INVESTMENT SUMMARY
MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY
50 SW Division Street | Bend, Oregon
OPPORTUNITY OVERVIEW
Presenting a unique sale-leaseback opportunity with Crux Fermentation Project in the heart of Bend, Oregon. The offering includes an 8,816 SF facility on 1.57 acres. The Crux operation requires a total of 1.22 acres of land to support outdoor seating and food cart operations, leaving a future retail pad site of 0.35 acre on the south end of the lot, which represents excess land. This option allows for a stable investment while maintaining Crux Fermentation Project’s ongoing operations.
Investment opportunity with sale-leaseback
Large indoor and outdoor seating areas
Excellent on-site parking plus additional parking on ODOT land
Sale includes future retail site of 0.35 acre
Located in the Opportunity Zone
Brewing and kitchen equipment available for purchase
Stunning views of the Cascade Mountains
Growing area with two new mixed use developments with 1,900+ units
THE OFFERING
SALE-LEASEBACK OPPORTUNITY
The property at 50 SW Division Street, located on Bend’s west side, presents a unique sale-leaseback opportunity with Crux Fermentation Project. This arrangement facilitates a seamless transition and continued operation for Crux Fermentation Project, while providing a secure, more diversified investment for the new owner. Crux will leaseback 64% of the building, with the remainder of the building being leased to one or two other retail tenants (see space plan on page 8).
HISTORY
Originally constructed in 1988 as a Lumbermen’s supply store and later repurposed as an AAMCO transmission shop, the property underwent a complete transformation into a restaurant and brewery in 2012, with a subsequent 2,936-square-foot expansion in 2018. Its central location, situated between the historic Box Factory, Old Mill District, and downtown Bend, makes it a prime spot for business.
FACILITY OVERVIEW
The acclaimed tasting room, designed as a craft beer haven, draws a diverse audience of families, outdoor enthusiasts, and beer aficionados. The facility features over 24 taps, a spacious lawn with food carts, and breathtaking views of the Cascade Mountains.
The building encompasses 5,616 square feet of restaurant space occupied by Crux, along with an additional 3,200 square feet of soon to be demised retail space. Constructed with concrete blocks, exposed ceilings, and impressive rollup glass doors, the facility exudes a modern industrial ambiance. The extensive lawn area includes three upgraded pads for food carts, equipped with concrete pads, underground electrical lines, and grey water lines.
The property offers 52 on-site parking spaces, with additional parking available on land leased from ODOT. The leased land from ODOT spans 21,999 square feet on the eastern edge of the property.
Building Price $4,313,930 (5.71% Cap Rate)
Excess Land Price $686,070 (0.35 acre)
Gross Price $5,000,000
Total Credits $402,000 (see page 9 for more information)
Total Bldg. Net Price $3,911,930
Building Size 8,816 SF
Building Price/SF $489.33
Sale-Leaseback 5-year term at base rent. More details provided with a signed NDA.
DETAILS
OPPORTUNITY
Property Type Restaurant and Retail
Address 50 SW Division Street, Bend, OR 97702
Tax Lot 181205AA00701
County Deschutes
Zoning Mixed-Use Urban (MU)
Total Land Area 1.57 Acres (includes excess land)
Year Built 1988
Year Remodeled
2000 - AAMCO transmission shop 2012 - restaurant/brewing facility 2018 - Large restaurant expansion
Parking 52 onsite spaces (5.90:1,000 SF Ratio) plus additional parking on leased ODOT land.
Occupancy 240
Food Cart Sites
3 concrete pad sites with underground electrical and grey water lines.
DEMISING PLAN
CURRENT CONCEPTUAL DEMISING PLAN
The building is currently being demised to create one to two additional retail spaces. Crux will lease back the southern portion of the building, including the outside food carts, on a long-term lease, leaving 3,200 square feet on the north side available for lease.
FINANCIALS
CREDITS AT CLOSING
The seller will offer the following credits to the buyer at closing to complete the demising plan and lease-up:
$150,000 credit for space demising (construction bid available upon request)
$144,000 credit for tenant improvements
$12,000 credit towards leasing commissions
Total Credits: $306,000
RENT GUARANTEE
The seller will guarantee the buyer’s cap rate by providing a rent guarantee for 12 months, structured as an escrow holdback account, with a maximum credit amount of $96,000.
SITE PLAN
FUTURE RETAIL SITE
This offering currently includes 0.35 acre (15,246 SF) of excess land for a future retail development. This land currently serves ±8,712 SF of outdoor lawn space and an additional ±6,534 SF (18 parking spaces). This leaves Crux with plenty of outdoor space to continue their food cart operations and maintain its current level of service.
The additional land sits in a prime retail area next to the main entrance to the upcoming Timber Yards project. Timber Yards will feature a 32-acre mixed-use development, including 1,600 residential units, a hotel, and 190,000 square feet of commercial space.
PROPERTY LINES APPROXIMATE
PROPERTY PHOTOS
MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY
50 SW Division Street | Bend, Oregon
LOCATION OVERVIEW
MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY
50 SW Division Street | Bend, Oregon
STRATEGIC LOCATION
Strategically positioned adjacent to the Timber Yards, a planned 32-acre mixed-use development, the property will benefit from proximity to 1,600 residential units, a hotel, and 190,000 square feet of commercial space.
Additionally, The Jackstraw, a future 4.7-acre mixed-use development located just down the road from the facility, will feature 313 thoughtfully designed residential units and 17,500 square feet of retail space, creating a dynamic hub for the community.
The Old Mill District, just half a mile from the facility, attracts crowds with over 52 concerts each season featuring renowned artists at the Hayden Homes Amphitheater. The area’s vibrant shopping and diverse dining options contribute to a dynamic atmosphere, drawing in locals and tourists alike.
GROWING & THRIVING
The city of Bend, with a current population just over 100,000, ranks 2nd in the State for population growth over the last ten years, recording a 33.4% increase over that time period. Nationally, Bend was ranked as the 13th strongest market in the country in the Commercial Real Estate Metro Market Index published by NAR (based on job growth, wage growth, unemployment rates, vacancies, absorption and cap rates). Work-life balance and access to the outdoors has made Bend one of the most attractive places to live in the Country. Residents enjoy the advantages of a small town with the medical, professional and educational opportunities as a large metro. The current unemployment rate in Bend is 3.4% and wage growth is among the highest in the nation.
The Milken Institute ranked the Bend Metro as the Best Performing Small City in the nation in 2020 for the fourth consecutive year. Bend is a burgeoning area slated for increasing growth.
BEND, OREGON
With a population of 102,059, Bend is the sixth-largest city in Oregon and the largest city in Central Oregon, acting as its commercial, recreational, and social hub. Nestled on the eastern edge of the Cascade Range along the Deschutes River, Bend blends forested mountain highlands with high desert plateaus, offering diverse scenery and outdoor activities while providing relatively easy access to major West Coast metropolitan areas.
LIFESTYLE DESTINATION
Bend has a deserved reputation for attracting lifestyle migrants – urban dwellers seeking amenities typically associated with larger metropolitan areas but also outdoor recreational pursuits, a beautiful setting and an accessible community feeling. As such, the city attracts families and entrepreneurs from all the West Coast metro areas as well as other major population centers. The city has been adopted as a gateway for many outdoor sports, including mountain biking, skiing and snowboarding, dog sled racing, fishing, hiking, rock climbing, white-water rafting and golf. Bend also offers a thriving arts and culture scene, and the city’s beer brewing industry and restaurants are a draw for tourists and locals alike. BEST PERFORMING SMALL CITY IN THE U.S.
FASTEST-GROWING CITY IN THE U.S.
Milken Institute 2017, 2018, 2019 & 2020
HIGHEST JOB GROWTH IN THE U.S.
#2
WalletHub 2020
#2
WalletHub 2020
CENTRAL OREGON
LIFESTYLE
Central Oregon offers a rare mix of city amenities and restful isolation, including the slower speed of a small town with a medical community and infrastructure not normally seen in a region of its size. Additionally, Central Oregon residents maintain a work/life balance that is difficult to achieve elsewhere.
EDUCATION
Central Oregon is well-recognized for its high level of education, with some of the best K-12 public schools in the nation. In 2020, the Bend-La Pine school district’s average SAT scores surpassed the national average by over 130 points. Additionally, the region’s higher education opportunities abound. From the new Oregon State University-Cascades to Central Oregon Community College’s four campuses in the region, there are opportunities for all to obtain a quality education.
AIRPORT
Redmond Municipal Airport provides commercial air service with daily non-stop flights to Burbank, Denver, Los Angeles, Phoenix, Salt Lake City, San Diego, San Francisco, Santa Rosa, and Seattle via carriers American, Alaska, Avelo, Delta, and United. The airport is undergoing a $5.2 million expansion to meet the rising demand for transit in and out of the region.
300 Days of Sunshine
31 Breweries & Counting
30 Golf Courses Miles of Trails
Thriving Arts & Culture
BEND, OREGON DEMOGRAPHICS
POPULATION TRENDS AND KEY INDICATORS
Bend, OR
MULTI-TENANT RETAIL INVESTMENT OPPORTUNITY
50 SW Division Street | Bend, Oregon
OFFERING TERMS
The property at 50 SW Division Street, Bend, OR 97702 is being offered for sale on an “as-is, where-is” basis.
Please submit offers via email to the listing team.
Interested parties must submit a written Letter of Intent (“LOI”) or a Purchase & Sales Agreement (“PSA”) outlining the terms and conditions under which they propose to purchase the Property. Such terms must include the following:
• Purchase price
• Company background and financial capability
• Source of capital (Equity/Debt)
• Amount and form of earnest money deposit(s)
• Required contingency periods (inspection, financing, etc.), including any extension(s)
• Closing timeline
All property tours must be scheduled in advance through the Compass Commercial listing team.
Peter May, CCIM
Partner, Principal Broker Cell 541.408.3888 pmay@compasscommercial.com
Dan Kemp, CCIM
Partner, Principal Broker Cell 541.550.8413
dkemp@compasscommercial.com
Pat Kesgard, CCIM
Partner, Principal Broker Cell 541.350.8900
pkesgard@compasscommercial.com
