FRESCO APARTMENTS TH AVE S SEATTLE, WA 98108

Transcription

1 FRESCO APARTMENTS TH AVE S SEATTLE, WA FOR MORE INFORMATION: STEVE FISCHER PRINCIPAL BROKER fischer@ westlakeassociates.com TYLER D SMITH PRINCIPAL BROKER tylersmith@ westlakeassociates.com

2 OFFERING SUMMARY THE FRESCO APARTMENTS IS A TURNKEY PROPERTY CENTRALLY LOCATED NEAR DOWNTOWN SEATTLE IN THE THRIVING BEACON HILL NEIGHBORHOOD. The offering provides an opportunity to acquire a beautiful turnkey, practically newly constructed asset less than 7 minutes from downtown Seattle and directly across the street from renowned Jefferson park. The interiors of the units offer tenants state of the art finishes, as all of the units have been updated with new kitchens, including cabinets and quartz counters, stainless steel appliances, bathrooms - including tile surrounds, the addition of in-unit laundry, new modern flooring, fixtures and all new mill work. In addition to the interior upgrades the building has been updated with new electrical panels, new plumbing, hot water tanks, heating, landscaping, structural upgrades, security access, new roof and windows. The building consists of 16 one bed / one bath units, and 4 two bed / one bath units, with the ground floor units having large private patios. This is a chance to own a building with irreplaceable midcentury charm combined with finishes and systems of a brand new building. ADDRESS th Ave S Seattle, WA Price: $5,200,000 Cap: 5.22% GRM: Price Per Unit: $260,000 Price Per SF: $ PROPERTY HIGHLIGHTS + MAJOR SYSTEM UPGRADES / FULL UNIT REMODELS + NEW CABINETS, QUARTZ COUNTERS, STAINLESS APPLIANCES AND MODERN FLOORING THROUGHOUT + LARGE PRIVATE PATIOS + EQUIPPED WITH MODERN TECHNOLOGY INCLUDING USB PORTS AND KEYLESS ENTRY + POTENTIAL TO ADD 1 UNIT + ACROSS THE STREET FROM RENOWNED JEFFERSON PARK + 6 MINUTES TO DOWNTOWN SEATTLE + DIRECT ACCESS TO INTERSTATE 5 VIA COLUMBIA WAY + 5 MINUTES TO SAFECO FIELD, CENTURY LINK AND PROPOSED SEATTLE ARENA + 10 BLOCKS FROM BEACON HILL LIGHT RAIL STATION MILES TO COLUMBIA CITY RETAIL, PCC NATURAL MARKET, AND THE LIGHT RAIL + PERFECTLY SITUATED SOUTH OF NEW EAST LINK LIGHT RAIL VIA I-90.

3 INVESTMENT CONSIDERATIONS Price: $5,200,000 Units: 20 Cap Rate: 5.22% Price Per Unit: $260,000 Price Per SF: $ Type: Two Story, Wood Frame, Brick Veneer Year Built: 1959 Lot Size: ±17,520 Neighborhood: Beacon Hill Zoning: LR3 RENT SCHEDULE UNIT TYPE No. of Units AVG SIZE (SF) CURRENT RENTS MARKET RENTS (PRO-FORMA) CURRENT PSF PRO FORMA PSF 1 Bed 1 Bath $1,437 $2.32 $1,550 $ Bed 1 Bath $1,845 $2.24 $1,895 $2.30 TOTALS 20 13,220 $30,372 $2.30 $32,200 $2.45 TOTAL MONTHLY RENT: $30,385 $32,380 TOTAL ANNUAL RENT: $364,464 $386,560

4 AMENITIES CENTURYLINK FIELD SAMPLING OF BEACON HILL MAJOR RETAIL WAMU THEATER SAFECO FIELD PROPOSED LOCATION FOR NEW SEATTLE ARENA OLD RAINIER BREWERY WEST SEATTLE BRIDGE COSTCO 99 5 FRESCO APARTMENTS PACIFIC TOWER & PACIFIC MEDICAL CENTER JEFFERSON PARK, JEFFERSON PARK GOLF COURSE & BEACON FOOD FOREST 90 MERCER ISLAND Bartell Drugs Domino s Pizza Ezell s Famous Chicken Lowe s Home Improvement McDonald s O Reilly Auto Parts Pizza Hut QFC Ross Dress for Less Safeway Starbucks Subway Taco Bell Taco Time T-Mobile Walgreens Wendy s BEACON HILL COLUMBIA CITY GEORGETOWN MICROBREWERIES & URBAN WINERIES 509 GEORGETOWN Charles Smith Wine Cloudlift Cellars Elysian Airport Way Brewery Georgetown Brewing Co Laurelhurst Cellars Machine House Brewery OS Winery 5 BOEING FIELD N 99

5 FEATURED INTERIOR PHOTOS ONE BEDROOM CLICK HERE TO TAKE A VIRTUAL TOUR HIGHLIGHTS + ONE BEDROOM + ONE FULL BATH + KITCHEN WITH STAINLESS STEEL APPLIANCES + LIVING ROOM, KITCHEN, BEDROOM & BATHROOM HAVE WITH VINYL WOOD FLOORS THROUGHOUT

6 FEATURED INTERIOR PHOTOS TWO BEDROOM CLICK HERE TO TAKE A VIRTUAL TOUR HIGHLIGHTS + TWO BEDROOMS + ONE FULL BATH + KITCHEN WITH STAINLESS STEEL APPLIANCES + LIVING ROOM, KITCHEN, BEDROOMS & BATHROOM HAVE WITH VINYL WOOD FLOORS THROUGHOUT

7 FINANCIAL OFFERING PROPERTY OVERVIEW Number of Units 20 Year Constructed 1959 Remodel 2016 Rentable SF 13,220 Lot Size 17,520 Zoning LR3 Roof Flat Exterior Brick Wood Frame Heat Electric PRICE ANALYSIS Sale Price $5,200,000 Price per Unit $260,000 Price per NRSF $ Price per Land SF $296,80 Current CAP Rate 5.22% Current GRM Pro Forma CAP Rate 5.40% Pro Forma GRM FINANCING Loan Amount $3,700,000 Down Payment $1,500,000 Rate 3.25% % Down 28.8% Amortization 30 Term 5 Monthly Payment $16,103 Annual Payment $193,232 # of UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF 16 1 Bedroom 1 Bath 620 $1,437 $2.32 $1,550 $ Bedroom 1 Bath 825 $1,845 $2.24 $1,895 $2.30 Total AVG 13,220 $30,385 $2.30 $32,380 $2.45 INCOME CURRENT PRO FORMA Scheduled Rental Income $364,620 $388,560 + Utility Bill Back $1,940 $23,280 $2,035 $24,420 + Parking $0 $0 $200 $2,400 + Misc Income $300 $3,600 $300 $3,600 Scheduled Gross Income $391,500 $418,980 - Vacancy & Cr Losses 5.0% ($19,575) ($20,949) Gross Income $371,925 $398,031 EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT Real Estate Taxes (2016) $19,287 $964 $35,000 $1,750 Insurance $4,408 $220 $4,408 $220 Utilities: W S G Electric $24,000 $1,200 $24,000 $1,200 Professional Management $14,877 $744 $15,839 $792 Resident Manager $8,400 $420 $8,400 $420 Maintenances $17,000 $850 $17,000 $850 Miscellaneous $4,000 $200 $4,000 $200 Landscaping $3,600 $180 $3,600 $180 Reserves $5,000 $25 $5,000 $25 Total Operating Expenses $100,572 $5,029 $117,329 $5,866 Net Operating Income $271,353 $280,702 The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment. Less Annual Debt Service ($193,232) ($193,232) Cash Before Taxes $78, % $87, % Plus Principal Reduction $67,881 $67,881 Total Return Before Taxes $146, % $155, %

8 LOAN TERMS Matt Couch Vice President 720 4th Avenue, Suite 120 Kirkland, WA /19/2016 LLC TBD For property known as: Fresco Apts th Ave S Seattle, WA L15154 We have received the preliminary package for the above referenced property. It appears to be an appropriate candidate for our income property loan program. Based on the information you provided to us, we should be able to achieve the following loan terms: Check Desired Program [ ] [ ] Programs 5 Year Fixed / Adjustable 7 Year Fixed / Adjustable Loan Amount $3,700,000 $3,700,000 Est. Initial Interest Rate 3.250% 3.650% Initial Index & Rate SWAP 5 Year (1.280%) SWAP 7 Year (1.430%) Pricing Spread/Margin 1.900% 2.000% Interest Rate Floor 3.250% 3.650% Interest Rate Ceiling 9.500% 9.500% Reset Index & Margin 6 Month LIBOR (2.050%) 6 Month LIBOR (2.150%) Reset Rate Floor Initial Interest Rate Initial Interest Rate Loan Term / Amortization 30 / / 30 Prepayment Program 3,2,1% 4,3,2,1% Operating Account Yes Yes Recourse Yes Yes Assumable 1% - Subject to credit approval 1% - Subject to credit approval Maximum LTV 75.00% 75.00% Minimum DSCR Loan Fee 0.500% 0.500% Processing Fee $4,625 $4,625 Good Faith Deposit $5,000 $5,000 Periodic Rate Cap 1.00%/6 months 1.00%/6 months Comment: Non recourse available to qualified buyers. It is our desire to work with you in structuring a mutually acceptable financing arrangement. This is our expression of interest only and is provided for purpose described above and may not be disclosed to any other party without the Lender's consent. The rates quoted above are as of 10/19/2016. Rates are subject to change until locked. This is an expression of interest on our part and does not constitute as a commitment or an approval of your loan request. We do not issue verbal approvals. All loan approval must be in writing and are subject to the Lender's due diligence including the Lender's underwriting requirements, acceptable appraisal report by Lender's approved appraiser, satisfactory environmental report, the Lender's loan committee's approval and full execution of all necessary loan documentation. If you wish to proceed with an application, please complete loan package and provide us with a good faith deposit check in the amount of $ 5,000. Such good faith deposit, less any costs incurred by Lender in connection with the Loan Application regardless of whether a specific fee for each cost incurred was identified in this LOI, is refundable if the loan is denied and is non-refundable if the Loan Application is withdrawn or Applicant fails to respond to requests for information. The good faith deposit will be applied as a credit to the borrower at closing in the event the loan is approved and funded. Thank you for your consideration and cooperation, we look forward to accommodating you with your banking needs. Matt Couch Vice President

9 RENT COMPS th Ave S UNIT MIX 2X1 RENT $2,150 SF 975 RENT/SF $ th Ave S UNIT MIX 1X1 RENT $1,375 SF 581 RENT/SF $ Claremont Ave S UNIT MIX 1X1 RENT $1,550 SF 600 RENT/SF $2.58 FRESCO APARTMENTS th Ave S 3300 York Road UNIT MIX 1X1 2X1 RENT $1,350 $1,795 SF RENT/SF $2.08 $2.24 UNIT MIX 1X1 RENT $1,695 SF 658 RENT/SF $ th Ave S N UNIT MIX 2X1 RENT $1,895 SF 1,100 RENT/SF $1.72

10 SALE COMPS NE 181st St Kenmore Phinney Avenue N rd Avenue E 1 PRICE / UNIT $310,000 PRICE / FT $339 CAP 4.80% GRM 14 BUILT 1966 UNITS 10 JUN-16 PRICE / UNIT $322,917 PRICE / FT $396 CAP 5.00% GRM 14.5 BUILT 1968 UNITS 12 NOV-15 PRICE / UNIT $328,571 PRICE / FT $514 CAP 5.30% GRM 13 BUILT 1991 UNITS 7 MAR th Avenue th Avenue S Beacon Avenue S 4 3 PRICE / UNIT $364,912 PRICE / FT $454 CAP 5.30% GRM 13 BUILT 1969 UNITS 57 SEPT-16 PRICE / UNIT $315,000 PRICE / FT $325 CAP 4.00% GRM 17.5 BUILT 1989 UNITS 6 OCT-15 PRICE / UNIT $218,182 PRICE / FT $381 CAP 6.20% GRM 11 BUILT 1915 UNITS 22 SEPT Harbor Avenue SW California Avenue SW th Avenue SW N FRESCO APARTMENTS PRICE / UNIT $277,778 PRICE / FT $400 CAP 4.20% GRM 15 BUILT 1990 UNITS 27 JUL-16 PRICE / UNIT $306,250 PRICE / FT $416 CAP 5.30% GRM 13.5 BUILT 1977 UNITS 8 FEB-16 PRICE / UNIT $313,889 PRICE / FT $433 CAP 4.50% GRM 15.5 BUILT 1962 UNITS 18 FEB-16

11 BEACON HILL THE BEACON HILL NEIGHBORHOOD The Beacon Hill neighborhood overlooks downtown Seattle from the southeast and is distinguished by the 16-story historic Pacific Medical Center building located on the northern crown of the hill. Although it is in close proximity to downtown Seattle, Beacon Hill has worked to keep itself separate and maintain its tightknit neighborhood ambiance. With the recent addition of light rail, residents can more than ever enjoy great access into downtown and other thriving Seattle area neighborhoods. American Planning Association named it one of the 10 best neighborhoods in the United states. Since light rail arrived in 2009, businesses and new residents have been moving to Beacon Hill in droves. There is a large amount of new construction, street improvements, new parks, and several bike paths have been developed. Large-scale renovations have likewise occurred in two major community hubs that are also historic landmark sites Pacific Tower and El Centro de la Raza. Pacific Tower, the former home of Amazon, is now home to Pacific Medical, a FareStart café, a number of nonprofit organizations, the Community Health and Innovation Center, and Seattle Central College s medical training programs. In five years, there will be vast change in the neighborhood, but given the focus on the existing neighborhood, the character that makes Beacon Hill special will continue to thrive. Beacon Hill boasts numerous gems that are attractive to visitors. Jefferson Park, the beneficiary of major investment in 2012, is the largest Olmsted-planned greenspace in Seattle. The park has become a prime attraction and happens to be located directly across the street from the Fresco Apartments. Other draws include the seven-acre Beacon Food Forest, the nation s largest neighborhood urban community farming project; and the music, dance and poetry events sponsored by Beacon Arts. There has also recently been an influx of new businesses that attract both visitors and locals, such as Tippe and Drague Alehouse, Italian eatery Bar del Corso, and the bar and burger hangout, Oak. In addition to the thriving Beacon Hill Neighborhood, the Fresco Apartments sit a few blocks northwest of Columbia City. Columbia City is a thriving pedestrian business district that is home to several bars, hip grocery stores, countless well known restaurants, bakeries, coffee shops, assorted retail, art galleries, breweries, and live music venues. Transportation is a win-win, with Seattle Light Rail and quick I-5 accessibility, which can be reached via 15th Avenue South or South Graham Street. Main arterials such as MLK and Rainier provide good alternative routes to the North or South, connecting with I-90 for Eastside commutes. Drive times to work average around 28 minutes brought on by many having to commute over Lake Washington for Eastside careers. Click here for the Beacon Hill Neighborhood Guide JEFFERSON PARK GOLF COURSE GETS AN UPGRADE CLICK HERE FOR MORE INFO STARBUCKS HEADQUARTERS CENTURYLINK & SAFECO FIELD DOWNTOWN SEATTLE JEFFERSON PARK FRESCO APARTMENTS VA MEDICAL CENTER JEFFERSON GOLF COURSE N

12 TRANSPORTATION BUS STOPS Bus Stops for Routes 50, 60 & 107 Three bus stops directly adjacent to subject with major routes 50,60, and runs from Alki through Admiral West Seattle east into SoDo, through Beacon Hill directly to Columbia city light rail and ending at Othello station. The 60 route runs North and South from the subject directly into downtown and ending in Capitol Hill. The 107 runs north South from Renton to Beacon Hill Station. BEACON HILL STATION Travel Time to Westlake Station: 16 Minutes Travel Time to Capitol Hill Station: 22 Minutes Judkins Park Station (Opening 2023) 2 Miles 42 Min Walk Travel Time to Stadium Station: 9 Minutes Travel Time to University of Washington Station: 23 Minutes COLUMBIA CITY STATION LIGHT RAIL STATIONS Travel Time to Westlake Station: 18 Minutes Travel Time to SeaTac Station: 22 Minutes JUDKINS PARK STATION Opening: 2023 Location: The center roadway of I-90 at Rainier Ave S & 23rd Ave S Distance from Montlake House Apartments: 2 Miles, 42 Minute Walk Travel Time to Bellevue Transit Center: 10 Minutes Beacon Hill Station 0.8 Mile 17 Min Walk Travel Time to University of Washington Station: 20 Minutes Amenities: Secure Bicycle Storage, Pasenger Drop-Off/Pick-U LIGHT RAIL SCHEDULE FRESCO APARTMENTS Bus Stop for Routes 50, 60 & FT 1 Min Walk SOUND TRANSIT KEEPING CLOSE EYE ON CROWDED LIGHT RAIL TRAINS About 65,000 riders a day are taking light rail, two-thirds more than a year ago...the numbers aren t a huge surprise in a densely populated corridor, but ridership has already reached the levels expected in N Columbia City Station 1.5 Miles 29 Min Walk READ THE FULL ARTICLE HERE KEY BUS STOPS LIGHT RAIL STATIONS

13 DEMOGRAPHICS 5, 10 & 15 MINUTE WALK TIME 1,3 & 5 MILE RADIUS 69 HOUSEHOLD INCOME DRIVE TIME HOUSEHOLD INCOME RADIUS Walk Score Somewhat Walkable 5-MINS 10-MINS 15-MINS 1-MILE 3-MILES 5-MILES Median $58,195 $54,197 $60,816 Average $77,953 $82,401 $91,688 Median $60,790 $54,181 $62,698 Average $79,829 $81,136 $94, FRESCO APARTMENTS 5-MINS POPULATION DRIVE TIME 10-MINS 15-MINS , , , , , , , , ,997 POPULATION RADIUS 1-MILE 3-MILES 5-MILES , , , , , , , , ,736 Bike Score Bikeable 60 Transit Score Good Transit *by Walkscore.com N 1-MILE 3-MILES 5-MILES FRESCO APARTMENTS 5 MINUTES 10 MINUTES 15 MINUTES N

14 Since 1975 Westlake Associates, Inc. has been the premier provider of commercial real estate brokerage services in the Puget Sound region. Our commitment to assist our clients in creating and preserving their real estate investment wealth has led to the successful closing of billions of dollars in investment property and a long history of repeat business and client referrals. Our firm has over twenty full-time real estate professionals with expertise in the multi-family sales market. With a majority of our partners owning and operating their own investment property, we offer clients a unique perspective from both an agent and owner point of view. Our specialization in representing Puget Sound apartment owners results in our clients receiving the most effective representation in the industry, where maximizing client returns is our highest priority. Through effective teamwork, communication, and an unparalleled knowledge of the Puget Sound apartment market, our agents continue to lead the industry in successful closings and client satisfaction. + MEMBER: Commercial Brokers Association (CBA) + MEMBER: Northwest Multiple Listing Services (NWMLS) + MEMBER: Loop Net National Listing Services + MEMBER: Costar Commercial Real Estate Data and National Listing Service + MEMBER: Commercial Investment Real Estate Institute (CREI) + MEMBER: Washington State Realtors Association (WSMA)..

15 FOR MORE INFORMATION: STEVE FISCHER PRINCIPAL BROKER westlakeassociates.com TYLER D SMITH PRINCIPAL BROKER tylersmith@ westlakeassociates.com