South Park Apartment Complex

Transcription

1 For more information contact: Founder & Principal Brian Suite Director of Operations Broker (808) Six Unit Apartment Building 6,250 sf Lot Less Than 15 Minutes From Downtown Seattle C2-65 Zoning (Commercial Zone 2-65 ft. Building Height) $875,000 Phone: Fax: Lake Bellevue Dr. Suite 230 Bellevue, WA

2 Property Description South Park Apartment Complex Investment/Development Site Located in Seattle's growing South Park neighborhood, this site features an existing six-unit apartment complex with immediate existing cash flow and future redevelopment opportunity. The current rents are below the market rate of comparable properties in the area and can be raised to create additional monthly cash flow. This two-story complex is comprised of five, onebedroom units with projected market rental rates of $1,100 per month and one, two-bedroom unit with a projected market rental rate of $1,400 per month, giving this property a projected annual gross income of $83,400. Remodel the existing units to increase rental rates or plan to redevelop the site to maximize the investment potential. Current zoning for the site is C2-65 (Commercial Zone 2 with 65 feet allowable building height). With fast-paced economic and population growth across the Seattle Metro area, the City is looking for ways to accommodate demand by increasing building height. With upcoming already underway in multiple areas, the City is also considering potential up-zoning in South Park, which would increase the allowable building height to 75 feet, making this a prime location for a future redevelopment as a seven-story apartment building. The complex is conveniently located near multiple restaurants, shops, Boeing's South Park Campus, and the South Park Marina. South Park is home to over 450 companies that provides more than 17,000 stable jobs to hardworking Americans. In addition to the strong job market in the area directly around this site, one of the fastest growing metro areas in the country, Downton Seattle is less than 15 minutes away, accessible using either the I-5 or Highway 99. With immediate value add potential, the ability to create substantial monthly cash flow, and the future redevelopment opportunity make this an all around quality investment site. page 2 of 11

3 Property Photos South Park Apartment Complex page 3 of 11

4 Location Map page 4 of 11

5 Real Estate Investment Details Analysis Analysis Date July 2017 Property Property Property Address Year Built 1968 South Park Apartment Complex Purchase Information Property Type Commercial Purchase Price $875,000 Tenants 6 Total Rentable Sq. Ft. 4,080 Financial Information Down Payment $175,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $700, years 30 years 4.5% $3,547 Projected Income & Expenses Gross Operating Income $79,230 Monthly GOI $6,603 Total Annual Expenses ($18,984) Monthly Expenses ($1,582) Contact Information andy@vreg.co The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 5 of 11

6 Property Rent Roll Rent Roll Suite Tenants Approx. SqFt Actual Rents Monthly Market Rents Monthly 1 1 bedroom 500 $1,025 $1,025 $1,100 $1, bedroom 500 $1,025 $1,025 $1,100 $1, bedroom 500 Vacant Vacant $1,100 $1, bedroom 500 Vacant Vacant $1,100 $1, bedroom 500 $1,025 $1,025 $1,100 $1, bedroom 780 Vacant Vacant $1,450 $1,450 3,280 $3,075 $6,950 TENANT MIX TENANT MIX SQUARE FEET 2 bedroom 2 bedroom TENANT MIX INCOME TENANT MIX MARKET INCOME 2 bedroom 2 bedroom *All market figures are projected, buyer to verify to their own satisfaction page 6 of 11

7 1412 S Concord Property Analysis Location South Park Interest Rate 4.50% Price: $875,000 Unit Count 6 Loan Amount $700,000 Year Built 1963 Total Monthly Pmt $3, Equity $175,000 20% Building sqft 4080 Current CAP 1.92% Annual payment $42, Current GRM Market CAP 6.97% Market GRM Monthly Schedule Income No. of Units Type Size Actual Monthly Rent Market Rent 1 1 bed & 1 ba 500 $ 1, $ 1, bed & 1 ba 500 $ 1, $ 1, bed & 1 ba 500 Vacant $ 1, bed & 1 ba 500 Vacant $ 1, bed & 1 ba 500 $ 1, $ 1, bed & 1 ba 780 Vacant $ 1, Monthly Scheduled Income $ 3, $6,950 $ - Other Income Total Yearly Income $ 36, $ 83, $ - Annualized Operating Data Current Scheduled Gross Income $ 36, $ 83, $ - Less Vacancy 5% $ 1, $ 4, $ - Gross Operating Income $ 35, $ 79, $ - Less Expenses $ 18, $ 18, Net Operating Income (NOI) $ 16, $ 60, Annual Debt Service $ 42, $ 42, Debt Service Ratio 1.43 Annualized Operating Expenses Real Estate Taxes $ 4, Insurance $ 1, Utilities $600 every two months $ 2, Current Operations light $ Management Fees $ 4, Expenses/Unit Maintenance $ 4, Expenses/Foot Reserves $ $ - Total Expenses $ 18, Expenses as % of Gross Income 22% 7/27/17

8 Detailed General Expenses Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Expenses ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) Replacement Reserves ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) Speed Analysis Expenses ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) page 7 of 11

9 Detailed General Expenses Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Expenses ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) Replacement Reserves ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) ($720) Speed Analysis Expenses ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) ($18,264) page 8 of 11

10 Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $83,400 $85,068 $86,769 $88,505 $90,275 $92,080 $93,922 $95,800 $97,716 $99,671 Turnover Vacancy ($4,170) ($4,253) ($4,338) ($4,425) ($4,514) ($4,604) ($4,696) ($4,790) ($4,886) ($4,984) Total Operating Expenses ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) NET OPERATING INCOME $60,246 $61,831 $63,447 $65,096 $66,777 $68,492 $70,242 $72,026 $73,847 $75,703 Loan Payment ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) NET CASH FLOW (b/t) $17,684 $19,269 $20,885 $22,534 $24,216 $25,931 $27,680 $29,465 $31,285 $33,142 Cash On Cash Return b/t 10.11% 11.01% 11.93% 12.88% 13.84% 14.82% 15.82% 16.84% 17.88% 18.94% Footnotes: b/t = before taxes;a/t = after taxes page 9 of 11

11 Cash Flow Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 GROSS SCHEDULED INCOME $101,664 $103,697 $105,771 $107,887 $110,045 $112,245 $114,490 $116,780 $119,116 $121,498 Turnover Vacancy ($5,083) ($5,185) ($5,289) ($5,394) ($5,502) ($5,612) ($5,725) ($5,839) ($5,956) ($6,075) Total Operating Expenses ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) ($18,984) NET OPERATING INCOME $77,597 $79,529 $81,499 $83,508 $85,558 $87,649 $89,782 $91,957 $94,176 $96,439 Loan Payment ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) ($42,562) NET CASH FLOW (b/t) $35,035 $36,967 $38,937 $40,947 $42,997 $45,088 $47,220 $49,396 $51,614 $53,878 Cash On Cash Return b/t 20.02% 21.12% 22.25% 23.40% 24.57% 25.76% 26.98% 28.23% 29.49% 30.79% Footnotes: b/t = before taxes;a/t = after taxes page 10 of 11

12 Property Equity Analysis $540,000 $486,000 $432,000 $378,000 $324,000 $270,000 $216,000 $162,000 $108,000 $54,000 Year Legend Initial Equity Equity (loan reduction) Equity (appreciation) page 11 of 11