The FURLANI A P A R T M E N T S

The FURLANI A P A R T M E N T S

SEATTLE CBD WEST SEATTLE BEACON HILL RAINIER VALLEY WHITE CENTER BURIEN NORMANDY PARK SEATTLE TACOMA INTERNATIONAL AIRPORT

OFFERING Paragon Real Estate Advisors is pleased to offer for sale The Furlani Apartments. This charming and well-maintained 8 unit apartment community is located in the quiet residential area of Normandy Park. The Furlani Apartments offers an investor the opportunity to acquire a well-located, easy to manage 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 Furlani Apartments ADDRESS 130 SW 184th St, Normandy Park WA 98166 TOTAL UNITS 8 BUILT 1967 SQUARE FEET 5,760 Total Net Rentable PRICE $1,545,000 PRICE PER UNIT $193,125 PRICE PER FOOT $268.23 CURRENT GRM/CAP 12.8/4.6% MARKET GRM/CAP 10.7/6.0% LOT SIZE ZONING RM 1800 11,916 Square Feet The FURLANI A P A R T M E N T S 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 Excellent Normandy Park location Significant upside in rental income and value-add opportunity through renovation Well-maintained, easy to manage property with low historic vacancy Located within walking distance of shopping and amenities QFC, Starbucks, Access Pharmacy, Teak House Thai, Ian Fitness, Dunn Lumber, UPS Store, Key Bank, Shelly s and more Quick access to freeways and public transportation Easy access to Burien, Des Moines, SeaTac, Tukwila/Southcenter and downtown Seattle The FURLANI A P A R T M E N T S Mix of 7 two-bedroom/one-bathroom and 1 one-bedroom units 2 completely renovated units including high-end modern finishes New TPO roof (2017), fresh exterior paint and updated exterior fixtures Double-paned windows On-site coin-operated laundry 15 off-street parking spaces lots of parking

QUICK FACTS Units 8 Structures One, eight unit building Parcel Number 312304-9103 Net Rentable Sq.Ft. 5,760 Lot Sq.Ft. 11,916 Zoning RM 1800 Year Built 1967 Construction Type Two-story, wood framed Average Unit Size 720 Sq.Ft. Parking Spaces 15 open stalls Storage Units N/A Roof TPO installed in 2017 Windows Double-paned (mix of vinyl and aluminum) Plumbing Some plumbing upgraded to PEX Electrical Copper Heating Electric baseboard Electrical Panel Square D in-unit Laundry Common 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.

LOCATION HIGHLIGHTS Normandy Park is a beautiful waterfront community located along the shores of Puget Sound in King County, with convenient access to downtown Seattle and the SeaTac International Airport. With approximately 6,600 residents and covering an area of about 2.5 square miles, the community places its highest priorities on maintaining and enhancing its quiet pedestrian-friendly setting and providing a healthy and safe environment in which residents can raise their families POPULATION 6,615 Easy access to Burien, Des Moines, SeaTac, Tukwila/Southcenter and downtown Seattle Quiet neighborhood with strong community ties Urban area close to the city with a residential feel Six major city parks and over 100 acres of public parkland MEDIAN INCOME $97,704

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-ofstate 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 medium-sized 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, 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.

BUILDING HIGHLIGHTS Very well-maintained, turn-key property Mix of 7, two-bedroom/one-bathroom and 1, one-bedroom apartments Charming secluded courtyard New low-pitch TPO roof installed in 2017 Two completely renovated apartments new cabinets, quartz countertops, SS appliances, LVP/carpet flooring, fixtures, tile backsplash and more! Newly painted exterior and updated exterior fixtures Double-paned windows 15 off-street parking spaces lots of parking Electric baseboard heating On-site coin-operated laundry The FURLANI A P A R T M E N T S

BUILDING PHOTOS

UNIT PHOTOS

Unit Breakdown The FURLANI A P A R T M E N T S APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 1 1 Bd/1 Bth 600 Sq.Ft. $800 $1.33 $1,200 $2.00 2 * 2 Bd/1 Bth 740 Sq.Ft. $1,350 $1.82 $1,450 $1.96 3 2 Bd/1 Bth - Renovated 740 Sq.Ft. $1,375 $1.86 $1,450 $1.96 4 2 Bd/1 Bth 740 Sq.Ft. $1,275 $1.72 $1,450 $1.96 5 2 Bd/1 Bth 740 Sq.Ft. $1,050 $1.42 $1,450 $1.96 6 2 Bd/1 Bth - Renovated 740 Sq.Ft. $1,375 $1.86 $1,450 $1.96 7 2 Bd/1 Bth 740 Sq.Ft. $1,200 $1.62 $1,450 $1.96 8 2 Bd/1 Bth 740 Sq.Ft. $1,250 $1.69 $1,450 $1.96 Totals/Avg 720 Sq.Ft. $9,675 $1.68 $11,350 $1.97 * On-Site Manager s Unit. Manager pays a reduced rent of $700 as a credit.

Income and Expenses Units 8 Price $1,545,000 Year Built 1967 Per Unit $193,125 Rentable Area 5,760 Per Sq. Ft. $268.23 Current GRM 12.84 PROPOSED FINANCING Down Pmt $540,750 Loan Amount $1,004,250 Interest Rate 4.50% Amortization 30 years Current CAP 4.61% Market GRM 10.66 Market CAP 6.04% UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT 1 1 Bd/1 Bth 600 $800 $1,200 7 2 Bd/1 Bth 740 $1,050 - $1,375 $1,450 8 Total/Avg 720 $1.68 $1.97 MONTHLY INCOME CURRENT MARKET Gross Monthly Rent $9,675 $11,350 Utility Bill Back $225 $600 Parking Income - 15 Spaces $0 $0 Laundry Income $80 $80 Other Income/Misc Fees $50 $50 Gross Potential Income $10,030 $12,080 ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $120,360 $144,960 Less Vacancy 4.0% $4,814 4.0% $5,798 Gross Operating Income $115,546 $139,162 Less Expenses $44,387 $45,782 Net Operating Income $71,158 $93,380 Annual Debt Service ($5,088/mo) $61,061 $61,061 Cash Flow Before Tax 1.87% $10,098 5.98% $32,319 Principal Reduction $16,201 $16,201 Total Return Before Tax 4.86% $26,298 8.97% $48,520 ANNUALIZED OPERATING EXPENSES CURRENT MARKET Real Estate Taxes 2019 Estimated $13,605 $15,000 Insurance Farmers Quote $3,782 $3,782 Utilities Proforma $9,200 $9,200 On-Site Payroll Proforma $7,800 $7,800 Maint & Repairs Proforma $6,000 $6,000 Turnover Proforma $1,200 $1,200 Administration Proforma $800 $800 Reserves Proforma $2,000 $2,000 Total Expenses $44,387 $45,782 CURRENT OPERATIONS Expense/Unit $5,548 Expense/Foot $7.71 Percent of EGI 36.88% MARKET OPERATIONS Expense/Unit $5,723 Expense/Foot $7.95 Percent of EGI 31.58%

SALES COMPARABLES THE FURLANI APARTMENTS 130 SW 184th St Normandy Park, WA 98166 Year Built 1967 Units 8 Sales Price $1,545,000 Price/Unit $193,125 Price/Foot $268 Current GRM/CAP 12.8/4.6% Market GRM/CAP 10.7/6.0% 1 5 2 3 1 Year Built 1974 Units 9 (8 + 1 NC) Sales Price $1,625,000 Price/Unit $180,556 Price/Foot $207 GRM/CAP 11.2/5.5% Maria II Apartments 15238 10th Ave SW Burien, WA 98166 Heather Apartments 816 N 4th St Renton, WA 98055 Sales Date 9.24.2018 Year Built 3 1968 Units 10 Sales Price $1,570,000 Price/Unit $157,000 Price/Foot $226 GRM/CAP 14.0/3.7% Sales Date 4.3.2018 Year Built 5 1976 Units 6 Sales Price $1,250,000 Price/Unit $208,333 Price/Foot $259 GRM/CAP 12.7/5.3% The Olive Branch 427 SW 154th St Burien, WA 98166 Sales Date 9.6.2017 2 Year Built 1977 Units 12 Sales Price $2,300,000 Price/Unit $191,667 Price/Foot $227 GRM/CAP 13.9/4.7% Totem Apartments 16644 31st Ave S SeaTac, WA 98188 Sales Date 6.14.2018 4 Year Built 1963 Units 8 Sales Price $1,225,000 Price/Unit $153,125 Price/Foot $260 GRM/CAP 15.4/4.0% Cedar Crest 2911 S 200th St SeaTac, WA 98198 Sales Date 12.26.2017 6 Year Built 1975 Units 9 Sales Price $2,150,000 Price/Unit $238,889 Price/Foot $199 GRM/CAP 18.8/2.9% Landmarc Apartments 811 S 227th Pl Des Moines, WA 98198 Sales Date Pending The FURLANI A P A R T M E N T S 6 4

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.