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HomeMy WebLinkAboutCall for Offers - Fire Station 1 SaleBozeman Fire Station 1 34 North Rouse Avenue Redevelopment Opportunity | Bozeman, MT Bozeman Fire Station 1 34 North Rouse AvenueBozeman, MT Redevelopment Opportunity PREPARED BY RYAN SPRINGER, CCIMRyan.Springer@SterlingCREadvisors.com 406-579-5586 Introduction 4 Offering Details 10 Market Data 22 Licensed Real Estate Broker’s Disclosure 34 Invest in the West When a mountain town of just 50,000 attracts the attention of Time, Forbes, and Bloomberg, you know it’s something special.Up in Bozeman, Montana, the air is a little thinner and the snow comes down in thick blankets - and we wouldn’t want it any other way. Why BozemanThe city fronts several major mountain ranges, but, with over 70 miles of trail in town, getting into nature is as easy as walking out your front door. Those who get outside city limits can be knee-deep in fresh powder or down on the Gallatin or Madison River in half an hour. And while the wilderness is close, so is the Bozeman Yellowstone International Airport. The city boasts nonstop flights to Seattle, Los Angeles, Austin, Houston, Nashville, Minneapolis, Charlotte, Washington, D.C., and New York City, among others. Research and technology are the foundation of Bozeman’s growing economy. Oracle Corporation anchors the vibrant local tech community. And, as a Top 100 Research University per the National Science Foundation, Montana State University has an expanding student population. It’s no one-trick pony when it comes to revenue, though. Gallatin County ranks #1 for tourism spending. That’s no small feat in a state that’s also home to Glacier and Yellowstone National Parks. From country dives to upscale cocktails, from cryotherapy to finding zen on horseback, Bozeman offers the best of the west paired with world-class opportunities. About the Bozeman Fire StationCapture the opportunity to own a landmark in the historic downtown corridor. Welcome to the Bozeman Fire Station. At the corner of Rouse and East Mendenhall, and just a block off Main Street, the former fire station holds extraordinary potential. It’s across the street from Wild West Foods and kitty-corner to Bozeman Taproom & Spirits. Foot traffic is abundant along this section of Rouse Avenue. A distinctive tower, large overhead doors, and an extremely unique interior make this an adventurous location for a retail or hospitality operation. There’s over eight hundred million dollars in tourism spending coursing through Bozeman’s economy every year, and the fire station represents a raw opportunity to make your dream a reality. 4 Location Map 1. Bridger Mountains offer limitless recreational opportunities for bikers, hikers and anglers and provide a scenic backdrop for the city of Bozeman. Also home of the Bridger Bowl Ski Area, just 16 miles ftom downtown Bozeman 2. Downtown Bozeman A vibrant commercial center with popular shops & restaurants 3. Montana State University Home to over 16,000+ students and the state’s largest tech and engineering programs 4. Bozeman Health Deaconess Hospital 5 Star rated hospital serving Bozeman and the surrounding area 5. Tech EmployersOracle, Zoot Enterprises, PFL, Workiva, FICO, FLIR, and Snowflake are located in Bozeman 6. Bozeman Yellowstone International Airport Nonstop service to 30 major U.S. cities 7. Gallatin Valley Mall Destination retail serving western Montana 8. Billings ClinicNew 58 acre medical campus with a 140,000 SF medical facility opening Spring 2022. Will include a helicopter air ambulance service and a variety of medical specialists 1 2 3 4 555 5 6 7 5 5 8 5 Aerial BOZEMANBOZEMANPUBLICPUBLICLIBRARYLIBRARY INTERSTATEINTERSTATE9090 BOZEMANBOZEMANFIREFIRESTATIONSTATION EMERSONEMERSONCENTERCENTERFORFORARTSARTS KIMPTON, KIMPTON, AC & ELEMENTAC & ELEMENTHOTELS HOTELS HOTELHOTELBAXTERBAXTER RIALTORIALTOTHEATERTHEATER SCHNEE’SSCHNEE’SFICO OFFICES,FICO OFFICES,REGUSREGUS LARKLARKHOTELHOTEL RESIDENCERESIDENCEINNINN 6 The Bozeman Fire Station at 34 Rouse Avenue in Bozeman, Montana includes .45 acres of Downtown B-3 zoned land in the heart of downtown Bozeman. The building includes 9,538 square feet with roll up doors. The building can be reused or torn down for redevelopment. Registration, Contact and Property Tours. Brokers and Agents should register their Buyer(s) with listing Broker prior to scheduling a property tour. An advance coordinate window of at least 48 hours is required to schedule property tours by Contacting Ryan Springer at 406-579-5586. Showing up at the property unscheduled and/or talking to fire station staff is highly disruptive and discouraged. CONDITIONS: • The site and building are served with city water and sewer. There is currently a well on site; the well will be decommissioned with water rights retained by the city. The water rights and use of well will not transfer to the new owner.• The city will retain use of the building and site until July 1, 2022. • The fire pole in the building will be removed and does not transfer with the property.• Cooperating broker fee is 2.5% of final sale price. MAKING AN OFFER: REQUESTED FORMAT:All offers should be submitted with the approved Purchase and Sale Agreement format provided by Seller. Enclose a list of two or more recent acquisitions of similar scope/scale with client references if available. **Please note, the Bozeman Fire Station 1 is owned by the City of Bozeman. As a result, all offers become part of the public record and are subject to review at public meetings or other public forums. SALE IS CONTINGENT UPON BOZEMAN CITY COMMISSION APPROVAL. Offer Review Date: November 8, 2021, 10:30 AM (MST) Submit offers as single PDF document via email to the contacts below: Ryan Springer at Ryan.Springer@SterlingCREadvisors.com Offering Conditions & Process CALL FOR OFFERS ALL OFFERS WILL BE REVIEWED ON NOVEMBER 8, 2021 at 10:30 AM (MST) On September 1, 2021, the City of Bozeman issued the following information regarding the process the City will undertake to review, negotiate, and select an offer for the purchase of Fire Station 1: The City’s Strategic Plan identifies goals and objectives with one of the most critical being the provision of housing affordable to city residents especially those of low to moderate income. As such, in evaluating offers, in addition to evaluating the offered purchase price and other requested contingencies, the City may place a preference on offers that, in addition to the purchase price, address the affordability of housing in our community. The City recognizes potential purchasers may have different concepts for the future use of the property. This may include re-purposing Fire Station 1 or redeveloping the site. As such, the City is not requiring those submitting offers to address affordable housing in the offer. The City is not bound to accept offers that address affordable housing. The City may, in its discretion, accept an offer or negotiate one or more offers considering factors such as purchase price, requested contingencies, and whether an offer addresses affordable housing. The City may select an offer or negotiate an offer based solely on purchase price and requested contingencies. 7 Offering Details 34 North Rouse, Bozeman MT 34 North Rouse Offering Details Overview Address 34 North Rouse Ave Bozeman Montana, 59715 Existing Use Institutional- Firehouse Acres .45 Walk Score 89- Very Walkable Building Square Feet 9,538 Services City water & sewer Parcel ID 06-0799-07-1-09-33-0000 Features On-site Parking Roll up doors Unique tower featureZoningDowntown B-3 10 The Bozeman Fire Station at 34 North Rouse is an exceptional opportunity in vibrant downtown Bozeman. The location is one block off of Main Street and is an easy walk to hotels including the Kimpton Armory, numerous retailers including Lululemon and Head West as well as many of Bozeman’s favorite breweries and restaurants. The building has served a variety of civic uses since its construction in 1965. Currently it is being used as a fire station, with office and garage space on the first floor and living quarters on the second level. Building Details:• Concrete foundation/brick exterior• Trussed/membrane roof• 18’ ceiling height in some areas• Heated garage area with 6 roll up doors• Fire suppresion system in place The property is zoned downtown B3: D.Downtown district (downtown B-3). The intent of the downtown B-3 business district is to provide a central area for the community’s business, government service and cultural activities with urban residential development as an essential supporting use. The downtown B-3 district should be the area of greatest density of development, intensity of use, and appropriate infill. Design standards reinforcing the area’s historical pedestrian-oriented context are very important. This district encourages high volume, pedestrian-oriented uses in ground floor space in the “core area” of the city’s central business district, i.e., along Main Street from Grand to Rouse and to the alleys one-half block north and south from Main Street. Lower volume pedestrian uses such as professional offices may locate on ground floor space in the downtown B-3 area outside the above-defined core. 34 North Rouse Offering Details Overview Flexible zoning allows for a wide variety of commercial and residential uses, at a high density Pedestrian friendly zone with many walkable destinations ±.45 acre lot with on-site parking Strong demand for commercial and residential spaces in the Bozeman Located in a desirable market with high barriers to entry Property Features 11 34 North Rouse Offering Details Floorplans- Main Floor 12 34 North Rouse Offering Details Floorplans- 2nd Floor 13 34 North Rouse Offering Details Floorplans- Basement 1 14 34 North Rouse Offering Details Floorplans- Basement 2 15 16 17 34 North Rouse Offering Details Tax Map 18 34 North Rouse Offering Details Flood Plain Map 34 N ROUSE AVE BOZEMAN, MT 59715-3762 LOCATION ACCURACY:  Excellent COMMUNITY 300028 PANEL 0816E PANEL DATE April 21, 2021 MAP NUMBER 30031C0816E Flood Zone Determination Report Flood Zone Determination: OUT X500 or B Zone A Zone V Zone D Zone Floodway CBRA RiskMeter Page 2 of 2 © 2021 CoreLogic, Inc. All rights reserved. CORELOGIC, RISKMETER, PXPOINT and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective holders Report generated Aug 3, 2021 by matt@sterlingcreadvisors.com 19 Market Data Bozeman Montana Recent Downtown Bozeman Market Activity Downtown Bozeman is an active market for commericial real estate. A number of transactions have occured over the last 24 months in this area. The transactions are not direct comparables to the Fire House. Some transactions are for tear downs, adaptive reuse, renovations or fully leased income properties. These transactions are a reflection of market activity and give a range of the current climate. Map Address Close Date Close Price Bldg Sq Ft Lot Size Sq Ft Lot price/SF Bldg price/SF Year Built A 127 E Main Street 6/30/21 $1,650,000 1,650 3450 $478.26 $1,000.00 1890 B 131/135 E Main 6/30/21 $3,400,000 9,692 4,200.00 $809.52 $350.80 1882 C 206 N Grand 5/21/21 $1,310,000 4,704 11,760.00 $111.39 $278.49 1950 D 417 W Mendenhall Street 4/30/21 $1,150,000 3,194 10,000.00 $115.00 $360.05 E 129 E Main Street 2/24/21 $2,400,000 6,189 4,200.00 $571.43 $387.78 1895 F 27 Tracy 4/28/20 $1,800,000 5,060 9,720.00 $185.19 $355.73 G 122 North Bozeman 11/14/19 $1,450,000 2,127 8,400.00 $172.62 $681.71 H 137 E Babcock Street 10/18/19 $1,800,000 9,300 9,278.28 $194.00 $193.55 1917 I 7-9 E Main Street 10/4/19 $2,600,000 14,000 6,300.00 $412.70 $185.71 1910 22 AA BB CC DD EE FF GG HH II A B E C D F G H I Recent Downtown Bozeman Market Activity 23 Bozeman Market Overview Across the Bozeman area, the commercial real estate market made robust progress as the world slowly emerged from pandemic-driven isolation. While much of the US is reeling from unemployment and impacts to the retail sector, Bozeman’s economy showed great resilience. Over 40 commercial retail transactions were completed in 2020, with no signs of slowing down as more national brands eye the area. Looking at office, retail and industrial sales and leasing data, it is clear that commercial properties are likely to remain in high demand for Bozeman and across the state. Notable Development News Whole Foods comes to the Gallatin Valley Mall as part of a full redevelopment of the 37.4-acre property. It’s the first Whole Foods location in Montana. FLIR Systems announced their move to a 62,000 square foot facility off East Valley Center Road, expected to deliver in late 2021. The company touts high-paying tech jobs. Snowflake, a California based Cloud computing firm recently announced the relocation of it’s corporate headquarters and executive to Bozeman. BOZEMAN MARKET SUMMARY Make data-driven decisions about your commercial property with Sterling Commercial Real Estate Advisors. From our offices in Bozeman and Missoula, our team propels deal across Montana. OFFICE* 47 Sales Freestanding OfficeSold Average $/SF - $199.10 Condominium OfficeSold Average $/SF - $253.03 Leasing Activity*Leased Avg $/SF - $16.28 52 Sales Freestanding IndustrialSold Average $/SF - $154.25 Condominium IndustrialSold Average $/SF - $108.08 Leasing Activity*Leased Avg $/SF - $8.23 INDUSTRIAL 40 Sales Freestanding RetailSold Average $/SF - $235.80 Condominium RetailSold Average $/SF - $269.91 Leasing Activity*Leased Avg $/SF - $18.36 RETAIL * NNN Equivalent *Office statistics exclude private single office suites with all inclusive lease rates. We see demand for these small spaces in Bozeman and single suites are ideal for remote workers and small businesses. But, limited single spaces are available. Call us for more information on securing this popular office solution. 24 25 MISSOULA BY THE NUMBERS | Overview #1 BEST MICROPOLITAN ECONOMY IN AMERICA- 2018-2021 POLICOM #6 BEST CITY FOR ENTREPRENEURS Livability #10 BEST PLACES TO RAISE A FAMILY IN AMERICALivability #1 BEST PUBLIC HIGH SCHOOL IN MONTANA Niche Magazine #5 BEST PLACE TO RETIRE Self-Made 2019 #9 BEST STATE TO START A NEW BUSINESSWALLETHUB 2019 EMERGING MARKET FOR LUXURY REAL ESTATE Forbes Magazine #9 BEST COLLEGE CITIES & TOWNS Forbes Magazine #6 MOST DYNAMIC MICROPOLITAN Heartland Forward EO World Magazine BOZEMAN BY THE NUMBERS | Accolades Bozeman Accolades 26 BOZEMAN BY THE NUMBERS | People Bozeman has seen steady growth throughout the past decade. It is becoming a popular destinationfor young professionals. 41.6% POPULATION Growth since 2010 38.2% GROWTH Growth in the number of 25 to 34 year olds with a college degree since 2010 58.7% DEGREED Of the population 25 and up have a bachelors degree or higher vs 32.6% in the US 25.6% HIGH INCOME HOUSEHOLDS Of households have incomes over $100,000 a year, up from 13.4% in 2010 56.8% RENTERS Of residents are renters MEDIAN AGE : 28 The median age in the US is 38 Bozeman People 27 Bozeman has a diverse and growing economy. Montana State University has long anchored the community and helped paved the way for a tech boom that started with Oracle’s acquisition of Right Now Technologies. Now, a growing roster of tech companies and professional services are propelling Bozeman forward. DIVERSITY AMONG TOP EMPLOYERS Bozeman Deaconess Hospital (medical), Montana State University (education), Oracle (tech), City/County (government), Kenyon Noble Lumber & Hardware (retail) $112,800,000 Venture capital in Montana in 2020 35% GROWTH IN PROFESSIONAL SERVICES AND TECH JOBS FROM 2008 TO 2018 20% OF ALL NEW JOBS IN THE PAST DECADE ARE IN HEALTHCARE GROWING TECH HUB Oracle, Zoot Enterprises, PFL, FLIR, FICO, Snowflake and Workiva are some examples of tech firms that call Bozeman home REMOTE WORK HUBA growing population of remote workers employed by out of state firms- Montana has the 4th highest per capita share of remote workers in the US Bozeman Economy 28 Bozeman is served by a robust transportation network including bike lanes, bus service and well maintained roads that link the community. And Bozeman is linked across the US by the robust Bozeman International Airport. 14 MINUTES Average commute time, vs 27 minutes in the US 13.9%Walk or bike to work versus 3.1% in the US overall 6 HOURS Lost in Bozeman traffic congestion yearly, vs 26 hours in the US overall 30 NON-STOP DESTINATIONS FROM BZN Newly upgraded terminal 45 MILES Of dedicated walking and bike trails to get around Bozeman 5 ROUTES Provide a bus network across the City of Bozeman Bozeman Transportation 29 MARKET INTEL | Economic Overview What do yoga studios, rodeos, wilderness, modern art, distilleries, creative dining and skiing all have in common? You can experience them all in a day in Bozeman. 906 ACRES OF PARKS84% of Bozeman residents live within a 10 minute walk of a park vs 55% average for America ACRES OF WILDERNESS If you want more adventure or solitude 13 CRAFT BREWERIESTo grab a pint at with friends 2 SKI MOUNTAINS Within a one hour drive, with many more an easy day trip away 13 TYRANNOSAURUS REXES Live at the Museum of the Rockies TOO MANY TO COUNT Local restaurants using locally grown ingredients 5 FARMERS MARKETS Several operating year round Bozeman Lifestyle 30 31 MARKETING | Outlets Ryan Springer, CCIM | Advisor • Experience in all commercial property types • Certified Commercial Investment Member Ryan grew up in Bozeman and has almost 15 years of experience exclusively in the commercial real estate market. His deep local ties and market knowledge have proven to be a winning combination for his clients. Claire Matten | Advisor | CCIM• Certified Commercial Investment Member• Over $420M in transaction volume • Specializes in industrial, self-storage property Claire successfully guides local, national, and multinational clients in commercial real estate acquisitions, lease obligations, asset reposition and dispositions. Connor McMahon | Advisor• Specializes in retail, leasing • Over $100 million in transaction volume Connor brings extensive experience in helping national and local retailers navigate transactions. His detail oriented approach adds value to the site selection process. Matt Mellott | Advisor | CCIM, SIOR • Society of Industrial and Office Member • Certified Commercial Investment Member • Specializes in investment, development and office propertiesMatt delivers results for his clients through superior market knowledge, data analysis and effective negotiating. With a background in flying F/A-18s, Matt brings military speed, discipline and focus to bear for the benefit of his clients. Nick Chaussee | Advisor• Specializes in multifamily, leasing • Certified Commercial Investment Member in progress Nick brings valuable experience in the management, development, and operation of properties to the Sterling CRE Advisors team. 32 Sara Townsley | Research• Holds a Montana Real Estate License • Only full-time CRE Research Director in Montana Sara provides the Sterling CRE Advisor team with crucial data to guide investment decisions by tracking multifamily, industrial, office, self-storage, land and development data across the state. Maggie Collister | Marketing | MS• Marketing and analysis background in economic and real estate development • Masters, Geography- Community Planning Maggie brings polished design and useful economic data together in marketing materials, offering clients ad-agency level collateral for projects. Sarah Knobel | Marketing | MPA• Marketing and public relations experience in infrastructure and commercial development• Crisis Communications Master Class, Public Relations Society of America Strategically using data, stories and creative outreach, Sarah connects clients with the right commercial real estate opportunities. Jessica Morina• Licensed Property Manager • 14+ years of experience Jessica has extensive experience managing office, industrial and housing properties. She is continuously evaluation ways to add value to the properties she manages. Sandy Sanford | Team Manager• Extensive experience in residential & commercial real estate • Property management experience Sandy brings extensive commercial real estate experience to the team. 33 Sterling BZN, LLC (“Agent”) has been engaged as the exclusive agent for the sale of the Fire Station #1 located at 34 North Bozeman Street, Bozeman Montana (the “Property”). This offering memorandum contains select information pertaining to the Property, and does not purport to be all-inclusive or contain all or part of the information which prospective purchasers may require to evaluate a purchase of the Property. The information contained in this offering memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not present the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This offering memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective investors. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS OFFERING MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither Sterling CRE Advisors nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. Photos herein are the property of their respective owners. Use of these imageswithout the express written consent of the owner is prohibited. LICENSED REAL ESTATE BROKER’S DISCLOSURE ENVIRONMENTAL MATTERS All parties to real estate transactions should be aware of the health liability and economic impact of environmental factors on real estate. Sterling BZN, LLC does not conduct investigations or analysis of environmental matters and, accordingly, urges its clients to retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCBs and other contaminant or petrol-chemical products stored in underground tanks) or other undesirable materials or conditions are present at the Property and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of the buildings or may be present as a result of the previous activities at the Property. Depending upon past, current and proposed uses of the Property, it may be prudent to retain an environmental expert to conduct a site investigation and/or building inspection. Various federal, state and local authorities have enacted laws and regulations dealing with the use, storage, handling, removal, transport and disposal of toxic or hazardous wastes and substances. If hazardous or toxic substances exist or are contemplated to be used at the Property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials could be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present. Sterling BZN, LLC makes no representation and assumes no obligation regarding the presence or absence of toxic or hazardous waste or substances or other undesirable materials on or about any property ultimately sold. It is solely the responsibility of the Potential Purchaser to conduct investigations to determine the presence of such materials. The Americans with Disabilities Act is intended to make many business establishments equally accessible to persons with a variety of disabilities; modifications to real property may be required. State and local laws also may mandate changes. Sterling BZN, LLC is not qualified to advise you as to what, if any, changes may be required now, or in the future. Prospective investors should consult their attorneys and qualified design professionals for information regarding these matters. 34 895 Technology Blvd., Suite 101 | Bozeman, Montana 59718 | main: +1 406 203 4547 | email: info@sterlingcreadvisors.com SterlingCREadvisors.com Commercial Real Estate Services