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SINGLE TENANT ABSOLUTE NET INVESTMENT OPPORTUNITYOFFERING MEMORANDUM | ORANO FEDERAL SERVICES, LLC | 9530 BEDFORD ST, PASCO, WA
KEVIN S. MURPHY
First Vice [email protected]
JEFF BROOKS
Vice [email protected] IN WASHINGTON
29530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
ORANO FEDERAL SERVICES,LLC
Orano Federal Service, LLC is one of five arms of Orano USA, a subsidiary of Orano, an international nuclear technology and services provider. Orano USA is based out of Washington D.C., working in conjunction with the U.S. Department of Energy as a contractor, not a government entity. Orano Federal Services office provides technology and management services to the Department of Energy for the purpose of decommissioning nuclear energy facilities and federal site cleanup.
SUMMARY
THE OFFERING
The Offering is a 10,275 square foot office building with four years left on lease to Orano, a key servicer of varied projects that support U.S. Department of Energy programs. The building’s high-quality construction with detailed finishes was built-to-suit for the previous tenant Northwest Farm Credit Services, who just relocated for expansion purposes less than a half-mile away. The trade area provides a tight office submarket, further evidenced by the speed in which this space was backfilled. The Property is well-positioned within office submarket directly off I-182 on-off ramps.
INVESTMENT HIGHLIGHTS
Company Orano Federal Services, LLC
Employees 500
Credit Rating S&P: BB +
Headquarters Washington DC
Leasable SF 10,275 SF
Land Area 80,150 SF
Lease Type Absolute Net
Term 5 Years
Year Built 2007
Renovated 2018
Parking 69 Spaces; 6.7/1,000 SF
Price $2,900,000
Cap 6%
CREDIT LEASE to Orano Federal Services, LLC, a leading technology and services provider for nuclear and related energy projects, and subsidary of credit rated Orano (S&P: BB+).
THIS LOCATION provides a convenient office in support of nearby and national department of energy programs.
ABSOLUTE NET LEASE structure and newer building construction provide limited management in the near-term.
NEW five year lease with scheduled rent growth and minimal lanlord responsibilites.
AGGRESIVE annual rent bumps with 6% increase in 2020 and 2% annual increases through 2023 which are still below market rents to provide upside with options to extend.
PROXIMITY TO high number of office and medical office companies within tight office submarket. Property received multiple lease offers and accepted this tenant’s LOI within 2 months of former tenant’s lease expireation.
HIGHLY VISIBLE, prominent location directly off highway on-off ramps exposed to high traffic counts.
EXCEPTIONAL construction quality with attention to detail in design and aesthetics.
INVESTMENT DETAILS
9530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS 3
49530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
WEST BROADMOOR BOULEVARD
A combined 1,600 acres immediately west of Broadmoor Boulevard are under review to be developed into a master plan development. The development would include up to 8,300 single and multifamily homes, alongside a mix of retail, office, condominium, and hospitality uses. Pasco is growing at an annual rate of 1.6% and is slated to only increase, adding an estimate 10,000 resident to Pasco in the next seven years.
THE TRI-CITIES AREA
The Tri-Cites Area is a mid-sized metropolitan area in Southeastern
Washington, consisting of three neighboring cities: Kennewick, Pasco, and Richland. The cities are located at the confluence of the Yakima, Snake, and Columbia rivers in the semi-arid region of Southeastern Washington. A fourth neighboring city, West Richland, is generally included as part of the Tri-City area and region, as are a handful of unincorporated communities. Each city either borders another or one of the area’s rivers, making the Tri-Cities seem like one uninterrupted mid-sized city. The two counties are officially defined as the Kennewick-Pasco-Richland Metropolitan Statistical Area.
Despite the economic recession of the late 2000’s, the tri-cities area has continued to maintain steady growth and a stable economic climate and kennewick experienced the highest job growth rate in the state of washington form 2000-2016. Over 18 percent of all jobs in the benton franklin county area are either nuclear related, research related, or engineering.
10,000NEW RESIDENTS
8,300NEW HOMES
1,600ACRES
MARKET OVERVIEW
SUBJECT PROPERTY
COLUMBIA RIVER
BROADMOOR MASTER PLAN
182
WEST BROADMOOR DEVELOPMENT
59530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
SUBJECT PROPERTY
COLUMBIA RIVER
BROADMOOR MASTER PLAN
182
BROADMOOR MASTER PLAN OVERVIEW
LEGEND
Single Family
Multi-Family
Retail/Commercial
Recreation
Civic
Parks
LOCATION OVERVIEW
171,098
POPULATION (2010)
190,908
POPULATION (2017)
205,711
POPULATION (2022)
$83,823
HH INCOME AVERAGE (2017)
ECONOMIC GROWTH
Employer # of Employees
Batelle/PNNL 4,485
URS 3,500
CH2M 3,260
ConAgra 3,057
Bechtel National 2,850
MORE INFO
Third highest in population growth in the pacific nothwest from 2010-2016 highest in all of Washington.
BROADMOOR BLVD
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AP
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HIL
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ST THO
MA
S DR
BE
DF
OR
D S
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SAN
DIF
UR
PK
WY
SUBJECT PROPERTY
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9530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS 6
PREMISE & TERMTENANT Orano Federal Services, LLC
BUILDING SF 10,275 SF
LEASE TYPE Absolute Net
RENT COMMENCEMENT June 1, 2018
EXPIRATION May 31, 2023
OPTIONS 2, 5-YR; 180 Days' Notice
TAXES Tenant is responsible for payment of 100% of taxes directly to billing authority.
INSURANCE Tenant to maintain commercial general liability and property insurance policies.
UTILITIES Tenant is responsible for payment of all utilities.
TENANT’S OBLIGATIONS Tenant is responsible for all maintenance, and repair to the interior and exterior of the premises, structural and nonstructural, including to the roof surface and HVAC.
LANDLORD’S OBLIGATIONS Landlord is responsible for the roof structure, subfloor, foundation, and exterior walls.
RENT
Date Range Monthly Rent Annual Rent
7/1/2018 - 5/31/2019 $13,656 $163,872
6/1/2019 - 5/31/2020 $14,510 $174,114
6/1/2020 - 5/31/2021 $15,363 $184,356
6/1/2021 - 5/31/2022 $15,670 $188,043
6/1/2022 - 5/31/2023 $15,984 $191,805
9530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS 7
89530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
FINNANCIAL SUMMARY
FINANCIALS
Price $2,900,000
Capitalization Rate 6.00%
Price Per Foot $282
CASH FLOW SUMMARY
Scheduled Income Per SF Annual
Base Rent $16.95 $174,114
Total Effective Gross Income (EGI) $16.95 $174,114
OPERATING EXPENSES
Per SF
CAMS NNN
Property Taxes NNN
Insurance NNN
Total Operating Expenses NNN
Net Operating Income $174,114
ORANO FEDERAL SERVICES, LLC DBA ORANO
Lease Term 6/1/18 - 5/31/23
Size 10,275 SF
RENT SUMMARY
Date Monthly Base Rent Increase Annual Rent PSF Cap Rate
6/1/2019 $14,510 0.0% $174,114 $17.00 6.00%
6/1/2020 $15,363 6.0% $184,356 $18.00 6.36%
6/1/2021 $15,670 2.0% $188,043 $18.36 6.49%
6/1/2022 $15,984 2.0% $191,804 $18.73 6.61%
Options 2, 5 - YR 95% FMR 180 Day's Notice
99530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
FOUNDATION: 4" slab on grade
ROOF: Flat, built-up membranen with pre-finished mrtal roof panel/gutters
EXTERIOR: Manufactured exterior siding with manufactured stone veneer around base
WINDOWS: Vinyl frames with insulated glazing and metal awnings
DOORS: Aluminum storefront entry with insulated glazing
HVAC: 7 roof-mounted units
LANDSCAPING: Low maintenance grass, trees/shrubs line property border and parking end caps
FIRE PROTECTION: Wet sprinkler system
PARKING: 69 Spaces (6.7/1,000 SF)
CONSTRUCTION DETAILS
109530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS
SITE PLAN
SUBJECT PROPERTY
RICHLAND
COLUMBIA RIVER
N
COLUMBIA POINT GOLF COURSE
RICHLAND HIGH SCHOOL
CARMICHAEL MIDDLE SCHOOL
GEORGE WASHINGTON WAY AND COLUMBIA POINT DR
GEORGE WASHINGTON WAY AND SWIFT BLVD
GEORGE WASHINGTON WAY AND WILLIAMS BLVD
182
BROADMOOR MASTER PLAN
9530 BEDFORD ST OFFERING MEMORANDUM KIDDER MATHEWS 11
KIDDER.COM
EXCLUSIVELY REPRESENTED BY
KEVIN S. MURPHY
First Vice [email protected]
JEFF BROOKS
Vice [email protected] IN WASHINGTON
