Offering Memorandum SIX UNIT ON PHINNEY RIDGE 6714 Greenwood Ave N Exclusively offered by Paragon Real Estate Advisors 1
Offering Summary Paragon Real Estate Advisors is pleased to exclusively offer for sale the Six Unit on Phinney Ridge, a classic 1960s vintage apartment building with tremendous rental upside. Situated in a very walkable and amenity-rich neighborhood, this building offers residents a nice residential feel with quick access to the tech employments centers of Fremont, South Lake Union and Downtown Seattle. This is the first time the property was been on the market in over 25+ years and is a great value add opportunity for both local and international investors. Name Six Unit on Phinney Ridge Address 6714 Greenwood Ave N Total Units 6 Built 1960 Square Feet 5,030 Total Net Rentable Price $1,850,000 Price Per Unit $308,333 Price Per Foot $367.79 Current GRM/CAP 16.26/4.22% (2% Vacancy) Market GRM/CAP 13.17/ 5.40% (4% Vacancy) Expense Per Unit $5,575 /Year Terms Cash Out Lot Size 5,000 Square Feet Zoning NC2-40 Urban Village 2
Investment Highlights First time on the market in 25+ years NC2-40 Urban Village zoning Excellent Phinney Ridge location Walkscore of 87 Significant rental upside Large 2BD/1BTH units Future development potential with NC2-40 Zoning Recently replaced roof Low-maintenance brick veneer/marble crete siding Common laundry facility Four off-street parking stalls Close to Greenlake, Ballard and Fremont neighborhoods 3
Neighborhood Map CAPITOL HILL SEATTLE CBD GREENLAKE WALLINGFORD FREMONT QUEEN ANNE PHINNEY RIDGE 6 UNIT ON PHINNEY RIDGE BALLARD N 80TH STREET 15TH AVENUE NW 4
Neighborhood Amenities Food/Drink Shopping/Services Parks/Schools 6 14 1 Red Mill Burgers 2 The Barking Dog Alehouse 3 Bongos 4 Woodland Park Zoo 5 Green Lake Park 6 Fred Meyer 7 Ballard High School 8 Safeway 9 Gilman Playground 10 74th St Ale House 11 Paseo Caribbean 12 Ken s Market 13 Green Lake Public Library 14 Bishop Blanchet High School 15 The Bathhouse Theater 16 Starbucks 17 Beth s Cafe 18 Wallingford Playground 19 Tutta Bella Pizzeria 20 Phinney Farmer s Market 21 Hales Ales Brewery and Pub 22 Woodland Park 23 West Woodland Elementary 24 Duke s Seafood and Chowder 25 A La Mode Pies 7 8 9 10 17 12 2 6 UNIT ON 1 20 PHINNEY RIDGE 16 3 26 4 23 24 11 19 22 25 15 21 18 5 13 5
Location The Six Unit on Phinney Ridge is located at 6714 Greenwood Ave N in the Phinney Ridge neighborhood of Seattle. Residents have direct access to downtown Seattle and South Lake Union employment centers via Highway 99, and the University of Washington. Located just blocks from the Woodland Park Zoo, residents enjoy many recreational activities offered at Woodland Park and Green Lake Park including: soccer fields, tennis courts, summer concerts, boating, jogging, and relaxing in the sun. This location is also a short walk or quick drive to some of the best entertainment venues, eateries, and services in the popular Ballard, Fremont, Phinney Ridge and Wallingford neighborhoods. 6
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
Building Photos 10
Unit Photos 11
Operating Summary Units 6 Year built 1960 Rentable Area 5,030 Down Payment $850,000 Loan Amount $1,000,000 Interest Rate 4.250% Amortization 30 Years Units Type Size Current Rent Price $1,850,000 Price Per Unit $308,333 Per Square Foot $367.79 Current GRM 16.26 Current CAP 4.22% Market GRM 13.17 Market CAP 5.40% Monthly Income Market Rent Monthly Income Annualized Operating Data Current Market Scheduled Gross Income $113,747 $140,484 Less Vacancy 2.00% $2,275 4.00% $5,619 Gross Operating Income $111,472 $134,865 Less Expenses $33,450 $34,990 Net Operating Income $78,022 $99,875 Annual Debt Service ($4,919.40) $59,033 $59,033 Cash Flow Before Tax 2.23% $18,990 4.80% $40,842 Principal Reduction $16,859 $16,859 Total Return Before Tax 4.22% $35,848 6.79% $57,701 1 1Bd/1Bth 530 $1,250 $1,250 $1,375 $1,375 5 2Bd/1Bth 900 $1,490-$1,670 $7,795 $1,895 $9,475 6 Avg S.F. 838 $9,045 $11,707 Total Monthly Income Monthly Scheduled Rent $9,045 $10,850 Utility Income $400 $425 Parking Income $0 $75/space $300 Laundry Income $34 $72 Miscellaneous $0 $60 Total Monthly Income $9,479 $11,707 Annualized Operating Expenses Current Market Real Estate Taxes 2017/ Proforma $13,260 $14,800 Insurance Proforma $2,100 $2,100 Utilities Estimated $7,200 $7,200 On-Site Payroll Proforma $3,240 $3,240 Maintenance & Repairs Proforma $4,500 $4,500 Landscaping Proforma $750 $750 Replacements and Proforma $1,800 $1,800 Capital Reserves Administration Proforma $600 $600 Total Expenses $33,450 $34,990 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $5,575 $6.65 29.41% Market Operations Expenses/Unit Expenses/Foot Percent of EGI $5,832 $6.96 24.91% 13
Sale Comparables 6 UNIT ON PHINNEY RIDGE 6714 Greenwood Ave N, Year Built 1960 Units 6 Sales Price $1,850,000 Price/Unit $308,333 Price/Foot $367.79 GRM/CAP 16.26/4.22% Sales Date TBD 2. DISCOVERY POINTE 3309 W Govt Wy, Year Built 1967 Units 13 Sales Price $3,812,000 Price/Unit $293,269 Price/Foot $366.23 GRM/CAP 19.2/3.1% Sales Date 11.17.2017 4. 4800 PHINNEY AVE N Year Built 1988 Units 8 Sales Price $2,975,000 Price/Unit $371,875 Price/Foot $538.56 GRM/CAP 19.5/3.3% Sales Date 10.25.2017 1. WESTERNER 4200 Fremont Ave N, Year Built 1962 Units 8 Sales Price $2,080,000 Price/Unit $260,000 Price/Foot $580.36 GRM/CAP 14.9/4.7% Sales Date 11.21.2017 3. 4318 WINSLOW PLACE N Year Built 1967 Units 5 Sales Price $1,680,000 Price/Unit $336,000 Price/Foot $466.15 GRM/CAP 16.9/3.7% Sales Date 10.31.2017 5. CROWN HILL 2761 NW 80th St, Year Built 1962 Units 5 Sales Price $1,465,000 Price/Unit $293,000 Price/Foot $390.67 GRM/CAP 18.5/3.6% Sales Date 10.11.2017 14
Sales Comparables Map 6 Unit on Phinney Ridge 6714 Greenwood Ave N 5 1. Westerner 4200 Fremont Ave N 2. Discovery Pointe 3309 W Govt Way 6 UNIT ON PHINNEY RIDGE 3. 4318 Winslow Pl N 4. 4800 Phinney Ave N 5. Crown Hill 2761 NW 80th 2 4 1 3 15
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 $3.4 billion in sales and have closed over 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 23 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