J

Thank you for the additional information. Before I follow up with the other agent and I continue to look at opportunities to sell our half of the building, I do want to verify you do want to sell? It is my professional opinion that building holds a higher value to a potential buyer/investor as a whole. As we discussed having a asking price ready to share would be valuable as with marketing our half we get the question every time.

In full candor, my motivation lies within the personal notes that now are perceived as unsecured debt attached to me (as I do not own Q) has hindered any opportunity for me to participate in real property investing. Therefore I am wanting explore all options to sell, assign, or if there was a way exercise the option prior to our lease option period ending in about 3 years.

In full transparency I feel a asking price of approximately 4,400,000 is beyond market conditions and hard to justify. Therefore limiting chances to attract serious buyers. It’s my opinion that the building has a current market value of 3.8-4m (disclaimer: I do not have current income and expenses for your half of the building).

Our asking price -- T's half of building (note: approx. numbers as I do not have current amounts in front of me):

In the event we sold, prior to lease option period, credit for property taxes, approx. 3 years

In my estimate, approx. 1,600,000 would clear option price 1.2M, note 330K, note 80K and closing cost

Before I share this number with the other agent I want to verify with you. Also, any offer we receive we would sit down and go over specific numbers to create a response. Thank you.

A few months ago I tried to evaluate the building and shared some of that with you. Please review it if you can. An important point was that at the time of the bank's appraisal our end of the building (before we bought S&L's suites) generated 57.8% of net rental income. This can be interpreted to indicate that our end is worth 1.37 times your portion.
We have not had a sit-down M,M,&J meeting yet on this but have come to a tentative number because you need something timely. We would want to clear $2.69M for our end including the former O&M suites. By clear I mean net after commissions and closing costs. This probably doesn't help much but it is a number.

Here is the rough numbers for Q LLC’s 7 commercial condos.(I also included, from previous email our information below).

370 Q – Vacant, previously rented to Metro P at $2,175/month NNN

374 Q – Em, $2,536/month NNN

376 Q – Spike, $1,938.26/month NNN

378 Q – SE, $1,952.28/month NNN

380 S 200 – AO Engineering, $3,510/month NNN

380 S 240 – AIC, $3,111/month NNN

380 S 250 “The Mahogany Room” – Vacant, previously rented $1000/month asking $799 NNN

Current Monthly Rent: $13,047.54/month

Projected with vacancies: $16,021.54/month NNN

Note: Due to 2 vaccines monthly CAM charges about $485/month

M.P.

Here is some additional information on 380 Q Street (4 condos) -- 384, 386, 388 and 380 Suites 260-290

I have also attached the HOA “condo” joint use and maintenance agreement and the HOA information (less important if they purchased the entire building).

2018 Property Expenses:

CAM/HVAC/Janitorial: $17,360.65

Broker Fees/Commissions: $1,000.

Signage: $235.00

Repairs: $121.95

SUB (Electric and Water): $5,887.85

NW Natural (Gas): $884.07

COMCAST (executive suites) $2,217.83

2018 Total: $27,707.35

Note: Does not include property taxes

2019 Current rental Income:

384 Q All State, approx. 1740 sq. ft; $1900/month

386 Q CPA, approx. 1740 sq. ft; $1900/month

388 Q Metco, approx. 1740 sq. ft; $2175/month (starts July 1, 2019)

Q Executive Suites approx. 5,000 square feet (once was Real Estate office).

Currently 13 month to month tenants -- $6175/month (updated as of today)

2 vacancies, advertised at 500 and 485 ($985/month additional rent). Showing went well and independent financial advisor plans to take the larger $500/month office.

Current Monthly Rent: $12,150.00/month

Projected with vacancies: $13,135.00/month