Offering Memorandum THE OLIVE BRANCH APTS 427 SW 154th St Exclusively offered by Paragon Real Estate Advisors 1
Offering Summary Paragon Real Estate Advisors is pleased to offer for sale The Olive Branch Apartments. This charming 6 unit building is located right in the heart of downtown Burien and only steps away from the quaint and charming Olde Burien district. The Olive Branch Apartments offers an investor the opportunity to acquire a well-located, meticulously and lovingly cared for apartment community with income upside and potential to add value. The buyer can take advantage of a strong, rising rental market while increasing rents to market levels and charging for utilities and will reap the rewards of immediate upside and long-term appreciation. Name The Olive Branch Apartments Address 427 SW 154th St, Burien WA Total Units 6 Built 1976 Square Feet 4,832 Total Net Rentable (4,976 Gross) Price $1,250,000 Price Per Unit $208,333 Price Per Foot $258.69 Current GRM/CAP 12.66/5.78% % (2% Vacancy) Market GRM/CAP 11.26/6.14% (5% Vacancy) Expense Per Unit $4,095/Year Terms Cash Out Lot Size 7,500 Square Feet Zoning RM-24 OLIVE BRANCH APARTMENTS 2
Investment Highlights Excellent downtown location close to shopping and amenities Walk Score of 92 - a Walker s Paradise Close to Trader Joe s, Safeway, Elliot Bay Brewhouse & Pub, LA Fitness, Grand Central Bakery and more Meticulously cared for, turn-key building with virtually zero vacancy Quick access to freeways and public transportation Double paned windows, copper plumbing, pitched roof low maintenance! Owned by same family for over 20 years All large 2Bd/1Bth units with private balconies and excellent floorplans On-site coin-operated laundry, resident storage lockers and managers workshop 9+ parking spaces (7 - large covered carports, 2 open uncovered stalls) Security camera system with 5 cameras 3
Burien The subject property is excellently located right in the heart of downtown Burien and only steps away from the quaint and charming Olde Burien district. This central location is only a few blocks away from the Burien Town Square and offers residents convenient walkability to a wide variety of restaurants, bars, specialty retailers, and services in the surrounding neighborhood. A Walk Score of 92 deems the location a Walker s Paradise, meaning that residents can accomplish most errands by foot. Residents who commute also benefit from close access to an efficient highway system including 509 and 518, which leads to I-5 and I-405, allowing for quick access to other cities and destinations in the region. Public transportation options are also easily accessible with several bus stops in the immediate area and the relatively new Burien Transit Center within easy walking distance, which offers a convenient park-and-ride and express service to Seattle and Bellevue. Burien has been designated by the Puget Sound Regional Council as one of the 25 regional growth centers that will experience focused urban growth in the decades ahead. The city of Burien and its partners have invested over $200 million to create a new and vibrant place to live, work, shop, and play for the whole family with the completion of Phase 1 of the Burien Town Square. With two more phases recently completed, a four-story Merrill Gardens senior housing complex and a six-story marketrate apartment complex, the Olive Branch Apartments are perfectly positioned to benefit from the positive growth taking place. 4
Neighborhood Map WEST SEATTLE QUEEN ANNE SEATTLE CBD BEACON HILL WHITE CENTER BURIEN OLIVE BRANCH APARTMENTS SEATAC 5
Transportation Residents who commute also benefit from close access to an efficient highway system including 509 and 518, which leads to I-5 and I-405, allowing for quick access to other cities and destinations in the region. Public transportation options are also easily accessible with several bus stops in the immediate area and the relatively new Burien Transit Center located a short walk away which offers a convenient park- and-ride and express service to Seattle and Bellevue. 4th Ave SW Burien Transit Center SW 148th St The Burien transit center offers 504 parking spaces, electric vehicle charging stations, and ticket vending machines. Both King County Metro and Sound Transit provide services to this station. SW 150th St SW 153rd St 9 Min by Foot SW 152nd St Olive Branch Apts 2nd Ave SW 6
Select Neighborhood Amenities 1. Safeway 2. Burien Library 3. Town Square Park 4. Elliott Bay Brewhouse & Pub 5. Wells Fargo Bank 6. Grocery Outlet 7. Grand Central Bakery 8. Bank of America 9. Trader Joes 10. Albertsons 11. Ross 12. Highline Medical Center 13. LA Fitness 14. Be Yoga Burien 15. Hot Feet Fitness 16. Tin Room Bar 17. Starbucks 18. Bartell Drugs 19. Burien Transit Center 20. Walgreens 21. Burien Off Leash Dog Park 22. Hiline Lanes SW 148TH ST SW 152ND ST Lake Burien SW 160TH ST 20 17 16 5 15 AMBAUM BLVD SW 14 7 12 13 21 3 18 2 4 6 19 8 OLIVE BRANCH APARTMENTS 1 22 1ST AVE S 1ST AVE AMBAUM BLVD SW 11 10 9 SW 152ND ST SW 156TH ST SW 160TH ST FOOD/DRINK SERVICES 7
Building Highlights Meticulously cared for, turn-key building All large two-bedroom, one-bathroom units with functional floorplans Units feature complete appliance packages including dishwashers Low maintenance design with double paned vinyl windows, electric baseboard heating, copper plumbing, and a pitched roof Unit #4 updated with wide-plank hardwood and tile flooring and new solid-surface kitchen countertops (unit pictured) Units and building are all well cared for with flooring, paint and appliances maintained and replaced as needed Individual hot-water tanks, individual electric meters, breaker panels Private balconies, view from upper units 9+ parking spaces (7 - large covered carports, 2 open uncovered stalls) Common coin-operated laundry, private resident storage lockers and manager storage room 8
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 9
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Operating Summary Units 6 Year built 1976 Rentable Area 4,832 Sq.Ft. Down Payment $375,000 30% Loan Amount $875,000 70% Interest Rate 4.04% Amortization 30 Years Price $1,250,000 Price Per Unit $208,333 Per Square Foot $258.69 Current GRM 12.66 Current CAP 5.78% Market GRM 11.26 Market CAP 6.14% Units Type Size Current Rent Monthly Income Market Rent Monthly Income 1 2 Bd/1 Bth 805 $1,300 $1,300 $1,425 $1,425 2 2 Bd/1 Bth 805 $1,325 $1,325 $1,425 $1,425 3 2 Bd/1 Bth 805 $1,350 $1,350 $1,425 $1,425 4 2 Bd/1 Bth 805 $1,400 $1,400 $1,425 $1,425 5 2 Bd/1 Bth 805 $1,350 $1,350 $1,425 $1,425 6 2 Bd/1 Bth 805 $1,225 $1,225 $1,425 $1,425 Averages 805 SF $1.65/SF $1.77/SF Total Monthly Income Monthly Scheduled Rent $7,950 $8,550 Laundry 2016 Avg $100 2016 Avg $100 Storage $0 $40/unit - 50% $120 Utility Bill Back $150 $75/unit $450 Miscellaneous $30 $30 Total Monthly Income $8,230 $9,250 Annualized Operating Data Current Market Scheduled Gross Income $98,760 $111,000 Less Vacancy 2.0% $1,975 5.0% $5,550 Gross Operating Income $96,785 $105,450 Less Expenses $24,570 $28,648 Net Operating Income $72,215 $76,802 Annual Debt Service ($4,198) $50,371 $50,371 Cash Flow Before Tax 5.83% $21,844 7.05% $26,431 Principal Reduction $15,302 $15,302 Total Return Before Tax 9.91% $37,146 11.13% $41,733 Annualized Operating Expenses Current Market Real Estate Taxes 2017 Actual $8,922 $13,000 Insurance Farmers Quote $2,188 $2,188 Utilities 2016 Actual $5,660 $5,660 Maintenance & Repairs Proforma $4,500 $4,500 Turnover Proforma $900 $900 Administration Proforma $900 $900 Reserves Proforma $1,500 $1,500 Total Expenses $24,570 $28,648 Current Operations Expenses/Unit Expenses/Foot Percent of EGI $4,095 $5.08 25.39% Market Operations Expenses/Unit Expenses/Foot Percent of EGI $4,775 $5.93 27.17% 14
Rent Comparables Property Units Age Unit Type Size Rent Rent/Sq.Ft. Comments Olive Branch Apartments 427 SW 154th St 6 1976 2 Bd/1 Bth 805 $1,225 - $1,400 $1.52 - $1.74 1. Sunwood Apartments 320 SW 160th St 25 1966 2 Bd/1 Bth 950 $1,445 $1.52 Renovated units, $50/month for utilities 2. Olive Trees 308 SW 155th St 14 1989 2 Bd/1 Bth 1,078 $1,425 $1.32 Large units, $85 - $200/month for utilities, one covered assigned parking spaced included in rent 3. Roxanne Apartments 1015 SW 149th St 4 1981 2 Bd/1 Bth 925 $1,395 $1.51 Refreshed units, $125/month for utilities, one open assigned parking space included in rent 4. Lake Burien Fourplex 1020 SW 156th St 4 1953 2 Bd/1 Bth 725 $1,400 $1.93 Renovated unit, $100/month for utilities 5. Solana 15800 4th Ave S 75 1978 2 Bd/1.5 Bth 897 $1,445 $1.61 Renovated units, tenant pays all utilities, $25/month pet rent 15
Rent Comparables Map Olive Branch Apartments 427 SW 154th St 3 1. Sunwood Apartments 320 SW 160th St 2. Olive Trees 308 SW 155th St 4 2 3. Roxanne Apartments 1015 SW 149th St 4. Lake Burien Fourplex 1020 SW 156th St 5. Solana 15800 4th Ave S OLIVE BRANCH APARTMENTS 1 5 16
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. 17