Offering Memorandum QUEEN ANNE APARTMENTS. 823 Nob Hill Ave N Seattle, WA. Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum QUEEN ANNE APARTMENTS 823 Nob Hill Ave N Seattle, WA Exclusively offered by Paragon Real Estate Advisors 1

2 Offering Summary Paragon Real Estate Advisors is pleased to offer for sale the Queen Anne Apartments. This efficient and well-located building sits at the corner of Aloha Street and Nob Hill Avenue North on the South slope of Queen Anne. Queen Anne s south slope is widely regarded as Seattle s premier rental location. This location boasts a walkers paradise with its close proximity to Seattle s South Lake Union neighborhood and the central business district. This area is also home to some of Seattle s hottest bars and nightlife. This apartment offers a new investor the opportunity to purchase an attractive, well-maintained asset located in the heart of the city. Name Queen Anne Apartments Address 823 Nob Hill Ave N, Seattle WA Total Units 4 Built 1986 Square Feet 2,400 Total Net Rentable Price $1,200,000 Price Per Unit $300,000 Price Per Foot $ Current GRM/CAP 18.3/3.6% (3% Vacancy) Market GRM/CAP 14.5/5.0% (3% Vacancy) Expense Per Unit $5,082/Year Terms Cash Out Lot Size 2,064 Square Feet Zoning LR3 QUEEN ANNE APARTMENTS 2

3 Investment Highlights Unrivaled lower Queen Anne location Walk Score of 93: a true walker s paradise Corner lot zoned LR construction with copper plumbing, modern building systems and double-paned windows Excellent one-bedroom floor plans with washers and dryers and complete appliance packages Simple, low-maintenance property with virtually zero vacancy Upside in rental income and ability to add value through renovation A stone s throw from major employers and popular attractions Territorial views from upper unit of the Space Needle and city skyline Off-street parking: one private garage and one uncovered stall Common entertainment deck and private backyard patio 3

4 Neighborhood Map CAPITOL HILL FIRST HILL EASTLAKE LAKE UNION SOUTH LAKE UNION SEATTLE CBD QUEEN ANNE QUEEN ANNE APARTMENTS 4

5 Queen Anne Highlights Conveniently located between major employment centers of downtown Seattle, South Lake Union, Wallingford, Fremont and the Elliot Bay waterfront. Less than 5-minute drive (non-rush hour) to downtown Seattle, South Lake Union, Capitol Hill, Eastlake, Magnolia, Ballard, Fremont, Wallingford and the University District. Home to 25 beautifully maintained city parks Home to the private Seattle Pacific University on the north slope One of Seattle s hottest rental markets and prestigious residential neighborhoods to live People from all over Seattle visit Queen Anne for its nightlife, restaurants and famous park attractions Served by Rapid Ride and other major bus routes Major employers headquarter nearby include Amazon, Nordstrom, Expedia, Zillow, Tableau and Weyerhaeuser Major companies opening offices nearby: Google, Facebook, Apple, Ebay, Dropbox, Twitter, Uber 5

6 Location Located at the corner of Nob Hill Avenue North and Aloha Street in the highly desirable and dynamic lower Queen Anne neighborhood, the subject is at the epicenter of Seattle s food, culture and urban recreation scene. This area of Queen Anne is known for its many trendy restaurants, bars, high-end boutique retailers and neighborhood parks. As the South Lake Union area continues to rapidly grow, the demand for Queen Anne property has drastically increased over the past few years. Companies such as Amazon, Facebook, Google, Expedia, Microsoft and Zulily continue to expand and hire more employees to the Seattle area, making Queen Anne a top location for investors. The Lower Queen Anne and South Lake Union area has consistently maintained some of the highest rents and occupancy rates in the Puget Sound region. With the seemingly never ending growing labor force, the South Lake Union/Lower Queen Anne area will only become denser and more desirable in the coming years. The subject property provides a buyer with the security of a well-located, easy to manage, income-generating property which has many levels of upside and great potential for appreciation over the long-term. This pedestrian-friendly location is situated between the employment centers of Downtown Seattle and South Lake Union, and offers residents the ability to take advantage of the many walkable amenities in the area. The subject location has a Walk Score of 93, earning it the Walker s Paradise designation offering immediate convenience to neighborhood services and everything needed for your daily errands. Nearby grocery and drugstore options include Safeway, QFC, Metropolitan Market and Bartell Drugs. Not to mention, the subject property is just steps away from the popular 64- acre Seattle Center, featuring world renowned attractions such as the Space Needle, Paul Allen s Museum of Pop Culture, Chihuly Garden and Glass, Key Arena, Opera House & Pacific Northwest Ballet and the Pacific Science Center. 6

7 Improvements Built in 1986, the Lower Queen Anne Apartments is a thoughtfully designed, purpose-built fourplex with the perfect balance of modern features and simplicity. The building is a four-story, wood-framed design with a pitched composition shingle roof and horizontal wood siding. The building sits on a corner lot zoned LR3 that is approximately 2,064 square feet. Each of the four apartments features a one-bedroom, one-bathroom floor plan, however each unit is a little different. With four stories in the building, each unit has its own floor offering greater privacy and less noise between units. Each apartment makes wonderful use of the space, has an open layout with good flow and features a complete appliance package including washer and dryer. Apartment finishes and fixtures are consistent with late 80 s and early 90 s construction with carpet and vinyl flooring, medium toned wood cabinetry with laminate countertops and white appliances. A new owner can leverage the quality of the location and modern unit floorplans with a modernization of the building and refresh of the units and will greatly increase income potential. The units are numbered 1 through 4 with 1 being on the bottom and 4 at the top. Units 2-4 are accessed via a shared entry and staircase on the east side while unit number 1 is accessed via a private stairway and entrance on the west side. Other building features include a shared common entertainment deck located between the 2nd and 3rd floors, a private yard/patio area for unit 1 and off-street parking for 2+ vehicles by means of a private garage and an open stall. 7

8 View from Upper Unit 8

9 Building Photos 9

10 Unit Photos 10

11 Unit Photos 11

12 Unit Photos 12

13 Floorplans Bath Living Room Living Room Bath Kitchen W/D Bedroom Kitchen Bedroom W/D FIRST FLOOR SECOND FLOOR 13

14 Floorplans Living Room Kitchen Kitchen Bedroom W/D Bath Bath Living Room W/D Bedroom THIRD FLOOR FOURTH FLOOR 14

15 Operating Summary Units 4 Year built 1986 Rentable Area 2,400 Sq.Ft. Down Payment $420,000 35% Loan Amount $780,000 65% Interest Rate 4.50% Amortization 30 Years Price $1,200,000 Price Per Unit $300,000 Per Square Foot $ Current GRM Current CAP 3.60% Market GRM Market CAP 5.00% Units Type Size Current Rent Market Rent Basement 1Bd/1Bth 577 $1,245 $1,450 First Floor 1Bd/1Bth 689 $1,350 $1,650 Second Floor 1Bd/1Bth 611 $1,300 $1,650 Third Floor 1Bd/1Bth 523 $1,200 $1,550 Total Monthly Income Avg S.F. 595 $2.12 $2.63 Monthly Scheduled Rent $5,095 $6,300 Utility Billback $0 $60/unit $240 Parking (1 Garage/1 Open) $250/$75 $325 $250/$75 $325 Other Income $40 $40 Total Monthly Income $5,460 $6,905 Annualized Operating Data Current Market Scheduled Gross Income $65,520 $82,860 Less Vacancy 3.0% $1, % $2,486 Gross Operating Income $63,554 $80,374 Less Expenses $20,326 $20,326 Net Operating Income $43,228 $60,048 Annual Debt Service ($3,952/mo) $47,426 $47,426 Cash Flow Before Tax -1.00% ($4,197) 3.01% $12,622 Principal Reduction $12,583 $12,583 Total Return Before Tax 2.00% $8, % $25,206 Annualized Operating Expenses Current Market Real Estate Taxes 2017 Actual $9,772 $9,772 Insurance 2016 Actual $2,050 $2,050 Utilities 2016 Actual $5,149 $5,149 Maint/Repairs Avg 15'/16' $1,955 $1,955 Administration Proforma $400 $400 Reserves 2016 Actual $1,000 $1,000 Total Expenses $20,326 $20,326 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $5,082 $ % Market Operations Expenses/Unit Expenses/Foot Percent of EGI $5,082 $ % 15

16 Sale Comparables SUBJECT - QUEEN ANNE APTS 823 Nob Hill Ave N Seattle WA Year Built 1986 Units 4 Sales Price $1,200,000 Price/Unit $300,000 Price/Foot $500 GRM/CAP 18.3/3.6% Sales Date TBD 2. 4TH AVENUE TRIPLEX th Ave N, Seattle WA Year Built 1957 Units 3 Sales Price $1,100,000 Price/Unit $366,666 Price/Foot $445 GRM/CAP 22.0/3.0% Sales Date QUEEN ANNE FOURPLEX th Ave N, Seattle WA Year Built 1920 Units 4 Sales Price $1,550,000 Price/Unit $387,500 Price/Foot $425 GRM/CAP 21.1/5.0% Sales Date QUEEN ANNE TRIPLEX 923 6th Ave N, Seattle WA Year Built 1902 Units 3 Sales Price $1,460,000 Price/Unit $486,667 Price/Foot $497 GRM/CAP 17.0/4.8% Sales Date EASTLAKE FOURPLEX 1922 Franklin Ave E, Seattle WA Year Built 1986 Units 4 (3 + 1 non conforming) Sales Price $1,385,000 Price/Unit $346,250 Price/Foot $478 GRM/CAP Sales Date Unknown 5. EMERSON STREET TRIPLEX 1018 W Emerson St, Seattle WA Year Built 1968 Units 3 Sales Price $1,395,000 Price/Unit $465,000 Price/Foot $489 GRM/CAP 22.0/3.9% Sales Date Sale Pending 16

17 Sales Comparables Map Queen Anne Apartments 823 Nob Hill Ave N Seattle, WA 5 1. Queen Anne Triplex 923 6th Ave N Seattle, WA 2. 4th Avenue Triplex th Ave N Seattle, WA 2 3. Eastlake Fourplex 1922 Franklin Ave E Seattle, WA 4. Queen Anne Fourplex th Ave N Seattle, WA Emerson Street Triplex 1018 W Emerson St Seattle, WA QUEEN ANNE APARTMENTS 1 17

18 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. 18