South Crest Apartments 1201 South Cloverdale Street Seattle, WA $3,300,000

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1 South Crest Apartments 1201 South Cloverdale Street Seattle, WA st Ave S Seattle, WA Eastlake Ave E Seattle, WA P E info@tfgre.com $3,300,000

2 Will Gibson o: c: Michael Walsh o: c: The Foundation Group 2621 Eastlake Ave E Seattle, WA info@tfgre.com The information included in this document has been obtained by sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to you satisfaction the suitability of the property for your needs.

3 offering summary The Foundation Group is pleased to exclusively offer for sale the South Crest Apartments on South Cloverdale Street in the up-and-coming South Park neighborhood of Seattle. South Crest is a two-story brick façade building that was built in 1957 and consists of 20 units surrounding a central courtyard. The building offers a good mix of units: 15 1bd/1ba; 4 2bd/1ba; and 1 studio. Approximately 13 of the units have been renovated recently with updated kitchens, granite countertops, modern appliances, some updated plumbing, and original red oak floors that have been restored. Three of the units are vacant and unfinished, and the remaining units are in original condition. Laundry facilities are located on-site and there are 10 off-street parking spots behind the building. Property Overview Building Name South Crest Apartments Address 1201 S Cloverdale Street Seattle, WA Total Units 20 Year Built 1957 Square Feet 11,045 Net Rentable / 11,340 Gross Price $3,300,000 Price Per Unit $165,000 Price Per Foot Net $ / Gross $ Current GRM/CAP / 3.82% Market GRM/CAP 9.00 / 7.58% Expense Per Unit $4,552 Terms Lot Size All cash to seller 12,000 SF Zoning SF 5000

4 investment overview Thirteen renovated units with hardwood floors and granite countertops Updated plumbing and electrical distribution in most units Common area laundry facilities Ten off-street parking spaces Tremendous investment upside Recently resurfaced roof New windows Potential to add a bedroom to the studio unit Close to major transit lines Large courtyard Upside deal in an up-and-coming Seattle neighborhood The South Crest Apartments are located at 1201 South Cloverdale Street in the South Park neighborhood of Seattle. The apartments are situated on several Metro bus lines with close access to Highway 509, Highway 99, and Interstate 5. South Crest is just blocks from the neighborhood retail and service district, and down the street from the South Park Community Center and South Park Public Library. Just minutes from the Duwamish River and Boeing Field, the neighborhood is part of the newly planned South Park Residential Urban Village. A Residential Urban Village is an area designated by the City of Seattle that encourages future development. South Park is an up-and-coming residential neighborhood with quick access to downtown Seattle. Route 60 and route 132 metro busses connect to downtown Seattle, Burien Transfer Center, and Capitol Hill. Located within the City of Seattle, the South Park neighborhood is an affordable alternative for renters. Similar to the Columbia City and Georgetown neighborhoods, South Park is another example of one of Seattle s new Urban Villages just outside the city center but in close proximity to the city s many amenities.

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6 operating summary Building Overview Units 20 Price $3,300,000 Year Built Subject Property Profile 1957 Price Per Unit $165,000 Net SF 11,045 Price/Net SF $ Gross SF 11,340 Price/Gross SF $ Down Payment $1,500,000 Current GRM Loan Amount $1,800,000 Current CAP 3.82% Interest Rate 4.25% Market GRM 9.00 Amortization 30 Years Market CAP 7.58% Rent Income Units Type Current Rent Monthly Income Market Rent Monthly Income 4 2bd/1ba $0-$1,350 $3,950 $1,550 $6, bd/1ba $0-$1,300 $12,615 $1,350 $20,250 1 Studio $850 $850 $1,100 $1, SF Avg. $1.58/SF $17,415 $2.49/SF $27,550 Total Monthly Income Current Market Rent Income $17,415 $27,550 Utility Income ($100/unit) $1,050 $2,000 Parking Income $0 $500 Laundry Income $0 $300 Other Income $200 $200 Total Income $18,665 $30,550 Annualized Operating Expenses Current Market Real Estate Taxes (2018) $16,433 $16,433 Insurance (pf $325 per unit) $6,500 $6,500 Utilities (2017 actual) $23,419 $23,419 Maintenance & Repairs (pf $950 per unit) $19,000 $19,000 On-site Management (pf $40 per unit rent credit) $9,600 $9,600 Professional Management (pf 5%) $11,199 $18,180 Reserves $5,000 $5,000 Total Expenses $91,151 $98,132 Annualized Operating Data Current Market Gross Scheduled Income $223,980 $366,600 Vacancy (3% / 5%) ($6,719) ($18,330) Gross Operating Income $217,261 $348,270 Less Expenses ($91,151) ($98,132) Net Operating Income $126,110 $250,138 Annual Debt Service $106,259 $106,259 Cash Flow Before Tax $19,851 $143,879 Principal Reduction $30,346 $30,346 Total Return Before Tax $50,197 $174,225 Current Operations Expenses per Unit $4,552 Expenses per Foot $8.24 Percentage of Gross 40.64% Market Operations Expenses per Unit $4,907 Expenses per Foot $8.88 Percentage of Gross 26.77%

7 rent roll Monthly Income Subject Property Profile Unit Unit Type Current Rent Pro Forma Rent Apartment 1 1bd/1ba $1,000 $1,350 Apartment 2 1bd/1ba $1,125 $1,350 Apartment 3 1bd/1ba $1,125 $1,350 Apartment 4 2bd/1ba Vacant $1,550 Apartment 5 1bd/1ba $1,300 $1,350 Apartment 6 Studio $850 $1,350 Apartment 7 2bd/1ba $1,350 $1,550 Apartment 8 1bd/1ba $1,125 $1,350 Apartment 9 1bd/1ba Vacant $1,350 Apartment 10 1bd/1ba $1,075 $1,350 Apartment 11 1bd/1ba Vacant $1,350 Apartment 12 1bd/1ba $725 $1,100 Apartment 13 1bd/1ba $950 $1,350 Apartment 14 2bd/1ba $1,250 $1,550 Apartment 15 1bd/1ba $900 $1,350 Apartment 16 1bd/1ba $1,075 $1,350 Apartment 17 2bd/1ba $1,350 $1,550 Apartment 18 1bd/1ba $1,125 $1,350 Apartment 19 1bd/1ba $1,090 $1,350 Apartment 20 1bd/1ba Vacant $1,350

8 sales comparables page 1 OFFE2207RING SUMMARY Subject Property 1201 S Cloverdale Seattle, WA South Crest Subject Property Sales Comparable 1 Year Built Units Price Per Unit Price Per SF Sales Comparable 2 Sales Comparable 3 GRM CAP Selling Price Sale Date $165,000 $ % $3,300,000 TBD Sales Comparable S Cloverdale Seattle, WA $127,667 $ % $1,950,000 1/12/2018 Cloverdale Apartments Sales Comparable SW Holden Seattle, WA Holden Sales Comparable th Ave SW Seattle, WA $182,608 $ % $4,200,000 1/19/ $169,230 $ % $2,200,000 6/15/2017 Rogene

9 sales comparables page 2 OFFE2207RING SUMMARY Subject Property Subject Property 1201 S Cloverdale Seattle, WA Year Built Sales Comparable 4 Units Price Per Unit Price Per SF Sales Comparable 5 Sales Comparable 6 GRM CAP Selling Price Sale Date $165,000 $ % $3,300,000 TBD South Crest Sales Comparable Delridge Way SW Seattle, WA $136,709 $ % $4,238,000 4/18/2017 Deeridge/Westbrook Sales Comparable Delridge Way SW Seattle, WA Del-View Sales Comparable th Ave SW Seattle, WA $150,000 $ % $1,950,000 8/11/ $129,166 $ % $2,325,000 1/31/2017 Alison

10 building photography Subject Property Profile

11 building photography Subject Property Profile

12 building photography Subject Property Profile

13 for more information please contact Will Gibson o: c: Michael Walsh o: c: Eastlake Ave E Seattle, WA tfgre.com