OFFERING MEMORANDUM. HARBOR SQUARE APTS 2425 Harbor Ave SW Seattle, WA Exclusively offered by:

Transcription

1 OFFERING MEMORANDUM HARBOR SQUARE APTS 2425 Harbor Ave SW Seattle, WA Exclusively offered by:

2 LOCATION VIEW Alki Beach North Admiral District Elliott Bay Seattle CBD Century Link & Safeco Field West Seattle Freeway Alaska Junction California Avenue Camp Long West Seattle Golf Course Morgan Junction OFFERING MEMORANDUM - 2

3 OFFERING SUMMARY NAME: Harbor Square Apartments ADDRESS: 2425 Harbor Ave SW, Seattle, WA TOTAL UNITS: 27 BUILT: 1990 SQUARE FEET: 18,735 Net Rentable (28,033 Gross) PRICE: $7,500,000 COST PER UNIT: $277,778 COST PER FOOT: $ Net Rentable (694 Avg SqFt) AVG RENT/SQFT: $1.97 $ Gross Square Foot CURRENT GRM/CAP: MARKET GRM/CAP: EXPENSE PER UNIT: LOT SQUARE FEET: 15.79/4.01% (4% Vacancy) 13.05/5.02% (5% Vacancy) $5,757/Year ($8.03/Sq.Ft.) 15,317 Square Feet ZONING: C1-40 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. OFFERING MEMORANDUM - 3

4 INVESTMENT HIGHLIGHTS Pride of ownership property Excellent Location with Seattle Skyline Views Updated and well-maintained building Walk, Run, Bike along Alki/Harbor Waterfront Direct access to Seattle s Central Business District via Water Taxi, bike routes or Metro s Rapid Ride Transit Close to Salty s Restaurant, Marination Restaurant & Bar, and Luna Park Cafe Around the corner from Alki Beach Boardwalk with more restaurants and entertainment Lot under utilized under current zoning Potential to add washers and dryers to units Area discussions of year round outdoor market, boutique hotels, and concert venues This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. OFFERING MEMORANDUM - 4

5 NEIGHBORHOOD DETIAL Marination West Seattle Passenger Ferry Salty s OFFERING MEMORANDUM - 5

6 APARTMENT FEATURES Secured lobby entrance Nice unit mix of studio, one and two-bedroom units Ample on-site parking via secured parking garage and open parking in front of building Secured lobby entrance Backs to trees providing privacy and a tranquil environment Views of the Seattle city skyline, Space Needle, cruise ships Updated bathrooms and kitchens Stainless steel appliance package Granite countertops Gas stoves Well maintained by long-term owners Common laundry on each floor residential in the back provide a tranquil environment for residents in front provide views and an active environment for residents OFFERING MEMORANDUM - 6

7 UNIT PHOTOS OFFERING MEMORANDUM - 7

8 UNIT PHOTOS OFFERING MEMORANDUM - 8

9 LOCATION FEATURES OFFERING MEMORANDUM - 9

10 AERIAL MAP West Seattle High School Safeway Metropolitan Market Alki Beach Park Condos Condos Marination Alki Kayak and Tool West Seattle Passenger Ferry Condos Coffee Salty s Bike and Walking Path Jack Block Park OFFERING MEMORANDUM - 10

11 BUILDING FEATURES Built in 1990 Intercom system, wide hallways, elevator, and fire system New exterior paint New windows where needed New commercial grade carpet for common areas New trim, paint, and artwork for common areas New designer lighting and premium fixtures New second floor decks New TPO roofing system Building is served by two stairwells and an elevator Residential units start on second floor 18 secured garage parking spaces and 10 open parking spaces Storage room Security system OFFERING MEMORANDUM - 11

12 LOCATION HIGHLIGHTS Grocery - QFC, Trader Joe s, Safeway, Husky Deli Coming to West Seattle - The Lodge Sports Grill and Whole Foods Grocery Store Restaurants - Jaks Grill, Matador, Talaricos Pizzeria, The Bridge, Ephaseus, Chipotle Alki Beach Park - Sandy Beach, restaurants, bike and pedestrian paths, fire pits, activity rentals Camp Long- educational center, cabin rentals, walking trails, zip line, rock wall West Seattle 18 Hole Championship Golf Course Convenient to Safeco Field (Mariners), Century Link (Seahawks), and proposed new Arena Quick drive to Seattle CBD, Highway 99, I-5, I-90, Ferry Terminals, Sea Tac International Airport Lincoln Park - Waterfront Park, 135 Acres, Salt Water Pool, Picnic Tables OFFERING MEMORANDUM - 12

13 ALKI BEACH OFFERING MEMORANDUM - 13

14 WEST SEATTLE Seattle CBD Number one neighborhood search in nation by Bay Area Silicon Valley residents looking to live in Seattle (Redfin) Elliott Bay Home to first Seattle Settlers (AKA: Birthplace of Seattle) 10 minute drive (non-rush hour) to Downtown Seattle One of Seattle s hottest residential neighborhoods People from all over Seattle visit West Seattle for nightlife, restaurants, golf and recreation West Seattle Surrounded on three sides by water Largest waterfront parks in the Seattle Metro area Convenient to all pro sporting events Served by rapid ride, water taxi, bike and ferry Convenient access to SeaTac International Airport This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. OFFERING MEMORANDUM - 14

15 SEATTLE CENTRAL BUSINESS DISTRICT 300,000 +/- jobs makes the Seattle CBD the fastest growing US city Headquarters to Amazon.com, Starbucks, Fred Hutch Cancer Research Center, Nordstroms, F-5 Networks, Expeditors International, Gates Foundation, Big Fish, Zillow.com, Redfin, EMC Isilon, Payscale, Holland America Line, Real Networks, REI, Headquartered Moving/Moved to Seattle: Expedia, Weyerhaeuser, Russell Company and Zulily New companies entering Seattle s Market Alibaba, Apple and Facebook, Dropbox Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Art Institute of Seattle, Cornish School of the Arts Major Health Care: Harborview Medical Center, University of Washington Medical Center, Children s Hospital, Virginia Mason Medical Center, Swedish Medical Center, Providence Medical Center, Group Health Seattle Icons: Seattle Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners OFFERING MEMORANDUM - 15

16 MAP OF KEY EMPLOYERS Expeditors International Russell Investments Port of Seattle Headquarters Big Fish Games Harborview Medical Center Virginia Mason Swedish Hospital Nordstrom Corporate Amazon PATH Amazon Bill & Melinda Gates Foundation UW Medical Research Center Fred Hutchinson Cancer Research Center OFFERING MEMORANDUM - 16

17 OPERATING STATEMENT PRICING Price Down Payment Loan Amount Interest Rate Amortization Price Per Unit Price Per Net Foot Price Per Gross Foot Current CAP Market CAP Current GRM Market GRM $7,500,000 $3,375,000 45% $4,125,000 55% 3.50% 30 Years $277,778 $ $ % 5.02% MONTHLY SCHEDULED INCOME Monthly Scheduled Rent Laundry Parking Utility Bill back Other Income Total Monthly Income ANNUALIZED OPERATING DATA Scheduled Gross Income Less Vacancy Gross Operating Income Less Expenses Net Operating Income Annual Debt Service ($18,523.09/mo) Cash flow Before Tax Principal Reduction Total Return Before Tax CURRENT $36,880 $629 $526 $1,131 $406 $39,572 $474,864 $18,995 (4.00%) $455,869 $155,437 $300,432 $222,277 $78,155 (2.32%) $79,164 $157,319 (4.66%) MARKET $43,620 $629 $1,080 ($60/space) $2,160 ($80/unit) $406 $47,895 $574,740 $28,737 (5.00%) $546,003 $169,179 $376,824 $222,277 $154,547 (4.58%) $79,164 $231,711 (6.92%) EXPENSE AND RESERVES Real Estate Taxes Insurance Utilities-WSG Property Management On-Site Management Maintenance & Repairs Turnover Landscape/Admin. Reserves Total Operating Expenses $49,244 $8,997 $32,961 $19,019 $16,035 $14,708 $5,073 $2,650 $6,750 $155,437 $60,000 $8,997 $32,961 $21,840 $16,200 $14,708 $5,073 $2,650 $6,750 $169,179 CURRENT Expense/Unit: $5,757 Expense/Foot: $8.30 % of GSI: 32.73% MARKET Expense/Unit: $6,266 Expense/Foot: $9.03 % of GSI: 29.44% OFFERING MEMORANDUM - 17

18 UNIT INCOME UNIT TYPE UNITS SQFT CURRENT RENT CURRENT INCOME MARKET RENT MARKET INCOME Studio SqFt $1,050 - $1,195 $3,295 $1,250 $3,750 1 BD/1 BTH SqFt $1,050 - $1,395 $7,565 $1,450 $8,700 1 BD/1 BTH SqFt $1,225 - $1,525 $16,230 $1,625 $19,500 2 BD/1.5 BTH SqFt $1,525 - $1,750 $4,970 $1,895 $5,685 2 BD/1.5 BTH SqFt $1,275 - $1,850 $4,820 $1,995 $5,985 Average/Totals SqFt $1.97/SF $36,880 $2.33/SF $43,620 OFFERING MEMORANDUM - 18

19 BUILDING PLANS Studio BD BD BD BD BD BD BD BD OFFERING MEMORANDUM - 19

20 SALES COMPARABLES SUBJECT - HARBOR SQUARE APTS 2425 HARBOR AVE SW, SEATTLE, WA Sales Price $7,500,000 Price/Unit $277,778 Price/Foot Net $400 Price/Foot Gross $268 CAP Rate 4.01% GRM ALASKA TH AVE SW, SEATTLE, WA Sales Price $5,650,000 Price/Unit $313,889 Price/Foot $433 CAP Rate 4.5% GRM 15.5 Sales Date ADMIRAL FLATS 3431 CALIFORNIA AVE SW, SEATTLE, WA Sales Price $2,450,000 Price/Unit $306,250 Price/Foot $416 CAP Rate 5.3% GRM 13.5 Sales Date LAKE TERRACE 512 NEWTON ST, SEATTLE, WA Sales Price $6,250,000 Price/Unit $260,417 Price/Foot $434 CAP Rate 3.5% GRM 17.5 Sales Date OFFERING MEMORANDUM - 20

21 SALES COMPARABLES 4. MADISON COURT ND AVE E, SEATTLE, WA Sales Price $10,500,000 Price/Unit $275,000 Price/Foot $449 CAP Rate 3.1% GRM 19.5 Sales Date UNIT TH AVE W, SEATTLE, WA Sales Price $2,575,000 Price/Unit $321,875 Price/Foot $383 CAP Rate 3.3% GRM 19.0 Sales Date STANDARD AT FREMONT 3636 DAYTON AVE N, SEATTLE, WA Sales Price $4,775,000 Price/Unit $367,307 Price/Foot $501 CAP Rate 4.7% GRM 15.4 Sales Date UNIT 3306 BEACH DR SW, SEATTLE, WA Sales Price $2,515,000 Price/Unit $359,285 Price/Foot $359 CAP Rate 2.7% GRM 19.8 Sales Date OFFERING MEMORANDUM - 21

22 RENT COMPARABLES SUBJECT - HARBOR SQUARE APTS 2425 HARBOR AVE SW SEATTLE, WA 1. HUDSON SQUARE APARTMENTS 4850 CALIFORNIA AVE SW SEATTLE, WA 2. CITY WATCH APARTMENTS ST AVE SW SEATTLE, WA UNIT TYPE Studio 1BD /1 BTH 1BD /1 BTH 2 BD/1.5 BTH 2 BD/1.5 BTH RENT $1,050 - $1,195 $1,050 - $1,395 $1,225 - $1,525 $1,525 - $1,750 $1,275 - $1,850 SQFT $/SQFT $ $2.41 $ $2.23 $ $2.18 $ $2.19 $ $2.00 UNIT TYPE 1 BD/1 BTH 2 BD/1 & 2 BTH RENT SQFT $1, $2, $/SQFT $2.73 $2.42 UNIT TYPE Studio 1 BD/1 BTH 1 BD/1 BTH RENT $1,525 $1,500 $1, SQFT $/SQFT $2.95 $2.59 $2.90 AMENITIES: Mountain and city views, decks, secured garage parking, elevator, lobby, updated units AMENITIES: Views, similar updated, washer and dryer in units AMENITIES: Territorial and City views, rooftop deck, washer and dryer in units OFFERING MEMORANDUM - 22

23 RENT COMPARABLES 3. ELAN SW EDMUNDS ST SEATTLE, WA 4. STRATA APARTMENTS 6312 CALIFORNIA AVE SW SEATTLE, WA 5. JUNCTION ND AVE SW SEATTLE, WA UNIT TYPE 1 BD/1 BTH 2 BD/1 BTH 2 BD/2 BTH RENT $1,699 - $1,950 $2,099 - $2,275 $2,395 - $2,575 SQFT 775 1,000 1,032 $/SQFT $ $2.52 $ $2.28 $ $2.50 UNIT TYPE 1 BD/1 BTH 2 BD/1 BTH 2 BD/2 BTH RENT $1,375 - $1,505 $1,480 - $1,530 $1,875 - $2,000 SQFT $/SQFT $ $2.39 $ $2.27 $ $2.17 UNIT TYPE Studio 1 BD/1 BTH 1 BD/1 BTH RENT $1,620 $1,627 $2,868 New Construction 206 SQFT $/SQFT 561 $ $2.38 1,005 $2.85 AMENITIES: Territorial views, Safeway is found floor tenant, updated units AMENITIES: No views, updated units, open parking, washer and dryer in units AMENITIES: Views from upper units, 9 foot ceilings, clubhouse OFFERING MEMORANDUM - 23

24 RENT COMPARABLES 6. THE BLAKE APARTMENTS 5020 CALIFORNIA AVE SW SEATTLE, WA UNIT TYPE Studio 1 BD/1 BTH 1 BD/1 BTH/Den 1 BD/1 BTH/Loft 2 BD/2 BTH New Construction 103 RENT $1,538 $1,956 $2,252 $2,050 $2,625 SQFT ,058 1,122 $/SQFT $3.54 $3.01 $2.69 $1.94 $2.31 AMENITIES: Community room, rooftop terrace, fitness center, dog wash, storage lockers, bike storage and work bench, washer and dryer in units, views CALIFORNIA 4730 CALIFORNIA AVE SW SEATTLE, WA UNIT TYPE Studio 1 BD/1 BTH 1 BD/1 BTH/Den 2 BD/1 BTH New Construction 88 RENT $1,496 $1,751 $2,154 $2,854 SQFT ,051 $/SQFT $2.89 $2.83 $2.72 $2.72 AMENITIES: Community room, rooftop terrace, fitness center, bike storage, washer and dryer in units, views OFFERING MEMORANDUM - 24

25 EXCLUSIVELY OFFERED BY PARAGON REAL ESTATE ADVISORS