Sunset Village SE 40th Place Bellevue, WA units Value-add opportunity

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1 Sunset Village SE 40th Place Bellevue, WA units Value-add opportunity

PROJECT SUMMARY Address 12839 SE 40th Place, Bellevue, WA 98006 Location South Bellevue/Factoria King

80 acres Units 22 Years built 1967 (8 units), 1998 (14 units) Number of buildings Three Number of stories

2 PROJECT SUMMARY Address SE 40th Place, Bellevue, WA Location South Bellevue/Factoria King County parcel numbers ; Site area 34,907 square feet; 0.80 acres Units 22 Years built 1967 (8 units), 1998 (14 units) Number of buildings Three Number of stories Two and Three Construction Wood Frame Net rentable area 19,700 Average square feet per unit 895 Walkscore 80 very walkable School district Bellevue

3 Executive summary INVESTMENT HIGHLIGHTS Excellent Bellevue Location Sunset Village has the attractive benefit of an incomparable Bellevue location. Downtown Bellevue, less than five minutes north. Sunset Village is less than 0.5 miles from two freeway interchanges with access to both I-90 which has direct access into Seattle, and I-405 with direct access to downtown Bellevue. I-90 Technology Corridor Bellevue s technology corridor consists of 2.6M square feet of corporate buildings housing aerospace, biotech, software, and service firms. The I-90 office submarket is the second-largest in the Eastside behind downtown Bellevue. The corridor has robust transportation and transit networks, a surprising number of tech companies and a recent upzone allowing office buildings up to 12 stories tall. Sunset Village is supremely located just minutes from the western edge of the I-90 technology corridor. Bellevue College Bellevue College, located 2 miles northeast of Sunset Village, is the third largest institution of higher learning in Washington, and has an annual student population of 37,000. Bellevue College is the largest of the 34 institutions that make up the Washington Community and Technical Colleges system Value-Add Opportunity Redevelopment opportunity with only four of the 22 units receiving recent upgrades. Renovated units are achieving $200-$400 above unrenovated units. Upgrades include granite countertops, stainless appliances, undermount sinks, new cabinets, flooring, trim, fixtures and doors. Average household incomes near the asset are $140,000 and homes are valued over $700,000 showcasing above average demographics that can afford to pay up for renovations. Light Rail in 2023 Sound Transit s East Link light rail line will extend 14 miles from downtown Seattle to the Overlake area in Redmond, with 10 stations in Mercer Island, South Bellevue, downtown Bellevue, BelRed (Spring District) and Overlake near Microsoft s world headquarters. The south Bellevue segment is currently under construction and will connect residents of Sunset Village to the existing light rail system by A train ride from South Bellevue to Capitol Hill will take about 21 minutes and it will take 50 minutes to reach Sea-Tac airport.

Property summary Sunset Village encompasses 22 units in three buildings located in the center of Factoria s retail center and walking distance to T-Mobile and other technology tenants in office

The current owners have re-roofed and pressure washed all three buildings, repainted all exterior wood trim, garage doors and frames, entry doors and frames, entry hallways, deck railings, stairs,

4 Property summary Sunset Village encompasses 22 units in three buildings located in the center of Factoria s retail center and walking distance to T-Mobile and other technology tenants in office buildings that make up the I-90 tech corridor. The asset has vinyl-siding, concrete walkways, metal railings and interior stairwells that provide privacy. The current owners have re-roofed and pressure washed all three buildings, repainted all exterior wood trim, garage doors and frames, entry doors and frames, entry hallways, deck railings, stairs, and soffits. Four units have been renovated, three of which enjoy a complete remodel that includes new kitchens with granite countertops, stainless appliances, stainless undermount sinks, wood blinds, new cabinet doors and boxes. There is vinyl plank flooring in kitchen, bath and living areas, new carpet in the bedrooms, new white baseboards, window trim, and six panel wood doors. Approximately $4,000 was spent on each unit which has achieved rental increases between $200 and $400. Some apartments enjoy a private ground level concrete deck and there are eight private garages available for rent. Each apartment home includes a washer and dryer and one allocated parking spot. Residents enjoy the proximity to Factoria amenities, the I-90 technology corridor and are just minutes from I-90, I-405, Downtown Bellevue and enjoy the benefits of an award winning Bellevue School District.

Property summary LOCATION Factoria s commercial development is centered around the Marketplace at Factoria, a nearby eight-theater cinema, and several grocery stores.

5 Property summary LOCATION Factoria s commercial development is centered around the Marketplace at Factoria, a nearby eight-theater cinema, and several grocery stores. Numerous office buildings of various size are scattered in the area, most significantly the six-tower Newport Corporate Center, occupied primarily by T-Mobile. The Factoria Campus development situated directly north of the Marketplace at Factoria, consists of three office buildings plus a cinema and some retail businesses. Typical to a business district, Factoria is dotted with shops, business services, and restaurants. Downtown Seattle Downtown Bellevue

Rent Rent/SF Annual Income Two Bedroom / One Bathroom 12 850 10,200 $1,810 $2.

6 Financial analysis UNIT MIX & INCOME APARTMENT INCOME SUMMARY JLL PRO FORMA RENTS Market Rate Type Units Avg. Unit SF Total SF Avg. Rent Rent/SF Annual Income Two Bedroom / One Bathroom ,200 $1,810 $2.13 $260,568 Two Bedroom / Two Bathroom ,500 $1,995 $2.10 $239,400 Total / Average ,700 $1,894 $2.11 $499,968

Financial analysis PRO FORMA PROJECTED YEAR 1 CASH FLOW OPERATING REVENUE Pro Forma Yr 1 Per Unit % Pro Forma Rents $499,968 $22,726 Vacancy ($24,998) ($1,136) 5.

Gross Income $528,540 $24,025 OPERATING EXPENSES Pro Forma Yr 1 Per Unit % Utilities $31,296 $1,423 Repairs & Maintenance $13,359 $607 Turnover $11,281 $513 Marketing & Advertising $1,100 $50

7 Financial analysis PRO FORMA PROJECTED YEAR 1 CASH FLOW OPERATING REVENUE Pro Forma Yr 1 Per Unit % Pro Forma Rents $499,968 $22,726 Vacancy ($24,998) ($1,136) 5.00% Net Rental Income $474,970 $21,590 Parking $19,200 $873 Pet Rent $2,200 $100 Utility Reimbursement $30,670 $1,394 Miscellaneous Income $1,500 $68 Total Other Income $53,570 $2,435 Effective Gross Income $528,540 $24,025 OPERATING EXPENSES Pro Forma Yr 1 Per Unit % Utilities $31,296 $1,423 Repairs & Maintenance $13,359 $607 Turnover $11,281 $513 Marketing & Advertising $1,100 $50 Landscaping $1,500 $68 Administrative $5,390 $245 Management Fee $26,427 $1, % Insurance $6,000 $273 Real Estate Taxes $41,131 $1,870 Total Operating Expenses $137,484 $6,249 Replacement Reserves $5,500 $250 Net Operating Income $385,556

8 INVESTMENT CONTACTS MATT KEMPER Vice President Phone: DON FLANIGAN Vice President Phone: FINANCING CONTACTS RAY ALLEN Managing Director Phone: SETH HEIKKILA Senior Vice President Phone:

KARINA PLACE 2213 NW 59TH ST SEATTLE, WA 98107

KARINA PLACE 2213 NW 59TH ST SEATTLE, WA 98107 FOR MORE INFORMATION: STEVE FISCHER PRINCIPAL BROKER 206.505.9435 fischer@ westlakeassociates.com TYLER D SMITH PRINCIPAL BROKER 206.505.9425 tylersmith@