Offering Memorandum WEST BOSTON APARTMENTS 215 West Boston St Exclusively offered by Paragon Real Estate Advisors 600 University Street Suite 2018 98101 1
Offering Summary Paragon Real Estate Advisors is pleased to exclusively offer for sale the West Boston Apartments. This pride of ownership 6-unit apartment building is located on top of Queen Anne Hill in a predominantly residential neighborhood. This highly sought after location is two blocks to Queen Anne Avenue including the Queen Anne Avenue Starbucks and a few short blocks to the McGraw Street Retail including the Macrina Bakery and Cafe. This convenient location offers easy access to Downtown, Ballard, Fremont and Magnolia. The West Boston Apartments offers an investor the opportunity to own a quality apartment building in an irreplaceable location. Name West Boston Apartments Address 215 W Boston St, Seattle WA Total Units 6 Built 1910 Square Feet 4,805 Total Net Rentable Price $2,100,000 Price Per Unit $350,000 Price Per Foot $437.50 Current GRM/CAP 17.5/4.0% (3% Vacancy) Market GRM/CAP 14.7/5.0% (3% Vacancy) Expense Per Unit $5,264/Year Terms Cash Out Lot Size 5,400 Square Feet Zoning SF 5000 WEST BOSTON APARTMENTS 600 University Street Suite 2018 98101 2
Investment Highlights 6 spacious units Built in 1910 with quality updates completed in recent years Private entrances for each unit Upper units have balconies Ample on-site parking with 4 covered spaces and 2 uncovered spaces with the possibly of tandem parking Hard to find large corner lot with single family zoning Mature and attractive landscaping Views of the Cascades, Olympics and Mount Baker Common coin-operated laundry room Served by Rapid Ride and other major bus routes via Queen Anne Avenue, 15th Ave West and Highway 99 Walk Score of 93 - this location is considered a Walkers Paradise Rental upside 600 University Street Suite 2018 98101 3
Neighborhood Map BALLARD FREMONT WALLINGFORD U DISTRICT QUEEN ANNE WEST BOSTON APARTMENTS SOUTH LAKE UNION ELLIOTT BAY SEATTLE CBD 600 University Street Suite 2018 98101 4
Queen Anne 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 600 University Street Suite 2018 98101 5
Improvements The current owners purchased the West Boston Apartments in 2002. The previous owners significantly upgraded the property during their ownership, and upon purchase, the current owners have further improved the building. Three of the four two-bedroom units have been completely updated by a local licensed and bonded general contractor with high-end finishes. The upgrades to the kitchen and bathrooms include wood cabinetry, quartz countertops and attractive tile flooring. The appliances were replaced with stainless and beautiful walk in tiled showers were installed in the bathrooms. All units have hardwood floors. Two of the updated units have finished hardwood floors which are stunning and enhance the charm of the units. The remaining four units have carpet over the unfinished hardwood floors. Unit 2, a one-bedroom unit has hardwood floor in the bedroom only. The one-bedroom units are spacious, light filled and well appointed. One of the one-bedroom units has had the kitchen updated with new cabinetry and granite countertops. 600 University Street Suite 2018 98101 6
Apartment Features Two one-bedroom/one-bath units Four two-bedroom/one-bath units, 3 of which are updated Spacious and appealing floor plans Large open living and dining areas Stainless steel appliances and quartz countertops in updated units Gas stoves in several units Hardwood flooring Abundant closet and storage spaces Double pane vinyl windows Charming bay windows in some units 600 University Street Suite 2018 98101 7
Building Photos 600 University Street Suite 2018 98101 8
Unit Photos 600 University Street Suite 2018 98101 9
Unit Photos 600 University Street Suite 2018 98101 10
Operating Summary Total Monthly Income Monthly Scheduled Rent $9,495 $10,880 Laundry Income Actual $250 Actual $250 Utility Bill Back *** Actual $160 $40/person $400 West Boston Apartments 215 West Boston St Parking Income $0 $25/$50 $250 Miscellaneous Income Proforma $100 $150 Total Monthly Income $10,005 $11,930 Units 6 Year built 1910 Rentable Area 4,805 Sq.Ft. Down Payment $1,250,000 59% Loan Amount $850,000 41% Interest Rate 4.55% Amortization Units Type 30 Years Avg Size Current Rent Price $2,100,000 Price Per Unit $350,000 Per Square Foot $437.04 Current GRM 17.49 Current CAP 4.04% Market GRM 14.67 Market CAP 5.00% Monthly Income Market Rent Monthly Income Annualized Operating Data Current Market Scheduled Gross Income $120,060 $143,160 Less Vacancy 3.0% $3,602 3.0% $4,295 Gross Operating Income $116,458 $138,865 Less Expenses $31,581 $33,687 Net Operating Income $84,877 $105,178 Annual Debt Service ($4,332/mo) $51,985 $51,985 Cash Flow Before Tax 2.63% $32,892 4.26% $53,193 Principal Reduction $13,591 $13,591 Total Return Before Tax 3.72% $46,483 5.34% $66,784 1 1Bd/1Bth 825 $1,525 $1,525 $1,550 $1,550 1 1Bd/1Bth 600 $1,150 $1,150 $1,350 $1,350 1 2Bd/1Bth * 850 $1,470 $1,470 $1,995 $1,995 1 2Bd/1Bth ** 850 $1,725 $1,725 $1,995 $1,995 1 2Bd/1Bth * 850 $1,850 $1,850 $1,995 $1,995 1 2Bd/1Bth ** 850 $1,775 $1,775 $1,995 $1,995 6 Avg S.F. 800 $1.98 $9,495 $2.26 $10,880 * Rental rate is effective 5.1.2017 ** Rental rate is effective 6.1.2017 *** Utility bill back goes into effect 5.1.2017 / 6.1.2017 Annualized Operating Exp Current Market Real Estate Taxes Actual 2016 $12,844 $14,950 Insurance Actual 2016 $2,266 $2,266 Utilities Actual $8,471 $8,471 Maint/Repairs Proforma $5,500 $5,500 Landscaping Proforma $500 $500 Miscellaneous Proforma $500 $500 Reserves Proforma $1,500 $1,500 Total Expenses $31,581 $33,687 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $5,264 $6.57 26.30% Market Operations Expenses/Unit Expenses/Foot Percent of EGI $5,615 $7.01 23.53% 600 University Street Suite 2018 98101 11
Sale Comparables SUBJECT - WEST BOSTON APTS 215 W Boston St, Seattle WA Year Built 1910 Units 6 Sales Price $2,100,000 Price/Unit $350,000 Price/Foot $437.04 GRM/CAP 17.5/4.0% Sales Date TBD 2. THE COTTAGES 1713 Dexter Ave N, Seattle WA Year Built 1979 Units 15 Sales Price $5,430,000 Price/Unit $362,000 Price/Foot $371.26 GRM/CAP 17.2/3.7% Sales Date 11.18.2016 4. HEATHER COURT 114 12th Ave E, Seattle WA Year Built 1952 Units 10 Sales Price $4,000,000 Price/Unit $400,000 Price/Foot $466.20 GRM/CAP 16.3/4.4% Sales Date 8.31.2016 1. 6 UNIT 2107 5th Ave N, Seattle WA Year Built 1923 Units 6 Sales Price $2,975,000 Price/Unit $495,833 Price/Foot $447.50 GRM/CAP 14.7/4.8% Sales Date 12.9.2016 3. MCKEAN APARTMENTS 1404 10th Ave W, Seattle WA Year Built 1928 Units 8 Sales Price $2,875,000 Price/Unit $359,375 Price/Foot $532.41 GRM/CAP 17.4/3.9% Sales Date 11.18.2016 5. FRANKLIN AVE APARTMENTS 2211 Franklin Ave E, Seattle WA Year Built 1959 Units 7 Sales Price $3,010,000 Price/Unit $430,000 Price/Foot $610.55 GRM/CAP 15.5/5.0% Sales Date 7.29.2016 600 University Street Suite 2018 98101 12
Sales Comparables Map West Boston Apts 215 W Boston St 1. 6 Unit 2107 5th Ave N 2. The Cottages 1713 Dexter Ave N WEST BOSTON APARTMENTS 5 1 2 3 3. McKean Apts 1404 10th Ave W 4. Heather Court 114 12th Ave E 5. Franklin Ave Apts 2211 Franklin Ave E 4 600 University Street Suite 2018 98101 13
Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft. Comments West Boston Apartments 215 W Boston St 6 1910 1Bd/1Bth 2Bd/1Bth 600-825 825-880 $1,150 - $1,525 $1,470 - $1,850 $1.85 - $1.92 $1.78 - $2.10 Renovated units, parking included in rent 1. Muse 911 1st Ave W 8 1953 1Bd/1Bth 2Bd/1Bth 600 750 $1,400 - $1,415 $1,750 $2.33 - $2.36 $2.33 Renovated units, W/S/G and heat included in rent 2. Westmoreland 2156 8th Ave W 11 19 Studio 1Bd/1Bth 585 650 $1,250 $1,375 - $1,475 $2.14 $2.12 - $2.27 W/S/G included in rent, ample street parking avaliable 3. Bostonian 2123 4th Ave N 12 1904 1Bd/1Bth 2Bd/1Bth 550-621 916-975 $1,385 - $1,595 $2,095 - $2,195 $2.52 - $2.57 $2.25 - $2.29 Renovated units, views, W/S/G is an additional $40/person/month 4. Olympic View 2101 7th Ave W 22 1952 1Bd/1Bth 685 $1,595 $2.33 Renovated units, W/S/G included in rent, open on-site parking 600 University Street Suite 2018 98101 14
Rent Comparables Map West Boston Apts 215 W Boston St 1. Muse 911 1st Ave W 2. Westmoreland 2156 8th Ave W 2 4 3 3. Bostonian 2123 4th Ave N WEST BOSTON APARTMENTS 4. Olympic View 2101 7th Ave W 1 600 University Street Suite 2018 98101 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 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. 600 University Street Suite 2018 98101 16