Milton Apartments OFFERING MEMORANDUM MILTON, WA OFFERING MEMORANDUM PRESENTED BY: KW COMMERCIAL 1100 Dexter Avenue North, Suite 275 Seattle, WA PDF Free Download

OFFERING MEMORANDUM Milton Apartments MILTON, WA OFFERING MEMORANDUM KW COMMERCIAL 1100 Dexter Avenue North, Suite 275 Seattle, WA 98109 PRESENTED BY: CHARLES BURNETT Managing Broker 206.931.6036 charles@soundrealtygroup.com

OFFERING MEMORANDUM Confidentiality & Disclaimer MILTON, WA All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Downtown Seattle in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 1100 Dexter Avenue North, Suite 275 Seattle, WA 98109 CHARLES BURNETT Managing Broker 206.931.6036 charles@soundrealtygroup.com We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. www.kwcommercial.com 2

OFFERING MEMORANDUM MILTON PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES PROPERTY INFORMATION 1 PROPERTY INFORMATION MILTON APARTMENTS PROPERTY INFORMATION 1 EXECUTIVE SUMMARY PROPERTY DETAILS ADDITIONAL PHOTOS ADDITIONAL PHOTOS www.kwcommercial.com 3

1 PROPERTY INFORMATION Executive Summary SALE PRICE: $3,450,000 UNITS: 23 PRICE PER UNIT: $150,000 CAP RATE: 6.66% GRM: 13.39 NOI: $229,753 LOT SIZE: 2.75 Acres BUILDING SIZE: 19,749 SF YEAR BUILT: 1951 RENOVATED: 2017 ZONING: RMD (Residential Moderate Density) MARKET: Pierce County, WA SUB MARKET: Milton, WA PROPERTY OVERVIEW 23-unit apartment complex located in the desirable community of Milton. Property underwent a complete and immaculate remodel in 2017 with new unit interiors, windows throughout, plumbing/ mechanical systems and more. Fully occupied with quality tenants; a solid turn-key investment property; 6.5% Cap Rate with Good Cashflow! Onsite coin-operated laundry facility, storage, and a space for an office. Sale includes 3 parcels (2.75 acres) with opportunity for further development. Near I-5, transit, and amenities. PROPERTY FEATURES Onsite Laundry and Storage 3 Lots Included in Sale Potential for Additional Development Completely Remodeled Fully Occupied CROSS STREETS: Nevada Street www.kwcommercial.com 4

Property Details 1 PROPERTY INFORMATION PROPERTY NAME: Milton Apartments STREET ADDRESS: 1307 10th Avenue CITY, STATE, ZIP: Milton, WA 98354 APN: 5985002370; 5985002380; 5985002400 LOT SIZE: 2.75 AC BUILDING SIZE: 19,749 SF ZONING: RMD (Residential Moderate Density) PARKING SPACES: 51 PARKING RATIO: 2.21 YEAR BUILT: 1951 NUMBER OF STORIES: 3 FOUNDATION: Poured Concrete NUMBER OF UNITS: 23 ROOF: Composition www.kwcommercial.com 5

Additional Photos 1 PROPERTY INFORMATION www.kwcommercial.com 6

Additional Photos 1 PROPERTY INFORMATION www.kwcommercial.com 7

OFFERING MEMORANDUM MILTON PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES LOCATION INFORMATION 2 LOCATION INFORMATION MILTON APARTMENTS LOCATION INFORMATION 2 REGIONAL MAP LOCATION MAPS AERIAL MAP

Regional Map 2 LOCATION INFORMATION 1307 10th Avenue www.kwcommercial.com 9

Location Maps 2 LOCATION INFORMATION www.kwcommercial.com 10

MILTON APARTMENTS 2 LOCATION INFORMATION Aerial Map www.kwcommercial.com 11

OFFERING MEMORANDUM MILTON PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS MILTON APARTMENTS FINANCIAL ANALYSIS 3 FINANCIAL SUMMARY INCOME & EXPENSES RENT ROLL UNIT MIX SUMMARY SITE PLAN CUSTOM PAGE

3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW Price $3,450,000 Price per Unit $150,000 GRM 13.4 CAP Rate 6.7% Cash-on-Cash Return (yr 1) 7.59 % Total Return (yr 1) $115,845 Debt Coverage Ratio 1.52 OPERATING DATA Gross Scheduled Income $257,580 Other Income (Laundry, Utility Charge-Back) $19,560 Total Scheduled Income $277,140 Vacancy Cost $8,314 Gross Income $268,825 Operating Expenses $39,072 Net Operating Income $229,753 Pre-Tax Cash Flow $78,580 FINANCING DATA Down Payment $1,035,000 Loan Amount $2,415,000 Debt Service $151,173 Debt Service Monthly $12,597 Principal Reduction (yr 1) $37,264 www.kwcommercial.com 13

Income & Expenses 3 FINANCIAL ANALYSIS INCOME SUMMARY PER SF Rent $258,600 $13.09 Utility Charge-Back $16,560 $0.84 Laundry income $3,000 $0.15 GROSS INCOME $278,160 $14.08 EXPENSE SUMMARY PER SF Property Tax $16,472 $0.83 Insurance $5,000 $0.25 Misc Utiltity $6,100 $0.31 Sewer $8,600 $0.44 Garbage $2,900 $0.15 GROSS EXPENSES $39,072 $1.98 NET OPERATING INCOME $229,753 $11.63 www.kwcommercial.com 14

Rent Roll 3 FINANCIAL ANALYSIS TENANT NAME UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START LEASE END CURRENT RENT CURRENT RENT (PER SF) MARKET RENT MARKET RENT/SF SECURITY DEPOSIT 1 2 1 737 2/1/17 1/31/18 $975 $1.32 $500 2 1 1 419 2/1/17 1/31/18 $750 $1.79 $500 3 2 1 737 4/1/17 3/31/18 $975 $1.32 $975 4 2 1 737 3/2/17 2/28/18 $975 $1.32 $975 5 1 1 419 2/3/17 1/31/18 $790 $1.89 $1,580 6 2 1 737 2/5/17 1/31/18 $975 $1.32 $975 7 2 1 737 3/11/17 2/28/18 $975 $1.32 $975 8 1 1 419 3/12/17 2/28/18 $790 $1.89 $790 9 2 1 737 4/7/17 3/31/18 $975 $1.32 $975 10 2 1 742 3/8/17 2/28/18 $975 $1.31 $975 11 1 1 419 7/1/17 6/30/18 $790 $1.89 $835 12 2 1 651 2/1/17 1/31/18 $910 $1.40 $500 14 2 1 600 2/1/17 1/31/18 $850 $1.42 $1,000 15 2 1 600 9/1/17 8/31/18 $935 $1.56 $935 16 2 1 651 3/18/17 2/28/18 $975 $1.50 $975 17 2 1 645 3/1/17 2/28/18 $975 $1.51 $975 18 2 1 742 4/13/17 3/31/18 $975 $1.31 $975 19 2 1 742 3/17/17 2/28/18 $975 $1.31 $975 20 2 1 742 9/15/17 9/30/18 $1,025 $1.38 $1,025 21 2 1 742 2/1/27 1/31/18 $975 $1.31 $500 www.kwcommercial.com 15

Unit Mix Summary 3 FINANCIAL ANALYSIS UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT 1 bed / 1 bath 4 17.4 419 $791 $1.89 $800 $1.91 $3,705 2 bed / 1 bath 2 8.7 600 $893 $1.49 $975 $1.63 $1,935 2 bed / 1 bath 1 4.3 645 $975 $1.51 $975 $1.51 $975 2 bed / 1 bath 2 8.7 651 $943 $1.45 $975 $1.50 $1,475 2 bed / 1 bath 6 26.1 737 $973 $1.32 $975 $1.32 $5,375 2 bed / 1 bath 8 34.8 742 $988 $1.33 $1,025 $1.38 $6,950 Totals / Averages 23 100% 15,181 $21,553 $1.42 $22,125 $1.46 $110,465 www.kwcommercial.com 17

Site Plan 3 FINANCIAL ANALYSIS www.kwcommercial.com 18

Lot Detail 3 FINANCIAL ANALYSIS www.kwcommercial.com 19

OFFERING MEMORANDUM MILTON PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES DEMOGRAPHICS 4 DEMOGRAPHICS MILTON APARTMENTS DEMOGRAPHICS 4 DEMOGRAPHICS MAP

4 DEMOGRAPHICS Demographics Map POPULATION 1 MILE 3 MILES 5 MILES TOTAL POPULATION 7,093 47,525 155,982 MEDIAN AGE 39.1 38.0 36.9 MEDIAN AGE (MALE) 38.7 37.4 36.0 MEDIAN AGE (FEMALE) 39.4 38.2 37.6 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES TOTAL HOUSEHOLDS 3,032 18,584 61,486 # OF PERSONS PER HH 2.3 2.6 2.5 AVERAGE HH INCOME $71,844 $73,038 $70,324 AVERAGE HOUSE VALUE $367,588 $366,690 $326,868 * Demographic data derived from 2010 US Census www.kwcommercial.com 21

Milton Apartments OFFERING MEMORANDUM MILTON, WA OFFERING MEMORANDUM PRESENTED BY: KW COMMERCIAL 1100 Dexter Avenue North, Suite 275 Seattle, WA 98109