Offering Memorandum BALLARD TRIPLEX 5411 32nd Avenue NW Exclusively offered by Paragon Real Estate Advisors 1
Offering Summary Paragon Real Estate Advisors is pleased to offer for sale the Ballard Triplex. This charming, well located, triplex is situated just off Market Street across from the Hiram M. Chittenden Locks. Ballard has quickly become one of Seattle s foremost rental locations due to its close proximity to Seattle s business district, easy access to public transportation and bustling nightlife. This apartment offers a new investor the opportunity to purchase an attractive, turn-key asset located in one of Seattle s strongest rental sub markets. Name Ballard Triplex Address 5411 32nd Ave NW, Seattle WA 98107 Total Units 3 Built 1962 Square Feet 2,260 Total Net Rentable Price $900,000 Price Per Unit $300,000 Price Per Foot $398.23 Current GRM/CAP 21.1/3.5% Market GRM/CAP 15.0/5.2% Terms Cash Out Lot Size 4,482 Square Fee (per Landvision) Zoning NC1 30 BALLARD TRIPLEX 2
Investment Highlights Huge upside in rents and opportunity to add value! Large townhouse style units with vaulted ceilings Double-paned windows, copper plumbing, composition roof, upgraded panels Excellent Ballard Locks location NC1-30 zoning On-site parking and common laundry Highly walkable location near frequent transit 3
Neighborhood Map WALLINGFORD LAKE UNION QUEEN ANNE SEATTLE CBD SODO ELLIOTT BAY FREMONT BALLARD THE BALLARD TRIPLEX 4
Location Highlights Home to some of the best restaurants, pubs, shops, spas, and parks in Seattle Easy access to public transit including a dedicated Rapid Ride line Close to the employment centers of South Lake Union and the downtown Central Business District Neighborhood farmers market operated year round showcasing products exclusively from Washington state farmers Historic downtown area offers fine dining, charming storefronts, live music and a pedestrian friendly environment Active and working waterfront district Ability to live in city and commute north while eschewing freeway traffic 5
Ballard Ballard is a historic and hip little town located in the northwest region of Seattle. Ballard s thriving waterfront and blossoming culture makes it one of the most distinguished neighborhoods in Seattle. Once upon a time, Ballard was its own city a blue-collar, maritime-centric enclave bustling with fishers, millworkers, and boat-builders, many of Scandinavian descent. While the historic neighborhood maintains its working waterfront, a lineup of trendy bars, shops, and restaurants, plus a pedestrian-friendly layout, have helped it transform into one of the city s popular hot spots for visitors and locals alike. Sloop Tavern, The Lockspot Café, Portage Bay Café, Firehouse Coffee, Pico Café, Ristorante Picolinos, Ray s Boathouse, Geo s Cuban and Creole Café, Un Bien (Formerly Paseo) and many more! In addition to several restaurants and bars close by, there are grocers Quality Food Center, Trader Joe s, Safeway), banks (Bank of America and Wells Fargo) and recreational destinations such as the Ballard Sunday Farmers Market, the Ballard locks, Salmon Bay Marina, Shilshole Bay Marina and the beautiful beach front Golden Gardens Park which overlooks the majestic Olympic Mountains, providing a yearround oasis for picnics and bonfires. In recent years, a younger resident profile has been attracted to Ballard through new development, the community s energetic nightlife, award winning restaurants, quality of life, retail amenities, and close vicinity to Downtown Seattle. Ballard s unique amenities, rich history, small-town charm, dynamic waterfront and close proximity to Seattle s most popular neighborhoods make it a prime location to live, work and play. Located on 32nd Ave NW, half a block from NW Market St, residents have immediate access to everything that makes Ballard such a desirable neighborhood. This property is only blocks from Ballard s historic downtown area which consists of fine dining, charming storefronts, live music and offers a pedestrian friendly environment. Located all within blocks are popular places such as Red Mill Totem House, Trident Seafoods, Kiss Café, The 6
Improvements Built in 1962, the Ballard Triplex is a 2-story wood framed building with a low maintenance marble-crete and brick façade and a pitched composition roof. This triplex is comprised of 3 spacious apartments including one, two-bedroom/one-bath unit on the ground floor and two, one-bedroom/one-bath units on the upper floor. The one-bedroom units are large and feature a unique two-level lofted floorplan that is open and airy with great natural light. The one-bedroom units also have beautiful original hardwood floors. Each unit is individually metered for electricity, has electric baseboard heating and has separate hot water tanks. The building features a generally low-maintenance design and has been updated with double-paned vinyl windows for energy efficiency, a newer roof (2010+/-), upgraded electrical panels and an improved gutter system to handle Seattle weather. The building also appears to have copper water supply lines. Resident amenities include ample off-street parking with 4+ parking stalls and a convenient common laundry facility with one pair of leased machines. The building sits on an approximately 4,482 square foot lot that is zoned NC1-30 which allows for a multitude of future redevelopment options. 7
Building Photos 8
Unit Photos 9
Building Plan 1 BD/1 BTH UNITS B AND C 2 BD/1 BTH UNIT A 10
Floor Plans 2 BD/1 BTH 1 BD/1 BTH Lower Level Upper Level Bed Room Bed Room Dining Room Living Room Upper Part Living Room Bed Room Bath Kitchen Storage Unit A Laundry Room Kitchen Kitchen Unit C 1st Floor Unit B 1st Floor Bath Bath Unit C 2nd Floor Unit B 2nd Floor Dining Room Living Room Dining Room Living Room Bed Room Upper Part Living Room 11
Operating Summary BALLARD TRIPLEX 5411 32nd Ave NW Total Monthly Income Monthly Scheduled Rent Current $3,285 Market $4,595 Laundry Income $30 $30 Utility Reimbursement Avg $240 Avg $240 Parking Income $0 $40/space $120 Miscellaneous Income $0 $15 Total Monthly Income $3,555 $5,000 Units 3 Year built 1962 Rentable Area 2,260 Sq.Ft. Down Payment $225,000 25% Loan Amount $675,000 75% Interest Rate 4.50% Amortization 30 Years Price $900,000 Price Per Unit $300,000 Per Square Foot $398.23 Current GRM 21.10 Current CAP 3.51% Market GRM 15.00 Market CAP 5.18% Annualized Operating Data Current Market Scheduled Gross Income $42,660 $60,000 Less Vacancy 0.0% $0 3.00% $1,800 Gross Operating Income $42,660 $58,200 Less Expenses $11,050 $11,594 Net Operating Income $31,610 $46,606 Annual Debt Service ($3,420/mo) $41,042 $41,042 Cash Flow Before Tax -4.19% ($9,431) 2.47% $5,564 Principal Reduction $10,889 $10,889 Total Return Before Tax 0.65% $1,458 7.31% $16,454 Units Type Size Current Rent Monthly Income Market Rent Monthly Income 1 1Bd/1Bth 700 $925 $925 $1,450 $1,450 1 1Bd/1Bth 700 $1,060 $1,060 $1,450 $1,450 1 2Bd/1Bth 860 $1,300 $1,300 $1,695 $1,695 3 Avg S.F. 753 $1.45 $2.03 Annualized Expenses Current Market Real Estate Taxes 2016 Actual $4,956 $5,500 Insurance 2016 Actual $764 $764 Utilities 2016 Actual $3,080 $3,080 Maintenance & Repairs Proforma $2,250 $2,250 Total Expenses $11,050 $11,594 Current Operations Expenses/Unit $3,386 Expenses/Foot $4.89 Percent of EGI 25.90% Market Operations Expenses/Unit $3,865 Expenses/Foot $5.13 Percent of EGI 19.92% 12
Sale Comparables SUBJECT - BALLARD TRIPLEX 5411 32nd Ave NW, Seattle WA Year Built 1962 Units 3 Sales Price $900,000 Price/Unit $300,000 Price/Foot $398 GRM/CAP 21.1/3.5% Sales Date TBD 2. BALLARD TRIPLEX 1537 NW 62nd St, Seattle WA Year Built 1962 Units 2 + 1 Non Conforming Sales Price $920,000 Price/Unit $306,667 Price/Foot $341 GRM/CAP 17.0/4.5% Sales Date 08.22.2016 1. QUEEN ANNE TRIPLEX 2655 22nd Ave W,Seattle WA Year Built 1959 Units 3 Sales Price $1,190,000 Price/Unit $396,667 Price/Foot $285 GRM/CAP 23.0/2.9% Sales Date 08.29.2016 3. THE LOCKS TRIPLEX 5417 32nd Ave NW, Seattle WA Year Built 1962 Units 3 Sales Price $938,000 Price/Unit $312,667 Price/Foot $415 GRM/CAP 52.0/0.4% (unit vacant) Sales Date 08.12.2016 4. 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 5. 4TH AVENUE TRIPLEX 2709 4th Ave N, Seattle WA Year Built 1957 Units 3 Sales Price $995,000 Price/Unit $331,667 Price/Foot $403 GRM/CAP 19.0/3.8% Sales Date On the Market 13
Sales Comparables Map Ballard Triplex 5411 32nd Ave NW 2 3 1. Queen Anne Triplex 2655 22nd Ave W 2. Ballard Triplex 1537 NW 62nd St BALLARD TRIPLEX 3. The Locks Triplex 5417 32nd Ave NW 4. Emerson Street Triplex 1018 W Emerson St 4 5. 4th Avenue Triplex 2709 4th Ave N 5 1 14
Paragon Real Estate Advisors ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi-family 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. 15