Roy Street Apartments 69 Units Built: 1948 $23,000,000 Suggested Minimum Offer 100 Roy Street Seattle, WA 98109 1
TABLE OF CONTENTS THE OPPORTUNITY, NEIGHBORHOOD AND PROPERTY 4-7 FINANCIALS 9-10 THE MARKET... 11 DISCLAIMER & CONFIENTIALITY AGREEMENT: This offering has been prepared solely for informational purposes. It is designed to assist a potential investor in determining whether it wishes to proceed with an in-depth investigation of the subject property. While the information contained herein is from sources deemed reliable, it has not been independently verified by the Northwest Commercial Real Estate Investments / RGD PROPERTY SERVICE, LLC affiliate or by the seller. The projections and pro forma budget contained herein represent estimates on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to any such projections. This document is provided subject to errors, omissions and changes in the information and is subject to modification or withdrawal at any time. The contents herein are confidential and are not to be reproduced without express written consent. Interested buyers should be aware that the Seller is selling the property AS IS condition with all faults, without representations or warranties of any kind or nature. Prior to and/or after contracting to purchase, as appropriate, buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of the buyer s choosing. The Seller reserves the right to withdraw the Property being marketed at any time for any reason without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. An offer to buy may be: (i) presented in the form of a non-binding letter of intent; (ii) incorporated in a formal written contract of purchase and sale to be prepared by the Seller and executed by both parties; and (iii) approved by Seller and such other parties who may have an interest in the property. Neither the prospective buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract must be approved by tenants in common who own the property and if signed will then supersede prior discussions and writings and shall constitute the sole agreement of the parties. Prospective buyers shall be responsible for their costs and expenses of investigating the Property and all other expenses, professional or otherwise, incurred by them. 2
The Opportunity: Roy Street Apartments: The Heart of Lower Queen Anne and the Heart of the new Uptown Rezone Queen Anne Vacancy 3.5% Walk Score of 95 Well-conceived floorplans Some view units Market rents in area have increased nearly 50% since 2010 and room still exists at property Opportunity, Neighborhood and Property: An opportunity such as the Roy Street Apartments (Roy Street) comes along only once in a generation. The property is located at 100 Roy Street in the epicenter of Seattle s core growth, residential and retail markets on Queen Anne Hill. A new rezone of the Uptown neighborhood, in which Roy Street is located, specifically designates new areas for pedestrian corridors and increased city parks on Roy Street and just above Roy Street on Valley Avenue. Queen Anne is the crown jewel of submarkets in the Puget Sound region because of its proximity to commercial and retail centers as well as to technology and medical research hubs. Queen Anne attracts urbanites in search of a picturesque place where they can observe the city all year. On any given day, you can find Queen Anne s many parks and public stairways bustling. The lower Queen Anne neighborhood is substantially populated with technology workers because of its easy access to local amenities, for shopping, nightlife, and entertainment. 3
Uptown Queen Anne has a rich history in Seattle dating back to many of the city s founding, with streets named after city founders such as: Kinnear, Mercer, and Denny. The neighborhood is one of the city s most walkable communities and boasts exceptional, residential properties and new, active, urban developments. Queen Anne today is a stylish, high-class neighborhood with amazing skyline views, easy access to Seattle Center, a popular annual location for Seattle Cultural activities throughout the year. The new plans for Key Arena, only 3 blocks away from Roy Street make this location extremely exciting for future development. A new Seattle Opera House is under construction just a few blocks away from Roy Street. Upper Queen Anne features sprawling homes with sweeping views and charming shops and unique properties such as: the Old Queen Anne high school which was converted to Condos in the early 2000 s. Not only is Lower Queen Anne home to many local eateries, bars, and nightlife, it houses the Pacific Northwest Ballet, the Seattle Repertory Theatre, McCaw Hall home of the Seattle Opera, Key Arena, the Seattle Armory, The Space Needle, the Chihuly Glass Museum, the EMP, Pacific Science Center, Seattle Children s Theatre and many other Seattle Cultural amenities. The Uptown neighborhood also hosts part of the Seattle international Film festival at The Uptown Theatre. As noted before the City of Seattle recently passed the Uptown Rezone, which will increase allowable building heights in the area, to coincide with substantial and important transportation infrastructure and services that will improve connections throughout the city to and from Uptown. Specifically, these improvements include completion of the Alaska Way Viaduct Tunnel and North Portal, the important reconnection of John, Thomas, and Harrison Streets which will increase the number of east/west connections beyond Mercer Street and Denny Way and a the construction new transit center a block and a half away from the Roy Street Apartments. Improvements in Metro transit service are contemplated which will continue to increase mass transit/bus options in the Uptown and Lower Queen Anne neighborhoods. The final development of the Center City Mobility Plan will make movement from Uptown to adjacent neighborhoods more efficient. The light rail to be built a block away is part of the voter approved $54,000,000,000 Sound Transit 3 ballot measure. Completion of Sound Transit 2 alone will benefit all residential developments in the area and Uptown will be part of a regional transportation hub. 4
Seattle s overall economic indicators are exceptionally positive. Seattle has added 12,500 new jobs YTD (after 29,800 in 2016). The average vacancy rate in the city is 3.5%. Median income has climbed to $80,349. Average rent per unit in city is now $2,040 as compared to $1,974 in 2016. Rents have grown cumulatively 14% over the past three years. Commercial Office Market dynamics are a key gauge of employment growth in Seattle. Seattle has added significant jobs to its economy and thus, has created increased demand for more office space, rental housing, and retail building. A major contributor to growth has come from e-commerce dollars. The Amazon phenomenon has led to a massive need for all forms of rentable space. Office vacancy is now at near 10-year lows, and the continued demand and consumption of new office projects by technology companies continues unabated. The outlook for continued long term strength in the Seattle multifamily market is very positive. Certainly, as one of the tightest real estate markets in the nation, Seattle is poised to be a high performing real estate market well into the future. Amazon, Google, and Facebook, have all bought in to the area and Amazon has solid commitments for millions more square feet of office over the next ten years. The Roy Street Apartments was built in 1948, is situated on a.71-acre site, or 30,928 square feet, and is prime property for redevelopment now or in the future. The building actually consists of five connected buildings. Roy Street Apartments is a 69- unit, three units are nonconforming, four story brick building with a deep basement located in Seattle s Lower Queen Anne neighborhood. The property s brick façade offers a classic, timeless, elegant appeal. The present ownership has taken pains to preserve the 1948 look inside the units by maintaining hardwood flooring and ceramic baths and countertops. The Roy Street Apartments has two new 900 square foot studios (which are in permitting phase) and one studio of 300 square feet. The basement has room for several more studios to be built. It has 50 one-bedroom units of around varying sizes ranging from around 500 square feet to 600 square feet, and 16 two-bedroom units of around 700 square feet. There is over 43,000 square feet of space inside the building. As a result of the growing population of millennials moving to this part of Seattle and accepting employment in the area, the Roy Street Apartments are almost always fully rented. The Roy Street Apartments offer an extremely rare investment opportunity in one of the strongest rental markets in the very center of one of the strongest rental markets the nation. In sum, the Roy Street Apartments offers a rare, large, in city parcel available for future development within a specifically designated up-zoned, high class development region Seattle. The existence of well-located large sites in the Seattle market is unusual and will always be prized, unique and valuable especially in South Lake Union and Lower Queen Anne and even more especially on the corner of Roy and the heart of Uptown. 5
100 ROY STREET, SEATTLE, WA The Lower Queen Anne Uptown Neighborhood 6
Typical Unit interiors 7
Typical Unit Floorplans 8
The Financials: Proforma 9
The Financials: Proforma (continued) ` 10
The Market: COMPARABLE SALES ROY STREET APARTMENTS COM P # APARTMENT COMPLEX UNI TS YR BUILT SALES PRICE PRICE/UNI T PRICE/S F GRM CAP RATE SALE DATE COMMENTS Roy Street Apartments 100 Roy Street Seattle, WA 1 Caroll & Kensington 305 Bellevue, Ave E Seattle, WA 69 1948 $24,500,000 $355,072 $620.00 14.94 4.49% PROFORMA 58 1944 $23,000,000 $396,552 $458 16.8 3.6% 03/2017 2 Glen Eden 921 1 st Ave W Seattle, WA 36 1929 $11,500,000 $319,444 $454 16.5 3.5% 04/2017 The Brokers: Andrew Person: NWCREI / RGD Property Service, LLC 117 E Louisa Street #185 Seattle, WA 98102 206-427-7089 andrew@nwcrei.com 11