Offering Memorandum JEWELL APARTMENTS th Ave S Kirkland, WA. Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum JEWELL APARTMENTS 324 6th Ave S Exclusively offered by Paragon Real Estate Advisors 1

2 Offering Summary Paragon Real Estate Advisors is pleased to offer for sale The Jewell Apartments This charming 5 unit building has been in the family for many years with long term residents. Rents have historically been well below market for this area. There is 20% to 40% rental income upside depending on updates. Additionally, the property is on a 10,000 sq.ft. lot which seems to be underutilized for the existing building. > > Excellent location next to the waterfront > > Rare opportunity to buy an Eastside apartment building > > Two blocks to Google s Kirkland campus > > Close to Starbucks, Metropolitan Market and downtown Kirkland > > Located on the bus line (Routes 234, 235, 238 and 255) Name Jewell Apartments Address 324 6th Ave S, Kirkland WA98033 Total Units 5 Built 1962 Square Feet 3,740 Total Net Rentable Price $1,825,000 Price Per Unit $365,000 Price Per Foot $ Current GRM/CAP 25.6/2.6% (1% Vacancy) Market GRM/CAP 16.8/4.5% (3% Vacancy) Expense Per Unit $4,743/Year Terms Cash Out Lot Size 10,000 Square Feet Zoning PLA 6E JEWELL APARTMENTS 2

3 Investment Highlights Excellent location near the waterfront Rare opportunity to buy a Kirkland apartment building Two blocks to Google s Kirkland campus DOWNTOWN KIRKLAND Close to Starbucks, Metropolitan Market and downtown Kirkland Located on the bus line (Routes 234, 235, 238 and 255) JEWELL APARTMENTS Architecturally appealing building Large, spacious two-bedroom units with washers and dryers Covered parking for 4 cars plus additional open parking in front Ideal for owner occupant or extended family GOOGLE CAMPUS JEWELL APARTMENTS 3

4 Neighborhood Map SEATTLE CBD UNIVERSITY OF WASHINGTON LAKE WASHINGTON WATERFRONT PARKS DOWNTOWN KIRKLAND GOOGLE CAMPUS JEWELL APARTMENTS TO BELLEVUE 4

5 Kirkland Kirkland is an affluent Eastside neighborhood, with an excellent location on the shores of Lake Washington and close access to many top employers in the area. With its dynamic community, to go along with its commanding views and scenic vistas, this area has a lot to offer prospective buyers. Downtown Kirkland and Marina Park are just to the South. This pedestrian-friendly area offers outstanding dining, entertainment, hotel, and shopping options. To the East is Google s new Kirkland campus which hosts over 1,000 employees. This is Google s third largest engineering campus in the US which encompasses over 675,000 square feet of office space. The Jewell Apartments are located at 324 6th Avenue South. This is an excellent location within two and half blocks from Kirkland s waterfront parks to the west, and Google s Campus to the east. The apartments are nestled in a quiet residential neighborhood with a mix of owner occupied homes and small apartment complexes. This is a quiet street with limited drive by traffic which attracts longer term residents who want to live in a location that feels more like a home than another apartment. This location is within close proximity to all the amenities residences desire such as waterfront parks, the downtown entertainment district, and many coffee shops and restaurants. 5

6 Kirkland Snapshot Population 84,721 Median household income $91,127 Single Married Owner Occupied Renters Walk Score Transit Score 41% 59% 64% 36% 77 - Very Walkable 50 - Good Transit Median 1 Bd/1 Bth Rent $1,614 Median 2Bd/1 Bth Rent $1,857 Seattle Commute Times Bellevue Commute Times Bus: 59 minutes via 255 Car: 18 minutes via 520/I5 Bus: 29 minutes via 234/550 Car: 13 minutes via I405 TOP JOB SECTORS: * Management: 16.9% Business 9.2% Computer: 10.9% Education 4.8% Engineering 4.0% Administrative: 9.8% Sales: 10.7% Service: 3.5% Healthcare: 5.2% Legal 1.3% Construction 2.7% Social Services: 1.2% * 6

7 Neighborhood Amenities Food/Drink Shopping/Services Parks/Schools 1 Anthony s Homeport 2 Cactus Kirkland 3 PCC Community Markets 4 Google Campus 5 Peter Kirk Park 6 Costco 7 Heritage Park 8 Northwest University 9 Beach House Bar and Grill 10 Flatstick Pub 11 Starbucks 12 US Bank 13 US Post Office 14 Quality Food Center 15 Metropolitan Market 16 Everest Park 17 Mercury s Coffee Company 18 Lake Washington High School 19 Rose Hill Middle School 20 Safeway 21 Starbucks 22 DERU 23 Cousins Cafe 24 Starbucks 25 Bellevue Golf Course 26 Watershed Park JEWELL APARTMENTS

8 Employment Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston. > > Adobe > > Alaska Airlines > > Amazon > > Apple > > AT&T Wireless > > Boeing > > Costco > > Expedia, Inc. > > Expeditors International > > F5 Networks > > Facebook > > Fred Hutchinson > > Gates Foundation > > Getty Images > > Google > > Microsoft > > Nintendo > > Nordstrom > > Paccar > > RealNetworks > > REI > > Russell Investments > > SpaceX > > Starbucks > > Symetra Financial > > Tableau Software > > T-Mobile > > Twitter > > Uber > > University of Washington > > Virginia Mason > > Weyerhaeuser > > Zillow > > Zulilly 8

9 Map of Key Employers ELLIOTT BAY 9

10 Improvements The Jewell Apartments were originally built in The building is architecturally pleasing with a slight pitched roof, and professionally landscaped yard. The Jewell consists of four spacious two-bedroom units divided by an open interior breezeway, and one studio unit along the west side of the building. Each apartment is separately metered with electric heat. The upper units include large decks. The two-bedroom units are very spacious, have an attractive floor plan and feature a full appliance package including in-unit washers and dryers. The studio unit also has access to the coin op laundry machines located adjacent to the unit in the common laundry room and individual storage area. There is a large back yard area behind the lower east apartment, and covered parking for four cars behind the building. Additional open parking is available in front of the apartments for tenants convenience. This is an important feature as most residents tend to have two cars each. Newer residential homes in the area sell for over $600 per square foot and this property could easily be ideal for an owner occupant, extended family as well as an investor. 10

11 Aerial View 11

12 Building Photos 12

13 Unit Photos 13

14 Unit Photos 14

15 DECK Typical Floor Plan BEDROOM LIVING ROOM BEDROOM BATH KITCHEN DINING NOT TO SCALE FOR CONCEPTUAL PURPOSES ONLY 15

16 Operating Summary Units 5 Year built 1962 Rentable Area 3,740 Sq.Ft. Down Payment $912,500 50% Loan Amount $912,500 50% Interest Rate 3.80% Amortization 30 Years Price $1,825,000 Price Per Unit $365,000 Per Square Foot $ Current GRM Current CAP 2.57% Market GRM Market CAP 4.47% Units Type Size Current Rent Market Rent 1 Studio 400 $750 $1, Bd/1Bth 835 $1,000 $1, Bd/1Bth 835 $1,300 $1, Bd/1Bth 835 $1,450 $1, Bd/1Bth 835 $1,450 $1,950 5 Avg S.F. 748 $1.59 $2.29 Total Monthly Income Monthly Scheduled Rent $5,950 $8,550 Utility Bill Back $0 $500 Parking Income 4 Spaces $0 $100/mo $0 Miscellaneous $0 $0 Total Monthly Income $5,950 $9,050 Annualized Operating Data Current Market Scheduled Gross Income $71,400 $108,600 Less Vacancy 1.0% $ % $3,258 Gross Operating Income $70,686 $105,342 Less Expenses $23,715 $23,715 Net Operating Income $46,971 $81,627 Annual Debt Service ($4,252) $51,022 $51,022 Cash Flow Before Tax -0.44% ($4,051) 3.35% $30,605 Principal Reduction $16,635 $16,635 Total Return Before Tax 1.38% $12, % $47,240 Annualized Operating Expenses Current Market Real Estate Taxes 2017 $9,705 $9,705 Insurance Proforma $1,710 $1,710 Utilities 2017 Est. $5,100 $5,100 Maintenance & Repairs Proforma $4,500 $4,500 Landscaping Proforma $600 $600 Administration Proforma $600 $600 Reserves Proforma $1,500 $1,500 Total Expenses $23,715 $23,715 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $4,743 $ % Market Operations Expenses/Unit Expenses/Foot Percent of EGI $4,743 $ % 16

17 Sale Comparables 1. PORTAGE BAY FLATS 3232 Furhman Ave E, Seattle WA Year Built 1960 Units 5 Sales Price $2,500,000 Price/Unit $500,000 Price/Foot $498 GRM/CAP 20.5/3.4% Sales Date TIKI APARTMENTS 1124 Market St, Kirkland WA Year Built 1962 Units 4 Sales Price $1,600,000 Price/Unit $320,000 Price/Foot $488 GRM/CAP 28.0/2.2% Sales Date SEA GULL APARTMENTS 430 Lake St, Year Built 1963 Units 21 Sales Price $6,000,000 Price/Unit $285,714 Price/Foot $467 GRM/CAP Sales Date Unknown 2. SHORESIDE 9900 SE Shoreland Dr, Bellevue WA Year Built 1965 Units 6 Sales Price $2,600,000 Price/Unit $433,333 Price/Foot $396 GRM/CAP Sales Date Unknown 4. LAUREY ANN 2529 Yale Ave E, Seattle WA Year Built 1969 Units 6 Sales Price $2,600,000 Price/Unit $433,333 Price/Foot $615 GRM/CAP 20.5/3.3% Sales Date KIRKLAND SHORES 205 5th Ave S, Kirkland WA Year Built 1976 Units 6 Sales Price $2,250,000 Price/Unit $375,000 Price/Foot $355 GRM/CAP 17.0/3.9% Sales Date

18 Sales Comparables Map Jewell Apartments 324 6th Ave S 3 1. Portage Bay Flats 3232 Furhman Ave E Seattle, WA 5 2. Shoreside 9900 S Shoreland Dr Bellevue, WA 3. Tiki Apartments 1124 Market St JEWELL APARTMENTS 4. Laurey Ann 2529 Yale Ave E Seattle, WA 5. Sea Gull Apartments 430 Lake St 2 6. Kirkland Shores 205 5th Ave S 18

19 Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft. Comments 1. Kirkland Fourplex 236 4th Ave Bd/1Bth 690 $1,750 $2.54 Washers and dryers in units, dishwashers, on-site parking, W/S/G included in rent 2. 7 Unit Apartment 343 4th Ave Bd/1Bth 800 $1,795 $2.24 Common laundry, on-site parking, no move in fees or deposits 3. Houghton Court Apts th Ave NE Bd/1Bth 1,000 $1,995 $2.00 Washers and dryers in units, dishwasher, fireplaces, private patio or balcony, on-site parking 4. Fourplex 714 1st Ave S Bd/1Bth 1,100 $2,100 $1.91 Common laundry, dishwasher, fireplaces, private patio or balcony, on-site parking 5. Tera Apartments 528 Central Way Studio 490 $1,435 $2.93 Washers and dryers in units, dishwashers, private patio or deck, storage, on-site parking 6. Timber Ridge Apts NE 68th St Bd/1Bth 1,000 $2,095 $2.10 Washers and dryers in units, dishwashers, private patios or deck, storage, on-site parking 7. Park Bay Apartments NE 68th St Bd/1Bth 839 $1,795 - $1,850 $ $

20 Rent Comparables Map Jewell Apartments 324 6th Ave S 1. Kirkland Fourplex 236 4th Ave 2. 7 Unit Apartment 343 4th Ave Houghton Court Apts th Ave NE 4. Fourplex 714 1st Ave S 5. Tera Apartments 528 Central Way 4 7 JEWELL APARTMENTS Timber Ridge Apts NE 68th St 7. Park bay Apartments NE 68th St 20

21 Paragon Real Estate Advisors ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multifamily property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with. At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 20 years experience in the industry. Paragon s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships. The information found in this offering memorandum 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. 21