Offering Memorandum CNA APARTMENTS 3241 21st Ave W Seattle, WA Exclusively offered by Paragon Real Estate Advisors 1
Offering Summary Paragon Real Estate Advisors is pleased to exclusively offer for sale the CNA Apartments. This property is conveniently located on the northeast edge of the Magnolia neighborhood within blocks of Bayview Playground, Magnolia s Manor Park and the Interbay Golf Course. The property is only 1.5 miles away from the brand new Expedia Campus scheduled to open in 2019. Residents also have easy access to Downtown Seattle, Magnolia Village, Ballard, Queen Anne, Seattle Pacific University, and the University of Washington. This is an excellent opportunity to purchase a well located 6 unit apartment building with upside in rents. Name CNA Apartments Address 3241 21st Ave W, Seattle WA 98199 Total Units 6 Built 1958/1987 Square Feet 3,170 Total Net Rentable (3,884 Gross) Price $1,435,000 Price Per Unit $239,167 Price Per Foot $452.68 Current GRM/CAP 17.1/3.9% (3% Vacancy) Market GRM/CAP 13.6/5.3% (3% Vacancy) Expense Per Unit $4,332/Year Terms Cash Out Lot Size 6,000 Square Feet Zoning LR1 CNA APARTMENTS 2
Investment Highlights 1958 construction Large 2 Bd/1.5 Bth owner s unit Rental upside Double-pane vinyl windows Common laundry room Space to add washers and dryers to 1 Bd units 6,000 square foot lot zoned LR1 Only 1.5 miles from the new Expedia campus scheduled to open in 2019 Easy access to downtown via 15th Avenue West Located within walking distance to Interbay Golf and Red Mill Burger Local retail and service establishments include QFC, Whole Foods Market, Total Wine, Pagliacci Pizza, and Starbucks Walking distance to Discovery Park, the Ballard Locks and the Fishermen s Terminal King County Metro s Rapid Ride D line is just blocks away 3
Neighborhood Map BALLARD CNA APARTMENTS FREMONT WALLINGFORD U DISTRICT QUEEN ANNE SOUTH LAKE UNION ELLIOTT BAY SEATTLE CBD 4
Magnolia Second largest neighborhood in Seattle by area Ranked as the 9th best neighborhood in the city with an 8.1 out of 10 score according to Street Advisors Home to Seattle s largest park: the 534 acre Discovery park and it s expansive beaches, 7 miles of walking trails, tide pools and nature habitat Beautiful views of the Seattle Skyline and the Olympic mountains Magnolia s business district is home to many specialty stores and professional services, some of Seattle s top restaurants, and industrial and marine services West Point, the westerly most point in the city, is home to the oldest lighthouse in the area. Fisherman s Terminal, located right on Salmon Bay near the 15th Street Bridge offers you plentiful ways to experience the local fishing culture Serviced by King County Metro bus lines 19 and 24 Bicycle friendly area with easy access to downtown via a 4 mile protected bike path that follows the water 5
Seattle Central Business District Seattle is the number ten in the fastest growing U.S. cities Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health Seattle Icons: Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom s, Boeing, Expeditors International, Payscale, DocuSign and Zulily New Companies entering Seattle s Market: Tableau, Facebook, Dropbox, Apple and Google Amazon currently host s 24,000 employees, and is projected to host an additional 47,000 more (total 71,000) by 2019 6
Employment Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston. > > Adobe > > Alaska Airlines > > Amazon > > Apple > > AT&T Wireless > > Boeing > > Costco > > Expedia, Inc. > > Expeditors International > > F5 Networks > > Facebook > > Fred Hutchinson > > Gates Foundation > > Getty Images > > Google > > Microsoft > > Nintendo > > Nordstrom > > Paccar > > RealNetworks > > REI > > Russell Investments > > SpaceX > > Starbucks > > Symetra Financial > > Tableau Software > > T-Mobile > > Twitter > > Uber > > University of Washington > > Virginia Mason > > Weyerhaeuser > > Zillow > > Zulilly 7
Improvements 1 2 Bd/1.5 Bth unit at approximately 1,014 square feet 4 1 Bd/1 Bth units at approximately 464 square feet 1 studio unit at approximately 300 square feet Four off street parking stalls Double-pane vinyl windows Common laundry room Electric baseboard heat in unit 5 Updated carpets Dishwashers in all units Unit updates includes doors, mill-work and appliances Decommissioned oil tank Recent concrete work 8
Building Photos 9
Unit Photos 10
Floor Plans KITCHEN KITCHEN LIVING ROOM BEDROOM LIVING ROOM BEDROOM BATH BATH BATH BATH LIVING ROOM BEDROOM LIVING ROOM BEDROOM KITCHEN KITCHEN COMMON REC ROOM LIVING ROOM BEDROOM LAUNDRY BATH BATH STORAGE LAUNDRY KITCHEN BEDROOM FIRST FLOOR SECOND FLOOR 11
Operating Summary Units 6 Year built 1958/1987 Rentable Area 3,170 Sq.Ft. Down Payment $473,550 40% Loan Amount $961,450 60% Interest Rate 4.25% Amortization 30 Years Units Type Size Price $1,435,000 Price Per Unit $239,167 Per Square Foot $452.68 Current GRM 17.10 Current CAP 3.86% Market GRM 13.55 Market CAP 5.32% Current Rent Market Rent 1 Studio 300 $1,025 $1,095 1 1 Bd/1 Bth 464 $1,095 $1,250 1 1 Bd/1 Bth 464 $1,195 $1,250 1 1 Bd/1 Bth 464 $1,075 $1,250 1 1 Bd/1 Bth 464 $1,050 $1,250 1 2 Bd/1.5 Bth 1,014 $1,495 $2,195 6 Avg S.F. 528 $2.19 $2.62 Total Monthly Income Monthly Scheduled Rent $6,935 $8,290 Laundry Income $10/unit $60 $10/unit $60 Utility Income $0 $65/unit $390 Parking Income - 3 spaces $0 $25/stall $75 Miscellaneous Income $0 $10 Total Monthly Income $6,995 $8,825 Annualized Operating Data Current Market Scheduled Gross Income $83,940 $105,900 Less Vacancy 3.0% $2,518 3.0% $3,177 Gross Operating Income $81,422 $102,723 Less Expenses $25,990 $26,365 Net Operating Income $55,432 $76,358 Annual Debt Service ($4,730) $56,757 $56,757 Cash Flow Before Tax -0.28% ($1,325) 4.14% $19,601 Principal Reduction $16,209 $16,209 Total Return Before Tax 3.14% $14,883 7.56% $35,810 Annualized Operating Expenses Current Market Real Estate Taxes 2017 $10,329 $11,344 Insurance Proforma $2,740 $2,100 Utilities Proforma $6,321 $6,321 Maintenance & Repairs Proforma $5,100 $5,100 Reserves $1,500 $1,500 Total Expenses $25,990 $26,365 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $4,332 $8.20 30.96% Market Operations Expenses/Unit Expenses/Foot Percent of EGI $4,394 $8.32 24.90% 12
Sale Comparables SUBJECT - CNA APARTMENTS 3241 21st Ave W, Seattle, WA Year Built 1958/1987 Units 6 Sales Price $1,435,000 Price/Unit $239,167 Price/Foot $452.68 GRM/CAP 17.1/3.9% Sales Date TBD 2. 5TH AVENUE 6 UNIT 1809 5th Ave N, Seattle, WA Year Built 1940 Units 6 Sales Price $1,700,000 Price/Unit $283,333 Price/Foot $385.49 GRM/CAP 18.5/3.1% Sales Date 5.4.2017 4. 5 UNIT APARTMENT 2415 NW 85th St, Seattle, WA Year Built 1955 Units 5 Sales Price $1,425,000 Price/Unit $285,000 Price/Foot $431.03 GRM/CAP 15.9/4.4% Sales Date 1.5.2017 1. 6 UNIT APARTMENT 1633 10th Ave W, Seattle, WA Year Built 1905 Units 6 Sales Price $1,625,000 Price/Unit $270,833 Price/Foot $406.15 GRM/CAP 13.4/5.1% Sales Date 5.8.2017 3. GREENWOOD FLATS 7711 Greenwood Ave N, Seattle, WA Year Built 1966 Units 6 Sales Price $1,450,000 Price/Unit $241,666 Price/Foot $340.22 GRM/CAP 15.6/3.6% Sales Date 3.31.2017 5. THORNDYKE APARTMENTS 2863 Thorndyke Ave W, Seattle, WA Year Built 1967 Units 8 Sales Price $2,215,000 Price/Unit $276,875 Price/Foot $307.08 GRM/CAP 16.9/4.0% Sales Date 11.15.2016 13
Sales Comparables Map CNA Apartments 3241 21st Ave W Seattle, WA 4 3 1. 6 Unit Apartment 1633 10th Ave W Seattle, WA 2. 5th Avenue 6 Unit 1809 5th Ave N Seattle, WA 3. Greenwood Flats 7711 Greenwood Ave N Seattle, WA 4. 5 Unit Apartment 2415 NW 85th St Seattle, WA CNA APARTMENTS 5. Thorndyke Apartments 2863 Thorndyke Ave W Seattle, WA 5 1 2 14
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. 15