COOLEY - LoopNet

9 8 3 0 N E E C K E R T D R

H I L L S B O R O , O R E G O N

COOLEYoffice buildingon 18.95 acres:renovation or redevelopment offering

Conceptual Entry

T A B L E O F C O N T E N T S

E X E C U T I V E S U M M A R Y 5

I N V E S T M E N T O V E R V I E W 6

T H E C O M M U N I T Y 8

R E N O V A T I O N C O N C E P T P L A N S 11

F L O O R P L A N S 12

C O M P A R A B L E S 14

L O C A T I O N 18

M A R K E T O V E R V I E W 20

Conceptual

COLLIERS INTERNATIONAL P. 5COOLEY OFFICE BUILDING | OFFERING MEMORANDUM

Colliers is pleased to present this dual-faced opportunity to own 18.95 acres in AmberGlen, a neighborhood in east Hillsboro. AmberGlen includes a mixture of office and commercial areas with a growing number of high-density residential units being added as a result of the AmberGlen Community Plan. The AmberGlen Community Plan seeks to transform the neighborhood into high-density mixed uses catered to a larger residential base while preserving the existing office uses. New developments include Aloft Hotels, a 136-room hotel opened in 2017; The Arbory and Windsor Apartments, both completed in 2018 and adding 325 units.

Equally opportunistic is the vision of a high-amenity corporate office setting. The existing 68,000 RSF building once functioned as institutional lab space for OHSU. The unique design and base building structure offers incredible renovation opportunities for the discriminate corporate user. Renderings throughout this brochure have been originated by GBD architects to assist in visualizing a modern look with contemporary elements for today’s dynamic office user.

E XECUTIVE SU M M ARY

18.95 acres

COOLEY


L O C A T I O N

The site is located in the AmberGlen Business Park near the Tanasbourne retail environment along NW 185th Ave and Highway 26. This area is established as a regional retail hub at the gateway to the high-tech corridor known locally as the Silicon Forest. Near Intel’s Ronler Acres campus, many tenants in this submarket service Intel, making proximity critical. The building also resides within an Oregon Enterprise Zone, providing potential property tax incentives based on employment growth. As a redevelopment, the opportunities to go mixed-use residential and commercial are guided by the AmberGlen Community Plan.

I N F R A S T R U C T U R E

The site fronts NE Walker Road, a major east-west thoroughfare. Future roadways are planned through the site and the AmberGlen area as parcels become redeveloped (see illustration, bottom right). Trimet MAX Light Rail blue line is accessible within 1/2 mile, providing mass transit options in addition to current bus lines.

Z O N I N G

The site is split-zoned between UC-OR (Urban Center - Office/Research) and UC-MU (Urban Center - Mixed Use). The UC-OR designation is intended to support existing office development until such time for redevelopment to more intense urban uses. The zoning designations are similar in allowing office and commercial uses with the primary exception being the MU district allows for residential uses as well.

S I G N I F I C A N T B A R R I E R S T O E N T R Y

Because the Portland market benefits from an Urban Growth Boundary, outside of which development is prohibited, the market has a limited amount of high quality, well-located commercial land remaining for future development. The UGB encourages in-fill development, limits sprawl, and helps inflate values of existing property within the boundary.

68,000 square feet of office building set on 18.95 gross acres of land in the “Silicon Forest” of Hillsboro, Oregon.

I NVESTMENT OVERV IE W

Unique opportunity for corporate campus environment with excess land for expansion, open space, or sale.

Limited supply of available office spaces over 50,000 square feet. None offering room for expansion. None are offered for sale.

Priced below replacement cost.

Existing building to be delivered in shell condition with complete set of renovation conceptual plans from GBD Architects.

Ideal redevelopment play for mixed-use residential and commercial uses.

High amenity surroundings on-site and off-site conducive to outdoor space

K E Y I N V E S T M E N T H I G H L I G H T S

18.95 ▪ Gross

AcresNW GIBBS DRIVE

NW WALKER ROAD

COOLEY

8.5 Acres(est.)


THE COM M UN IT Y The 18.95 acre site offers the unique opportunity for a corporate office or headquarters site with excess land to expand and wooded areas for outdoor activity, walking trails, and open space. Alternatively, the existing building could be razed to make way for a higher and better use consistent with zoning and the AmberGlen Community Plan. Redevelopment can make good use of the wooded areas for amenity space valued by residential and office occupiers.

Retirement/Assisted Living Upscale Hotel Mixed-Use, Residential/Commercial

Cooley Building with its creekside forest

Conceptual Lobby


Schematic designs by GBD Architects include:

▪ New circular drive and plaza

▪ New entry reception area with polished concrete floors

▪ Elegant modern staircases with an open, atrium feel

▪ Floor to ceiling windows with views of the outdoors

▪ New furnishings and high efficiency lighting

▪ Amenity cafe with new kitchen and bar

▪ Workspace lounge and conference room

▪ Outdoor deck

COMPLETE RENOVATIONCONCEPT PL ANS

Conceptual


FLOOR PL ANFIRST FLOOR - 3 4 ,0 0 0 SF EST IM ATED

FLOOR PL ANSECOND FLOOR - 3 4 ,0 0 0 SF EST IM ATED

Note: Penthouse mechanical room approximates 9,000 SF; served with freight elevator


BU ILD ING SALE COMPAR ABLES

Cornell West Sunset Corporate Center

Ronler Building D 21000 NW Evergreen Pkwy

9800 Nimbus 8700 Creekside

Date 3/12/19 1/16/19 11/19/18 7/30/2018 10/24/18 For Sale

Price $22,000,000 $29,000,000 $7,850,000 $6,954,000 $5,100,000 $4,250,000 asking

Size 116,350 SF 137,566 SF 39,364 SF 57,000 SF 45,625 SF 31,725 SF

Price/SF $189/SF $212/SF $200/SF $157/SF $112/SF $134/SF

Site Area 6.29 acres 8.29 acres 5.67 acres 5.29 acres 2.01 acres 2.88 acres

Notes Multi-tenant office. 7.5% cap.

Multi-tenant office. 6.3% cap.

Single-tenant flex. 6.1% cap.

Vacant flex. Bought by user.

Vacant office/warehouse. Bought

by user.

Under contract to user.

1 2 3 4 5 6

1

2

6

43

5


L AND SALE COMPAR ABLES

Cornell Oaks Land NW 158th &

Greenbrier Pkwy

AmberGlen Land NE Compton & NE Gibbs Drive

Wilkins Land NE Wilkins &

NE John Olsen

Tanasbourne Land NE Evergreen & NE John Olsen

AmberGlen Land NE Amberglen Pkwy

& NE Compton

AmberGlen Land NE Amberglen Pkwy & NE Von Neumann

Date 8/1/18 10/6/17 5/11/17 12/21/15 6/3/15 4/1/15

Size 6.91 ac 2.09 net ac 1.97 ac 1.95 ac 2.84 ac 5 ac

Price/SF $25.05/SF $20.76/SF $21.91/SF $23.55/SF $16.11/SF $16.53/SF

Notes Buyer plans to build two hotels with two

restaurant pads. 227 rooms.

Buyer plans to build a 135-room hotel.

Planned high-density residential.

New hotel development under

construction.

New Aloft Hotel. The Arbory Apartments.

1 2 3 4 5 6

1

2

6

4

3

5

NE EVERGREEN PKWY

E MAIN ST

NE CORNELL RD

NE C

ORNE

LIUS

PAS

S RD

NW 1

85TH

AVE

NW CORNELL RD

NW B

ETHA

NY B

LVD

NE WALKER RD

NW 1

73RD

AVE

NE A

MBE

RGLE

N PK

WY

NE WALKER RD

NE J

OHN

OLSE

N AV

E

NE WILKINS ST

NE ST

UCKI

AVE

Streets of Tanasbourne

Tanasbourne Town Center

Intel Ronler Acres

Tanasbourne Village

1

Trimet MAX

2

3

4

COOLEY

1

2

3

4

5

5

6

9

8

7

Kaiser

Miscellaneous 1 Aloft Hotel 5 Krispy Kreme 1 Rock Creek Trail

2 Whole Foods 6 Petsmart 2 Evergreen Park

3 MUV Fitness 7 Applebee’s 3 Orchard Park

4 Holiday Inn 8 US Post Office 4 Magnolia Park

Trimet MAX Quatama Stop

9 Einstein Bros. Bagels

5 Orenco Woods Nature Park

The Cooley Office Building is located just 20 minutes from downtown Portland in the heart of the Sunset Corridor.

Nearby amenities include commercial services, jogging trails, outdoor collaborative spaces, and forest views. Additionally, Cooley is conveniently located near Cornell Road with access to many retail amenities at Streets of Tanasbourne, an upscale lifestyle shopping center, as well as Tanasbourne Village and Tanasbourne Town Center.

LOC ATION

Streets of TanasbourneAmerican Eagle Express P.F. Chang'sBanana Republic Gap QdobaBath & Body Works J. Jill REIBuffalo Wild Wings Lane Bryant Victoria's SecretCharming Charlie Macy's

The Streets of Tanasbourne

Cooley Entrance (proposed)

Quatama/NW 205th Ave MAX Station

Tanasbourne VillageCold Stone Hallmark Shari'sComcast Pier 1 SubwayDSW Rite Aid Trader Joe'sFedEx Office Round TableFive Guys Safeway

Tanasbourne Town CenterBarnes & Noble Chick-fil-A Marshalls Office Depot Pizza SchmizzaBed Bath & Beyond Famous Footwear Massage Envy Old Navy RossBest Buy GameStop McDonald's Panda Express Sally BeautyBurger King Jamba Juice Michael's Payless StarbucksCarl's Jr Jimmy John's Muchas Gracias Petco Target


VACANCY (Q1 2019)

SQUARE FEET

12-MO. ABSORPTION (YTD 2019)

AVERAGE RENTAL RATE PER SQUARE FOOT PER YEAR

(Q1 2019)

$24.84

Sunset Corridor Office: 139 Buildings, 9M SF 492K

4.8%

Sunset Corridor is one of Portland’s premier office hubs. High-tech manufacturing is among the submarket’s largest employment drivers, including Intel’s massive semiconductor facility in Hillsboro. Additionally, the Sunset Corridor is home to Nike, which owns close to 3 million square feet here. Both companies have embarked on substantial campus expansions this cycle. Other companies with a large office footprint in the area include Wells Fargo and the headquarters for First Tech Federal Credit Union.

Vacancies remain tight, since many of the tenants either own their own buildings or are single tenants in their respective properties. Rents in the Class A product are 20% lower than the metro average, however the submarket’s overall rents have exhibited cumulative growth over the past few years. Currently, there are only 3 buildings with an excess of 50,000 SF available; none are for sale.

VACANCY

YOY FORECAST

NET ABSORPTION

YOY FORECAST

CONSTRUCTION

YOY FORECAST

RENTAL RATE

YOY FORECAST

M ARKET OVERV IE W SUNSET CORRIDOR OFFICE


TOP WESTS IDE E MPLOYERSHILLSBORO AND BEAVERTON CORRIDOR

Intel is the largest and most complex site in the world, a global center of semiconductor research and manufacturing, and the largest private employer in Oregon. Opened in 1974, Intel now includes 7 campuses spread across Hillsboro and Beaverton. 20,000 employees.

FEI Company, headquartered in Oregon since 1971, makes powerful microscopes used by Intel and other electronics manufacturers, as well as by biologists and other scientists. In 2002 consolidated to one campus in Hillsboro on Dawson Creek Drive. 509 employees.

Nike’s eight-building world headquarters is located in unincorporated Washington County near Beaverton. In 2012, Nike was ranked Oregon’s #1 Fortune 500 company. 12,000 employees.

Columbia Sportswear distributes outerwear and sportswear. In 2001 Columbia Sportswear opened its headquarters in unincorporated Washington County, near Beaverton. 500+ employees.

Wells Fargo opened a customer service and call center in 1994 in Hillsboro largely due to phone and high-speed Internet lines set up by Intel and the existing pool of employees with customer service experience. 1,275 employees.

Maxim Integrated Products is a research, design and test facility in Hillsboro since 1999. The company also has a facility in Beaverton acquired from Tektronix. In 2007, they constructed a state-of-the-art laboratory at their Hillsboro site. 431 employees.

SunPower has their U.S. headquarters and largest solar module production facility in the Americas in Hillsboro, which opened in 2008. In October 2013, SolarWorld announced that it will consolidate U.S. operations at it’s Hillsboro manufacturing hub. 1,000 employees.

Yahoo! opened a customer service center in Hillsboro in 2005 due to close proximity to San Francisco, the company’s headquarters and customer service culture in Oregon. 400 employees.

Qorvo is a semiconductor company that designs, manufactures, and supplies high-performance RF modules, components and foundry services. RFMD and TriQuint combined to become Qorvo. 6,000 employees.

Oracle America has 4 total buildings in Oregon. They have two properties in Hillsboro, one which was acquired from their purchase of Sun Microsystems. In February 2013 they announced they were moving 130 jobs from Mexico to Hillsboro data servers. 391 employees.

Leupold, founded in Portland, is the leading manufacturer of telescopic sights and binoculars. They moved to Beaverton in 1968. 700+ employees.

Acumed is an Oregon-based company that designs and builds orthopedic implants and surgical devices. In 2001, they built their headquarters off Cornelius Pass Road. In 2009 the company purchased a building along Brookwood Parkway. 386 employees.

Epson is a manufacturing and engineering services affiliate of the Seiko Epson Corporation, headquartered in Japan. The Epson Hillsboro campus has been open since 1985. 516 employees.

Genentech, owned by Swiss-based Roche Group, operates a packaging and distribution facility in Hillsboro that opened in 2010. 400 employees.

Conceptual


WHY OREGON?

Core clusters in:

• Computer software• Athletic/outdoor apparel• Advanced manufacturing• Clean technology

Hillsboro, Oregon, is the state’s fifth largest city, located approximately 18 miles west of Portland in Washington County. Situated in the heart of the “Silicon Forest,” Hillsboro is home to numerous high tech and clean tech manufacturing companies, including Intel’s primary research and development facilities. Hillsboro serves as the state’s economic engine, attracting investment and major companies from industries across the globe, and providing thousands of quality jobs to a highly-skilled workforce.

Nearly 4,000 high-tech businesses call Portland-Vancouver home, a concentration 18% greater than the national average. Since 2005, that number has increased 17%, the second highest in the nation.

HOTTEST LABOR MARKET

According to the Business Insider, Oregon is one of the hottest labor markets in the U.S. moving out of the Great Recession.

WHY H ILLSBORO?What makes Hillsboro attractive to so many companies?Clean, reliable, and inexpensive power, a skilled workforce, extensive high-speed fiber data network, abundant water supply, fast track permitting, and tax incentives at both the state and local level.

HILLSBORO DEMOGRAPHICS

Population 101,540Median age 34

Median income$70,180

Median home price$351,200

Median Age

36.92016 Average

Household Income

$68,676

Employment Rate

96.0%Population

±2.4 Million

PORTL A ND M ETRO A R E A :BY THE N U M BE RS


The offering of Cooley Office Building is being conducted exclusively by Colliers International. Seller requests all questions and inquiries directed to the Colliers representatives listed in this memorandum.

Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers.

Offers should include, at a minimum, the following:• The purchase price and closing date;• The source of capital, both equity and debt, for the transaction;• The amount of earnest money deposit;• A detailed schedule of the due diligence and requisite approval process;

and• A description of assumptions utilized for the offer.

Please address your offers to the brokers listed below:

851 SW Sixth Ave, Suite 1200Portland, Oregon 97204503 223 3123

MIKE THOMAS BRANDON FRANK Senior Vice President Vice [email protected] [email protected]+1 503 499 0059 +1 503 542 5893

OFFER ING PROCEDURE

Rear Entrance (conceptual)

Conceptual

M I K E T H O M A S

P 503 499 0059

E [email protected]

B R A N D O N F R A N K

P 503 542 5983

E [email protected]

This Offering Memorandum contains select information pertaining to the business and affairs of the Property. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

COOLEY - LoopNet

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