Offering Memorandum BRASS LAMP APARTMENTS Turner Street Richland, WA. Exclusively offered by Paragon Real Estate Advisors

Size: px

Start display at page:

Download "Offering Memorandum BRASS LAMP APARTMENTS Turner Street Richland, WA. Exclusively offered by Paragon Real Estate Advisors"

Sharyl Gibbs
5 years ago
Views:

1 Offering Memorandum BRASS LAMP APARTMENTS 2111 Turner Street Richland, WA Exclusively offered by Paragon Real Estate Advisors 1

Offering Summary Paragon Real Estate Advisors is pleased to offer for sale the Brass Lamp Apartments. This well maintained 28 unit complex is located in Richland, Washington.

The Brass Lamp Apartments offers an investor the opportunity to acquire a well-located, well-maintained apartment complex with potential upside.

2 Offering Summary Paragon Real Estate Advisors is pleased to offer for sale the Brass Lamp Apartments. This well maintained 28 unit complex is located in Richland, Washington. Each unit has a private balcony or patio, new laminate floors and through wall heat and air conditioning. The pool has been resurfaced and the exterior has been recently painted. The Brass Lamp Apartments offers an investor the opportunity to acquire a well-located, well-maintained apartment complex with potential upside. Name Brass Lamp Apartments Address 2111 Turner Street, Richland WA Total Units 28 Built 1971 Square Feet 25,600 Total Net Rentable Price $2,795,000 Price Per Unit $99,821 Price Per Foot $ Current GRM/CAP 11.46/5.66% (4% Vacancy) Market GRM/CAP 10.29/6.59% (4% Vacancy) Expense Per Unit $3,062/Year Terms Cash Out BRASS LAMP APARTMENTS 2

Freshly painted exterior Completely new parking lot in 2010 Pool has been recently resurfaced and a new filtration system

3 Investment Highlights 2 bedroom, one bath units approximately 776 sq ft each Units contain dishwasher New laminate floors Through wall heat and air-conditioning New vinyl windows and doors Copper plumbing Each unit has a private balcony or patio Freshly painted exterior Completely new parking lot in 2010 Pool has been recently resurfaced and a new filtration system added Immaculately landscaped grounds Building has tenant storage space Close to shopping, bike path and neighborhood parks 3

4 Map JASON LEE PARK BRASS LAMP APARTMENTS UPTOWN RICHLAND JEFFERSON PARK LIBERTY CHRISTIAN SCHOOL COLUMBIA RIVER W.E. JOHNSON PARK COLUMBIA PLAYFIELD DOWNTOWN RICHLAND 4

Location Highlights Tri-Cities is made up of Richland, Kennewick, and Pasco Population of 258,400,

Averages 300 days of sunshine per year Home to the Tri-City Americans ice hockey team and the

blacktop trail that runs on both sides of the Columbia river.

trails Known as The Heart of Washington Wine Country the Tri-Cities region houses more than 200

5 Location Highlights Tri-Cities is made up of Richland, Kennewick, and Pasco Population of 258,400, increasing 4.3% annually Kiplinger rated it as a top ten place in the nation to raise a family. Averages 300 days of sunshine per year Home to the Tri-City Americans ice hockey team and the Tri-City Dust Devils baseball team The Sacagawea Heritage Trail includes 23 miles of multi-purpose blacktop trail that runs on both sides of the Columbia river. Recreational facilities abound with seven riverfront parks and 67 miles of paved pedestrian and bike trails Known as The Heart of Washington Wine Country the Tri-Cities region houses more than 200 wineries within a 50 mile radius The Downtown districts of each of the cities are bustling with cafes, novelty shops, antique dealers, and art galleries 5

Employment The Tri-Cities boasted Washington s fastest-growing job market for 2016, with an annual growth rate of 3.6 percent.

In real numbers, the Tri-Cities economy added 3,800 jobs in 2016, according to December figures released by the Washington Employment Security Department.

Food processing and manufacturing picked up over the year and the area boasts a strong agricultural sector.

Hanford, coupled with a growing population attracting professional services, leisure, hospitality and retailers, is adding jobs. Company Employees 1.

6 Employment The Tri-Cities boasted Washington s fastest-growing job market for 2016, with an annual growth rate of 3.6 percent. In fact, the top three economies for 2016 were all in Eastern Washington, with Wenatchee and Spokane rounding out the list. In real numbers, the Tri-Cities economy added 3,800 jobs in 2016, according to December figures released by the Washington Employment Security Department. Locally, food manufacturing drove growth, adding 1,100 positions in 2016 for a growth rate of nearly 15 percent. Food processing and manufacturing picked up over the year and the area boasts a strong agricultural sector. But the Tri-Cities is unique in not relying solely on agriculture. Hanford, coupled with a growing population attracting professional services, leisure, hospitality and retailers, is adding jobs. Company Employees 1. Batelle/PNW Labs 4, Kadlec Medical Center 3, Betchel National 2, ConAgra Food 2, Mission Support Alliance 1, Richland School District 1, Tyson Foods 1, Energy Northwest 1, Areva 1, Columbia Crest Winery 773 Two companies that are investing in new facilities here will begin adding employees in AutoZone is building a warehouse in Pasco that will employ 200 and Lamb Weston is adding a production line in Richland that will add more than 100 new jobs. 6

Education Higher Education Washington State University Tri-Cities Campus

Hanford High School Pasco High School Kamiakin High School Kennewick High School

School Enterprise Middle School Chief Joseph Middle School Leona Libby Middle

Whitman Elementary Sacajawea Elementary White Bluffs Elementary Jason Lee

7 Education Higher Education Washington State University Tri-Cities Campus Columbia Basin College High Schools Richland High School Southridge High School Hanford High School Pasco High School Kamiakin High School Kennewick High School Chiawana High School Liberty Christian School Middle Schools Charmichael Middle School Enterprise Middle School Chief Joseph Middle School Leona Libby Middle School Elementary Schools Badger Mountain Elementary Jefferson Elementary Marcus Whitman Elementary Sacajawea Elementary White Bluffs Elementary Jason Lee Elementary Lewis & Clark Elementary Orchard Elementary Tapteal Elementary William Wiley Elementary 7

Recreational Activities Water sports on the

professional hydroplane race on the river Minor

WHL Hockey (Tri City Americans) Tri Cities dust

Arena football team, (Tri Cities Fever) Golf 8

Canyon Lakes, Columbia Point, Horn Rapids, Sun

8 Recreational Activities Water sports on the Snake, Yakima and Columbia Rivers Annual professional hydroplane race on the river Minor league sports teams. WHL Hockey (Tri City Americans) Tri Cities dust devils (affiliate of the San Diego Padres). Arena football team, (Tri Cities Fever) Golf 8 golf courses within 30 minutes. Canyon Lakes, Columbia Point, Horn Rapids, Sun Willows and Wildhorse to name a few. Over 200 area wineries, local microbreweries and distilleries 8

9 Building Photos 9

10 Building Photos 10

11 Unit Photos 11

12 Operating Summary Units 28 Year built 1971 Rentable Area 25,600 Sq.Ft. Down Payment $698,750 25% Loan Amount $2,096,250 75% Interest Rate Amortization 4.0% Hybrid 30 Years Price $2,795,000 Price Per Unit $99,821 Per Square Foot Current GRM Current CAP 5.66% Market GRM Market CAP 6.59% Current Monthly Market Monthly Units Type Size Rent Income Rent Income 28 2 Bd/1 Bth 774 $705 - $825 $20,685 $825 $23, Avg S.F. 774 $0.81 $0.90 Total Monthly Income Monthly Scheduled Rent $20,685 $23,100 Laundry Income $360 $360 Misc Fees/Deposits $125 $125 Total Monthly Income $21,170 $23,585 Annualized Operating Data Current Market Scheduled Gross Income $254,041 $283,021 Less Vacancy 4.0% $10, % $11,321 Gross Operating Income $243,879 $271,700 Less Expenses $85,739 $87,408 Net Operating Income $158,141 $184,292 Annual Debt Service ($10,008) $120,094 $120,094 Cash Flow Before Tax 5.44% $38, % $64,198 Principal Reduction $36,916 $36,916 Total Return Before Tax 10.73% $74, % $101,114 Annualized Operating Expenses Current Market Real Estate Taxes 2016 $19,509 $19,509 Insurance 2016 $6,962 $6,962 Utilities 2016 $18,135 $18,135 Property Management Proforma 6% $14,633 $16,302 On-Site Management $750/Unit $9,000 $9,000 Maintenance & Repairs $500/unit $14,000 $14,000 Landscaping $75/unit $2,100 $2,100 Administration $50/unit $1,400 $1,400 Total Expenses $85,739 $87,408 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $3,062 $ % Market Operations Expenses/Unit Expenses/Foot Percent of EGI $3,122 $ % 12

Sale Comparables SUBJECT - BRASS LAMP APTS 2111 Turner St, Richland WA Year Built 1971

Price/Unit $63,214 Price/Foot $74.06 GRM/CAP 7.0/7.8% Sales Date 4.15.2016 4.

$1,800,000 Price/Unit $120,000 Price/Foot $99.47 GRM/CAP 12.5/5.

KENNEWICK 13 UNIT 3426 W 7th Ave, Kennewick WA Year Built 2015 Units 13 Sales Price

13 Sale Comparables SUBJECT - BRASS LAMP APTS 2111 Turner St, Richland WA Year Built 1971 Units 28 Sales Price $2,795,000 Price/Unit $99,821 Price/Foot $ GRM/CAP 11.46/5.66% Sales Date TBD 2. THE VILLAGE APTS 306 N 34th St, Yakima WA Year Built 1974 Units 14 Sales Price $885,000 Price/Unit $63,214 Price/Foot $74.06 GRM/CAP 7.0/7.8% Sales Date YAKIMA 15 UNIT 1315 S 18th Ave, Yakima WA Year Built 1995 Units 15 Sales Price $1,800,000 Price/Unit $120,000 Price/Foot $99.47 GRM/CAP 12.5/5.0% Sales Date On the Market 1. KENNEWICK 13 UNIT 3426 W 7th Ave, Kennewick WA Year Built 2015 Units 13 Sales Price $1,400,000 Price/Unit $107,692 Price/Foot $ GRM/CAP 9.0/5.9% Sales Date RIDGELINE APARTMENTS Ridgeline Dr, Kennewick WA Year Built 1979 Units 6 Sales Price $900,000 Price/Unit $150,000 Price/Foot $83.33 GRM/CAP 8.9/6.8% Sales Date PLAZA WAY DUPLEXES 1931 Plaza Way, Walla Walla WA Year Built 1978 Units 6 Sales Price $725,000 Price/Unit $120,833 Price/Foot $ GRM/CAP 11.6/4.9% Sales Date On the Market 13

Sales Comparables Map Brass Lamp Apartments 2111 Turner St Richland, WA 1. Kennewick 13 Unit 3426 W 7th Ave Kennewick, WA 2 4 2. The Village Apartments 306 N 34th St Yakima, WA 3.

14 Sales Comparables Map Brass Lamp Apartments 2111 Turner St Richland, WA 1. Kennewick 13 Unit 3426 W 7th Ave Kennewick, WA The Village Apartments 306 N 34th St Yakima, WA 3. Ridgeline Apartments Ridgeline Dr Kennewick, WA 4. Yakima 15 Unit 1315 S 18th Ave Yakima, WA BRASS LAMP APARTMENTS 5. Plaza Way Duplexes 1931 Plaza Way Walla Walla, WA

Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft.

07 Beautifully maintained property. Complex has wonderful pool and immaculate landscaping 1.

90 Washers and dryers in units, swimming pool, large grass yard 2.

96 Common laundry room, 2 seasonal swimming pools, air-conditioned units 3.

15 Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft. Comments Brass Lamp Apartments 2111 Turner St Richland, WA Bd/1Bth 774 $705 - $825 $ $1.07 Beautifully maintained property. Complex has wonderful pool and immaculate landscaping 1. Knolls Apartments 2525 W Grande Ronde Kennewick, WA Bd/1Bth 920 $825 $0.90 Washers and dryers in units, swimming pool, large grass yard 2. Sage Creek 4302 W Hood Ave Kennewick, WA Bd/1Bth 750 $720 $0.96 Common laundry room, 2 seasonal swimming pools, air-conditioned units 3. Woodland Greens Apts 130 S Conway Pl Kennewick, WA Bd/1Bth 852 $840 $0.99 Swimming pool, 2 community rooms, BBQ area, patio or balcony 4. Aaron Ridge Apts 900 Aaron Dr Richland, WA Bd/1Bth 844 $910 $1.08 Swimming pool, fitness center, washer and dryer in units, air-conditioned units 15

Rent Comparables Map Brass Lamp Apartments 2111 Turner St Richland, WA BRASS LAMP APARTMENTS 1. Knolls Apartments 2525 W Grande Ronde Kennewick, WA 2.

16 Rent Comparables Map Brass Lamp Apartments 2111 Turner St Richland, WA BRASS LAMP APARTMENTS 1. Knolls Apartments 2525 W Grande Ronde Kennewick, WA 2. Sage Creek 4302 W Hood Ave Kennewick, WA 4 3. Woodland Greens Apts 130 S Conway Pl Kennewick, WA 4. Aaron Ridge Apts 900 Aaron Dr Richland, WA

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.

17 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. 17

Offering Memorandum THE TIKI APARTMENTS Market Street Kirkland, WA. Exclusively offered by Paragon Real Estate Advisors

Offering Memorandum THE TIKI APARTMENTS 1124 Market Street Exclusively offered by Paragon Real Estate Advisors 1 Offering Summary The Tiki Apartments present a unique investment opportunity with an excellent