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Home My WebLink AboutMcKennaAdams_RFP_FINAL_043021 - REDACTEDProposal for the Sale of Fire Station One Presented by McKenna Adams Commercial Realty 2 Introduction of McKenna-Adams Commercial Realty 3 Our Qualifications 4 Our Experience with Commercial Properties and Downtown Bozeman 5 Our Experience with Bozeman’s Unique Parking and Traffic Issues 6 Our Experience with City of Bozeman’s Zoning Regulations 7 The Proposed Marketing Plan for Fire Station 1 8 The Responsibilities of the Client 9 McKenna Adams Commercial Realty Licenses 10 Proposed Listing, Commission, Associated Costs, and Timeline 11 Our Most Recent Transactions 12 Professional References 13 McKenna Adams Commercial Realty Marketing Materials Table of Contents (Rebecca) Katie Adams Owner/Supervising Broker 406.581.7562 katie@mckennarealty.com RRE-BRO-LIC-56423 Marley McKenna Owner/Agent 406.544.9004 marley@mckennarealty.com RRE-RBS-LIC-71811 Michael L. McKenna Owner/Broker 406.581.0792 mike@mckennarealty.com RRE-RBS-LIC-2756 McKenna Adams Commercial Realty 3805 Valley Commons Dr. Ste 12 Bozeman, MT 59718 mckennarealty.com 406.587.0792 McKenna Realty is now McKenna Adams Commercial Realty Our Brokerage Introduction of McKenna Adams Commercial Realty New Website Coming Soon! Our Qualifications McKenna Adams Commercial Realty is a cornerstone commercial real estate company who has worked in the Gallatin Valley since 1986. Michael McKenna founded the company in Bozeman and has been practicing in the commercial market for 35 years. His depth of knowledge regarding Bozeman and it’s surrounding areas and his expertise in the downtown market are invaluable assets. He has been a key agent in real estate, development and investment transactions in his tenure with McKenna Adams Commercial Realty. Katie Adams is a commercial real estate agent who has been working in the valley since 2013. She is an expert in transaction logistics with a keen eye for creative solutions that help both buyers and sellers. She is detail oriented and has assisted in helping major developments occur in Bozeman, including the affordable housing project which was made possible by the purchase of land on the corner of Baxter and Sacco by GMD in 2020. Marley McKenna is a commercial real estate agent and the most recent partner of McKenna Adams Commercial Realty. She has been involved in real estate and development since 2012 but has also owned, operated and sold a variety of local businesses. She has been the lead on three off-market downtown building sales in the last two years and has closed more than 20 million dollars in commercial sales since 2019. Her connection to downtown, community involvement and creative approach make her a valuable resource as the newest member of the team. All three McKenna Adams Commercial Realty partners work collaboratively for clients of the agency. We believe that multiple perspectives make for positive outcomes and that utilizing a variety of specialties allows success in every real estate transaction. Our Experience With Commercial Properties and Downtown Bozeman Contract Length: This was an off-market property Sale Price: Not Disclosed Square Footage: 28,000 sqft Comments: Sold as an investment property with a mix of commercial tenants ranging from retail to office to fitness. Future use will continue to be retail, office, and general downtown service providers. Contract Length: This was an off-market property Sale Price: Not Disclosed Square Footage: 1,800 sqft Comments: Restaurant condo sold to an owner user who converted the use to retail. Contract Length: This property was listed, but only marketed to qualified investors. Listing contract August 20, 2020 - November 15, 2020 - Property sale closed on December 30, 2020 Sale Price: Not Disclosed Square Footage: 74,300 sqft Comments: Large scale office and manufacturing facility (Corporate Headquarters) that was sold to an investor with a long term lease in place. Anticipated future use remains large scale office and manufacturing. Contract Length: This was an off-market property Sale Price: Not Disclosed Square Footage: 27,000 sqft Comments: Sold as an investment and re-development property. New owner kept the main floor retail tenants and is renovating the upper floors into high-end office and residential. The Golden Rule 35 W. Main Simms Lovelace Our Experience with Bozeman’s Unique Parking and Traffic Issues Our Dedicated Lead on Community Issues: Marley McKenna Participating in community conversations about: Urban renewal, redevelopment and maintaining downtown as the thriving center of commerce and culture in Bozeman. The need for parking downtown and how that affects development and growth opportunities. Understanding the impact of a second parking garage and the alternatives being offered. Importance of pedestrian travel and the safety requirements around increasing pedestrian and bicycle travel. Our brokerage has been involved in the commercial sale and leasing of downtown properties for over 20 years. We work to stay up to date on the current issues facing the downtown business corridor and how parking and traffic will affect our clients. Marley serves on several boards for the following organizations: The Downtown Area Urban Renewal District Executive Committee for the Board of Directors at Prospera The Women’s Business Center Past Board Member for the Downtown Business Association Our Experience with City of Bozeman’s Zoning Regulations Our brokerage is currently involved in a variety of development projects in the Bozeman community. We are educated and up to date on the zoning requirements in order to bring qualified properties to our clients. We’ve highlighted a few projects that demonstrate our work with Bozeman’s zoning regulations. 7th St. and Griffin Dr. Babcock St. & Ferguson Ave. Bridger Center Dr.Challenge: Commercial development on the corner of 7th and Griffin needed shared access agreements with neighboring properties, site plan development, and cooperation with the city and MTD to accommodate future intersection improvements. Solution: We worked actively with developers, neighboring property owners, the city of Bozeman, Architects and Engineers, as well as MTD. Result: Approved a site plan that allowed shared access to the property with a neighboring property owner and allowed a turning lane on Griffin, which resulted in the approval of a site plan for a commercial/industrial condominium project. Challenge: Failing intersection delaying development of surrounding residential/ commercial properties. Solution: We worked with surrounding property owners and COB to facilitate the intersection improvements. Result: Allowed the development of residential and commercial properties in the surrounding area to move forward. Challenge: Listing and selling an industrial facility in an active redevelopment area, while maximizing the seller’s return on their investment. Solution: We reached out to our contacts needing a larger facility in order to open retail, manufacturing, and office uses under one roof in an up and coming neighborhood. Result: We successfully completed the real estate transaction while facilitating due diligence for a future change of use and re- development while negotiating a lease-back with the sellers to accommodate everyone’s immediate and future needs. The first step in creating an effective marketing strategy is crafting an Ideal Buyer Profile. We work with our clients to outline this profile and target individuals who fit those qualifications. Building out the Ideal Buyer Profile for this property will be the foundation for our plan. The next step and a very important component of our marketing strategy is utilizing our extensive network of qualified commercial buyers on a local, regional and national levels. We will tap into our group of qualified buyers and work our connections to find the right buyer for your property. Quality photography is the cornerstone to creating the right impression of the property. In order to gain maximum exposure our team will ensure the property has the following for use in our marketing strategies: Drone Photography Professional Interior/External Photography Additional: Development Schematics - One example illustrating alternative use/urban infill Our Plan for Marketing Fire Station 1 (34 N. Rouse Ave) Marketing is the important component for gaining the best exposure for your property. Our expertise, combined with our in-house marketing manager and local agencies, will gain local, regional, and national exposure using targeted marketing strategies. Our team plans to use the previously mentioned photography throughout our integrated marketing strategy. This will include marketing deliverables that allow us to put the property “in buyer’s hands”. We plan to distribute high-value marketing brochures to our network and prospects. This includes: A custom digital marketing brochure including professional photography, development schematics, and relevant development information for the target buyer. A custom printed brochure including professional photography, development schematics, and relevant information for the target buyer. Finally we bring our Ideal Buyer Profile, professional network, and marketing materials together as part of a bigger integrated marketing strategy, leveraging our digital capabilities. We plan to target local, regional and national markets using the following efforts: Email marketing Targeted Paid Search and Display Ads Crexi and Loopnet listings/advertisements MLS local listings McKenna Adams Commercial Realty covers marketing costs for all listings Client Responsibilities The City of Bozeman will provide the McKenna Adams Commercial Realty team with full access to all pertinent information regarding the property. The City will also commit to timely responses concerning showings, sale negotiations and contract decisions. They will be fair, equitable, creative and trustworthy as a client and in partnership with potential sellers and sellers’ agents. Renew online at https://ebiz.mt.gov/pol by signing in with your username and password. The renewal cycle for your board opens 60 days prior to the expiration date on your current license.Renew your license prior to your expiration date to avoid being charged a late fee(s).Remember to maintain your online account information with a password,security question and avalidemail address.You can update your account information by accessing the 'AccountManagement'link when logged in. State of MontanaBusiness Standards DivisionBoard of Realty Regulation RRE-RBS-LIC-71811 Status:ActiveExpires:10/31/2021 This certificate verifies licensure as: SALESPERSONSupervisedBy: REBECCA ADAMS MCKENNA ADAMS COMMERCIAL REALTY LLCMARLEYMCKENNAMCKENNA ADAMS COMMERCIAL REALTY LLC3805VALLEY COMMONS DR.STE 12BOZEMAN,MT 59718 Renew online at https://ebiz.mt.gov/pol by signing in with your username and password. The renewal cycle for your board opens 60 days prior to the expiration date on your current license.Renew your license prior to your expiration date to avoid being charged a late fee(s). Remember to maintain your online account information with a password,security question and avalidemail address.You can update your account information by accessing the 'AccountManagement'link when logged in. State of MontanaBusiness Standards DivisionBoard of Realty Regulation RRE-BRO-LIC-2756 Status:ActiveExpires:10/31/2021 This certificate verifies licensure as: BROKER With endorsements of:*SUPERVISING BROKER MICHAEL L MCKENNAMCKENNA ADAMS COMMERCIAL REALTY3805VALLEY COMMONS DRSTE12BOZEMAN,MT 59718 McKenna Adams Commercial Realty Licenses Renew online at https://ebiz.mt.gov/pol by signing in with your username and password. The renewal cycle for your board opens 60 days prior to the expiration date on your current license.Renew your license prior to your expiration date to avoid being charged a late fee(s).Remember to maintain your online account information with a password,security question and a valid email address.You can update your account information by accessing the 'AccountManagement'link when logged in. State of MontanaBusiness Standards DivisionBoard of Realty Regulation RRE-BRO-LIC-56423 Status:ActiveExpires:10/31/2021 This certificate verifies licensure as:BROKER Withendorsementsof:*SUPERVISING BROKER MCKENNA ADAMS COMMERCIAL REALTYREBECCA KATHERINE ADAMS3805VALLEY COMMONS DR#12BOZEMAN,MT 59718 Proposed Listing, Commission, Associated Costs, and Timeline Proposed Listing Price, Commission and Associated Costs Proposed Listing Price: $3,500,000.00 McKenna Adams Commercial Realty charges a 6% commission based on the final sales price of the property. This commission is shared with a selling broker if another agent brings a buyer. The split is traditionally 3.25% to McKenna Adams and 2.75% to the selling broker. In the event that a buyer is not represented by a licensed real estate agent requiring a split of the commission, McKenna Adams Commercial Realty will charge a reduced commission to be discussed in final listing agreement terms. Additional costs that we know will occur include the title insurance premium ($5,000-7,000 - rough estimate), closing costs to the title company ($350), and attorney fees for warranty deed prep. If the City of Bozeman is using accountant services or legal services that are provided by a 3rd party then additional fees can be expected. There are other variable costs that could be associated with the sale of the property. Timeline At the proposed listing price we expect the timeline for sale of the property would be approximately six months, there is also potential for additional time required for due diligence should the proposed sale result in a major redevelopment requirement. The listing agreement would be in place for 1 year in the case that there are unforeseen issues with the property that would require a longer negotiation and closing period. We recognize that the real estate market in Bozeman is extremely active and unpredictable at this time. This sale could close prior to our expected timeline. 177 Garden Center Drive List Price: Confidential Sale Price: Not Disclosed Contract Length: Listing contract August 20, 2020 - November 15, 2020 - Property sale closed on December 30, 2020 Our Most Recent Transactions Downtown 18 West Main St List Price: (Off Market) Sale Price: Not Disclosed Contract Length: 5 Months to close Comments: Closing was extended to allow all residential tenants to vacate before the buyers took possession. TBD Sacco Drive 15.75 Acre B-2 Parcel List Price: $4,000,000.00 Sale Price: Not Disclosed Contract Length: Listed for 11 months while interested parties negotiated usable acreage and pricing. Under contract for 19 months Comments: Closing was delayed due to long response times from surrounding property owners for PUD modification and the nature of the buyer being an affordable housing developer and needing a longer timeline to secure financing. Downtown 7 West Main St List Price: (Off market) Sale Price: Not Disclosed Contract Length: 2 Months to close 105 Bridger Center Drive - North East Neighborhood List Price: $1,395,000.00 Sale Price: Not Disclosed Contract Length: 3 Months Comments: Lease back negotiations Lovelace The Golden Rule Bridger Center Dr. Simms TBD Sacco Drive Professional References Phil Rotherham Rotherham Construction 240 Falcon Lane Bozeman, MT 59718 406-582-8223 phil@rothconst.com Niles Hushka Aspen Springs Consulting 220 Aspen Springs Rd Bozeman, MT 59715 701-471-9005 niles.hushka@outlook.com Steve Dymoke GMD Development 520 Pike St #1010 Seattle, WA 98101 206-227-3536 steve@gmddevelopment.com McKenna Adams Marketing Materials McKenna Realty LLC has transitioned to McKenna Adams Commercial Realty. Our team took the time to undergo a brand strategy to meet the dynamic changes of our market. We will outline the process and share some of the outcomes from this exercise below. We are in the process of relaunching our website in the coming weeks to reflect this new brand. Why undergo a brand strategy exercise? It’s important to us that as we make this transition to McKenna Adams Commercial Realty we have a clear understanding of our brokerage brand. We want to provide an experience and image that grows our business to meet future goals. Without a brand strategy, we fail to have a clear marketing strategy and we fail to reach our longterm goals and provide clarity to our clients. This re-brand is focused on our future success, adapting to our market and defining the road map to get there. Together we move into the future with clarity, defining our brand purpose, personality, voice, messaging and imagery. What is the difference between all of those brand terms you just mentioned? Brand Purpose: Why does the brand exist and why does it matter. Brand Personality: How we want to make others feel or interact with our clients. Brand Voice: How we speak about our brand and how we convey our personality through messaging, content and service. Brand Messaging: How we create messaging that inspires the right audience to take action. Brand Imagery: How we convey our purpose, personality, voice, and messaging in a visual manner that resonates with the right audiences. Brand Strategy Deliverables We defined the following items throughout our brand strategy exercise and provided examples (some of these deliverables are for internal use only and confidential to McKenna Adams): Brand Purpose McKenna Adams Brand Purpose: Our Purpose is to empower our clients to confidently make real estate decisions that result in long-term success. Brand Mission, Vision, and Values Brand Personality Brand Voice Ideal Customer Profiles and Relevant Value Propositions for Each Profile Competitor Analysis Brand Identity Logo Design and Usage Guidelines, Color Palettes, Identity System, Brand Photography, Website Design, Marketing Material Design. What’s Next for Our Brand Strategy? We’re working with a local agency to redesign our website using our new brand identity and long-term marketing goals. After completion, we will launch a digital marketing strategy introducing our new brand and work to tap into new target markets. McKenna Adams Commercial Realty Marketing Materials McKenna-Adams.com Katie Adams Owner/Broker | 406.581.7562 | katie@mckenna-adams.com Marley McKenna Owner/Agent | 406.544.9004 | marley@mckenna-adams.com Michael L. McKenna Owner/Broker $40 Million in commercial sale transactions Over 50 Lease agreements completed in 2019-2020 15 corporate and national clients with commercial leaseagreements and development projects 10 major development projects ranging from residential tocommercial properties from 2019 thru 2020 Competitive Markets Call for Creativity We’re dedicated to crafting the perfect investment for your real estate portfolio Our Team Specializes in Off-Market Opportunities / Development / Commercial Properties Leasing and Sales / Real Estate Investments[[Superior Investment Opportunity 177 Garden Drive, Bozeman MT 59718 Michael L. McKennaBroker McKenna Realty406.581.0792 mckennamt@gmail.com Katie Adams Broker McKenna Realty406.581.7562 katie.adams406@gmail.com Simms Fishing Product Headquarters consists of 3 stories of high-end offices in multiple different configurations, mulriple large manufacturing floors, & employee amenities include large break room, gym, onsite parking, etc. Thoughtfully designed as a functional showpiece of the Simms brand by Paul Bertelli with JLF Architecture. 74,332 square foot building on 4.59 acres Located Northwest of the Four Corners Intersection Situated with easy access to Bozeman City Limits, Belgrade, Gallatin Gateway & Big Sky - less then 10 miles from the heart of downtown Bozeman as well as the Bozeman International airport. Property Highlights Lease Information Tenant Name Simms Fishing Products Commencement Date 01/01/2021 Lease Expiration Date 12/31/2040 Lease Type Absolute NNN Lease Term 20 Years Escalations 3% annual escalations for life of the lease term commencing in January of year 3 Extension Options Two; 5-year Property Taxes, Insurance, Utilities, Maintenance Tenant Responsible Pricing Purchase Price $16,950,000 Net Operating Income $850,000 Cap Rate 5.00% There is a current lease in place coupled with approval of the tenant’s Board of Directors to execute a new 20 year lease with the sale of the property to an investor starting January 1, 2021. Simms Fishing has an established presence in the United States and International Markets. The tenant reports increased profits during COVID-19 as well as a shift to providing PPE when needed to help the efforts of the nation’s healthcare providers. Executive Summary Since 1980, Simms has been reimagining what’s possible. We used our hands to craft groundbreaking gear that’s built to fish harder and go farther. And as fishing has advanced, so too have we, into a state-of-the-art design and manufacturing hub, where innovators converge in Bozeman, Montana to form a diverse, creative family. These creators see the world differently, through a lens of mud-flecked windshields, salt-mottled glasses, tent doors opened to wild, illuminating expanses. Those views solidify our commitment to evolve and solve for the sake of doing what we love. Tenant Profile: Simms Fishing Products Simms is where premier product executions align with our compassion for others. We prioritize people, our business partners, and a fishing culture that hinges on robust fisheries. These elements are all interconnected. And as we grow, it’s vital that we stay connected and give back. So we show up, we challenge the status quo, we push for positive impact, and we hold ourselves accountable to higher standards. It’s a chosen path towards a simple conclusion: a life well fished. Which for us, means gear designed well. And lives lived well. Simms is a qualified tenant for the long-term lease of the 177 Garden Drive property. Simms has a twenty-five-year track record of growing revenue and profitability as well as a strong balance sheet. Two proof points to this is the fact that in the COVID-19 impacted 2020 fiscal year, Simms is poised to have a positive, profitable year on year revenue growth and ended the third quarter with a zero balance on its $16 Million bank line of credit. Furthermore, Simms’ recent partnership with Castanea Partners provides both capital and operating expertise to support growing the company. Castanea is investing out of a $735 million fund and transaction experience including the acquisition of 40 businesses with combined revenues of $3 billion; placement of over $4 billion in public debt and bank debt financings; and divestiture of 21 businesses with a combined value of over $6 billion. Tenant Financial Profile Contact McKenna Realty for Your Investment Opportunity Michael L. McKennaBroker McKenna Realty406.581.0792 mckennamt@gmail.com Katie Adams Broker McKenna Realty406.581.7562 katie.adams406@gmail.com Property Brochure We create brochures for properties that require an in depth analysis. This brochure was created for the Simms property and used to promote the opportunity to various qualified investors. Note: This property was listed and sold prior to our name change. All new materials will reflect the McKenna Adams Commercial Realty Brand. McKenna Adams One Pager This one pager allows us to highlight our brokerage accomplishments. We use this for new client presentations or a meeting leave-behind. This piece was developed as part of our new brand visuals. Confidential Confidential Confidential The following maps show a representation of the current development activities that are taking place West of Bozeman, South of Belgrade and adjacent to the Four Corners commercial corridor. Jackrabbit Lane plays an important role in the growth of the Bozeman community acting as the main artery for the many people that commute from Belgrade to Bozeman. Development activities have pushed West of Bozeman and closer to Four Corners, with over 500 units planned in the area North of Hufﬁne lane, South of Belgrade and West of Jackrabbit Lane in the next year. Four Corners and Belgrade Corridor Development Map Katie Adams Owner/Broker | 406.581.7562 | katie@mckenna-adams.com Marley McKenna Owner/Agent | 406.544.9004 | marley@mckenna-adams.comMcKenna-Adams.com VALLEY CENTER Town Pump Valley Grove Subdivision258 Acres, 353 Units Gallatin Heights Subdivision319 Acres, 341 Units Kenyon Noble HardwareBozeman Block and Tile Stockman Bank Ace Hardware Wylie Creek Estates164 Homes, 168 Lots Baxter Creek~146 units Westlake Subdivision29 Units, 55 acres Future Subdivision/100k+ sqft Beverage Distribution Center20-30 Mixed-Use Commercial Lots VALLEY CENTERProposed Subdivision~300 Affordable Housing Units LOVE LANE VALLEY CENTER ROAD BAXTER ROAD VALLEY CENTER ROAD LOVE LAN E Gallatin Heights Subdivision319 Acres, 341 Units Kennedy Commercial SubdivisionArchery CenterUrban FitnessFireplace Center Randash Auto Spanish Meadows Subdivision24 units, ~45 Acres Northstar Subdivision320 Acres, ~252 lots Four Corners Commercial Corridor Future Car Dealership Future Commercial/Apartment Development~280 apartments Middle Creek Parklands Subdivision~180 Acres, 252 units Your Space BozemanStorage Unit Facility Blackbull Golf Course & Subdivision485 Acres, ~350 Lots, Unitsvary between Bungalows, Villas, and Custom Homes The following maps show a current representation of the development activities that are taking place in Bozeman. These maps focus on Bozeman's west side: West of 19th street and North of Hufﬁne Lane. Google's inability to keep up with the growth is displayed as the commercial and residential developments are masked over the unmapped areas. Bozeman remains the fastest-growing micropolitan in the US, beating places like Vineyard Haven, MA, and Breckenridge, CO. Bozeman's population growth rate is between 3-5%, with 119,000 people living in Gallatin County. The growth rate combined with the developments taking place on the west side of Bozeman shows that expansion efforts will continue to push through this western corridor of Gallatin County. West Bozeman Development Map Katie Adams Owner/Broker | 406.581.7562 | katie@mckenna-adams.com Marley McKenna Owner/Agent | 406.544.9004 | marley@mckenna-adams.comMcKenna-Adams.com Norton RanchSubdivision Springhill Presbyterian Church ValleyWestSubdivision ICON Apartments(BozemanApartmentGroup) The Lakes at Valley WestSubdivision Westbrook Subdivision Laurel GlennSubdivision Furgeson FarmsPhases 1 & 2 TraditionsSubdivision Sports Complex Loyal GardensSubdivision Flanders CreekSubdivision New BozemanK-5 School New BozemanHigh School North WestCrossingSubdivision Flander’sMillSubdivison Petra Academy WestsideFlats Gallatin Valley Mall(Future Whole Foods) FalconHollowSubdivision 100 AcreRegional Park Hufﬁne Lane/US Highway 191Cottonwood RdGooch Hill RdFerguson AveDurston Rd Ferguson Farms Phase 1 Icon Apartments Ferguson Farms Phase 2Ferguson Farms Phase 2 FergusonFarmsPhase 1 The Lakes at Valley West Valley West1630 Living UnitsCombination of Condiminiums, Townhomes,Duplexes, SFH Commericial Use Buildings, Anchored by Sidewinders, Nordic BrewWorks, and MultipleRestuarants/Retail within the marketplace Mixed Used, 62 BuildingsLocal Grocer Town & Country has plans to buildon 4 acres West Side Flats138 Units, Apartments 246 Residential Units 348 Units Norton Ranch Billion Auto New Meadowlark Schook K-5 Billion Auto Phase 1-4 approx 222 LotsPhase 5 148 lots Golden Gate Condos Ressler Motors &Denny Mendolt Honda Woodland Park Subdivision168 Lots, Combination Residential, Commercialand School Falcon Hollow 44 Units Loyal Gardens Subdivision148 Single Family Lots 178 Lots, ResidentialSFH, Townhomes,Condiminiums MT Ambulatory Center New Town Pump Gas Station West Bozeman Development Map This high-value content offer was created to illustrate the development happening on the west side both present and future. Our map offers deeper insight into each development like size and units. This map helps us convey the growth of Bozeman that is not reflected in Google Maps. Four Corners and Belgrade Corridor Development Map This high-value content offer was created to illustrate the development happening in the corridor between Four Corners and Belgrade both present and future. This map offers deeper insight into each development. This map helps us convey the growth of Bozeman that is not reflected in GoogleMaps. McKenna Adams Commercial Realty Marketing Materials