The KENSINGTON
LAKE WASHINGTON CAPITOL HILL SEATTLE CBD QUEEN ANNE UNIVERSITY DISTRICT WALLINGFORD BALLARD WEDGWOOD ROOSEVELT NORTHGATE FUTURE LIGHT RAIL STATION LAKE CITY PINEHURST FUTURE LIGHT RAIL STATION
OFFERING Paragon Real Estate Advisors is pleased to announce for sale the Kensington, a 10-unit three story apartment building in North Seattle. The Kensington has a new pitched roof and durable hardie-board plank siding. The property sits on a large 12,719 square foot lot zoned MR that allows for future redevelopment of a 6 to 7 story apartment building. Financing is being offer by the Seller with a down payment of 35% preferred. There is opportunity to add value to this building by adding washer/dryer to the units (two hooks ups already added), adding an additional unit to the ground floor storage area, and raising rents to market rate. NAME The Kensington ADDRESS 14333 32nd Ave NE, Seattle WA 98125 TOTAL UNITS 10 BUILT 1973 SQUARE FEET 10,900 Total Net Rentable (Per KCR) PRICE $2,400,000 PRICE PER UNIT $240,000 PRICE PER FOOT $220 CURRENT GRM/CAP 16.8/3.6% MARKET GRM/CAP 12.4/5.4% MARKET CAP WITH ADDED UNIT 6.0% * LOT INFORMATION 12,719 Square Feet Zoned MR * Market CAP with added unit assumes rent from a 1BD apartment at $1,195/mo. This does not include the cost to add the unit. This information 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 all information and bears all risk for inaccuracies.
INVESTMENT HIGHLIGHTS Seller financing offered with 35% down, and an initial interest rate of 4% interest only Opportunity to add value through adding washers and dryers to units (two units have existing hooks ups) Ability to add additional dwelling unit near the entry (Buyer to verify) The sauna area already has a toilet, shower and vanity. Very large units with the potential to convert to two or three bedroom units by converting dining rooms to additional bedroom Recently replaced roof with pitch added. Silver coated in the last year. Building resided with hardie-board plank Copper plumbing Recreational side yard and back patio area Large 12,000 square foot lot zoned MR for future redevelopment potential 16 off-street parking stalls The KENSINGTON
LOCATION HIGHLIGHTS North Seattle is situated immediately north of Downtown Seattle and is bisected by Interstate 5 and State Route 99. North Seattle is bounded by the Puget Sound to the west and Lake Washington to the east. The community provides excellent access to not only Downtown Seattle, but also to the major employment hubs to the North in Everett and Bothell. In addition to easy access North and South, the location allows commuters to avoid the State Route 520 toll bridge and access Seattle s Eastside by driving around the north end of Lake Washington. Lake City is a Northeastern Seattle neighborhood located between interstate 5 and Lake Washington, and stretching from NE 85th Street to the Seattle City line at NE 145th Street. This neighborhood has been designated as an Urban Village (Hub) by the City of Seattle. This designation encourages pedestrian friendly development, community transit and an increased density for both residents and businesses. Lake City residents enjoy a bustling, forwardthinking community going to great efforts to improve the quality of life in the neighborhood. Lake City has over 500 businesses. Property owners in this area are sure to benefit from the burgeoning rental market, a growing abundance of walkable retail and service amenities as well as convenient access to public transportation options. Located just north of the Seattle Central Business District POPULATION 37,081 MEDIAN INCOME $58,374 Easy access to local transit options via Metro Transit Walk to restaurants, cafés, and shopping Easy access to the University of Washington Close to future light rail station located at NE 145th https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml?src=bkmk BUS SERVICE 9 ROUTES
MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT
MAJOR EMPLOYERS - SOUTH LAKE UNION
BUILDING PHOTOS
UNIT PHOTOS
UNIT PHOTOS
COMMON AREA - POSSIBLE SPACE FOR UNIT ADDITION
Unit Breakdown The KENSINGTON APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 1 2 Bd /1 Bth 1,100 Sq.Ft. $1,300 $1.18 $1,595 $1.45 2 2 Bd /1 Bth 1,100 Sq.Ft. $1,250 $1.14 $1,595 $1.45 3 2 Bd /1 Bth 1,100 Sq.Ft. $900 $0.82 $1,595 $1.45 4 2 Bd /1 Bth 1,100 Sq.Ft. $1,300 $1.18 $1,595 $1.45 5 1 Bd /1 Bth 950 Sq.Ft. $1,350 $1.42 $1,350 $1.42 6 1 Bd /1 Bth 950 Sq.Ft. $950 $1.00 $1,350 $1.42 7 2 Bd /1 Bth 1,100 Sq.Ft. $1,325 $1.20 $1,595 $1.45 8 2 Bd /1 Bth 1,100 Sq.Ft. $1,300 $1.18 $1,595 $1.45 9 1 Bd /1 Bth 950 Sq.Ft. $980 $1.03 $1,350 $1.42 10 1 Bd /1 Bth 950 Sq.Ft. $1,050 $1.11 $1,350 $1.42 Totals/Avg 1,090 Sq.Ft. $11,705 $1.07 $14,970 $1.37
Income and Expenses ANNUALIZED OPERATING DATA CURRENT MARKET Units 10 Year Built 1973 Rentable Area 10,900 Down Pmt $840,000 Loan Amount $1,560,000 Interest Rate 4.00 Amortization 30 years Price $2,400,000 Per Unit $240,000 Per Sq. Ft. $220 Current GRM 16.76 Current CAP 3.55% Market GRM 12.35 Market CAP 5.42% Scheduled Gross Income $143,220 $194,400 Less Vacancy 1.0% $1,432 4.0% $7,776 Gross Operating Income $141,788 $186,624 Less Expenses $56,557 $56,557 Net Operating Income $85,231 $130,067 Annual Debt Service ($5,200/mo) $62,400 $62,400 Total Return Before Tax 2.72% $22,831 8.06% $67,667 UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT 4 1 Bd/1 Bth 950 $950 - $1,350 $1,350 6 2 Bd/1 Bth 1,100 $900 - $1,325 $1,595 10 Total/Avg 1,090 $1.07 $1.37 MONTHLY INCOME CURRENT MARKET Gross Potential Rent $11,705 $14,970 Utility Bill Back $0 $1,000 Parking Income (16 Spaces) $0 $0 Laundry Income $130 $130 Misc/Pet Rent $100 $100 Gross Potential Income $11,935 $16,200 ANNUALIZED OPERATING EXPENSES CURRENT MARKET RE Taxes 2018 $19,479 $19,479 Insurance Proforma $3,500 $3,500 Utilities 2018 Anlz $16,678 $16,678 On-Site Mgmt Proforma $5,400 $5,400 Maint/Repairs Proforma $7,500 $7,500 Administration Proforma $1,000 $1,000 Reserves Proforma $3,000 $3,000 Total Expenses $56,557 $56,557 CURRENT OPERATIONS Expense/Unit $5,656 Expense/Foot $5.19 Percent of EGI 39.49% MARKET OPERATIONS Expense/Unit $5,656 Expense/Foot $5.19 Percent of EGI 29.09%
FLOOR PLANS Laundry Area to Add a Unit GROUND FLOOR SECOND AND THIRD FLOORS
WHY CHOOSE SEATTLE - KING COUNTY? A HIGHLY-SKILLED WORKFORCE The region s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor s degree or higher. Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County. ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and mediumsized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle- King County region is known. CUTTING-EDGE RESEARCH Top-ranked research institutions, including the world-renowned University of Washington, contribute to a high-caliber talent pipeline and encourage record levels of research & development spending from the private, non-profit and public sectors. The region has always fostered the next generation of business, from early-stage startups to high-growth companies with long-term success. *Data Sources: Washington State Employment Security Department, 2015; Washington State Department of Revenue, 2015; Washington Military Alliance; Washington Aerospace Economic Impacts 2016 Update; US International Trade Administration, 2014.
POPULATION, EDUCATION AND INCOME King County contains estimated 872,411 households. This number is forecast to increase to more than 912,000 by the year 2021. The county currently has 18 cities with populations greater than 20,000. Seattle is one of the most educated cities in the United States. Over 57 percent of Seattle s adult residents have a Bachelor s degree or higher, nearly twice the national average. An educated city means an educated workforce a solid backbone for the innovative, knowledge-based industries that drive Seattle s economy. King County also boasts high educational attainment, with 47 percent of residents over 25 having received a Bachelor s degree or higher. Roughly 28 percent of King County residents are in professional business/ managerial positions. As a result, median household income in King County is well above the U.S. average. Cost of living is generally higher than the U.S. average, but it is in line with other metropolitan areas with similar income levels. TOP KING COUNTY EMPLOYERS FULLTIME EMPLOYEES IN WA The Boeing Co 81,919 Microsoft Corp. 43,031 University of Washington 30,200 Amazon.com Inc 24,700 Starbucks Corp 13,400 Swedish Health Services 11,239 City of Seattle 10,758 Costco Wholesale Corp 10,080 Nordstrom 9,264 Group Health Cooperative 8,982
SALES COMPARABLES 4 The Kensington 14333 32nd Ave NE Seattle, WA 98125 Year Built 1973 Units 10 Sales Price $2,400,000 Price/Unit $240,000 Price/Foot $220 Current GRM/CAP 19.3/2.4% Market GRM/CAP 12.5/5.4% The KENSINGTON 5 1 1 Year Built 1990 Units 16 Sales Price $3,420,000 Price/Unit $213,750 Price/Foot $334 GRM/CAP 14.0/4.7% Stratford Court 12314 32nd Ave NE Seattle, WA 98125 5 Unit Apartment 9233 Interlake Ave N Seattle, WA 98103 Sales Date 8.17.2018 3 Year Built 1986 Units 5 Sales Price $1,410,000 Price/Unit $282,000 Price/Foot $325 GRM/CAP 19.0/4.0% Sales Date 5.2.2018 2 Year Built 1966 Units 8 Sales Price $1,584,600 Price/Unit $198,075 Price/Foot $359 GRM/CAP Unknown Dorlynn Apartments 8800 Nesbit Ave N Seattle, WA 98103 6 Unit Apartment 1237 NE 148th St Seattle, WA 98155 Sales Date 5.18.2018 4 Year Built 1986 Units 6 Sales Price $1,713,500 Price/Unit $285,583 Price/Foot $288 GRM/CAP Unknown Sales Date 1.12.2018 2 3 6 Year Built 5 1996 Units 7 Sales Price $1,930,000 Price/Unit $275,714 Price/Foot $293 GRM/CAP 15.0/4.2% Sales Date 10.16.2017 7 Unit Apartment 3019 NE 130th St Seattle, WA 98125 6 Year Built 1966 Units 9 Sales Price $1,800,000 Price/Unit $200,000 Price/Foot $235 GRM/CAP 13.5/4.6% Agena Apartments 2711 NE 115th St Seattle, WA 98125 Sales Date 8.16.2017
RENT COMPARABLES The Kensington - CUR 14333 32nd Ave NE Seattle, WA 98125 1973-10 Units The Kensington - MKT 14333 32nd Ave NE Seattle, WA 98125 1 Bd/1 Bth 2 Bd/1 Bth 1 Bd/1 Bth 2 Bd/1 Bth 950 1,100 950 1,100 $950 - $1,350 $900 - $1,325 $1,350 $1,595 $1.00 - $1.42 $0.82 - $1.20 $1.42 $1.45 The KENSINGTON 3 1 1973-10 Units 1 Del Mar 14303 32nd Ave NE Seattle, WA 98 1 Bd/1 Bth 2 Bd/1 Bth 675 750 $1,500 $1,600 $2.22 $2.13 2 1969-10 Units 4 2 Lu Oma 12323 33rd Ave NE Seattle, WA 98 1 Bd/1 Bth 2 Bd/1 Bth 700 900 $1,200 $1,450 $1.71 $1.61 1964-12 Units 3 Adante 3031 NE 137th St Seattle, WA 98 1 Bd/1 Bth 2 Bd/1 Bth 705 950 $1,400 - $1,495 $1,600 $1.98 - $2.12 $1.68 1965-68 Units 4 Stratford Court 12314 32nd Ave NE Seattle, WA 98 1 Bd/1 Bth 2 Bd/1 Bth 550 700 $1,295 $1,500 $2.35 $2.14 1990-16 Units
600 University St, Suite 2018 Seattle Washington 98101 206 623-8880 / info@paragonrea.com www.paragonrea.com This information 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 all information and bears all risk for inaccuracies.