marysville,wa investment
Post on 09-Mar-2016
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WRES
Windward Real Estate Services Inc.
Marysville Land Assembly A light industrial real estate investment opportunity located North of Seattle, minutes away from the Port of Everett and Boeing’s 787 facilities.
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Project Narrative The Marysville land assembly consists of 405
acres of light industrial zoned property all
within the city limits of Marysville, WA. The
land is fully entitled and all utilities are
available to the property in adequate capacity
to service the projected distribution centers,
business parks, and mixed use facilities.
Windward Real Estate Services Inc. “WRES” is
the managing member of the current master
LLC and is looking for a co-investor/partner to
bring additional capital to the overall
investment. There are multiple levels of
investment available, which will be explained
later.
The land assembly includes 11 different
parcels of land, ranging in size from 5 to 182
acres. There will also be multiple
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opportunities to add to the assemblage and
increase market share in a region that will see
significant growth over the next five years.
The current Master LLC has invested $20
million in cash into the project. The current
market value of the property is roughly $100
million.
WRES is a development company based in
Kirkland, WA with over 35 years of
experience. WRES’ projects and
partnerships are relationship based and the
new investor will have the added benefit of
dealing directly with the principle, Jim Tosti.
WRES has been involved in over $2.5 billion
worth of investments and has many successful
projects on the resume.
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Current Market Conditions Now is the time….
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The past couple years have been tough times in real
estate to say the least. Those that are still in the
business have had to overcome many challenges to be
here today. But where there are great challenges there
are great opportunities, or in real estate terms “timing is
everything.” The industrial real estate market in the
greater Seattle area (King Snohomish, Pierce, and
Thurston Counties) slowed significantly by mid 2010.
Vacancy rates grew from 5.8% in 2007 to 8.3% in 2010
and saw market absorption numbers go from over 6
million SF/Year to a negative 4 million SF/year.
Only recently has the absorption rate jumped back into
the positive, to the tune of 1.1 million SF so far in the 1st
QTR of 2011, dropping the vacancy rate almost a full half
percent in 3 months. WRES has also seen a significant
increase in companies looking for land to build
distribution centers that are 500,000 to 1,000,000 SF. To
build facilities like this you need a lot of acreage and the
WRES Marysville Assemblage is one of the only
industrial sites available in the tri-county region of 100+
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acres and is uniquely situated to handle this kind of
market demand.
In addition to the notable uptick in activity there are a
few major influences that could ramp up production
even sooner then expected. Boeing recently landed the
big Air Force tanker contract bringing 11,000 new jobs
to the area (15 minutes from our property). Boeing is
also looking very seriously into creating a supersite
(400-600 acres) to deal with the problems they’ve
encountered with the 787 supply chain and assembly.
With the WRES Marysville Assemblage the closest large
acreage industrial land available it would be a prime
location for Boeing if they went this direction. Recent
traumatic events in Japan have also made the northwest
a key staging area for distribution as an entire country
starts to rebuild.
With the Marysville Assemblage it is not a matter of “if”
but more a matter of “when.” WRES feels now is the
best time to get involved.
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Minutes from major transportation corridors and companies…
The properties are located
roughly 10-12 miles North of
Everett, WA and about 1 mile off
of Interstate 5, the major
North/South interstate on the West
coast.
This location lands the property
about 15 minutes away from the
Port of Everett and about 20
minutes away from Paine Field
and Boeing’s main 787 facilities.
The Port of Everett is a natural
deep-water port known as the
premiere break bulk port in the
region. It is the third largest
container facility in Washington
State and is the closest US
shipping facilities to Alaska and
the Far East. The port is also the
first West coast facility reached by
westbound Burlington Northern
Santa Fe trains, which serves the
Midwest and Eastern US.
In addition to freeway and port
access the property is located
along one of BNSF’s major
railways. This line has direct
connections to major ports and
shipping facilities in Vancouver
B.C., Seattle, and Portland.
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Located in City of Marysville
All 400+ acres are located inside
the city limits of Marysville, WA.
The acreage is fully entitled,
zoned LI (light Industrial), and can
be serviced in adequate capacity
from existing utilities.
Marysville is a city strategically
located on the Interstate 5
North/South corridor. It is located
North of Seattle in the rapidly
growing “North End” just minutes
from the main Boeing facility, the
Navy’s home port for a carrier
group, 45 minutes from Microsoft
and the Bellevue area, and 45
minutes from downtown Seattle.
There are two exits off of the I-5,
just 5 minutes from the properties.
Construction on a new overpass
and interchange will begin in the
near future providing immediate
and direct access to our
properties. There is also a
military grade public airport
located a half mile North of the
properties that can accept
executive jets.
The area north of Seattle is set up
to be the epicenter of growth for
the coming decades and the new
expansion of our local economy.
These properties are well
positioned to take advantage of
the new growth headed our way.
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Option A ($2 Million Investment)
The current Master LLC is offering an investment position of $2M. The funds will be used exclusively for the continued project carrying costs, legal, consultants, land use, and property taxes. There will be no Overhead and Management expenses drawn by the current Master LLC unless actual development of property is started.
Expected returns will be in the neighborhood of 50% IRR with a cap of 3X return on investment. Anticipated time frame for return of capital is approximately 24 months. At the point of return of capital the investor has the option of collecting an additional 25% interest on capital advanced for total payout or can stay in the investment till completion and receive distribution of net proceeds based on a para parsu basis until project is sold-out.
OPTION C ($25 Million Investment)
This option provides for a buyout of the current LLC and forming a new LLC with the new investor and the current Managing Member. The investment opportunity would require $25M and would give the new investor an 80% ownership position in the project. All Net Distributable funds would go first to repay the $25M investment and all next available funds would be distributed 80% to the investor and 20% to the current (and new) Managing Member until project is completed.
Projected ROI is 299% over 5-7 years with IRR well in excess of 50%. Return of capital is expected to occur within the first 36-42 months.
OPTION B ($10 Million Investment)
The current Master LLC is offering an investment position of $10M. The funds will be used as described above in addition to additional land principle payments to secure fee title to some of the properties.
Expected returns will be as stated above. All Net Distributable funds will be disbursed on a para parsu basis until all LLC capital accounts have been paid in full (Investor share at 33.9%). Remaining Net Distributable funds will also be disbursed on a para parsu basis until the project is complete and all properties sold.
Opportunities for Investment The nature of the project allows for different levels of investment with varying returns. The options below represent
rough outlines of the different investment opportunities available.
ALL ABOVE OPTIONS ARE PRELIMINARY IN NATURE. THE INVESTMENT OPPORTUNITIES OUTLINED ABOVE ARE GENERAL AND THERE ARE ITEMS THAT CAN BE ADJUSTED OR
NEGTOTIATED. WE ARE OPEN TO FURTHER DISCUSSION AND NEGOTIATIONS ON THESE OPTIONS OR OTHERS.
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Social Investment This investment opportunity is offered with a commitment from the new investor to donate a small portion of their
profit to Construction for Change “CfC.” Exact terms and structure of this commitment are to be negotiated.
Construction for Change is a 501(c)3 organization founded and directed by one of WRES group’s members. CfC is an all volunteer organization that provides infrastructure to grass-roots organizations around the world. This includes the construction of schools, hospitals, economic development centers, and orphanages.
Since 2008 CfC has managed over $400,000 of construction in 4 different countries and has maintained an overhead number at or below 2% of the organizations total yearly expenses. More information about the organization is available by visiting the website listed below or by contacting Nick Tosti at 425.894.6382.
www.constructionforchange.org
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WRES
Windward Real Estate Services Inc.
Contact Info:
Mr. James Tosti jetosti@msn.com (w) 425.702.8422 (c) 206.427.0662 335 Parkplace Center G11 Kirkland,WA 98033
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