Fishermen’s Terminal
Washington Maritime Blue Term Lease
Presenter:
Jennifer Maietta, Director Real Estate Asset Management
8g suppItem No.
November 19, 2024Date of Meeting
Action Requested
Request Commission authorization for the Executive Director to
execute a term lease with Washington Maritime Blue for
approximately 15,700 gross square feet of space located at
Fishermen’s Terminal within the Maritime Innovation Center
(MInC) in the substantiative form presented. The lease will be for
a term of ten (10) years with two five (5) year options for a total
of twenty (20) years.
2
Location
3
Maritime Innovation Center Rendering
4
Summary
• Washington Maritime Blue (WMB) has been partnering with
the Port to support maritime accelerator initiatives, workforce
training programs and a host of other WMB initiatives.
• WMB has graduated over 60 maritime businesses to date
through its incubator program.
• WMB will be able to utilize the new MInC as a permanent
facility to continue to grow its programs to incubate maritime
innovation.
5
Basic Lease Terms
DescriptionLease Term
• Approx. 15,700 gross square feet of office workspace within the MInCPremises
• 10-year term with two 5-year Options to be mutually exercised.Term
• Commencing upon ninety (90) days after the date of substantial completion of the
Port’s MInC redevelopment project.
Lease Commencement
• $30.00/sf/yr = $471,000/yr. = $39,250/mo. plus WA State LET(currently 12.84%) to
escalate 3% annually.
Base Rent
• $304,640 average of 6-month base rent plus LET, to be adjusted each option period.Security Deposit
• $63.00/sf ($989,100) towards Lessee’s design and improvements as approved by
Lessor. TI to be completed 275-days following the Commencement Date, or an early
termination be implemented, and an early termination penalty incurred by Lessee.
Tenant Improvement
• Rent to commence the earlier of (i) the date Lessee received the Certificate of
Occupancy for Lessee’s Tenant Improvements or (ii) 180-days after the
Commencement Date.
Rent Commencement
6
Financial Implications
7
The value of the primary term is approximately $4.2M including the application of tenant
improvement reimbursement. The tenant improvement reimbursement funds will be
recovered by the base rent revenue during the first 2.1 years of the primary term.
Financial Analysis and Summary
Project cost for analysis
Tenant Improvement Allowance:
$989,100
Business Unit (BU)
Portfol
io Management
Effect on business performance The lease generates approximately $4.2M over the
course of the primary term (10 yrs).
IRR/NPV
(if relevant)
NPV
=
$3.2M
Payback=2.1 years
CPE Impact NA
