CAPITOL HILL SEATTLE CBD LAKE UNION SOUTH LAKE UNION SEATTLE CENTER QUEEN ANNE

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1 SIX-19 APARTMENTS

2 CAPITOL HILL LAKE UNION SOUTH LAKE UNION SEATTLE CBD SEATTLE CENTER QUEEN ANNE

OFFERING The SIX 19 Apartments offer an exceptional opportunity to acquire a property in excellent condition in the very sought after and conveniently located Lower Queen Anne neighborhood in Seattle.

3 OFFERING The SIX 19 Apartments offer an exceptional opportunity to acquire a property in excellent condition in the very sought after and conveniently located Lower Queen Anne neighborhood in Seattle. The apartment building sits on the south slope of Queen Anne Hill, and its tenants enjoy the proximity to Downtown, nearby walk able retail in both Lower Queen Anne and South Lake Union, and the recreational opportunities available in both neighborhoods as well. NAME SIX-19 Apartments ADDRESS 619 Prospect St, Seattle WA TOTAL UNITS 9 BUILT 1968 SQUARE FEET 7,410 Total Net Rentable PRICE $3,150,000 PRICE PER UNIT $350,000 PRICE PER FOOT $ CURRENT GRM/CAP 17.5/4.1% MARKET GRM/CAP 14.8/5.0% LOT SIZE ZONING 7,200 Square Feet LR3-RC 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 all information and bears all risk for inaccuracies.

INVESTMENT HIGHLIGHTS Lower Queen Anne/South Lake Union location

grocery Nearby transit to downtown easily accessible 11 off-street

decks or patios Second 3/4 baths and in-suite washer and Dryer in

4 INVESTMENT HIGHLIGHTS Lower Queen Anne/South Lake Union location Walking distance to South Lake Union employers, restaurants, shops and grocery Nearby transit to downtown easily accessible 11 off-street parking spaces, 2 spaces are tandem Spacious floor plans with private decks or patios Second 3/4 baths and in-suite washer and Dryer in two-bedroom units Updated windows and cosmetic improvements to units SIX-19 APARTMENTS

LOCATION HIGHLIGHTS Located minutes from the western shore of Lake Union in the highly desirable and dynamic Queen Anne neighborhood, the subject is at the epicenter of Seattle s food, culture and

As the South Lake Union area continues to rapidly grow, the demand for Queen Anne property has drastically increased over the past few years.

This pedestrian-friendly location is situated between the employment centers of Downtown Seattle and South Lake Union, and offers residents the ability to take advantage of the many walkable

The subject property is just minutes away from the popular 64-acre Seattle Center, featuring world renowned attractions such as the Space Needle, Paul Allen s Museum of Pop Culture, Chihuly Garden

5 LOCATION HIGHLIGHTS Located minutes from the western shore of Lake Union in the highly desirable and dynamic Queen Anne neighborhood, the subject is at the epicenter of Seattle s food, culture and urban recreation scene. Queen Anne is known for its many trendy restaurants, bars, high-end boutique retailers and neighborhood parks. As the South Lake Union area continues to rapidly grow, the demand for Queen Anne property has drastically increased over the past few years. Companies such as Amazon, Facebook, Google, Expedia, Microsoft and Zulily continue to expand and hire more employees to the Seattle area, making Queen Anne a top location for investors. This pedestrian-friendly location is situated between the employment centers of Downtown Seattle and South Lake Union, and offers residents the ability to take advantage of the many walkable amenities in the area. The subject location has a Very Walkable designation offering immediate convenience to neighborhood services and everything needed for your daily errands. The subject property is just minutes away from the popular 64-acre Seattle Center, featuring world renowned attractions such as the Space Needle, Paul Allen s Museum of Pop Culture, Chihuly Garden and Glass, Key Arena, Opera House & Pacific Northwest Ballet and the Pacific Science Center. Located just north of the Seattle Central Business District WALK SCORE 88 TRANSIT SCORE 83 Easy access to transit options via Metro Transit and the South Lake Union Streetcar Walk to restaurants, cafés, and shopping Easy access to the University of Washington Close to Greenlake - Seattle s most popular park BIKE SCORE 65

IMPROVEMENTS The apartment building sits on the south slope of Queen Anne Hill, and its tenants enjoy the proximity to Downtown, nearby walk able retail in both Lower Queen Anne and South Lake Union,

6 IMPROVEMENTS The apartment building sits on the south slope of Queen Anne Hill, and its tenants enjoy the proximity to Downtown, nearby walk able retail in both Lower Queen Anne and South Lake Union, and the recreational opportunities available in both neighborhoods as well. Features of the building and its units include spacious floor plans, decks and patios for each unit, copper plumbing, eleven off-street parking spaces (two are tandem), common laundry and storage. Two bedroom units have a second 3/4 bath and a washer and dryer. Current rents are modest in the building and offer the buyer an opportunity to raise to market, as well as to continue to improve the units or add washer dryers which will attract higherend tenants working in South Lake Union and Downtown. The residents at SIX 19 Apartments are able to meet most of their needs within a short walk, very important to tenants who are choosing to live more and more of their life on foot. Nearby employers include Amazon. com, Bill and Melinda Gates Foundation, UW Lake Union Facilities, Fred Hutchinson Cancer Research Center, and multitudes of expanding businesses in Downtown and South Lake Union. Per walkscore.com, the SIX 19 Apartments receives a 88 walk score, with a QFC grocery store less than one third of a mile from the building and four other grocery stores less than.75 miles away. Ten restaurants are within one quarter mile of the building, and eight parks are within one half mile, with South Lake Union Park and its waterfront, MOHAI museum, center for wooden boats, and street car stations less than one third of a mile away. Steps away from the building are regular stops for metro transit s 3 and 4 routes directly to Downtown Seattle with quick access to the Link Light Rail. This incredibly central location will draw tenants who are willing to pay more to live in one of the most strategic locations in the City. The SIX 19 Apartments were built in 1968 and are of wood frame construction covered by low maintenance marblecrete siding which gives the building a sought after midcentury look. The owner is in the process of tearing off the existing roof and replacing it with a 60 mil TPO roof. This well designed building has been upgraded with new cabinets, granite counters, plank flooring and new appliances in 8 of the 9 units. The two bedroom units have in-suite washer dryers. The building offers residents walk in closets, nicely tiled baths, and a common laundry room with two washers and two dryers owned by the property. The SIX 19 Apartments are an excellent investment opportunity in an outstanding location. The current rent upside will provide the buyer an opportunity to generate an income stream that will create an above market return. Moving forward, continued demand to live close to Downtown and the nearby amenities provided by the location of the SIX 19 Apartments will create high occupancy and growing rents, which will also improve the return over time.

Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations

ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce,

Small and mediumsized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle- King County region

7 WHY CHOOSE SEATTLE - KING COUNTY? A HIGHLY-SKILLED WORKFORCE The region s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor s degree or higher. Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County. ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and mediumsized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle- King County region is known. CUTTING-EDGE RESEARCH The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and mediumsized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle- King County region is known. *Data Sources: Washington State Employment Security Department, 2015; Washington State Department of Revenue, 2015; Washington Military Alliance; Washington Aerospace Economic Impacts 2016 Update; US International Trade Administration, 2014.

8 POPULATION, EDUCATION AND INCOME King County contains estimated 872,411 households. This number is forecast to increase to more than 912,000 by the year The county currently has 18 cities with populations greater than 20,000. Seattle is one of the most educated cities in the United States. Over 57 percent of Seattle s adult residents have a Bachelor s degree or higher, nearly twice the national average. An educated city means an educated workforce a solid backbone for the innovative, knowledge-based industries that drive Seattle s economy. King County also boasts high educational attainment, with 47 percent of residents over 25 having received a Bachelor s degree or higher. Roughly 28 percent of King County residents are in professional business/ managerial positions. As a result, median household income in King County is well above the U.S. average. Cost of living is generally higher than the U.S. average, but it is in line with other metropolitan areas with similar income levels. TOP KING COUNTY EMPLOYERS FULLTIME EMPLOYEES IN WA The Boeing Co 81,919 Microsoft Corp. 43,031 University of Washington 30,200 Amazon.com Inc 24,700 Starbucks Corp 13,400 Swedish Health Services 11,239 City of Seattle 10,758 Costco Wholesale Corp 10,080 Nordstrom 9,264 Group Health Cooperative 8,982

9 MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT

10 MAJOR EMPLOYERS - SOUTH LAKE UNION SIX-19 APARTMENTS

11 BUILDING PHOTOS

12 UNIT PHOTOS

13 UNIT PHOTOS

Unit Breakdown SIX-19 APARTMENTS APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 101 1 Bd / 1 Bth 750 Sq.Ft. $1,450 $1.

99 $1,700 $2.27 202 1 Bd / 1 Bth 750 Sq.Ft. $1,675 $2.23 $1,700 $2.27 203 2 Bd / 1.75 Bth 1,150 Sq.Ft. $2,250 $1.96 $2,400 $2.09 301 1 Bd / 1 Bth 750 Sq.Ft. $1,650 $2.

14 Unit Breakdown SIX-19 APARTMENTS APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT Bd / 1 Bth 750 Sq.Ft. $1,450 $1.93 $1,700 $ Bd / 1 Bth 750 Sq.Ft. $1,450 $1.93 $1,700 $ Studio 610 Sq.Ft. $1,250 $2.05 $1,450 $ Bd / 1 Bth 750 Sq.Ft. $1,495 $1.99 $1,700 $ Bd / 1 Bth 750 Sq.Ft. $1,675 $2.23 $1,700 $ Bd / 1.75 Bth 1,150 Sq.Ft. $2,250 $1.96 $2,400 $ Bd / 1 Bth 750 Sq.Ft. $1,650 $2.20 $1,700 $ Bd / 1 Bth 750 Sq.Ft. $1,460 $1.95 $1,700 $ Bd / 1.75 Bth 1,150 Sq.Ft. $2,100 $1.83 $2,300 $2.00 Totals/Avg 823 Sq.Ft. $14,780 $1.99 $16,350 $2.21

15 Income and Expenses Units 9 Price $3,150,000 Year Built 1968 Per Unit $350,000 Rentable Area 7,410 Sq.Ft. Per Sq. Ft. $ Down Pmt $1,600,000 Current GRM Loan Amount $1,550,000 Current CAP 4.05% Interest Rate 4.75% Market GRM Amortization 30 years Market CAP 4.96% UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT 1 Studio (R) 610 $1,250 $1, Bd/1 Bth (R) 750 $1,450 - $1,650 $1, Bd/1.75 Bth 1,150 $2,100 $2, Bd/1.75 Bth (R) 1,150 $2,250 $2,400 9 Total/Avg 823 $1.99 $2.21 MONTHLY INCOME CURRENT MARKET Gross Potential Rent $14,780 $16,350 Laundry Income $27 $27 Utility Bill Back $88 $810 Parking Income (11 Spaces) $87 $500 Other Income $53 $53 Gross Potential Income $15,035 $17,740 ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $180,418 $212,875 Less Vacancy 2.0% $3, % $6,386 Gross Operating Income $176,809 $206,489 Less Expenses $49,087 $50,278 Net Operating Income $127,722 $156,210 Annual Debt Service ($8,086/mo) $97,026 $97,026 Cash Flow Before Tax 1.92% $30, % $59,184 Principal Reduction $23,918 $23,918 Total Return Before Tax 3.41% $54, % $83,102 ANNUALIZED OPERATING EXPENSES CURRENT MARKET RE Taxes $25,273 $26,464 Insurance $2,070 $2,070 Utilities $10,679 $10,679 Maint/Repairs $6,750 $6,750 Landscaping $1,365 $1,365 Admin/Legal $250 $250 Reserves $2,700 $2,700 Total Expenses $49,087 $50,278 CURRENT OPERATIONS Expense/Unit $5,454 Expense/Foot $6.62 Percent of EGI 27.21% MARKET OPERATIONS Expense/Unit $5,586 Expense/Foot $6.79 Percent of EGI 23.62%

SALES COMPARABLES SIX-19 Apartments 619 Prospect St Seattle, WA 98109 Year Built

2018 6 4 5 2 Year Built 1960 Units 9 Sales Price $3,660,000 Price/Unit $406,667

1% Harriet Manor 1304 E Harrison St Seattle, WA 98102 Sales Date 1.12.

2017 1 7 SIX-19 APARTMENTS 3 2 Year Built 4 1962 Units 9 Sales Price $3,925,000

3% Mersoleil Franklin 2635 Eastlake Ave E Seattle, WA 98102 Sales Date 9.18.

16 SALES COMPARABLES SIX-19 Apartments 619 Prospect St Seattle, WA Year Built 1968 Units 9 Sales Price $3,150,000 Price/Unit $350,000 Price/Foot $ GRM/CAP 17.5/4.1% 1 Year Built 1958 Units 9 Sales Price $3,000,000 Price/Unit $333,333 Price/Foot $ GRM/CAP 28.2/1.7% Gale Anne Terrace 15 W Galer St Seattle, WA Sales Date Year Built 1960 Units 9 Sales Price $3,660,000 Price/Unit $406,667 Price/Foot $ GRM/CAP 17.2/4.1% Harriet Manor 1304 E Harrison St Seattle, WA Sales Date Year Built 1930 Units 16 Sales Price $4,600,000 Price/Unit $287,500 Price/Foot $ GRM/CAP 16.3/3.8% Normandy Arms th Ave E Seattle, WA Sales Date SIX-19 APARTMENTS 3 2 Year Built Units 9 Sales Price $3,925,000 Price/Unit $436,111 Price/Foot $ GRM/CAP 16.9/4.3% Mersoleil Franklin 2635 Eastlake Ave E Seattle, WA Sales Date Year Built 1960 Units 5 Sales Price $2,500,000 Price/Unit $500,000 Price/Foot $ GRM/CAP 20.7/3.5% Portage Bay Flats 3232 Fuhrman Ave E Seattle, WA Sales Date Year Built Units 8 Sales Price $3,564,000 Price/Unit $445,500 Price/Foot $ GRM/CAP 18.0/4.1% Mali Hus 2462 Dexter Ave N Seattle, WA Sales Date Year Built 1968 Units 7 Sales Price $2,620,000 Price/Unit $374,286 Price/Foot $ GRM/CAP 21.7/2.7% 7 Unit Apartment 615 Ward St Seattle, WA Sales Date

RENT COMPARABLES SIX-19 Apartments 619 Prospect St

$1,650 $2,100 $2,250 $2.05 $1.93 - $2.20 $1.83 $1.

Seattle, WA 98109 1 Bd/1 Bth 1,150 $1,695 $1.

Ave N Seattle, WA 98109 1958-26 Units 8 Unit

Bth 600 $1,650 $2.75 1 Bd/1 Bth 400 $1,625 $4.

Ave Duplex 2523 13th Ave W Seattle, WA 98119 2

17 RENT COMPARABLES SIX-19 Apartments 619 Prospect St Seattle, WA Units Studio (R) 1 Bd/1 Bth (R) 2 Bd/1.75 Bth 2 Bd/1.75 Bth (R) ,150 1,150 $1,250 $1,450 - $1,650 $2,100 $2,250 $2.05 $ $2.20 $1.83 $ Hillcrest Apts 21 W Lee St Seattle, WA Studio 520 $1,395 $ Units 6 2 The Galleon 1221 Taylor Ave N Seattle, WA Bd/1 Bth 1,150 $1,695 $ Units 3 4 Bel-Air Apartments 807 3rd Ave N Seattle, WA Units 8 Unit Apartment 717 3rd Ave N Seattle, WA Bd/1 Bth 600 $1,650 $ Bd/1 Bth 400 $1,625 $ SIX-19 APARTMENTS Units 5 13th Ave Duplex th Ave W Seattle, WA Bd/1 Bth 1,100 $2,750 $ Units 6 8 Unit Apartment 205 Nickerson St Seattle, WA 98 2 Bd/2 Bth 1,300 $2,295 $ Units

600 University St, Suite 2018 Seattle Washington 98101 206 623-8880 / info@paragonrea.

18 600 University St, Suite 2018 Seattle Washington / info@paragonrea.com 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 all information and bears all risk for inaccuracies.

The K E N S I N G T O N

The K E N S I N G T O N The KENSINGTON LAKE WASHINGTON CAPITOL HILL SEATTLE CBD QUEEN ANNE UNIVERSITY DISTRICT WALLINGFORD BALLARD WEDGWOOD ROOSEVELT NORTHGATE FUTURE LIGHT RAIL STATION LAKE CITY PINEHURST FUTURE LIGHT RAIL STATION