Fremont Triplex 520 N 47TH ST Value-Add 3 Units or Development Site Seattle, Washington Licton Springs APARTMENTS :: FINANCIAL SUMMARY 1
For More Information Please Contact Erich Bubbel 206.774.5426 erich@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com
02 Investment Overview 04 Submarket Information 06 Financial Summary 10 Sales Comparables 12 Photo Gallery 14 Regional Information 520 N 47th St TRIPLEX Licton Springs APARTMENTS :: FINANCIAL SUMMARY 1
520 N 47th St TRIPLEX :: INVESTMENT OVERVIEW Investment Overview The Foundation Group is pleased to exclusively offer for sale 520 N 47th Street, a 3-unit building in the Fremont neighborhood of Seattle. The property provides an opportunity to buy a value-add by renovating the units for the highest rent potential or a LR1 development asset in one of the fastest growing areas of Seattle. Its close proximity to main arterials offers tenants immediate access to mass transit for convenient commuting. Originally built in 1977, 520 N 47th Street is wood-frame construction with vinyl and wood siding consisting of three spacious 2bed/1bath units with 2 garage parking spaces and 3 off-street parking spaces. Each garage has another room in the back for extra storage space. The new owner could have the option to turn both of the garage spaces into a 4th unit since the building is located in a parking flexibility zone and allows for minimal parking. The Lowrise 1 zoning allows for a developer to build up to four rowhouses on a 5,000 sf lot in the prime neighborhood of Fremont. This low maintenance asset is positioned well to capitalize on the future rent growth in the Seattle marketplace. 520 N 47th Street is an ideal candidate for investors looking for a long-term hold. Fremont has become a hotspot for your professionals creating an opportunity for growth and longterm investment. 2
Quick Facts Price $1,150,000 Units 3 Price Per Unit $383,333 Rentable Sq.Ft. 2,961 Price Per Sq.Ft. $388 Current Cap Rate 3.39% Market Cap Rate 4.86% Year Built 1977 Parking 2 garage spaces, 3 off street Land SF 5,000 Zoning Construction Type LR1 Wood frame, vinyl siding 520 N 47th St TRIPLEX :: INVESTMENT OVERVIEW 3
Fremont Area Description 520 N 47th St TRIPLEX :: SUBMARKET INFORMATION Fremont is one of the most popular neighborhoods in Seattle. Its close proximity to Ballard, Queen Anne, and Eastlake makes this location desirable for a variety of tenant demographics. Fremont is known for its thriving neighborhood with the best restaurants, bars, coffee shops, specialty shops, and businesses. With a Walk Score of 75, residents of 520 N 47th Street can accomplish a majority of their daily errands on foot. Located a couple blocks to the North is Woodland Park and its close proximity to Greenlake and Gas Works Park, Seattle s little slice of serenity, appeals to outdoor enthusiasts, beachgoers, and family s looking to enjoy its peaceful park-like setting. Furthermore, the close vicinity of downtown Seattle gives tenants an urban city feel to go shop, eat, and to be entertained. Seattle has experienced some of the lowest vacancy rates and some of the most rapid rent growth over the past few years. The increase in demand for affordable apartments has turned Seattle into quite the hot spot; rent growth is nearing 20% over the past two years with an astounding vacancy rate of just 3.2%. This location gives the triplex prime candidacy for investors seeking a stable marketplace and quality tenants. Rent growth is nearing 20% over the past two years with an astounding vacancy rate of just 3.2%. FREMONT AVENUE Source: seattlewatching.com Source: Seattle Parks & Rec FREMONT CANAL PARK 4
Fremont Area Stats 1 1 2 3 1 3 TRANSPORTATION SCORES 75 60 80 4 2 3 4 4 2 5 3 2 RETAIL 1 Markettime Foods 2 Ballard Market 3 Safeway 4 Fred Meyer 5 QFC HEALTHCARE 1 Swedish Medical 2 Orthopedic Specialists of Seattle 3 Ballard Animal Hospital RECREATION 1 Interbay Golf 2 Green Lake Park 3 Gas Works Park 4 Woodland Park Zoo SCHOOLS 1 Ballard High 2 Pacific Crest School 3 BF Day Elementary 4 Kapka Cooperative 520 N 47th St TRIPLEX :: SUBMARKET INFORMATION 1 5
Scheduled Income 520 N 47th St TRIPLEX :: FINANCIAL SUMMARY Unit Type Units Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft 2 Bed 1.Bath 1 987 $1,525 $1.55 $1,995 $2.02 2 Bed 1 Bath 1 987 $1,595 $1.62 $1,995 $2.02 2 Bed 1 Bath 1 987 $1,650 $1.67 $1,995 $2.02 Average 987 $1.61 $2.02 Total 3 $4,770 $5,985 Property Notes & Assumptions Rent increases in place effective Aug 1st LR1 corner lot perfect for townhome development Long term tenants on Month-to-Month Build an additional 4th unit with in 2 garage w/storage spaces 6
Financials Current Market Gross Potential Rent $57,240 $71,827 Vacancy $2,290 4% $2,873 4% Effective Gross Rent $54,950 $68,954 OTHER INCOME Parking $0 $3,000 Effective Gross Income $54,950 $71,954 EXPENSES Property Taxes $8,013 $8,013 Insurance $1,129 $1,129 Utilities $3,426 $3,426 Maintenance & Repairs $3,443 $3,443 Total Expenses $16,011 $5,337 $16,011 $5,337 Net Operating Income $38,939 $55,943 520 N 47th St TRIPLEX :: FINANCIAL SUMMARY 7
Sales Comparables 520 N 47th St TRIPLEX :: SALES COMPARABLES 1 2 3 4 5 Property Name Property Address # Units Sale Date Year Built Sale Price Price/Unit Price/SF Cap Rate GRM 5809 20th Ave NW 5809 20th Ave NW 4 5/25/18 1908 $1,700,000 $425,000 $487 2.64% 25.14 4257 Greenwood Ave N 4257 Greenwood Ave N 4 5/1/18 1911 $850,000 $212,500 $452 3.17% 20.89 1001 N 49th St 1001 N 49th St 3 12/18/17 1916 $1,070,000 $356,666 $393 3.80% 20.06 5806 3rd Ave NW 5806 3rd Ave NW 4 11/27/17 1963 $1,692,500 $423,125 $445 5.16% 16.25 1737 NW 61st St 1737 NW 61st St 2 10/6/17 1975 $1,050,000 $525,000 $408 4.00% 18.00 Subject Property: Fremont Triplex 5809 20th Ave NW Averages $388,458 $437 3.75% 20.07 520 N 47th St 3 1977 $1,150,000 $383,333 $388 3.39% 20.09 1 2 3 4 5 4257 Greenwood Ave N 1001 N 49th St 5806 3rd Ave NW 1737 NW 61st St 8
Sales Comparables 1737 NW 61st St 5809 20th Ave NW 5 1 520 N 47th St 4 2 5806 3rd Ave NW 3 1001 N 49th St 4257 Greenwood Ave N 520 N 47th St TRIPLEX :: SALES COMPARABLES 9
Sales Comparables 520 N 47th St TRIPLEX :: SALES COMPARABLES 1 5809 20th Ave NW 5809 20th Ave NW Units 4 Price $1,700,000 Sale Date 5/25/18 Price / Unit $425,000 Price / Sq Ft $487 Cap Rate $2.64 96 53 2 4257 Greenwood Ave N 4257 Greenwood Ave N Units 4 Price $850,000 Sale Date 5/1/18 Price / Unit $212,500 Price / Sq Ft $452 Cap Rate 3.17% 78 63 3 1001 N 49th St 1001 N 49th St Units 3 Price $1,070,000 Sale Date 12/18/17 Price / Unit $356,666 Price / Sq Ft $393 Cap Rate $3.80 79 35 GRM 25.14 GRM 20.89 GRM 20.06 84 66 84 10
4 5806 3rd Ave NW 5806 3rd Ave NW Units 4 Price $1,692,500 Sale Date 11/27/17 Price / Unit $423,125 Price / Sq Ft $445 Cap Rate 5.16% 69 55 5 1737 NW 61st St 1737 NW 61st St Units 2 Price $1,050,000 Sale Date 10/6/17 Price / Unit $525,000 Price / Sq Ft $408 Cap Rate 4.00% 97 54 520 N 47th St TRIPLEX :: SALES COMPARABLES GRM 16.25 GRM 18.00 67 83 11
520 N 47th St TRIPLEX :: PHOTO GALLERY 12
520 N 47th St TRIPLEX :: PHOTO GALLERY 13
520 N 47th St TRIPLEX :: REGIONAAL INFORMATION 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. 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. 14
Buoyed by its technology sector and the metro s appeal as a live-work-play environment, Seattle s economy and multifamily market continue to break new ground. 520 N 47th St TRIPLEX :: REGIONAAL INFORMATION 15
For More Information Please Contact Erich Bubbel 206.774.5426 erich@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.