Offering Memorandum LOUIS ARMS APARTMENTS Bellevue Ave Seattle, WA Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum LOUIS ARMS APARTMENTS 1515 Bellevue Ave Exclusively offered by Paragon Real Estate Advisors 1

2 Aerial Map CAPITOL HILL FIRST HILL LOUIS ARMS APTS SEATTLE CBD SOUTH LAKE UNION BELLTOWN 2

3 Offering Summary Paragon Real Estate Advisors is proud to exclusively list for sale the twenty-four-unit Louis Arm s Apartments located in the highly desirable Capitol Hill neighborhood of Seattle, Washington. With a Walk Score of 99 and a Transit Score of 100, the Louis Arms location is considered both a walker s paradise and a rider s paradise which means almost all daily activities can be done by foot and several popular locations can also be accessed by superior transit. The property is perfectly positioned on the most western portion of Capitol Hill in the Pike/Pine Corridor directly adjacent to the Downtown Seattle Central Business District which gives renters a perfect balance of a charming residential feel with the perks of being in the heart of the action. The Louis Arm s Apartments offer investors a wide array of potential value add opportunities such as increasing the number of apartments within the existing structure and/or renovating units to achieve higher market rents. Name LOUIS ARMS APARTMENTS Address 1515 Bellevue Ave, Seattle WA Total Units 24 Built 1925 Square Feet Price $5,500,000 Price Per Unit $229,167 Price Per Foot Current GRM/CAP 15.3/4.17% Market GRM/CAP 14.4/4.43% Expense Per Unit Lot Size Zoning 9,760 Rentable/ 13,135 Gross per KCR $563 Net / $419 Gross $5,091/Year 5,250 Square Feet NC3P-65 (Upzoned under HALA) 3

4 Investment Summary Two blocks from Downtown Seattle/Central Business District Future development potential with new flexible NC3P-75 HALA upzone (Buyer to Verify) 1920 s classic brick building in the heart of Capitol Hill Classic Capitol Hill construction with high levels of details in oak hardware floors and turn of the century charm Located in one of the strongest and stable rental markets in Seattle Six blocks from the Capitol Hill Light Rail Station Located in the Pike/Pine Urban Village Walk Score 99 out of Walkers Paradise Transit Score 100 out of Rider s Paradise Upside in raising below market rents Upside in renovating units Steps from Washington State Convention Center which has plans to add 1.2 million more square feet Potential to add more units in basement common areas (buyer to verify) 4

5 Location Highlights Superior Capitol Hill location two blocks east of Downtown Seattle Walk to Seattle University, Seattle Central, and Cal Anderson Park Walking distance to many restaurants, coffee shops, and other neighborhood amenities Located in the Pike/Pine Urban Village Corridor Located on several Sound Transit s bus routes, offering frequent service to Downtown, Pike Place Market and South Lake Union. Nearby Grocery Quality Food Center (QFC), Safeway, Trader Joe s and Whole Foods all within walking distance! Nearby Restaurants/Bars Skillet, Lark Restaurant, Momiji Sushi, Vito s Restaurant and Lounge, Shucker s Restaurant, Barrio Mexican Kitchen & Bar, Elysian Capitol Hill Brewery, Madison Pub, Tavern Law, Katsu Burger & Bar, Old School Frozen Custard, Café Presse, Needle & Thread Bar, Stumptown Coffee Roasters, Plum Bistro and more! Walking distance to Seattle Central College, Seattle University and Seattle Academy of Arts & Sciences. Cal Anderson Park 7-acre park with water features, large lawn area, footpaths, a play area, an athletic field and oversized chess boards. Nearby Hospitals---Virginia Mason Hospital/Seattle Medical Center, First Hill Medical Swedish Hospital, Seattle Children s Odessa Brown Clinic, Harborview Medical Center and Swedish Cherry Hill Campus Other close by parks include: Seven Hills Park, Homer Harris Park, Spring Street Mini Park, McGilvra Place, First Hill Park and Volunteer Park. Quick accessibility to Seattle CBD, Highway 99, I-5, I-90 and the new Mercer Street bike paths Sound Link Light Rail---Less than a 10-minute walk to the Capitol Hill Light Rail Station with service to places like Downtown Seattle, Century Link Field, Pioneer Square, Northgate and the Seattle Tacoma Airport. 5

6 Amenities Map Seattle CBD 300,000 Jobs LOUIS ARMS APTS 6

7 Aerial Map LOUIS ARMS APTS 7

8 Birdseye View 8

9 Capitol Hill Capitol Hill has a great location just minutes to the East of Seattle s CBD. The neighborhood is bound by I-5 to the West, beyond which is Eastlake and Downtown; to the North you can find Portage Bay and the Montlake neighborhoods; to the South is First Hill and the Central District; and to the East is the Madison Valley neighborhoods. Capitol Hill is known to many for being a fastpaced, hip neighborhood with countless avenues to explore. During the day, Capitol Hill is flooded with people taking advantage of the easy-to-walk neighborhood to explore the various coffeehouses, shops, and markets. At night, the neighborhood transforms into a thriving area of taverns and bars hosting live music boasting with nightlife and entertainment. With the neighborhoods central location, commuting to and from the area is easy with I-5 just to the west and the advanced transit system implemented over the past few years. The long planned Capitol Hill link light rail station located on Broadway opened in March of The transit line runs from the University of Washington to Angle Lake Station making 14 stops along the way including one at Sea-Tac Airport. In addition to the light rail, King County Metro has multiple transit bus lines with easy connections make for easy and hassle free routes. Routes 8, 10, 43, 49, and 60 all operate in the neighborhood and offer services to downtown with frequent trips scheduled daily. To the north is Capitol Hill s largest and most popular public park. The 48-acre park is home to the Seattle Asian Art Museum, tennis courts, picnic tables, conservatory, and water-tower observation deck. Leading into the Southern entrance of the park is Capitol Hill s famous Millionaire s Row on 14th Ave E. The rest of the neighborhood is comprised of a mixture of motel-like studio apartment buildings to some of the most historic mansions, with the two types sometimes shoulderto-shoulder. 9

10 Capitol Hill Snapshot Population 45,253 Median Household Income $73,400 Owner Occupied Renters Walk Score Bike Score Transit Score 29% 71% 98 - Walker s Paradise 86 - Very Bikable 79 - Excellent Transit Median 1 Bd/1 Bth Rent $1,949 Median 2Bd/1 Bth Rent $2,694 Seattle Commute Times Bus: 14 minutes via Bus 2 and 13 Car: 3 minutes via E Union St Foot: 23 minutes via Seneca St Bike: 8 minutes via Seneca St Bellevue Commute Times Bus: 47 minutes via Bus 2 and 550 Car: 20 minutes via 23rd and I90 TOP JOB SECTORS: * Management: 11.9% Business 6.7% Computer: 11.1% Education 6.3% Engineering 3.3% Administrative: 10.8% Sales: 7.8% Service: 9.9% Healthcare: 6.1% Legal 3.1% Construction 1.2% Social Services: 2.5% * 10

11 Seattle Central Business District Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health Seattle Icons: Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom s, Boeing, Expeditors International, Payscale, Zulily New Companies entering Seattle s Market: Dropbox, Facebook, Tableau and Apple Seattle is the number ten top fastest growing big U.S. cities Amazon currently host s 24,000 employees, and is projected to host an additional 47,000 more (total 71,000) by 2019 Projected to occupy over 9 million square feet of office space by

12 Major Employers - Central Business District 12

13 Major Employers - South Lake Union 13

14 Unit Features 21 efficiency one bedroom/one bathroom units with oversized closets 3 - studio units Functional Era appropriate kitchens Large living rooms Separately metered for electricity Gas unit forced air heating Oak and fir hardwood floors Nice dining room nooks 14

15 Property Features Secured access entry Charming brick building Abundant natural light in most units Elegant entryway with exposed marble staircase Views from upper floors on Western side of building Manicured landscaping Owner storage closets/room 24 individual storage lockers Common coin operated laundry room Partial plumbing upgrades Individual unit breaker panels Zoned NC3P-65 (will be upzoned to NC3P-75 with HALA) Located in the Pike/Pine Urban Village 15

16 Building Photos 16

17 Unit Photos 17

18 Unit Photos 18

19 Basement Floor Plan Potential to convert to an additional unit (buyer to verify) Utility Room Laundry Room Meter Room Office Tenant Storage 19

20 Operating Summary Units 24 Year built 1925 Rentable Area 9,760 / 13,135 (KCR) Down Payment $2,750,000 50% Loan Amount $2,750,000 50% Interest Rate 4.25% Amortization 30 Years Units Type Size Current Rent Price $5,500,000 Price Per Unit $229,167 Per Square Foot $ / $ Current GRM Current CAP 4.17% Market GRM Market CAP 4.43% Monthly Income Market Rent Monthly Income 3 Studio 300 $1,085 $3,255 $1,100 $3, Bd/1Bth 400 $1,075 - $1,200 $21,815 $1,200 $22,800 2 Air B&B 400 $1,700 $3,400 $1,700 $3, Avg S.F. 354 $2.92 $3.02 Total Monthly Income Current Market Monthly Scheduled Rent $28,470 $29,500 Laundry Income $245 $275 Utility Income $705 $65/unit $1,560 Misc/Storage Income $470 $570 Total Monthly Income $29,890 $31,905 Annualized Operating Data Current Market Scheduled Gross Income $358,680 $382,860 Less Vacancy 2.0% $7,174 $11,486 Gross Operating Income $351,506 $371,374 Less Expenses $122,194 $127,679 Net Operating Income $229,312 $243,695 Annual Debt Service ($13,528/mo) $162,340 $162,340 Cash Flow Before Tax 2.44% $66, % $81,355 Principal Reduction $46,361 $46,361 Total Return Before Tax 4.12% $113, % $127,716 Annualized Operating Expenses Current Market Real Estate Taxes $39,310 $44,000 Insurance $5,237 $5,237 Utilities $28,784 $28,784 Property Management $14,060 $14,855 On-Site Management $11,520 $11,520 Maintenance & Repairs $14,683 $14,683 Landscaping $600 $600 Advertising & Admin $2,000 $2,000 Reserves $6,000 $6,000 Total Expenses $122,194 $127,679 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $5,091 $ % Market Operations Expenses/Unit Expenses/Foot Percent of EGI $5,320 $ % 20

21 Sale Comparables SUB - LOUIS ARMS APARTMENTS 1515 Bellevue Ave, Seattle WA Year Built 1925 Units 24 Sales Price $5,500,000 Price/Unit $229,167 Price/Foot $564 GRM/CAP 15.3/4.17% Sales Date TBD 2. ATWOOD APARTMENTS 104 Pine St, Seattle WA Year Built 1909 Units 55 Sales Price $14,900,000 Price/Unit $270,909 Price/Foot $498 GRM/CAP 21.9/3.7% Sales Date GLEN EDEN APARTMENTS 921 1st Ave W, Seattle WA Year Built 1929 Units 36 Sales Price $11,500,000 Price/Unit $319,444 Price/Foot $454 GRM/CAP 16.5/3.6% Sales Date QUEEN ANNE APARTMENTS 419 Queen Anne Ave N, Seattle WA Year Built 1912 Units 20 Sales Price $5,450,000 Price/Unit $272,500 Price/Foot $246 GRM/CAP 17.5/3.3% Sales Date HIGHLAND CONDOS th Ave E, Seattle WA Year Built 1924 Units 12 Sales Price $6,000,000 Price/Unit $500,000 Price/Foot $409 GRM/CAP 18.1/3.8% Sales Date CENTERVIEW st Ave, Seattle WA Year Built 1910 Units 38 Sales Price $7,550,000 Price/Unit $198,684 Price/Foot $498 GRM/CAP 14.0/4.0% Sales Date

22 Sales Comparables Map LOUIS ARMS APARTMENTS 1515 Bellevue Ave Queen Anne Apartments 419 Queen Anne Ave N 1 2. Atwood Apartments 104 Pine St 5 3. Highland Condos th Ave E 4. Glen Eden Apartments 921 1st Ave W 5. Centerview st Ave 2 LOUIS ARMS APARTMENTS 22

23 Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft. LOUIS ARMS APARTMENTS 1515 Bellevue Ave Studio 1Bd/1Bth $1,085 $1,075 - $1,200 $3.62 $ $ Arville Apartments 1422 E Union St Studio 1Bd/1Bth $1,395 $1,475 - $1,795 $2.79 $ $ Roosevelt Apartments th Ave Studio 500 $1,450 $ Washington Irving 1305 E Howell St Studio 1Bd/1Bth $1,395 $1,895 - $2,195 $2.91 $ $ Madison Court Apartments 1519 E Madison St Studio 1Bd/1Bth $1,295 $1,395 - $1,450 $2.98 $ $ Kensington Apartments 1625 Belmont Ave Studio $1,082 - $1,122 $ $ Lowell Emerson th Ave Studio 350 $1,050 - $1,095 $ $ Envoy Apartments 821 9th Ave Studio 350 $1,120 $

24 Rent Comparables Map LOUIS ARMS APARTMENTS 1515 Bellevue Ave 1. Arville Apartments 1422 E Union St 2. Roosevelt Apartments th Ave Washington Irving 1305 E Howell St 4. Madison Court Apartments 1519 E Madison St LOUIS ARMS APARTMENTS Kensington Apartments 1625 Belmont Ave 6 6. Lowell Emerson th Ave 7 7. Envoy Apartments 821 9th Ave 24

25 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 $3.4 billion in sales and have closed over 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 23 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. 25