UNION 32 APARTMENTS Offering Memorandum 3200 E Union St SEATTLE
EXCLUSIVELY LISTED BY 32 UNION APARTMENTS Casey Zejdlik P: 206.566.6599 C: 206.280.1871 casey@pilotnw.com Jason Kono P: 206.566.6595 C: 206.920.0187 jason@pilotnw.com
TABLE of CONTENTS Investment Overview 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. Property Location Financials Comparables
Investment Overview
UNION 32 VALUE-ADD - 1970 s gem located in the stunning neighborhood of Madrona UNION 32 5
3200 E Union St SEATTLE, WA 98122 Potential to Add an Additional Unit Union 32 apartments are located in the quiet Madrona neighborhood of Seattle. A stone s throw from downtown, Madrona is known as a family-friendly community with stunning homes, priceless views, great schools, and beautiful parks. The commercial core of the neighborhood is only two blocks from the building, just past the Madrona Library and Madrona Elementary School. Featuring four blocks of unique boutiques and locally owned restaurants, the commercial core is popular for artists, fashionistas, and foodies alike. Downtown Seattle and outlying neighborhoods are conveniently accessible by car or public transportation due to the convenient location of the neighborhood, downtown being a bikeable two and a half miles due west. Union 32 is a 12-unit apartment building offering three 3 bed / 1 bath units, seven 2 bed / 1 bath units, and two 1 bed / 1 bath units. In addition to the existing units, a laundry room and large storage area offer the new owner the opportunity to add an additional unit (buyer to verify feasibility.) The property has nine off-street parking spaces as well as four garages. The building s exterior is a combination of vinyl siding, vinyl windows, and marblecrete with a pitched composite roof. This attractive value-add opportunity has been owned by the same local family for decades and offers a new owner the opportunity to own a great asset in a neighborhood that many consider one of the best kept secrets of Seattle. Value-add Opportunity with Rental Upside Quiet and Safe Neighborhood with Great Elementary School Close to Downtown Seattle and I-5 UNION 32 6
Property Location
NEIGHBORHOOD MAP MILLER PARK HARRISON/ DENNY- BLAINE Transportation 78 CAL ANDERSON PARK TRADER JOE S 24 HR FITNESS SAFEWAY YMCA GREATER SEATTLE MADRONA HOWELL BEACH PARK 54 76 MADRONA PARK SQUIRE PARK TWILIGHT EXIT FAT S CHICKEN & WAFFLES SWEDISH MEDICAL CENTER (Cherry Hill) GARFIELD PLAYFIELD POWELL BARNETT PARK UNION 32 8
AT A GLANCE Price $3,450,000 Units 12 Price Per Unit $287,500 Rentable SF 8,400 SF (per Rent Roll) Price Per SF $411 Current Cap Rate 1.78% Market Cap Rate 5.52% Current GRM 27.4 Market GRM 13.1 Year Built 1971 Parcel Number 715220-0405 $ 190,441 PRO FORMA NOI Land SF Zoning Construction Type Plumbing Hot Water Heating Roof 10,500 SF LR2 Wood Frame Copper Under Counter Electric Hot Water Heaters Electric Baseboard 6 years old UNION 32 9
INTERIOR PHOTOS UNION 32 10
Financials
RENT ROLL Unit Type Approx. SF* Current Rent Current SF Mkt. Rent Mkt. SF 1 Bd / 1 Bth 550 $500 $0.91 $1,395 $2.54 1 Bd / 1 Bth 550 $766 $1.60 $1,395 $2.54 2 Bd / 1 Bth 700 $800 $1.14 $1,795 $2.56 2 Bd / 1 Bth 700 $985 $1.41 $1,795 $2.56 2 Bd / 1 Bth 700 $900 $1.29 $1,795 $2.56 2 Bd / 1 Bth 700 $900 $1.29 $1,795 $2.56 2 Bd / 1 Bth 700 $900 $1.29 $1,795 $2.56 2 Bd / 1 Bth 700 $900 $1.29 $1,795 $2.56 2 Bd / 1 Bth 700 $900 $1.29 $1,795 $2.56 3 Bd / 1 Bth 800 $940 $1.18 $2,195 $2.74 3 Bd / 1 Bth 800 $990 $1.24 $2,195 $2.74 3 Bd / 1 Bth 800 $1,000 $1.25 $2,195 $2.74 12 UNITS 8,400 $10,481 $1.25 $21,940 $2.61 *Unit square footage estimated. UNION 32 12
FACT: Seattle sees the fastest population growth of any large U.S. city $2,000 $1,500 $1,000 12 13 14 15 16 17 18 NEXT CITY APARTMENT RENTS HAVE SUBSTANTIALLY CLIMBED MORE THAN 57% SINCE 2012 Inspiring Better Cities UNION 32 13
FINANCIAL ANALYSIS CURRENT PRO FORMA Gross Potential Rent $125,772 $263,280 Vacancy $3,773 3.00% $13,164 5.00% Effective Gross Rent $121,999 $250,116 OTHER INCOME Laundry Income $1,728 $1,728 Utility Billback $0 $7,200 ($50/unit per mo.) Garage Income $0 $300 Total Other Income $1,728 $9,228 Effective Gross Income $123,727 $259,344 EXPENSES Property Taxes - 2017 $21,554 $25,524 (estimated) Insurance $3,214 $3,214 Utilities $23,732 $15,576 ( Dupre + Scott avg.) Maintenance & Repairs $6,685 $9,000 Resident Manager $0 $0 Professional Management $5,200 $11,389 5.00% Administrative / Misc $1,000 $1,200 Reserves $1,000 $3,000 Pro Forma expense numbers in place. Rent roll as of December 2017. Total Expenses $62,385 $5,199 $68,903 $5,742 NET OPERATING INCOME $61,342 $190,441 Potential to add an additional unit. UNION 32 14
Comparables
SALES COMPARABLES PROPERTY ADDRESS Building Name Units Price Sale Date Price/ Unit Price/ SF Cap Rate 1 1308 12 th Avenue S Falconvue 13 $3,750,000 10/26/2017 $288,462 $365 4.80% 2 2114 E Yesler Way 2114 E Yesler Way 14 $4,502,750 9/18/2017 $321,625 $559 4.30% 3 165 17 th Avenue Stella 20 $6,850,000 9/8/2017 $342,500 $463 4.50% 4 403 30 th Avenue 403 30 th Avenue 6 $1,550,000 4/28/2017 $258,333 $334 3.92% 5 2719 E Pike Street 2719 E Pike Street 5 $825,000 4/12/2016 $165,000 $202 3.50% CLICK PROPERTIES TO VIEW LOCATIONS See also Rent Comparables map (page 17) AVERAGES $275,184 $385 4.20% FALCONVUE 1986 2114 E YESLER WAY 1964 STELLA 1970 1 2 3 403 30th AVENUE 1903 2719 E PIKE STREET 1941 4 5 UNION 32 16
SALES COMPARABLES 1 5 MADRONA SQUIRE PARK ar eld High School 4 3 2 Leschi Elementary LAKE WASHINGTON LESCHI UNION 32 17
RENT COMPARABLES PROPERTY ADDRESS Building Name Unit Type Avg. SF Current Rent Current SF 1 2014 E Yesler Way Clairemont 2 Bd / 1 Bth 895 $1,950 $2.18 2 209 22 nd Ave Central Element 2 Bd / 1 Bth 1,000 $1,925 $1.93 3 540 27 th Ave 540 27 th Ave 2 Bd / 2 Bth 800 $1,995 $2.49 4 1617 S Lane St SouthLane 2 Bd / 2 Bth 750 $2,195 $2.93 5 415 Boren Ave Monticello 3 Bd / 1 Bth 900 $2,300 $2.56 6 2011 13 th Ave S Emerald View 3 Bd / 2 Bth 1,100 $2,300 $2.09 CLICK PROPERTIES TO VIEW LOCATIONS See also Rent Comparables map (page 19) TOTAL: $2.36 CLAIREMONT 1909 CENTRAL ELEMENT 1967 540 27th AVE 1913 1 2 3 SOUTHLANE 1910 MONTICELLO 1957 EMERALD VIEW 1989 4 5 6 UNION 32 18
RENT COMPARABLES SQUIRE PARK 1 MADRONA 5 3 LESCHI 2 4 6 UNION 32 19
Brokerage Whether you re buying or selling, our experienced team of brokers will ensure you receive the best possible representation. Management Built upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono. Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do. At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results. Together, we don t just build equity we build relationships. Managing property can be an overwhelming experience in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI. Investments Our firm s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment. Consulting Investing smartly is the easiest way to achieve long-term goals collaborate with industry professionals who apply systematic market research and financial analysis to produce feasible solutions for all types of real estate projects. UNION 32 20
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