UNIVERSITY DISTRICT LAND 4002-4006 Pasadena Place NE Seattle, WA 98105 A MULTI-FAMILY DEVELOPMENT OPPORTUNITY PROPERTY HIGHLIGHTS 96 MICRO UNIT DEVELOPMENT SITE SOLID CASHFLOW IN PLACE DEVELOPER TERMS AVAILABLE NO DESIGN REVIEW REQUIRED CONTACT INFORMATION: MACE ERICKSON MANAGING BROKER 206.505.9418 mace@westlakeassociates.com
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OFFERING SUMMARY WESTLAKE ASSOCIATES, INC. IS PROUD TO PRESENT THIS UNIVERSITY DISTRICT DEVELOPMENT SITE FOR $ SALE. LOCATED ON PASADENA PLACE NORTHEAST WITH VIEWS OUT OVER PORTAGE BAY, INVESTORS HAVE THE RARE OPPORTUNITY TO DEVELOP NEXT TO ONE OF THE FASTEST GROWING UNIVERSITIES IN THE NATION. THE TWO PROPERTIES ARE SITUATED NEXT TO ONE ANOTHER ON 9,672 SQUARE FEET OF LAND, ZONED MR, AND IN THE UNIVERISTY DISTRICT URBAN VILLAGE, ON A CORNER LOT WITH ALLEY ACCESS. The proposed development is a seven-story apartment building with sweeping views over Portage Bay and the canal. It requires NO design review! It would contain 19 units in a micro unit-style layout, with a total of 96 bedrooms, each with their own bathroom. Alternatively, a developer could put up roughly 80-90 units at 400 square feet apiece. $3,995,000 PRICE SF 9,672 Square Feet No Design Review for proposed design Developer terms available Students will find the location very convenient, with a half dozen bus stops within a few blocks and the Burke Gilman Trail across the street. The University of Washington campus is just a short walk or a 3 minute bike ride. There is a cafe and pizza parlor by the water a block away, and Gas Works Park is a short ride down the Burke Gilman. ADDRESS 4002-4006 Pasadena Place NE Seattle, WA 98105 ZMR Zoning University District Urban Village
PROPOSED DEVELOPMENT INCOME & EXPENSES FINISHED PROJECT VALUE FINISHED PROJECT VALUE 4.8% CAP RATE $19,699,625 RENT ROLL # AVG. SIZE 1 BD - ADA TA 1 425 1 BD - IR* 2 425 1 BD 1 BA 2 425 2 BD 2 BA 1 850 MICRO - IR* 6 225 MICRO 84 225 Total 96 34,838 * INCOME RESTRICTED INCOME Scheduled Rental Income + Utility Billback - Vacancy & Cr Losses Gross Income CURRENT PSF $1,395 $3.28 $1,395 $3.28 $1,840 $2.16 $1,395 $3.28 $622 $2.76 $1,140 $5.07 $108,307 $4.80 CURRENT $1,299,684 $64,020 $55 per Tenant 5.0% ($68,185) $1,295,519 MARKET PSF $1,395 $3.28 $1,395 $3.28 $1,840 $2.16 $1,395 $3.28 $622 $2.76 $1,140 $5.07 $108,307 $4.80 MARKET $1,299,684 $64,020 $55 per Tenant 5.0% ($68,185) $1,295,519 EXPENSES Real Estate Taxes Property Insurance Utilities (W S G Elect) Repairs & Maintenance Professional Management Miscellaneous Turnover Capital Reserves Total Operating Expenses CURRENT $130,799 $14,944 $41,727 $48,100 $64,776 $12,590 $7,640 $29,630 $349,937 PSF $3.75 $0.43 $1.20 $1.38 $1.86 $0.36 $0.22 $0.84 $10.04 PER ROOM $1,362 $156 $435 $501 $675 $131 $80 $306 $3,645 MARKET $130,799 $14,944 $41,727 $48,100 $64,776 $12,590 $7,640 $29,360 $349,937 PSF $3.75 $0.43 $1.20 $1.38 $1.86 $0.36 $0.22 $0.84 $10.04 PER ROOM $1,362 $156 $435 $501 $675 $131 $80 $306 $3,645 *All expenses are taken from Dupre + Scott Averages. NET OPERATING INCOME $945,582 $945,582
PROPOSED DEVELOPMENT RENT ROLL UNIT TYPE SIZE RENT PSF MARKET RENT MARKET PSF 1 1 BD - ADA TA 425 $1,395 $3.28 $1,395 $3.28 2 1 BD - IR* 425 $1,395 $3.28 $1,395 $3.28 3 2 BD 2 BA 850 $1,840 $2.16 $1,840 $2.16 4 1 BD - IR* 425 $1,395 $3.28 $1,395 $3.28 5 1 BD 1 BA 425 $1,395 $3.28 $1,395 $3.28 6 1 BD 1 BA 425 $1,395 $3.28 $1,395 $3.28 7 MICRO - IR* 225 $622 $2.76 $622 $2.76 8 MICRO - IR* 225 $622 $2.76 $622 $2.76 9 MICRO - IR* 225 $622 $2.76 $622 $2.76 10 MICRO - IR* 225 $622 $2.76 $622 $2.76 11 MICRO - IR* 225 $622 $2.76 $622 $2.76 12 MICRO - IR* 225 $622 $2.76 $622 $2.76 13-96 MICRO 225 $1,140 $5.07 $1,140 $5.07 Total 96 34,838 $108,307 $461 $108,307 $461 Averages 242 $1,128 $4.80 $1,128 $4.80 * INCOME RESTRICTED
TOTAL UNITS: 5 6 STORIES: 2 2 UNIT MIX: 1-1 BD 1 BA 1 Studio 4-2 BD 1 BA 4-1 BD 1 BA BUILDING OVERVIEW ADDRESS 4002 ADDRESS 4006 1-2 BD 2 BA YEAR BUILT: 1912 1962 sf PARCEL SIZE: 4,650 SF 5,022 SF BUILDING GROSS SF: 5,360 SF 4,080 SF NET RENTABLE SF: 3,937 SF 3,740 SF ZONING: MR (M1) MR (M1) Residential Multifamily Mid-rise with no Density Limit CURRENT ANNUAL RENTAL INCOME: $200,100 VACANCY (3%): $6,003 ANNUAL EXPENSE ESTIMATE: $54,582 NET OPERATING INCOME: $139,515 CAP RATE: 3.5%
CURRENT BUILDING PHOTOS
LOCATION The University District is conveniently located two miles north of Downtown Seattle and only blocks from the esteemed University of Washington, which is home to nearly 75,000 students and faculty members. The UW Medical Center employs over 21,000 and is less than a mile from the property. Directly to the east is the University Village, a 25-acre shopping center with numerous high-end retail shops and restaurants. The nearby Montlake Cut and Burke Gilman Trail provide residents with outdoor recreational activities like kayaking, running and biking. The well known University Way, also known as The Ave, is home to coffee houses, trendy stores, movie theaters, and restaurants galore. With easy access to Interstate-5 and Highway 520, numerous bus routes, and the South Lake Union Trolley, the University District is central to all areas of the city. Tenants can enjoy the convenience of in-city living while maintaining the distinct feel of a close-knit community.
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BURKE GILMAN TRAIL For the more active lifestyles, the Burke Gilman Trail is across the street and runs for 20 miles along the water, while Gas Works Park offers pristine views and wide fields for picnics, frisbee and countless outdoor activities.
Set in the beautiful Pacific Northwest, the greater Seattle area is a national center for manufacturing, technology, services, international trade and tourism. MAJOR EMPLOYERS Today some of the world s most recognizable Fortune 500 companies call Seattle home: Microsoft, Starbucks, Amazon, Nordstrom, Costco and REI. Other major companies in the area include Boeing, T-Mobile. Expedia, Boeing and Nintendo of America. According to the Puget Sound Business Journal, technology companies are leading the way in employment growth in the Seattle MSA. As the home of Microsoft and Amazon, Seattle accounts for over 20% of the nation s software publishing employment. Microsoft is one of the top employers in the sate with over 42,000 employees. Their World Headquarters, located in Redmond is over 10 million square feet. The Puget Sound has become a international leader in innovative industries with organizations such as the Fred Hutchinson Cancer Research Center, the University of Washington Medial Center and the Bill and Melinda Gates foundation. Healthcare employment is projected to continue to grow dramatically and Seattle has the 5th largest biotechnology Research and Development alliance between the University of Washington and the Fred Hutchinson Cancer Research Center. The Puget Sound is one of the capitals of the aerospace industry anchored by Boeing, the world s largest aerospace company, secondlargest maker of large commercial jets, and second largest global defense contractor. Boeing is one of the largest employers in the Puget Sound, employing approximately 80,000 in Washington. Employment is expanding through the greater Seattle area. The Puget Sound region is projected to generate 1.2 million new jobs by 2040. INTERNATIONAL TRADE Seattle has remained one of the most resilient cities due to its diverse industries, making it more attractive for new companies to relocate and expand in the area. The Port of Seattle, which also operates the Seattle- Tacoma International Airport, is a major gateway to Asia and cruises to Alaska. The Port of Seattle ranks as the 6th business seaport in the US, playing a key role in bringing international trade, transportation and travel to the Pacific Northwest. RECREATION The region is known for its quality of life, arts, and outdoor lifestyle which helps attract an educated workforce. Numerous camping, hiking, winter sports, and recreational activities are located a short drive from the city. Seattle s main attractions include Pike Place Market, the Space Needle, and Seattle Center, home of the 1962 World s Fair. Seattle is home to a number of professional sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle Mariners, and the Seattle Sounders FC soccer team. PUGET SOUND PUGET SOUND LARGEST EMPLOYERS 80,000 42,000 30,000 20,000 15,000 JOINT BASE LEWIS-MCCHORD 56,000 25,000 20,000 10,000 13,000
WESTLAKE ASSOCIATES, INC. Since 1975 Westlake Associates, Inc. has been the premier provider of commercial real estate brokerage services in the Puget Sound region. Our commitment to assist our clients in creating and preserving their real estate investment wealth has led to the successful closing of billions of dollars in investment property and a long history of repeat business and client referrals. Our firm has over twenty full-time real estate professionals with expertise in the multi-family sales market. With a majority of our partners owning and operating their own investment property, we offer clients a unique perspective from both an agent and owner point of view. Our specialization in representing Puget Sound apartment owners results in our clients receiving the most effective representation in the industry, where maximizing client returns is our highest priority. Through effective teamwork, communication, and an unparalleled knowledge of the Puget Sound apartment market, our agents continue to lead the industry in successful closings and client satisfaction. MEMBER: Commercial Brokers Association (CBA) MEMBER: Northwest Multiple Listing Services (NWMLS) MEMBER: Loop Net National Listing Services MEMBER: Costar Commercial Real Estate Data and National Listing Service MEMBER: Commercial Investment Real Estate Institute (CREI) MEMBER: Washington State Realtors Association (WSMA)
CONTACT INFORMATION: MACE ERICKSON MANAGING BROKER 206.505.9418 mace@ westlakeassociates.com