue Kirkland to Everett - Travel Time 45 Minutes
Extraordinary Demographics
Kirkland Median Household Income is $90,455
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE PROPERTY
SITE AERIAL
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
TheCanopy.BerkadiaREA.com
11
1
THE PROPERTY
DEVELOPMENT HIGHLIGHTS
Totem Lake Park
The development of the Totem Lake Park will help complete the makeover of
the Totem Lake submarket. This park is ideally located steps away from The
Canopy Above the Lake and is the ideal amenity for the property. The
Kirkland City Council has approved the Totem Lake Park Master Plan, which
would turn the 17-acre parcel of land and lake into a park with a looping
boardwalk, restroom facility, and play area.
Cross Kirkland Corridor Trail
The Cross Kirkland Corridor Trail is a 5.75-mile stretch of the Eastside’s Rail
Corridor that has been recently retrofitted to accommodate cyclists and
pedestrians. Along the nearly six-mile stretch of trail, there are 1,737
business and 14,486 employees within 2,000 feet of the trail. Residents living
at The Canopy Above the Lake now have direct access via the new trail to the
stunning Kirkland Waterfront.

The city is embracing the opportunity to continue to develop the trail
as a multi-modal transportation corridor
12
The trail connects eight of the 13 Kirkland neighborhoods
THE CANOPY ABOVE THE LAKE

This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
DEVELOPMENT HIGHLIGHTS
THE PROPERTY
Evergreen Health Medical Center
Located two blocks from The Canopy Above the Lake, Evergreen Health
Medical Center is one of the elite hospitals in the Puget Sound, and also
represents Kirkland’s largest employer with over 2,500 employees.

Ranked #3 in Washington, and ranked #2 in Seattle Metro

508 full-time physicians and nurses, 656 part-time physicians and
nurses

With 293 beds, the hospital had over 15,000 admissions last year

In 2007, underwent a 50,000-square-foot expansion of its
emergency departments in addition to a new 200,000-square-foot,
eight-story patient and facility tower
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
TheCanopy.BerkadiaREA.com
13
1
14
THE CANOPY ABOVE THE LAKE
THE PROPERTY
AREA HIGHLIGHTS
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE PROPERTY
PROJECT STATISTICS
Lot Size: 48,166 Square Feet
Units: 57
Zoning: TL8
Parcel Number: 8663270011
Average SF: 901
Average Rent: $2,098
Rent / SF: $2.33
Comparable Properties Market Occupancy: 96.8%
SEPA Including Traffic Concurrency Approval
Short PLAT Complete
Overlooking Totem Lake
Steps from The Village at Totem Lake
THE CANOPY ABOVE THE LAKE
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
15
1
THE PROPERTY
STRONG LOCAL EMPLOYERS DRIVE ECONOMY
Google - The Kirkland Google campus is located four miles from The Canopy Above the Lake, and is currently the
third-largest Google campus in the country. The 180,000-square-foot planned expansion will nearly double the size of the
campus and will host another 1,000 employees. Google recently surpassed Microsoft for total employees worldwide. The
average Google software engineer salary is $127,143.
Microsoft - Microsoft is one of Puget Sound's largest employers with over 43,000 local employees occupying over
14,000,000 square feet of space. Microsoft's headquarters are 6.5 miles southeast via surface streets. The main campus
occupies 10,000,000 square feet of space and hosts over 30,000 employees.
Boeing - Located 17 miles north of Kirkland, Boeing has over 84,000 employees locally. In 2013, the new 777x received
over $95 billion in orders and will begin production in 2017. In 2014, Boeing set a record with 1,432 net commercial
orders, the most ever in a single year. The commercial orders are valued at $232.7 billion at list price. The aerospace leader
will also begin construction on its new 1,000,000-square-foot plant and warehouse for the 777x wing in the near future,
16
THE CANOPY ABOVE THE LAKE
creating even more jobs in the Puget Sound region.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE PROPERTY
STRONG LOCAL EMPLOYERS
Amazon - Amazon.com employs approximately
25,000 locally in nearly 4,000,000 square feet of
space between downtown Seattle and the South
Lake Union campus. The online giant has begun
building three, 500-foot towers encompassing
3,000,000 square feet adjacent to their South Lake
Union Campus in the Denny Triangle. This is a
game changer in any region and will undoubtedly
cause a spin-off of a multitude of businesses and
job growth throughout the region, in addition to the
company's own hiring surge, which could double
the current employment.
Diverse Employment Base - In addition to
Microsoft, Boeing, Google, Lake Washington
Institute, and Evergreen Healthcare, the area is
home to a plethora of diverse employment. Puget
Sound Energy, Paccar, T-Mobile, and Esterline
Technologies, all among the state's largest public
companies, are located in nearby Bellevue. Bellevue
is also home to Coinstar, Drugstore.com, Esterline
Corp., Eddie Bauer, Genie Industries, and AT&T, as
well as the regional headquarters of Symetra
Financial. Nearby Redmond is home to 21% of the
state's biotech companies, including Spacelabs
Medical and Physio-Control.
major employment centers of Seattle, Bellevue,
Everett and the Eastside Technology Corridor.
According to forecasts from the Puget Sound
Regional Council, Kirkland will see the addition of
more than 25,600 new jobs before 2040, bringing
its total employment to over 58,000. The region is
ranked second in job growth in addition to ranking
first in wage growth.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
Regional Job Growth - Kirkland is close to the
17
1
THE PROPERTY
THRIVING MARKET - RENTAL INCREASES
The Kirkland submarket has proven to be extremely strong over the past five years with a
strong occupancy trending above 96%. Currently, properties built from 2010 to 2015 are
posting average occupancy of 98.4%, while average rents continue to trend upwards. From
Q1 2015 to Q4 2015, average market rents in Kirkland have increased 11.55%, according
to AXIOMetrics. New product within the submarket has recently come online including
properties such as Slater 116, Ondine at Juanita Bay, and Waterscape at Juanita Village.
These properties are all achieving rents approaching $2.50 per square foot. These current
rent levels in Kirkland, Juanita, and Totem Lake provide compelling evidence that the market
supports continued rental increases and strong rents at The Canopy Above the Lake, once
fully stabilized.
J uan i ta
Properties built since 2010 average rents of $2.14 per square foot and $1,805 per
month. Market rents increased 14% over the past 24 months.
Woodinville | Totem Lake
Properties built since 2010 average rents of $1.89 per square foot and $1,574 per
month. Market rents increased 15% over the past 24 months.
Redmond
Properties built since 2010 average rents of $2.66 per square foot and $1,831 per
18
THE CANOPY ABOVE THE LAKE
month. Market rents increased 13% over the past 24 months.
Comparable Property Highlights
Rents at Waterscape at Juanita Village, Ondine at Juanita Bay, and Slater 116 are
above $2.35 per square foot, while Chelsea at Juanita Village is $2.08 per square
foot.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE PROPERTY
KIRKLAND RANKINGS
2015 Money Magazine #5 Best Place to Live in
U.S.
2015 Sotheby's International Realty Top Five Most
Expensive Neighborhoods
2014 Money Magazine Top 50 Places to Live
2014 Washington's best Small City to Live
2016 Lake Washington School District Ranks 9 of
10 - greatschools.org
THE CANOPY ABOVE THE LAKE
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
19
1
THE PROPERTY
SEATTLE RANKINGS
#1 - City in U.S. to Find a Job - Wallet Hub 2015
#1 - Fastest Growing Big City in the U.S. - U.S.
Census Bureau
#1 - Highest Job Growth for Small Businesses in
the U.S. - Paychex
#1 - Nation's Most Sustainable City - STAR
Communities
#2 - Best City for Recent College Graduates
- Nerdwallet.com
#3 - Best Market in North America for Hotel
Property Investment 2015 - ULI
#4 - Best Market in North America for Office
Property Investment 2015 - ULI
#5 - Best U.S. City for Tech Startups
20
THE CANOPY ABOVE THE LAKE
- Entreprenuer.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE PROPERTY
MARKET HIGHLIGHTS
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
TheCanopy.BerkadiaREA.com
21
1
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS - STABILIZED
Unit Mix & Rent Schedule
Units
8
18
21
4
1
2
2
1
57
Type
Open 1 Bed
1 Bed/1 Bath
1 Bed/1 Bath Plus Den
2 Bed/2 Bath
Open 1 Bed - A
1 Bed/1 Bath - A
1 Bed/1 Bath Plus Den - A
2 Bed/2 Bath - A
Unit
SF
750
850
950
1,150
750
850
950
1,150
901
Total
SF
6,000
15,300
19,950
4,600
750
1,700
1,900
1,150
51,350
Market
Rent
$1,900
$1,975
$2,295
$2,850
$1,508
$1,508
$1,508
$1,698
$2,098
Monthly
Mkt. Rent
$15,200
$35,550
$48,195
$11,400
$1,508
$3,016
$3,016
$1,698
$119,583
Annual
Mkt. Rent
$182,400
$426,600
$578,340
$136,800
$18,096
$36,192
$36,192
$20,376
$1,434,996
Income
Scheduled Market Rent
Less: Vacancy
Less: Non-Rev/Bad Debt/Adjust
Net Rental Income
5.00%
0.25%
Plus: RUBS Income
Plus: Other Income
Total Operating Income (EGI)
Per Unit
$193
$246
$1,500
$526
$785
$1,202
$175
$421
$219
$200
3.00%
Per Unit:
Per SF:
22
THE CANOPY ABOVE THE LAKE
Net Operating Income
Less: Debt Service
Projected Net Cash Flow
Total Economic Loss
Whisper Price
Middle Strike
Low Strike
$11,000
$14,000
$85,500
$30,000
$44,750
$68,500
$10,000
$24,000
$12,500
$16,000
$316,250
5.86%
6.67%
7.49%
1.64
Price
$25,550,000
$24,240,000
$23,050,000
$/Unit
$448,246
$425,263
$404,386
$/SF
$497.57
$472.05
$448.88
Price
Price/Unit
Price/SF
Pro Forma Cap Rate
$25,550,000
$448,246
$497.57
4.60%
ALL FINANCING
Total Loan Amount
Down Payment
LTV
Mo. Payment
Debt Constant
$17,885,000
$7,843,850
70%
($59,617)
4.00%
NEW FIRST MORTGAGE (to be originated at purchase)
LTV for this loan
Amount
Interest Rate
Amortization
Payment
Fees
I/O Term (Yrs)
70%
$17,885,000
4.00%
Interest Only
($59,617)
1.00%
2
A = Affordable Units
$5,548
$6.16
$1,175,409
($715,400)
$460,009
5.3%
Cash-on-Cash Return (Based on List Price)
Cash-on-Cash Return (Based on High Strike)
Cash-on-Cash Return (Based on Low Strike)
Debt Service Coverage
Cap Rate Analysis
Berkadia
Pro Forma
$1,434,996
($71,750)
($3,587)
$1,359,659
$52,000
$80,000
$1,491,659
Expenses
Administrative
Advertising & Promotion
Payroll
Repairs & Maintenance/Turnover
Management Fee
Utilities
Contracted Services
Real Estate Taxes
Insurance
Replacement Reserve
Total Expenses
INVESTMENT SUMMARY
Rent/SF
$2.53
$2.32
$2.42
$2.48
$2.01
$1.77
$1.59
$1.48
$2.33
Cap Rate
4.60%
4.85%
5.10%
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output
produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information
contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be
reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been
included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed
to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.
© 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage®
are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by
Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses
are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real
Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance
Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing
details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
NOTES TO PRO FORMA
EXPENSE ASSUMPTIONS
Scheduled Market Rent: Pro Forma Scheduled Market Rent is based on analysis of trends
in the Kirkland rental market. The rents received at comparable properties and data from
apartment research firm Dupre + Scott.
Expenses: Pro Forma Expenses are based on Berkadia research and data from apartment
research firm Dupre + Scott.
§
Juanita
o
Assets 2010 and newer average $2.14 per square foot and $1,805 per month
o
Market rents increased 16.60% over the past 24 months
§
Woodinville | Totem Lake
o
Assets 2010 and newer average rents in Juanita $1.89 per square foot and $1,574 per month
o
Market rents increased 16.50% over the past 24 months
Vacancy: Pro Forma Vacancy is underwritten at 5.00% of Gross Potential Rent, per
industry standard. The overall Vacancy for the Kirkland market is 2.7%, per data from
apartment research firm Dupre + Scott.
FINANCIAL ANALYSIS
INCOME ASSUMPTIONS
Property Taxes: This model assumes a tax liability based on participation in the ARCH
affordable housing program. In this scenario, the tax liability is based solely the assessed
value of the land for 10 years. At the end of the 10 years the taxes will be reassessed and
will consider both the value of the land as well as improvements. In exchange for the tax
abatement, rents on 10% of the units (across all unit types) at the property are restricted to a
level that is deemed affordable for a renter or renters earning 80% of the median income in
the area (AMI). The affordable rents in this package are the projected 2018 amounts.
Replacement Reserves: The Pro Forma Replacement Reserve is underwritten at $200 to
reflect the vintage and quality of the property.
Concessions: Pro Forma Concessions are underwritten at 0.00% of GPR to reflect the operations
at the property post-stabilization. The vast majority of comparable properties in the Kirkland
market have not recently offered concessions nor are they currently offering concessions.
Non-Revenue / Bad Debt / Adjustments: Pro Forma Non-Revenue / Bad Debt / Adjustments
are underwritten at 0.25% of GPR.
RUBS Income: Pro Forma RUBS is underwritten at $912 per unit or $76 per month and this
number is based upon Berkadia research and data from Dupre + Scott. Utilities are billed
back only for the market rate apartments.
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may
not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.
© 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and
servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker
Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
Other Income: Pro Forma Other Income is underwritten at $1,403 ($117 / month)
per unit. Notable items are likely to include parking revenue, month-to-month premiums
and turnover collections.
23
1
MARKET POSITIONING
COMPARABLE SALE PROPERTIES
S
THE CANOPY ABOVE THE LAKE
UNITS:
AVG SF:
LIST PRICE:
CAP RATE:
CAPRI
1
12410 NE Totem Lake Way
Kirkland, WA 98034
57
901
Unpriced Development
Opportunity
4.60%
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
WESTWATER
2
2001
62
$396,774
$438.40
905
$24,600,000
12/15
5.2%
THE CANOPY ABOVE THE LAKE
24
2015
208
$349,760
$501.96
697
$72,750,000
10/15
4.6%
SIX OAKS
5
16175 Cleveland Street
Redmond, WA 98052
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
8280 164th Avenue NE
Redmond, WA 98052
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
OLD TOWN LOFTS
4
2016
73
$550,685
$729.72
755
$40,200,000
8/16
4.2%
THE LUKE
3
221 1st Street
Kirkland, WA 98033
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
324 Central Way
Kirkland, WA 98033
2014
149
$353,671
$456.89
774
$52,697,000
10/15
4.6%
18333 Bothell Way NE
Bothell, WA 98011
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
2014
203
$310,345
$410.11
757
$63,000,000
10/15
4.8%
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
PARK METRO
6
ELAN REDMOND
7
11101 NE 12th Street
Bellevue, WA 98004
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
MARKET POSITIONING
COMPARABLE SALE PROPERTIES
2013
74
$393,176
$466.30
843
$29,095,000
2/15
4.7%
16325 Cleveland Street
Redmond, WA 98052
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
2013
134
$372,388
$427.03
872
$49,900,000
12/14
4.4%
WATERSCAPE AT JUANITA VILLAGE
8
11801 97th Lane NE
Kirkland, WA 98034
BUILT:
UNITS:
PRICE / UNIT:
PRICE / SF:
AVG SF:
SOLD FOR:
CLOSED ON:
CAP RATE:
2013
196
$383,673
$417.39
919
$75,200,000
9/14
4.1%
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
TheCanopy.BerkadiaREA.com
25
1
MARKET POSITIONING
COMPARABLE SALE PROPERTIES MAP
Subject: The Canopy Above the Lake
12411 NE Totem Lake Way
Kirkland, WA 98034
Capri
324 Central Way
Kirkland, WA 98033
2.
Westwater
221 1st Street
Kirkland, WA 98033
3.
The Luke
8280 164th Avenue NE
Redmond, WA 98052
4.
Old Town Lofts
16175 Cleveland Street
Redmond, WA 98052
5.
Six Oaks
18333 Bothell Way NE
Bothell, WA 98011
6.
Park Metro
11101 NE 12th Street
Bellevue, WA 98004
7.
Elan Redmond
16325 Cleveland Street
Redmond, WA 98052
8.
Waterscape at Juanita Village
11801 97th Lane NE
Kirkland, WA 98034
THE CANOPY ABOVE THE LAKE
26
1.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
MARKET POSITIONING
COMPARABLE RENTAL PROPERTIES
– Subject
The Canopy Above the Lake
12410 NE Totem Lake Way
Kirkland, WA 98034
Units:
Avg SF:
Avg Rent:
Avg Rent / SF:
Waterscape at Juanita Village
11801 97th Lane NE
Kirkland, WA 98034
196
2013
919
$2,182
$2.37
96.9%
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
Slater 116
12340 NE 115th Place
Kirkland, WA 98034
102
2012
728
$1,772
$2.43
97.1%
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
Capri
324 Central Way
Kirkland, WA 98033
108
2013
757
$1,747
$2.31
98.1%
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
73
2016
755
$2,307
$3.06
48%
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
Ondine at Juanita Bay
11702 98th Avenue NE
Kirkland, WA 98034
57
901
$2,098
$2.33
27
1
MARKET POSITIONING
COMPARABLE RENTAL PROPERTIES
Westwater
221 1st Street
Kirkland, WA 98033
28
62
2001
905
$2,603
$2.88
97%
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
Milehouse
8300 160th Avenue NE
Redmond, WA 98052
196
2002
958
$1,998
$2.08
94%
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
The Luke
8280 164th Avenue NE
Redmond, WA 98052
177
2015
827
$2,148
$2.60
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
208
2015
697
$1,933
$2.77
99.5%
THE CANOPY ABOVE THE LAKE
Units:
Built:
Avg SF:
Avg Rent:
Avg Rent / SF:
Occupancy:
Chelsea at Juanita Village
11718 97th Lane NE
Kirkland, WA 98033
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
TWO BED
$900
$600
$300
$2,800
$2,000
$1,600
$1,200
$800
$400
$0
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
Milehouse | $2,058
Capri | $2,088
Waterscape at Juanita Village | $2,109
The Canopy Above the Lake | $2,620
Waterscape at Juanita Village | $2,700
Westwater | $3,064
Westwater | $2,322
The Canopy Above the Lake | $2,048
The Luke | $2,607
THE CANOPY ABOVE THE LAKE
Capri | $3,150
Chelsea at Juanita Village | $1,783
$2,400
Milehouse | $2,606
Average
$2,623
The Luke | $1,782
$3,200
Ondine at Juanita Bay | $2,538
$0
Slater 116 | $1,721
$1,500
Slater 116 | $2,412
Ondine at Juanita Bay | $1,704
$1,200
Chelsea at Juanita Village | $2,374
ONE BED
$2,400
$2,100
Average
$1,891
$1,800
MARKET POSITIONING
COMPARABLE RENTAL PROPERTIES - GRAPHS
29
1
MARKET POSITIONING
COMPARABLE RENTAL PROPERTIES MAP
Subject: The Canopy Above the Lake
12410 NE Totem Lake Way
Kirkland, WA 98034
Waterscape at Juanita Village
11801 97th Lane NE
Kirkland, WA 98034
2.
Ondine at Juanita Bay
11702 98th Avenue NE
Kirkland, WA 98034
3.
Slater 116
12340 NE 115th Place
Kirkland, WA 98034
4.
Capri
324 Central Way
Kirkland, WA 98033
5.
Westwater
221 1st Street
Kirkland, WA 98033
6.
Chelsea at Juanita Village
11718 97th Lane NE
Kirkland, WA 98033
7.
Milehouse
8300 160th Avenue NE
Redmond, WA 98052
8.
The Luke
8280 164th Avenue NE
Redmond, WA 98052
THE CANOPY ABOVE THE LAKE
30
1.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
KIRKLAND, WASHINGTON
Market Overview
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE MARKET
KIRKLAND, WASHINGTON
Situated on the eastern shore of Lake Washington, the affluent city of Kirkland is an upscale community located 10 miles from
Seattle. Kirkland is the sixth-largest city in King County and part of the Seattle-Tacoma-Bellevue MSA, the most-populated
metro area in Washington. Kirkland offers its own thriving employment base while providing access to employment centers
in Seattle, Redmond, and Bellevue. With a median household income of $94,000, among the highest in the state, Kirkland
continues to attract new residents and prominent businesses. The city’s high quality of life and pro-business environment fuel a
strong demand for local housing.
Ranked
No.
25
for Millennials in Seattle”
Places to Live in Country”
(NICHE, 2015)
(LIVABILITY, 2016)
“Best
Ranked Among “50 Safest
Ranked No. 2 “Washington
Cities in Washington”
Cities for Families”
(BACKGROUNDCHECK, 2016)
(APARTMENT LIST, 2016)
THE CANOPY ABOVE THE LAKE
32
Ranked No. 1 “Best Suburb
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
KIRKLAND, WASHINGTON
THE MARKET
ECONOMIC QUICK-FACTS
The services sector accounts for more than half of all jobs held by Kirkland residents, followed by manufacturing
(11.7%), retail trade (10.8%), and finance / insurance / real estate (8.7%). Approximately 80% of employed city
residents work in white-collar positions.
The Puget Sound Regional Council forecasts that Metro Seattle will add more than 1.2 million new jobs by
2040, equating to an increase of 64% and bringing the regional jobs base to more than 3.1 million.
Retail powerhouse Costco, formerly headquartered in Kirkland for many years, was inspired by its home town to launch the
Kirkland Signature, private-label brand that has made Kirkland a household name for millions of consumers worldwide.
Kirkland Google Office
Google celebrated its 10-year anniversary in Kirkland after having opened its first office in 2004, and has rapidly
expanded, occupying much larger spaces. By year-end, Google will double the size of their Kirkland campus, creating
room to hire 1,000 more employees.
Key employment corridors in Kirkland include the downtown, Carillon Point, and Totem Lake areas. Top employers
include Google, Nintendo, PACCAR’s Kenworth Truck Company, Astronics, WB Games, Wave Broadband,
Griptonite Games, Inrix, Tableau, and Bluetooth Special Interest Group.
Kirkland is expecting a growth spurt to accommodate 8,361 new housing units and 22,435 new jobs by 2035, which
averages out to about 363 housing units per year and 975 jobs per year. In comparison, from 2006 to 2011 the city
gained about 1,500 housing units for the 6-year period or around 250 units per year.
Evergreen Healthcare
The availability of local jobs per local household ratio is 1.63 in Kirkland, equating to more than half as many jobs
as households. The ratio is higher than King County (1.44) and notably higher than the combined ratio of the four
county region of King, Snohomish, Pierce, and Kitsap counties.
Continental Properties is constructing two five-story mixed-used developments in downtown Kirkland. The project
on Third Street includes a 130-unit apartment building with 13,000 square feet of commercial space. Almost 8,000
square feet of commercial space and 76 units are being built on Central.
Totem Lake Urban Center
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
Totem Lake Urban Center is almost nine times the size of the downtown business district and may become the new
future of Kirkland with its proximity to Microsoft in Redmond and Woodinville wine country. Evergreen Medical Center
also has room to grow, possibly adding a new comprehensive cancer care center in its hospital complex.
33
1
POPULATION
UNEMPLOYMENT
INCOME
From 1990 to 2016, the population of Kirkland
increased 26.7%, growing from 41,624 residents to
an estimated 52,728 people.
The city of Kirkland’s unemployment rate was 4.1%
in March 2016, up 40 basis points year over year.
Even with the increase, local unemployment remained
below the five-year average of 4.4%.
Due to the proliferation of high-wage jobs in the
city of Kirkland, the median household income rose
from $38,748 in 1990 to an estimated $94,014 in
2016, equating to an increase of 142.6%.
Over the year ended in March 2016, the Seattle
metropolitan area noted employment growth of 3.1%,
equating to the addition of 57,500 nonfarm jobs.
The city’s median household income is projected to
reach $101,092 by 2021, up 7.5% from 2016.
The city’s population is projected to reach 55,704
people by 2021, equating to a 1.1% average annual
increase, outpacing the projected national rate of
0.8% annually over the same period.
According to Moody’s, Seattle metro headcounts will
grow 2.1% annually in 2016, followed by a 2.0%
gain in 2017. These increases would result in the net
addition of 78,600 jobs over the next two years.
POPULATION TREND
KIRKLAND, WA
ANNUAL UNEMPLOYMENT RATES
KIRKLAND, WA
MEDIAN HOUSEHOLD INCOME
CITY OF KIRKLAND
$125,000
60,000
34
2016*
2021*
$25,000
$0
1990
30,000
1990
*PROJECTED
2000
2010
2016*
2021*
$60,399
55,704
52,728
$50,000
2000
$101,092
2010
$75,000
$94,014
2000
48,766
40,000
44,821
50,000
30,000
1990
$100,000
41,624
55,704
48,766
44,821
41,624
THE CANOPY ABOVE THE LAKE
50,000
52,728
60,000
40,000
More than 46% of Kirkland households earn
$100,000 or more annually, two times the
projected national household amount of 23%.
$38,748
THE MARKET
KIRKLAND, WASHINGTON
2016*
2021*
*PROJECTED
*PROJECTED
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
KIRKLAND, WASHINGTON
RENT
Kirkland has become an attractive city for the
millennial cohort due to the available jobs in hightech industries and companies like Google, Amazon,
and Microsoft. With 15% of the city’s population
between the ages of 25 to 35, the population growth
contributing to improved vacancy rates.
Lower vacancy rates are also supporting steady
rent growth. In March 2016, the average rent in
the Kirkland / Juanita submarket was $1,793 per
month, up 6.2% year over year.
The Kirkland / Juanita submarket’s average
apartment vacancy rate was 4.2% in March 2016,
down 50 basis points year over year.
THE MARKET
VACANCY
The average rent is projected to finish the year at
$1,788 per month, up 4.7% from the close of 2015.
Average rent in this market has increased
40.3% since 2010.
Vacancy is projected to be between 4.3% and
4.6% through the end of 2016.
AVERAGE APARTMENT VACANCY RATE
KIRKLAND / JUANITA SUBMARKET
AVERAGE APARTMENT RENT
KIRKLAND / JUANITA SUBMARKET
5.5%
3.5%
$1,788
$1,707
$1,675
$1,554
$1,388
$1,200
$1,307
$1,400
$1,275
4.6%
4.6%
5.2%
4.8%
4.5%
4.0%
$1,600
$1,000
2010 2011 2012 2013 2014 2015 2016*
2010 2011 2012 2013 2014 2015 2016*
*PROJECTED
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
4.5%
4.9%
5.0%
5.3%
$1,800
35
1
THE MARKET
KIRKLAND, WASHINGTON
ECONOMY / EMPLOYMENT
A number of small businesses and industries, such as light industrial and
manufacturing, and a growing number of high-tech companies comprise
Kirkland’s economy. Other major industries include health care, financial
services, insurance, and real estate.
Local businesses in Kirkland benefit from the city’s convenient access to major
transportation routes, desirable office space, and a location in the midst of the
dynamic Eastside market.
Evergreen Healthcare, with more than 3,760 employees, is Kirkland’s largest
employer, operating the 275-bed Evergreen Hospital Medical Center in the city.
CITY OF KIRKLAND
LARGEST EMPLOYERS
Evergreen Healthcare
Lake Washington School District
Google Inc.
City of Kirkland
Kenworth Truck Co.
Astronics Advanced Electronic Systems
Costco Wholesale
Isoftstone Inc.
Wave Broadband
ATG Stores
City of Kirkland CAFR, 2014
EDUCATION
36
THE CANOPY ABOVE THE LAKE
As indicated by the exceptionally high income in Kirkland, city residents
are also highly educated, with 58.0% of those ages 25 and older having
bachelor’s degrees or higher, compared to 28.1% nationally.
Kirkland residents are served by the Lake Washington School District,
which enrolled 27,830 students in the fall of 2015. The district includes 31
elementary schools, 13 junior high schools, and nine high schools. According
to the district, student standardized test scores are generally 15% to 20%
higher than statewide averages.
Kirkland is a higher education hub with more than 15 colleges and universities
within 15 miles of the city. Located in Kirkland, Lake Washington Institute of
Technology is a vocational school with over 4,800 students, as is Northwest
University, a private institution with an enrollment of 1,862 students.
Lake Washington Institute of Technology
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
3,762
1,112
774
580
410
388
318
272
268
253
KIRKLAND, WASHINGTON
THE MARKET
DEVELOPMENT / CONSTRUCTION
GOOGLE KIRKLAND CAMPUS
TOTEM LAKE MALL
Seattle-based Talon Private Capital and
Prudential announced the mega mixed-use
project planned for downtown Kirkland.
Heralded as the largest project the city will
see in a century, the 11-acre redevelopment
project will include 225,000 square feet
of retail / entertainment space, 300,000
square feet of apartment homes, and
650,000 square feet of Class A office
space. Plans include a movie theater, 325
hotel rooms, and a QFC grocery store.
Kirkland Urban will support over 5,000 jobs
at build-out. Development of the project will
occur in three to four phases over the next
seven to eight years with phase one slated
to complete by year-end 2018.
Google completed construction on an
180,000-square-foot
expansion
on
the existing Google Kirkland campus
in the first quarter 2016. The Kirkland
campus already is Google’s third-largest
engineering center in the country while
the company generates a $3.5 billion
impact on the region. The Kirkland
campus expansion doubled its size and
will accommodate about 1,000 additional
employees. The entire Google Kirkland
campus is now 375,000 square feet.
In April 2015, CenterCal Properties
purchased the two-story enclosed mall for
$35.5 million with plans to redevelop it. The
$200 million project includes: demolition
and construction of buildings, addition
of new parking structures, a redesigned
public plaza, and a new lower mall east
/ west connection. The redevelopment will
be done in phases over several years and
upon completion will include up to one
million square feet. The city will invest up
to $15 million in public improvements.
The 26-acre mall site is located within the
860-acre Totem Lake Urban Center and
the Totem Lake Business District which also
have revitalization plans.
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
KIRKLAND URBAN
37
1
THE MARKET
KIRKLAND, WASHINGTON
TRANSPORTATION
Kirkland is located on the eastern shore of Lake Washington, just north of Bellevue and west of Redmond.
Access from the north or south is available from Interstate 405. State Route 908 connects Kirkland with
Redmond to the east, while state Route 520 travels west across Lake Washington to Seattle. Kirkland is only
10 miles east of downtown Seattle and 20 minutes northeast of Sea-Tac International Airport.
King County is served by King County Metro Transit, a county-wide bus network, and by Sound Transit, a
three-county multimodal transit network serving the urban areas of King, Pierce, and Snohomish counties.
King County Metro Transit serves more than 2 million residents with 214 buses, trollies, and dial-a-ride
transit routes over 2,000 square miles.
38
THE CANOPY ABOVE THE LAKE
In late 2009, the Port of Seattle purchased a 42-mile rail corridor linking Renton and Snohomish from BNSF
Railway. Sound Transit is considering purchasing rights to use parts of the old line to use for the Eastside rail
extension. In April of 2012, the city of Kirkland finalized on the purchase of 5.75 miles of the rail corridor
running between the two Google campuses and along 1,700 other businesses. In August of 2015, the
city’s Transportation Commission began work on a master plan for the Cross Kirkland Corridor, which
runs through three of the city’s key business districts. Development could include recreational uses, such
as a bike / pedestrian trail, as well as being part of the planned light-rail extension.
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
KIRKLAND, WASHINGTON
THE MARKET
DEMOGRAPHICS
TOTAL POPULATION
MEDIAN AGE
2010
44,821
2010
37.4
2016*
52,728
2016*
39.6
2021*
55,704
2021*
41.4
Growth Rate (2016 – 2021)
5.6%
TOTAL HOUSEHOLDS
MEDIAN HOME PRICE
2010
22,409
March – 2015
$473,800
2016*
24,198
March – 2016
$539,900
2021*
25,542
Growth Rate Y-o-Y
Growth Rate (2016 – 2021)
14.0%
6.5%
MEDIAN INCOME
RENT VS. OWN
2010
$80,317
Average Mortgage Payment*
$2,887
2016*
$94,014
Average Rent
$1,761
2021*
$101,092
Difference
$1,094
Growth Rate (2016 – 2021)
7.5%
2010
$99,367
2016*
$123,032
2021*
$131,834
Growth Rate (2016 – 2021)
* Projected
7.2%
Sources: Berkadia; ESRI Business Information Solutions;
U.S. Census Bureau; U.S. Bureau of Labor Statistics; Apartment
List; Livability; Fortune / Money.CNN.com; BackgroundCheck;
Forbes; Moody’s; Wikipedia; Axiometrics; City of Kirkland; King
County; Kirkland Chamber of Commerce; Puget Sound Regional
Council; Bureau of Labor Statistics; City of Kirkland; Economic
Development Council of Seattle & King County; DataQuick; Puget
Sound Business Journal; The Seattle Times; Evergreen Health;
Kirkland Urban; Lake Washington School District; Kirkland Patch;
Kirkland Reporter; Kirkland Views; Seattle King County Realtors;
CenterCal Properties; DLR Group; Zillow.com.
TheCanopy.BerkadiaREA.com
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
THE CANOPY ABOVE THE LAKE
AVERAGE INCOME
* 30-yr fixed; 20% down; 4.15% interest rate; 1.75% property taxes
39
1
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
DISCLAIMER & CONFIDENTIALITY AGREEMENT
The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is
not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors.
In accepting this, the recipient agrees to keep all material contained herein confidential.
This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in
the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for
a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors and seller have not made any investigation of the actual property, the
tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential
environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this
information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors and Seller have not conducted any
investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information
TheCanopy.BerkadiaREA.com
provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future
performance of the property.
SEATTLE OFFICE
601 Union Street, Suite 3909
Seattle, WA 98101
206.521.7220 | Fax: 206.521.7222
Berkadia Real Estate Advisors and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial
aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their
tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.
All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the
BerkadiaREA.com
|
ApartmentUpdate.com
health of some individuals. Berkadia Real Estate Advisors recommends, if prospective buyers have questions or concerns regarding this issue, that
prospective buyers conduct further inspections by a qualified professional.
The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole
and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have
executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.
For more information on these and other Berkadia Real Estate Advisors exclusive listings, please call or visit our website at www.BerkadiaREA.com
Berkadia Real Estate Advisors is the nation's largest real estate firm focused exclusively on the sale of multifamily properties. All information contained herein is from sources deemed to be reliable; however, it is not
guaranteed. Printed in the USA. All rights reserved.
Copyright 2016 © by Berkadia Real Estate Advisors, Inc.
KENNY DUDUNAKIS
Senior Managing Director
206.521.7216
[email protected]
BEN JOHNSON
Associate Director
206.801.3144
[email protected]
DAVID SORENSEN
Associate Director
206.801.3102
[email protected]
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible
SEATTLE OFFICE
601 Union Street, Suite 3909
Seattle, WA 98101
206.521.7220 | Fax: 206.521.7222
ALBUQUERQUE, NM
CHICAGO, IL
LAS VEGAS, NV
PASADENA, CA
SHREWSBURY, NJ
AMBLER, PA
CLEARWATER, FL
LEAWOOD, KS
PHILADELPHIA, PA
ST. LOUIS, MO
ATLANTA, GA
COLORADO SPRINGS, CO
LENOX, MA
PHOENIX, AZ
TACOMA, WA
AUSTIN, TX
DALLAS, TX
LOS ANGELES, CA
PORTLAND, OR
TAMPA, FL
BAKERSFIELD, CA
DENVER, CO
MANCHESTER, MO
RALEIGH, NC
TEMECULA, CA
BATON ROUGE, LA
DETROIT, MI
MARBLEHEAD, MA
RICHMOND, VA
TEMPE, AZ
BETHESDA, MD
EL SEGUNDO, CA
MIAMI, FL
SACRAMENTO, CA
THE PLAINS, VA
BIRMINGHAM, AL
FRESNO, CA
MIDVALE, UT
SALT LAKE CITY, UT
TROY, MI
BOCA RATON, FL
HOUSTON, TX
NEW YORK, NY
SAN ANTONIO, TX
TUCSON, AZ
BOSTON, MA
IRVINE, CA
NEWPORT NEWS, VA
SAN DIEGO, CA
TULSA, OK
CAMAS, WA
JACKSON, MS
OKLAHOMA CITY, OK
SAN FRANCISCO, CA
WAUKESHA, WI
CAPISTRANO BEACH, CA
JACKSONVILLE, FL
ONTARIO, CA
SCOTTSDALE, AZ
WOODLAND HILLS, CA
CHARLESTON, SC
KANSAS CITY, MO
ORLANDO, FL
SEATTLE, WA
HYDERABAD - INDIA
CHATTANOOGA, TN
a Berkshire Hathaway and Leucadia National company
This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible