Overview

The Offering

The Fernwood Building presents a solid cash-flowing office offering in Poulsbo, Washington with an excellent long term government tenant as well as a well-known local medical office clinic. The building consists of two stories over structured, secured parking on just less than 5 acres of beautifully wooded landscaping. The other two suites on the second floor are included in the offering; one of which is occupied by the FBI while the other is occupied by Sunrise Properties.

Built in 2007, the building boasts a strong pride of ownership. The property is within walking distance to the high end Central Market to the north and the brand new Safeway Supercenter across the street. Just off of Highway 305, the property offers quick access and close proximity to downtown Poulsbo and Bainbridge, and a short ferry ride to downtown Seattle. Several blocks from the site are Liberty Bay and the Puget Sound with dozens of local waterfront restaurants, bars, and niche retail, including art galleries, bakeries, local heritage museums, and more.


The Fernwood Building, built in 2007, consists of five office condominium suites (three are offered for sale in this offering) on two floors above secured, structured parking. The first floor contains one suite which is 100% occupied by the Harrison Medical Center’s Hematology and Oncology Departments and is included in this offering. On the second floor are four additional suites. Two adjacent suites on the southern side of the building are not included in this offering and are each separately owned by a private entity investor. The other two suites on the second floor are included in the offering; one of which is occupied by the FBI while the other is currently vacant.

The property is served by one Thyssen-Krupp elevator connecting the secured parking structure with the two levels of office space. A welcoming lobby greets visitors to the front of the building with an open stairwell leading up to the second floor and other four suites. Each suite is has its own dedicated electrical subpanels as well as HVAC units allowing for ease in monitoring.

Offering Process
The ownership will be setting a call for offers date after the property goes to market.

Offering Price
$4,350,000 (7.50% Cap Rate)


Property Overview

Address
19500 10th Ave NE, Suites 100/250/270
Poulsbo, WA 98370

Type
Office Condominium

Total Rentable SF
15,600

Total Offering Rentable SF
11,928

Occupancy
100%

Year Built
2007

Stories
Two (2) over structured parking

Parking
96 Total
15 Secured Garage | 81 Surface
5:1,000 (Building Total)

Land Area
4.73 Acres | 206,039 SF

Zoning
Commercial

2018 Actual Income
$322,450


Property Details

Highlights

  • Strong income stream from highly credited tenants
  • Significant, recent capital improvements made by each tenant suggesting strong desire to remain
  • Newly constructed and exceptionally well-maintained structure
  • High traffic location, central to three surrounding cities just outside of Seattle
  • Walking distance to numerous amenities
  • Abundant, secured parking
  • Traditional Northwest feeling amidst beautiful landscaping
  • For financial information, please login to the due diligence section

Condo Ownership Structure

The building was constructed in 2007 and condominiumized in 2010. Ownership is divided into four: (1) suites 100, 250, and 270 (all part of this offering); (2) suite 200; (3) suite 210; and (4) suite 300, which is currently a site to the south of the building with permitting in place to construct a 4,812 SF, one floor office building. The condominium declarations are standard and clearly define the requirements and rights of each individual owner, including common area maintenance, rights to parking allocations, voting rights among the condo association, the election of a board to serve the association, and simple rules related to renting or leasing the units.

Tenancy

Harrison Medical Center
USA - Federal Bureau of Investigation*
Anne Sagaris, Counselor
Dr. Vicky Leclair, DDS


Floor 1
Floor 2

Location

Demographics 1 Mile 3 Mile 5 Mile
Population 7,518 17,703 41,148
Average Household Income $67,995 $81,380 $86,612
Median Home Value $286,257 $306,269 $300,044
Renter-Occupied Median Rent $969 $965 $994

Amenities Map

Traffic Count

Drive Times

Close-in Aerial

Market Area

Kitsap County Economy

The Kitsap County population has grown near 1% annually since 2000, now with an estimated population near 260,000. Four main cities encompass Kitsap County, including Bainbridge Island and Poulsbo. Unemployment is below 5.7% with positive movement in the local economy. Major employers in Kitsap County include the following (employee count):

The Kitsap Naval Base

18,300

Puget Sound Naval Shipyard

11,605

Harrison Medical Center

2,442

Washington State

1,746

Central Kitsap School District

1,469

Puget Sound Overall Market

The Puget Sound region, the nation’s 15th largest metropolitan area, is known for its strong business climate as well as its skilled workforce. Several factors contribute to the region’s thriving business community, from the prevailing entrepreneurial spirit to the education levels and skill sets of its work force. Innovative companies attract high-quality workers who typically possess a high level of education. This well-educated talent flows to economic centers, such as the Puget Sound region, for well paying jobs as well as quality of life.

The Puget Sound has a strong business climate that contributes to the region’s economic growth and the demand for commercial real estate. Currently the Puget Sound office market consists of approximately 163 million square feet. Rental rates are generally increasing across the region with strong leasing demand.

Internationally recognized companies such as Microsoft, Starbucks, Amazon.com, Boeing, Nordstrom, Google, Expedia, PACCAR, Costco and Weyerhaeuser, just to name a few, help stabilize the regional economy and provide consistent demand for support service. The ports of Tacoma and Seattle are major gateways for retail and distribution centers such as Target, Home Depot, IKEA, Excel Logistics and UPS, further demonstrating the area’s appeal and economic strength.

Market Total # of Properties Total Rentable Area Vacancy Rates
Class A & B Office 171 2,703,263 SF 7.7%

Due Diligence

Please register to go to gain access to the due diligence documents. This includes: offering memorandum and financials.