$995,000 Fremont 4-Unit Offering Memorandum 4257 Greenwood Ave N Seattle, Washington Investment Highlights Sought after Fremont location Potential to add one unit Stone's throw away from restaurants and entertainment Easy access to bus lines and highway 99 Breathtaking views of the Olympic Mountains www.tfgre.com
For More Information Please Contact Erich Bubbel 206.774.5426 erich@tfgre.com 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. 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com
Contents Investment Overview Submarket Information Financial Summary Sale Comparables Puget Sound Regional Information
SECTION 1 :: INVESTMENT OVERVIEW Investment Overview The Foundation Group is pleased to exclusively offer for sale 4257 Greenwood Ave N, this four unit building is located in the Fremont neighborhood of Seattle. The property provides an opportunity to buy a well-built value-add building in one of the fastest-growing areas of Seattle. Its close proximity to main arterials offers tenants immediate access to mass transit for convenient commuting. Originally built in 1911, 4257 Greenwood Ave N provides a variety of units for its tenants. Improvements to the property include updated roof in 2006, total renovation to the post and beam structure with updates to plumbing and electrical. The building is currently a 4-unit apartment building, three 1 Bed/1 Bath and one 2 Bed/1 Bath, with over 700 SF in the basement, which is used as storage but could potentially be converted into a 5th unit. Due to the long-term tenants and low rents, the new owner can capitalize on the demanding Seattle rental market with little renovations. This low maintenance asset is positioned well to capitalize on the future rent growth in the Seattle marketplace. Fremont has become a hotspot for young professionals creating an opportunity for growth and long-term investment.
SECTION 1 :: INVESTMENT OVERVIEW Quick Facts Price $995,000 4257 GREENWOOD AVE N Units 4 Rentable Sq.Ft. 2,101 Net Rentable Per Sq.Ft. $473.58 Price Per Unit $248,750 Current Cap 2.71% Market Cap 5.47% Current GRM 24.46 Market GRM 13.79 Year Built 1911 Land Sq. Ft. 3,000 Zoning Construction Type Heating Type LR1 Wood frame Forced air Source: Per King County Parcel Viewer
SECTION 2 :: SUBMARKET INFORMATION 4257 Greenwood Ave N Area Description Fremont is one of the most popular neighborhoods in Seattle. Its close proximity to Ballard, Queen Anne, and Eastlake makes this location desirable for a variety of tenant demographics. Fremont is known for its thriving neighborhood with the best restaurants, bars, coffee shops, specialty shops, and businesses. With a Walk Score of 78, residents of 4257 Greenwood Ave N can accomplish a majority of their daily errands on foot. Its close proximity to Gas Works Park, Seattle s little slice of serenity, appeals to outdoor enthusiasts, beachgoers, and family s looking to enjoy its peaceful parklike setting. Furthermore, the close vicinity of downtown Seattle gives tenants an urban city feel to go shop, eat, and to be entertained. Seattle has experienced some of the lowest vacancy rates and some of the most rapid rent growth over the past few years. The increase in demand for affordable apartments has turned Seattle into quite the hot spot; rent growth is nearing 20% over the past two years with an astounding vacancy rate of just 3.2%. This location gives the apartment prime candidacy for investors seeking a stable marketplace and quality tenants. GAS WORKS PARK Source: seattle.gov Over the past two years rent growth has increased over 20%, which is complimented by a low vacancy rate of 3.2%. BALLARD LOCKS Source: Destination 360
SECTION 2 :: SUBMARKET INFORMATION 4257 Greenwood Ave N Amenities Aerial GROCERY 1 Fred Meyer 2 QFC 3 Marketime Foods 4 Trader Joe's 1 TRANSPORTATION SCORES RESTAURANTS 1 Dick's Drive-In 5 78 63 66 2 Via Tribunali 3 Brimmer & Heeltap 4 Uneeda Burger 5 Rock Creek 2 1 6 Lighthouse Roasters 7 Pecado Bueno 8 Paseo Carribean 9 Cafe Vita 10 Musashi's RECREATION 1 Golden Gardens Park 2 Gas Works Park 3 Ballard Locks 3 4 4257 GREENWOOD AVE N 4 2 3 1 2 3 4 Woodland Park Zoo 5 Green Lake Park 4 2 SCHOOLS 1 Ballard High School 2 Adams Elementary School 3 University of Washington 4 Seattle Pacific University
SECTION 3 :: FINANCIAL SUMMARY Scheduled Income Unit Type Units Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sq Ft 1/1 1 505 $830 $1.64 $1,350 $2.67 1/1 1 505 $830 $1.64 $1,350 $2.67 1/1 1 505 $830 $1.64 $1,350 $2.67 2/1 1 586 $900 $1.54 $1,550 $2.65 Total 4 $3,390 $5,600
SECTION 3 :: FINANCIAL SUMMARY Financials Current Market Gross Potential Rent $40,680 $67,200 Other Income Utility Income $0 $3,000 Laundry Income $0 $480 Storage $0 $1,500 Vacancy (4.0%) $1,627 $2,887 Effective Gross Income $39.053 $69,292 Expenses Property Taxes (2017) $6,663 $9,438 Insurance $1,476 $1,476 Utilities $3,934 $3,934 Total Expenses $12,073 $14,848 Net Operating Income $26,980 $54,445 4257 GREENWOOD AVE N
SECTION 4 :: SALE COMPARABLES Sale Comparables Property Address Building Name Units Year Built Sale Price Price/Unit Price/SF Cap Rate GRM 1 5828 6th Ave NW 5828 6th Ave NW 2 1944 $629,950 $314,975 $492.15 2.10% 29.16 2 4267 Whitman Ave N 4267 Whitman Ave N 2 1913 $1,158,000 $579,000 $353.17 3.70% 18.56 3 609 N 48th St 609 N 48th St 2 1934 $640,000 $320,000 $640.00 4.10% 23.19 4 5008 Green Lake Way N 5008 Green Lake Way N 2 1924 $951,000 $475,500 $424.55 3.70% 19.81 Averages $422,369 $477.47 2.90% 23.86 1 2 3 4
SECTION 4 :: SALE COMPARABLES Sale Comparables Map Green Lake 1 5828 6TH AVE NW 4 5008 GREEN LAKE WAY N 609 N 48TH ST 3 4257 GREENWOOD AVE N * 2 4267 WHITMAN AVE N
SECTION 4 :: SALE COMPARABLES & RECOMMENDATIONS Sale Comparables 1 5828 6th Ave NW Seattle, WA 2 4267 Whitman Ave N Seattle, WA Sold Date 6/27/2017 Sold Price $629,950 Price/Unit $314,975 Price/SF $492.15 Units 2 Year Built 1944 Cap Rate 2.10% Sold Date 5/23/2017 Sold Price $1,158,000 Price/Unit $579,000 Price/SF $353.17 Units 2 Year Built 1913 Cap Rate 3.70% 3 609 N 48th St Seattle, WA 4 5008 Green Lake Way N Seattle, WA Sold Date 5/16/2017 Sold Price $640,000 Price/Unit $320,000 Price/SF $640.00 Units 2 Year Built 1934 Cap Rate 4.10% Sold Date 9/19/2017 Sold Price $951,000 Price/Unit $475,500 Price/SF $424.55 Units 2 Year Built 1924 Cap Rate 3.70%
SECTION 5 :: SEATTLE / PUGET SOUND REGION Seattle / Puget Sound Seattle is the largest city in the state of Washington with an estimated population of 684,500 as of 2015. The Seattle metropolitan area, also known as The Puget Sound, is comprised of King, Pierce and Snohomish County; as an MSA it s the 15th largest metropolitan in the United States with a population of approximately 3.7 million people. Seattle has a thriving local economy and is home to eight Fortune 500 companies including Costco, Microsoft, Amazon, Paccar, Starbucks, Nordstrom, Expeditors International and Weyerhaeuser. In addition Seattle is home to other notable tech companies such as Expedia, Zillow, Tableau and Zulily, and is quickly establishing itself as a national tech hub as companies from Silicon Valley ranging from Google to Facebook, open Seattle offices in an attempt to draw on the talented pool of tech workers living in and moving to Seatte. In 2016 Zillow ranked Seattle as the second hottest housing market in the nation for appreciation. Similarly, in June of 2016, Redfin also ranked Seattle as the second hottest housing market behind Denver, where the average days on market of a listing is eight and median sales price growth year over year is 7.5%. Much of this growth comes from the hot job market in Seattle, ranked as the fourth best in the nation. A statistical analysis by Careerbuilder found that in 2015 Seattle added 78,082 jobs. Currently the year to date in-migration to the Puget Sound, based on driver s license data for January through May, shows 49,656 people have moved into the area. On an annual basis, the 12-month moving average of monthly in-migration is approximately 10,000 people. Annually that puts more than 120,000 people moving into the Puget Sound region, though this does not account for people moving out of the region. The bottom line is the area has and will continue to grow at a rapid pace making the rental market as strong as its ever been.
SECTION 5 :: PUGET SOUND REGION Anchored in one of the most appealing geographic locations in the entire nation, Seattle is thriving as a bustling city with a small town feel. Additionally, creating an ideal destination for multi-family investments.
For More Information Please Contact Erich Bubbel 206.774.5426 erich@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com