Offering Memorandum NORTH SEATTLE FOURPLEX nd Ave NE Seattle, WA. Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum NORTH SEATTLE FOURPLEX nd Ave NE Seattle, WA Exclusively offered by Paragon Real Estate Advisors 1

2 Offering Summary Paragon Real Estate Advisors is pleased to offer for sale the North Seattle Fourplex. Well located right in the heart of Lake City the North Seattle Fourplex offers a new investor the opportunity to own a well-maintained asset approximately 15 minutes to Seattle s Central Business District and the University of Washington. The future owner can choose to take advantage of the strong Seattle rental market by increasing rents to market levels, start billing back utilities or renovate and update the interiors of units to add extra value. Additionally, the property sits on a 5,600 square foot lot with MR (mid-rise) zoning which gives a new investor the option to potentially redevelop the property in the future. Name North Seattle Fourplex Address nd Ave NE, Seattle, WA Total Units 4 Built 1968 Square Feet 3,100 Total Net Rentable Price $895,000 Price Per Unit $223,750 Price Per Foot $ Current GRM/CAP 21.4/2.8% (3% Vacancy) Market GRM/CAP 13.5/5.5% (3% Vacancy) Expense Per Unit $3,878 /Year Terms Cash Out Lot Size 5,600 Square Feet Zoning MR NORTH SEATTLE FOURPLEX 2

3 Investment Highlights Value-add opportunity with below market rents Large one and two-bedroom units Units averaging 775 square feet in size Great future re-development potential with MR (mid-rise) zoning Large common laundry room 5 open parking spaces Walk Score of 77 - Very Walkable Ten bus routes within a mile provides constant access to the University of Washington and the Seattle Central Business District 40% rent growth over the last 5-years First time on the market in over 40 years 3

4 Neighborhood Map SEATTLE CBD QUEEN ANNE PUGET SOUND UNIVERSITY OF WASHINGTON GREEN LAKE BALLARD NORTHGATE MALL NORTH SEATTLE FOURPLEX JACKSON PARK GOLF COURSE 4

5 Lake City Snapshot Population 33,660 Median household income $90,935 Single Married Owner Occupied Renters Walk Score Transit Score Bike Score 57% 44% 54% 46% 77 - Very Walkable 55 - Good Transit 64 - Bikeable Median 1 Bd/1 Bth Rent $1,316 Median 2Bd/1 Bth Rent $1,656 TOP JOB SECTORS: * Management: 12.2% Business 6.2% Computer: 9.3% Engineering 6.2% Administrative: 9.7% Sales: 17.2% Service: 12.3% Healthcare: 2.7% Engineering 4.4% Science 3.6% Social Services: 1.7% * 5

6 Neighborhood Amenities Food/Drink Shopping/Services Parks/Schools 26 1 Heaven Sent Fried Chicken 2 Briley s BBQ and Grill 3 Fred Meyer 4 Northgate Shopping Mall 5 Little Brook Park 6 Wells Fargo Bank 7 Shorecrest High School 8 Virgil Flaim Park 9 Jackson Park Golf Course 10 Elliott Bay Brewery 11 Dick s Drive-In 12 Safeway 13 Saint Matthew School 14 Tubs Gourmet Sub Sandwiches 15 Meadowbrook Playfield 16 Nathan Hale High School 17 Caroline Tavern 18 Twin Ponds Park 19 Park Shoreline 20 Target 21 Northwest Hospital Medical Center 22 Saffron Grill 23 North Seattle College 24 Starbucks 25 McDonald s 26 Hamlin Park NORTH SEATTLE FOURPLEX

7 Sound Transit Link Light Rail The Northgate Link Extension will connect the Northgate, Roosevelt and U District neighborhoods to downtown Seattle and the airport The elevated Northgate Station will be located east of 1st Ave NE, spanning NE 103rd Street. Station entrances will be on the Northgate Mall property north of NE 103rd Street and near the Northgate Transit Center south of NE 103rd Street. Construction is currently underway and this station is slated to open in The Sound Transit Lynnwood Link Extension Light Rail Project will give riders a fast, frequent and reliable connection through some of the worst traffic congestion in Washington State. This extension builds four new light rail stations from Northgate to Lynnwood along the Interstate-5 corridor, two of which will be located in Shoreline, one at 148th Street and the other at 185th Street. These stations will provide access to the Northgate Mall, bus transfers at the transit center, adjacent park-and-ride facilities, North Seattle Community College and nearby homes and businesses. Sound Transit anticipates the project starting construction in 2018 and opening for service in 2023 with daily projections estimating between 63,000 and 74,000 riders each weekday by the year With trains arriving every 4 to 5 minutes riders can expect a 16 minute commute from the station at 145th and downtown Seattle. These transit times will save approximately min during peak morning commute times. 7

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 Built in 1968 Large units averaging 775 square feet 2-1Bd/1Bth units and 2-2Bd/1Bth units Electric baseboard heating Double-pane vinyl windows Individual hot water tanks Attractive vinyl siding Fireplaces in the two-bedroom units 10

11 Building Photos 11

12 Operating Summary Units 4 Year built 1968 Rentable Area 3,100 Sq.Ft. Down Payment $223,750 25% Loan Amount $671,250 75% Interest Rate 4.10% Amortization 30 Years Price $895,000 Price Per Unit $223,750 Per Square Foot $ Current GRM Current CAP 2.81% Market GRM Market CAP 5.47% Current Monthly Market Monthly Units Type Size Rent Income Rent Income 2 1Bd/1Bth 600 $800 - $850 $1,650 $1,200 $2, Bd/1Bth 950 $900 $1,800 $1,400 $2,800 4 Avg S.F. 775 $1.11 $1.68 Total Monthly Income Current Market Monthly Scheduled Rent $3,450 $5,200 Laundry Income $40 $40 Parking Income $0 $0 Utility Income $0 $75/unit $300 Total Monthly Income $3,490 $5,540 Annualized Operating Data Current Market Scheduled Gross Income $41,880 $66,480 Less Vacancy 3.0% ($1,256) 3.0% ($1,994) Gross Operating Income $40,624 $64,486 Less Expenses $15,512 $15,512 Net Operating Income $25,112 $48,974 Annual Debt Service ($3,243) $38,922 $38,922 Cash Flow Before Tax -6.17% ($13,810) 4.49% $10,052 Principal Reduction $11,617 $11,617 Total Return Before Tax -0.98% ($2,193) 9.68% $21,669 Annualized Operating Expenses Current Market Real Estate Taxes 2017 Actual $6,166 $6,166 Insurance 2016 Actual $852 $852 Utilities 2016 Actual $5,094 $5,094 Maintenance & Repairs Proforma $3,000 $3,000 Turnover Proforma $400 $400 Total Expenses $15,512 $15,512 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $3,878 $ % Market Operations Expenses/Unit Expenses/Foot Percent of EGI $3,878 $ % 12

13 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. 13