NORMANDY PARK TRI-PLEX 20005 1st Ave S Normandy Park, Washington 98198
For More Information Please Contact Ethan Szmania 206.774.5419 ethan@tfgre.com Aaron Locke 206.774.5436 aaron@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com
02 Investment Overview 04 Submarket Information 06 Financial Summary 08 Photo Gallery 10 Regional Information
Investment Overview INVESTMENT OVERVIEW The Foundation Group is pleased to exclusively offer for sale the Normandy Park Triplex, a value-add opportunity in a quiet family friendly neighborhood. The windows, roof, and decks have all been replaced within the last 8 years, furthermore the property was painted last year. The property has highly coveted beach membership access to the Normandy Park Beach Club nearby. Additionally, it is conveniently located next to the Normandy Park market which has a grocery store, restaurants and retail. Built in 1981, this 3-unit property has had long term tenants and currently two units are on month to month leases. This low maintenance asset is positioned to capitalize on rent growth in the South King County market. The property is positioned for rental increases as well as interior renovations to push rents to market. Based on comparable rental properties that have been updated, the cap rate could be elevated above 6%. The units each have fireplaces plus ample parking and storage on-site. The Normandy Park market has dining, retail, and gorceries just across the street 2
Quick Facts Price $559,000 Units 3 Price Per Unit $186,333.33 Rentable Sq.Ft. 2,180 Price Per Sq.Ft. $256 Current Cap Rate 3.23 Market Cap Rate 6.29% Year Built 1981 Parking 3 covered / 6 uncovered Land SF 17,250 Zoning R5 Construction Type Wood Frame 3INVESTMENT OVERVIEW
Normandy Park Area Description SUBMARKET INFORMATION 4 Tucked between I5 and Puget Sound is the quaint waterfront community of Normandy Park, which is home to 6,500 residents covering an area of about 2.5 square miles. The community prides itself on maintaining its quiet family-friendly environment with a focus on welcoming public spaces. Normandy Park was born back in the early 20th century by the Seattle-Tacoma Land Company who oversaw a 1,200 acre development on the shores of Puget Sound. The neighborhood was constructed to resemble the distinctive architecture of the French Normandy style, which also includes a yacht club, two community beaches, and a golf course. Construction was halted during the Great Depression and was reborn in the early 50 s. The city of Normandy Park was incorporated in 1953. The City regularly displays community artists at City Hall, holds a yearly Normandy Park Arts Festival, and hosts weekly Music-in-the-Park events throughout the summer. Normandy Park is served by two private swim clubs and pools. The perfect combination of a family friendly location, green space, and beautiful views of the Olympic Peninsula NORMANDY PARK NORMANDY PARK BEACH Source: HNTB.com Source: www.seattlesouthsidechamber.com
5 Normandy Park Area Stats 5 4 4 4 3 4 3 3 2 1 1 2 1 6 2 2 1 3 RETAIL 1 Ace Hardware 2 Normandy Park Market 3 QFC 4 Access Pharmacy RESTAURANTS 1 Normandy Park Ale House 2 Rose Pho 3 The BBQ Schacht 4 Shelly s Breakfast RECREATION 1 Marvista Park 2 Marine View Park 3 Nature Trails Park 4 Brittany Park 5 City Hall Park 6 North Hill Community Club SCHOOLS 1 North Hill Elementary 2 Highline Big Picture High School 3 Marvista Elementary School 4 Normandy Park Schoo 5SUBMARKET INFORMATION
Scheduled Income Unit Type Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft 1 Bed 1 Bath 1 650 $715 $1.10 $1,195 $1.84 1 Bed 1 Bath 1 650 $950 $1.46 $1,195 $1.84 FINANCIAL SUMMARY 2 Bed 1 Bath 1 900 $880 $0.98 $1,600 $1.78 Average 733 $1.16 $1.81 Total 3 $2,545 $3,990 Property Notes & Assumptions Based off of a loan amount of $443,000 Assuming downpayment of $145,000 Rent Roll as of October 1st, 2018 Expenses and Additional Income based on numbers provided by seller. 6
Financials Current Market Effective Gross Rent $30,540 $47,880 OTHER INCOME Utility Income (Pro-Forma) $0 $2,232 Laundry Income (Pro-Forma) $0 $432 Effective Gross Income $33,360 $49,680 EXPENSES Property Taxes $7,814 $8,059 Insurance: $1,200 $1,200 Water $1,050 $1,050 Sewer $1,200 $1,200 Garbage $1,200 $1,200 Total Expenses $12,464 $4,155 $12,709 $4,236 Net Operating Income $20,896 $35,171 7FINANCIAL SUMMARY
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Seattle / Puget Sound Region Seattle is the largest city in the state of Washington with an estimated population of 684,500 as of 2015. The Seattle metropolitan area, also known as The Puget Sound, is comprised of King, Pierce and Snohomish County; as an MSA it s the 15th largest metropolitan in the United States with a population of approximately 3.7 million people. REGIONAAL INFORMATION Seattle has a thriving local economy and is home to eight Fortune 500 companies including Costco, Microsoft, Amazon, Paccar, Starbucks, Nordstrom, Expeditors International and Weyerhaeuser. In addition Seattle is home to other notable tech companies such as Expedia, Zillow, Tableau and Zulily, and is quickly establishing itself as a national tech hub as companies from Silicon Valley ranging from Google to Facebook, open Seattle offices in an attempt to draw on the talented pool of tech workers living in and moving to Seatte. In 2016, Zillow ranked Seattle as the second hottest housing market in the nation for appreciation. Similarly in June of 2016, Redfin also ranked Seattle as the second hottest housing market behind Denver, where the average days on market of a listing is eight and median sales price growth year over year is 7.5%. Much of this growth comes from the hot job market in Seattle, ranked as the fourth best in the nation. A statistical analysis by Careerbuilder found that in 2015 Seattle added 78,082 jobs. Recently Conway Pederson forecasts they expect the Puget Sound region to add 47,900 jobs in 2016. Currently, the year to date in-migration to the Puget Sound, based on driver s license data for January through May, shows 49,656 people have moved into the area. On an annual basis, the 12-month moving average of monthly in migration is approximately 10,000 people. Annually that puts more than 120,000 people moving into the Puget Sound region; though this does not account for people moving out of the region, the bottom line is the area has and will continue to grow at a rapid pace making the rental market as strong as its ever been. 10
REGIONAAL INFORMATION 11
For More Information Please Contact Ethan Szmania 206.774.5419 ethan@tfgre.com Aaron Locke 206.774.5436 aaron@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com The information included in this document has been obtained from 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 your satisfaction the suitability of the property for your needs.