Twin Cedars Apartments

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1 For more information, contact: EXCLUSIVLEY OFFERED AT $739,000 SAM SPIRO URBAN COMMERCIAL PARTNERS Two Union Square 601 Union Street, Suite 425 Seattle, WA

2 TABLE OF CONTENTS Introduction Maps Surrounding Businesses Property Description Income and Expense Proforma Financial Analysis Summary Rent Comparables Summary Sales Comparables Summary Additional Photos Photo

3 INTRODUCTION LOCATION: The Twin Cedars Apartments are located at 1717 S 305th Pl Federal Way, WA Tenants within Twin Cedars Apartments enjoy excellent access to Pacific Hwy South running north/south as well as Interstate 5. This location provides quick and easy access to Federal Way High School, St. Francis Hospital, The Commons Mall, and Celebration Park. In addition, residents are within close proximity to Trader Joes, Safeway and Target as well as other local restaurants, shops, service centers, parks, and schools. PROPERTY HIGHLIGHTS: Recent Upgrades to Units New Life-Time Warranty Mansard Roof New Exterior Siding 6.53% Current Cap Rate 7.0% Market Cap Rate Rental Upside IMPROVEMENTS: The Twin Cedars Apartments consist of 7 residential units, including (2) 1 bed/1 bath units which are approximately 600 square feet, (4) 2 bed/1 bath units, which are approximately 800 square feet and (1) 2 bed/2 bath unit which is approximately 860 square feet. There are several different floor plans for tenants to choose from, all of which are extremely functional and efficient. Within the units, there have been several recent upgrades to the individual units including new counters, cabinets and laminate flooring. The building has a brand new life-time warranty mansard roof along with new exterior siding. There is a coin operated laundry facility on the premises which generates significant income for the property.

4 AERIAL AND STREET MAP Subject Property

5 SURROUNDING BUSINESSES Subject Property

6 PROPERTY DESCRIPTION UNIT MIX SUMMARY: Current Market UNIT TYPE QTY. AVG. UNIT SF AVG. RENT AVG. RENT/SF RENT RENT/SF 1 Bed/1 Bath $725 $1.20 $850 $ Bed/1 Bath $893 $1.11 $950 $ Bed/2 Bath $1,150 $1.33 $1,150 $1.33 Total/Average $ $950 $1.30 PROPERTY OVERVIEW: PROPERTY ADDRESS: 1717 South 305th Place Federal Way, Washington PROPERTY TYPE: Apartment MARKET: Federal Way (King County) YEAR BUILT: 1976 PARCEL NUMBERS: BUILDING GROSS SQ FT: 5,356 BUILDING NET SQ FT: 5,276 LAND:.22 Acres (9,604 SF) PARKING: 10 Parking Stalls STORIES: 2-Story ROOF: Mansard Roof CONSTRUCTION: Wood Frame BALCONY/PATIO: Lower Units Patio and Upper Units Balcony

7 INCOME AND EXPENSE PROFORMA Current Per Unit Market Per Unit GROSS INCOME Potential Rental Revenue $74, $10, $79, $11, Vacancy Loss (4%) ($2,964.00) ($423.43) ($3,192.00) ($456.00) Laundry Income ($150/month) $1, $ $1, $ Utility Income $0.00 $0.00 $0.00 $0.00 Effective Gross Income $72, $10, $78, $11, OPERATING EXPENSES Real Property Taxes (2016) $9, $1, $9, $1, Insurance $2, $ $2, $ Utilities $7, $1, $7, $1, Repairs and Maintenance $3, $ $5, $ Management $1, $ $1, $ Common Electrical $ $85.71 $ $85.71 Total Expenses $24, $3, $26, $3, Net Operating Income $48, $51, Capitalization Rate 6.53% 7.0%

8 FINANCIAL ANALYSIS SUMMARY FINANCIAL ANALYSIS AND OPERATING INFORMATION: PURCHASE PRICE: $739, CASH INVESTMENT/DOWN PAYMENT (35%): $258, FIRST LOAN AMOUNT: $480, AMORTIZATION SCHEDULE: 30 Years ANNUAL PERCENTAGE RATE: 4.00% ANNUAL DEBT SERVICE: $27, NET OPERATING INCOME (PER PREVIOUS PAGE): $48, CASH FLOW BEFORE TAXES: $20, KEY FINANCIAL INDICATORS: PURCHASE PRICE: $739, PRICE PER UNIT: $105, PRICE PER SQUARE FOOT: $ CAPITALIZATION RATE: 6.53% GROSS RENT MULTIPLIER: 9.97 CASH ON CASH RETURN BEFORE TAXES: 8.02% DEBT COVERAGE RATIO: 1.75

9 RENT COMPARABLES SUMMARY Recent Rental Comps Address Bed Bath Rent SF Rent/SF Military Road S 1 1 $ $ th Ave S 1 1 $ $ th Ave S 2 1 $1, $ Military Road S 2 1 $1, $ S 330th St 2 1 $1, $ st Ave S 2 2 $1, $ S 340th St 2 2 $1,200 1,024 $ th Ave S $1,350 1,150 $ $ $1.57 Average: $1,037 $1, ,045 $1.29 $ Subject Property

10 SALES COMPARABLES SUMMARY Recent Sales Comparables Address City Year Built Units Sales Price Date Sold Price/Unit Cap Rate B St SE Auburn $579,400 9/22/2016 $96, % th Ave S Des Moines $607,500 1/15/2016 $101, % S 339th Circle Federal Way $440,000 11/17/2015 $110, % S 339th Circle Federal Way $335,000 9/15/2015 $83, % S 305th Pl Federal Way $429,350 8/23/2016 $107, % Average: $99, % Subject Property

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