1 / 39

The Manor

The Manor. 427 North Meridian. Front. South. SE. NE. N. NW. Building Statistics. Selling price March 2004 $ 1,150,000 Asking price April 2009 $ 1,795,000 Current listed price $ 1,250,000 Address 427 No. Meridian Building Size 10,758 sq. ft.

adin
Télécharger la présentation

The Manor

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Manor 427 North Meridian

  2. Front

  3. South

  4. SE

  5. NE

  6. N

  7. NW

  8. Building Statistics • Selling price March 2004 $ 1,150,000 • Asking price April 2009 $ 1,795,000 • Current listed price $ 1,250,000 • Address 427 No. Meridian • Building Size 10,758 sq. ft. • Parcel # 0420272014 Size 18,881 sq. ft. • 9715100010 13,530 sq. ft. Assessed Value 2009 1,161,800 Parcels & Building 2010 1,108,500 Parcels & Building 2011 1,001,700 Parcels & Building 2012 901,700 Parcels & Building • Parking Spaces approx. 84 • Handicap Access Rear of auditorium. • Offices One main floor, space in basement and on second floor. • Storage Basement, behind stage, upstairs two rooms. • Building occupancy classification Public assembly. • Occupancy capacity 471

  9. The Bar

  10. The Auditorium

  11. The Chapel

  12. Building History • Built in 1924 as an Elks Club • Sold by the Elks and used as a dinner theater for a few years. • Purchased by the Northwest Showman’s Club. • Operated by the Showman’s as a rental hall and used for their functions. • Purchased by Dennis Gibbs in March 2004. • NW Showman’s hold a note for 750k with Gibbs. • There is a bank note for 250k. • Gibbs defaults on note with Showman’s, the bank and files bankruptcy in 2010.

  13. History-cont. • First looked at the building in April 2009. • Listed then for 1.795mil. • Met with Gibbs, 2009 no movement on price. • Made offer of 1.1mil. Turned down by Gibbs. • Contacted by Gibbs in 2010 through his agent. • Discussions with agent and Gibbs, again no movement. • Discovered Gibbs was in default on both notes. • Discovered the filing of bankruptcy. • Approached the Showman’s about a purchase through them after foreclosure. Offered to assist them with foreclosure. • Attempted a short sale from Gibbs. • Hired real estate attorney Nathan Sukhia. • Contacted Showman’s attorney, made offers, they wanted to sell the note. • Bankruptcy court grants six month extension to Gibbs about 8/10. • Extension expires, court lists building through Gateway Realty.

  14. Building Condition • 2004 to 2006 • Tile roof and flashings repaired and replaced as needed. • Comp. Roof replaced. • Brick veneer refurbished. • Electrical • While it’s old it seems to be in good condition, some add ons need to be modernized. Will have an inspection on electrical. • Plumbing • Will need to inspect once water is turned on. • New service done at some point in recent past. • Bathrooms meet current requirements for permitted use. Grandfathered in would need upgrade if major remodel is ever done. • Heating • Gas fired boiler will need to be inspected, it seems serviceable, was certified up to 2008 or 2009. It was replaced at some point. • Structural • No signs of major structural deficiencies. • Will need a structural inspection by an engineer.

  15. Purchase Process • Bankruptcy trustee handles sale of property. • Court has it listed for 1.25mil. • Also a bank is involved as a lien holder. • Agent needed for representation. • Jennifer Moan contacted for representation, she is a licensed broker, she and Andy are in the business of conducting short sales for clients and are very familiar and comfortable with sales such as this. • In addition she formerly worked with the selling agent. • Offer made, June 2011. • We submitted an extremely detailed offer including the results of our diligent inspection, sales market research, consultation with our attorney and specific srtategy discussions within the committee.

  16. Offer-cont. • Offer of $800,000 was rejected. • $875,00 counter offer made. • Counter offer accepted.

  17. Purchase Process-cont. • Process once the offer is Accepted. • Provide earnest money and purchase agreement. • Membership has authorized the committee to offer up to 1 mil. • Inspections that would need to be done, use as many of our members that are qualified as possible pursuant to membership direction. • Structural • Electrical • Plumbing • Boiler • Fire/Life Safety-completed and passed. 10/2011 • Written confirmation from the city that the occupancy permit is current or renewable. • Referendum vote on final deal.

  18. The Numbers

  19. Available Funds • Building Fund $196,000 • Smith-Barney accounts $81,000 • Total Funds $277,000

  20. Building Assessment • Annual building assessment $82,320 • $20 per member monthly- 343 members • Monthly building assessment $ 6,860

  21. Loan Information • Loan through Umpqua Bank • We have a letter of commitment. • Would require moving day to day banking funds to Umpqua. • Would give us some leverage with Key Bank for a better loan deal. • Terms of the Loan • 3.9% • 25 year amortization • Rate fixed for 5-10 years

  22. Purchase Amounts/Payments • Below is a breakdown on the purchase amount as it relates to the down payment and monthly payment. Subsequent slides will the specific financial viability of this purchase. • Purchase amount $875,000 • 20%down payment $175,000 • Loan Amount $700,000 • Monthly Payment $3,656

  23. Building Income • Initial Rental Fee would be set at $500 per night. This will ensure maximum bookings considering the rental market and available venues. (Pioneer Pavilion $2,500 for Saturday nights) The building would only need a serious cleaning to get it on the rental market. The plan would be to use work parties of the members to make this happen. • As improvements are made the rental amount will increase, improvements as simple as painting and more extensive upgrades such as lighting, kitchen upgrade, flooring etc. • The building will generate $1,500 to $2,000 per night as we are able to make some of these improvements. In addition, our plan is to pursue a plan to provide all on site beverages at a substantial profit margin and further increase in income. • Friday nights @ 4ea. $2,000 • Saturday nights @ 4ea. $2,000 • Monthly Rental Initial Income$4,000 • Monthly Assessment Revenue $6,860 • Total Monthly Cash Flow $10,860

  24. Building ExpensesMonthly • Insurance $500 • Utilities $2,000 • Monthly taxes $1,205 • Monthly Expenses $3,705

  25. Cash Flow • Total Monthly Income $10,860 • Monthly Expenses - $3,705 Sub Total$7,155 Loan Payment - $3,657 Total $3,498 • Purchase Amount Payment Monthly Cash Flow Yearly Cash Flow • $875,000 $3,656 $3,499 $41,988 • Minimum rental nights needed 1 • Actual available rental nights 8 per month.

  26. Income Potential • Rental Income • Starting at $500 per night just using Friday and Saturday that’s 102 nights per year. Figuring an 80% booking rate takes it to 83 nights @ $500/night = $41,500. • Beverage Income • This is not figured into the presentation. Liquor sales is very lucrative and is essential to catering businesses. The rule of thumb for profit on sales is $8-$10 per attendee. The building has an occupancy of 471, although the posted number for the main room is 175 for this projection we are using 125 for a low end estimate. • 125 X $8 = $1,000 X 83 nights = $83,000 per year. • Other income possibility • Block renting to a caterers like the Liberty or Momma Stortini, which would include a percentage of the alcohol but not directly involve the Local serving. Probably lower income but no overhead.

  27. Income Potential-Cont. • Market survey of area venues. Contacted Liberty, Pioneer Pavilion and all of the venues at the fair grounds. All buildings were booked for 10-12 months in advance for Friday and Saturday’s Rental range for these buildings Is $ 1,500 to $3,000 per weekend night. Contacted several caterers in Pierce/King counties all need buildings for events in Puyallup. Many smaller halls in town, the Manor would be the largest event rental building outside of the fairgrounds. There is a huge demand for event buildings especially venues with parking, this is the largest privately owned parking lot in the downtown core zone. Initial contact has been made with Sound Transit for commuter parking, as this lot is only three blocks from the train station and has 84 spaces.

  28. Local P/R Opportunities • Halloween haunted house for children • Christmas party for children • Easter egg hunt • Pancake breakfasts • ECT

  29. Local Social Possibilities • Annual Dinner • Annual Holiday Fund Raising Dinner • Member retirement parties • Promotional parties • Local Christmas party • Local meetings • Bargaining unit meetings • Monday night football • Super bowl • Reno nights • Member fundraisers • Endless other possibilities !!!

  30. Operational Plan • Advertise for event rental • Contact catering companies, Liberty, Momma Stortini’s etc for block bookings • Immediately increase rental to $750 once we have six months of bookings. • Increased rental would add $10,250 to yearly income. • Create a website to advertise. • Contact all local business clubs and make presentations. • Utilize sign on property to advertise. • Pursue leased commuter parking for Sounder. • Obtain Liquor License • Local would obtain a liquor license and then ban outside liquor. • Liquor revenue was not calculated into the previous figures intentionally. A very conservative income figure as outlined earlier would be a minimum of $83,000. • This would allow us to easily offset any lost revenue to the building fund due to membership reduction caused by layoffs, retirements or other reasons. • Schedule work party for general clean-up.

  31. Operational Plan-cont. • Move Union Office into building. • Move out of storage unit. • Present operational policy development.

More Related