THE MELMAR APARTMENTS

THE MELMAR APARTMENTS

OFFERING Paragon Real Estate Advisors is pleased to present for exclusive sale the Melmar Apartments, a 28-unit apartment building located in the highly sought-after and walkable Capitol Hill neighborhood. This is an extremely rare opportunity for an investor to acquire a trophy asset in an unbeatable Seattle neighborhood with repositioning upside. Capitol Hill is known for its vibrant community and many entertainment venues, boutique businesses and popular eateries. The Seattle Central Business District and nearby South Lake Union provide over 300,000 jobs, and include employers such as F5 Networks, Amazon, Apple, and Washington State s Convention Center. The Light Rail Station is just two blocks away from the property, providing fast access to employment downtown, educational opportunities at the University of Washington and a multitude of entertainment options. With a Walk Score of 98 and a Transit Score of 84, the Melmar Apartments are a renter s paradise and a great opportunity for a new owner. NAME The Melmar Apartments ADDRESS 219 Harvard Ave E, Seattle WA 98102 TOTAL UNITS 28 BUILT 1962 BUILDING SIZE 17,580 Net Rentable PRICE $10,500,000 PRICE PER UNIT $375,000 PRICE PER SQ.FT. $597.27 CURRENT GRM/CAP LOT SIZE ZONING 15.7/4.4% (3% Vacancy) 11,200 Square Feet MR - Capitol Hill Urban Village

The Melmar Apts

PROPERTY HIGHLIGHTS Spacious floor plans Large sunny patios with large picture windows 14 gated parking spaces Light rail just two blocks away Washer and dryer in all 2 bedroom units Views of the city and the sound from upper floor Renovated kitchens and baths with new quartz counters and stainless appliances Dishwasher in all units but studio Large closets Ample cabinet storage Recently updated common areas 5 stop elevator with recently remodeled cab Capitol Hill Urban Center Village Zoning Common laundry on each floor Controlled access building Opportunity to add value by adding washer dryers in more units, renovating additional units, and converting parking spaces to additional units

CAPITOL HILL HIGHLIGHTS Superior Capitol Hill location just blocks east of the Seattle Central Business District. Walkable to major employers in the Seattle Central Business District and South Lake Union neighborhoods. Easy access to Interstate 5 as well as Interstate 90 and State Route 520 to Bellevue. WALK SCORE 98 Hip / Urban location a block off the Broadway Corridor. Nearby Grocery Quality Food Center (QFC) just two blocks away. Nearby Drugstore Rite Aid just a block away. Walking distance to Seattle Central College, Seattle University and Seattle Academy of Arts & Sciences. Cal Anderson Park 7-acre park with water features, large lawn area, footpaths, a play area, an athletic field and oversized chess boards. Sound Link Light Rail Just two blocks away, the Capitol Hill Light Rail Station provides frequent service to places like Downtown Seattle, Century Link Field, Pioneer Square, the University of Washington, and the Seattle Tacoma Airport. The Roosevelt Station and Northgate Station are scheduled to open in 2021. TRANSIT SCORE 84 BIKE SCORE 77

CAPITOL HILL Capitol Hill is situated on a hill just east of the city s downtown central business district. This popular residential neighborhood is funky and fast-paced, with an endless number of cool blocks to explore. During the day, markets, boutiques, and salons are a big draw. Nightlife is hopping with clubs, bars, and music venues, and you ll often find coffee shops that moonlight as cocktail lounges This desirable location contains some of Seattle s wealthiest neighborhoods, including Millionaire s Row along 14th Avenue E, a charming collection of single family residences on tree-lined streets, and the Harvard-Belmont Landmark District. It also has many distinguished apartment houses, including several designed by the distinguished builder Fred Anhalt. To the north is Capitol Hill s largest and most popular public park. The 48 acre Volunteer Park is home to Seattle s Asian Art museum, tennis courts, a conservatory, and a variety of city-wide events. The demand for Capitol Hill apartments continues to rise as nearby Amazon continues its feverish hiring pace alongside other technology companies that are hiring as well as relocating to the South Lake Union area. This location is also home to longstanding health care providers including Swedish Medical Center, Group Health and Virginia Medical Center. Nearby Seattle University and Seattle Central College provide a consistent base to the apartment demand in the area. The neighborhood figures prominently in nightlife and entertainment, with many bars hosting live music and with numerous avant-garde theaters. Most of the Hill s major thoroughfares are dotted with coffeehouses, taverns and bars, and residences cover the gamut from modest motel-like studio apartment buildings to some of the city s most historic mansions, with the two types sometimes shoulder-to-shoulder.

NEIGHBORHOOD MAP SEATTLE CBD BELLTOWN QUEEN ANNE CAL ANDERSON PARK THE MELMAR APARTMENTS SOUTH LAKE UNION CAPITOL HILL LAKE UNION VOLUNTEER PARK EASTLAKE

MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT

MAJOR EMPLOYERS - SOUTH LAKE UNION

BUILDING PHOTOS

VIEWS

UNIT EXTERIOR PHOTOS PHOTOS

UNIT PHOTOS

Income and Expenses Units 28 Price $10,500,000 Year Built 1962 Per Unit $375,000 Rentable Area 17,580 Per Sq. Ft. $597.27 Down Pmt $4,640,000 Current GRM 15.69 Loan Amount $5,860,000 Current CAP 4.37% Interest Rate 4.500% Market GRM 14.14 Amortization 30 Years Market CAP 4.86% UNITS UNIT TYPE CURRENT RENT MARKET RENT 4 Studio - Ren $1,150 - $1,345 $1,550 3 1 Bd/1 Bth $1,495 - $1,645 $1,700 13 1 Bd/1 Bth -Ren $1,595 - $1,695 $1,900 2 2 Bd/1.5 Bth $2,095 - $2,495 $2,350 6 2 Bd/1.5 Bth - Ren $2,295 - $2,395 $2,500 28 Total/Avg $2.84 $3.17 MONTHLY INCOME CURRENT MARKET Gross Potential Rent $49,955 $55,700 Parking Income $2,089 $2,450 Laundry Income $277 $277 Utility Reimbursement $2,038 $2,038 Pet Rent $484 $484 Other Rent / Fee Income $750 $750 Other Income $172 $172 Total Monthly Income $55,765 $61,871 ANNUALIZED OPERATING CURRENT MARKET DATA Scheduled Gross Income $669,183 $742,452 Less Vacancy 3.0% $20,075 3.0% $22,274 Gross Operating Income $649,108 $720,179 Less Expenses $190,226 $209,433 Net Operating Income $458,882 $510,745 Annual Debt Service ($29,692/mo) $356,301 $356,301 Cash Flow Before Tax 2.21% $102,581 3.33% $154,444 Principal Reduction $94,535 $94,535 Total Return Before Tax 4.25% $197,116 5.37% $248,979 ANNUALIZED OPERATING EXPENSES CURRENT MARKET Real Estate Taxes 2018 $58,427 $74,791 Insurance Estimated $9,669 $9,669 Utilities T-12 Actual $34,082 $34,082 Professional Mgmt Proforma 4% $25,964 $28,807 On-Site Payroll T-12 Actual $19,782 $19,782 Maintenance & Repairs T-12 Actual $18,842 $18,842 Turnover T-12 Actual $5,305 $5,305 Elevator T-12 Actual $4,227 $4,227 Landscaping T-12 Actual $3,073 $3,073 Administration T-12 Actual $2,455 $2,455 Replacements/Reserves $300/unit $8,400 $8,400 Total Expenses $190,226 $209,433

Unit Breakdown UNIT APPROXIMATE RENOVATED CURRENT CURRENT MARKET MARKET UNIT TYPE SIZE STATUS RENT RENT/SQ.FT.. RENT RENT/SQ.FT. 101 2 Bd / 1.5 Bth W/D 815 Sq.Ft. No $2,095 $2.57 $2,350 $2.88 102 Studio 300 Sq.Ft. Yes $1,150 $3.83 $1,550 $5.17 103 1 Bd / 1 Bth 615 Sq.Ft. Yes $1,695 $2.76 $1,900 $3.09 104 2 Bd / 1.5 Bth W/D 815 Sq.Ft. 75% $2,295 $2.82 $2,500 $3.07 105 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,695 $2.83 $1,900 $3.17 106 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,645 $2.74 $1,900 $3.17 107 1 Bd / 1 Bth 650 Sq.Ft. Yes $1,695 $2.61 $1,900 $2.92 201 2 Bd / 1.5 Bth W/D 815 Sq.Ft. Yes $2,335 $2.87 $2,500 $3.07 202 Studio 300 Sq.Ft. Yes $1,345 $4.48 $1,550 $5.17 203 1 Bd / 1 Bth 615 Sq.Ft. Yes $1,645 $2.67 $1,900 $3.09 204 2 Bd / 1.5 Bth W/D 815 Sq.Ft. Yes $2,395 $2.94 $2,500 $3.07 205 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,695 $2.83 $1,900 $3.17 206 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,595 $2.66 $1,900 $3.17 207 1 Bd / 1 Bth 650 Sq.Ft. Floors Only $1,645 $2.53 $1,700 $2.62 301 2 Bd / 1.5 Bth W/D 815 Sq.Ft. Yes $2,295 $2.82 $2,500 $3.07 302 Studio 300 Sq.Ft. Yes $1,345 $4.48 $1,550 $5.17 303 1 Bd / 1 Bth 615 Sq.Ft. Yes $1,695 $2.76 $1,900 $3.09 304 2 Bd / 1.5 Bth W/D 815 Sq.Ft. Yes $2,295 $2.82 $2,500 $3.07 305 1 Bd / 1 Bth 600 Sq.Ft. No $1,495 $2.49 $1,700 $2.83 306 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,595 $2.66 $1,900 $3.17 307 1 Bd / 1 Bth 650 Sq.Ft. No $1,595 $2.45 $1,700 $2.62 401 2 Bd / 1.5 Bth W/D 815 Sq.Ft. Yes $2,295 $2.82 $2,500 $3.07 402 Studio 300 Sq.Ft. Yes $1,245 $4.15 $1,550 $5.17 403 1 Bd / 1 Bth 615 Sq.Ft. Yes $1,695 $2.76 $1,900 $3.09 404 2 Bd / 1.5 Bth W/D 815 Sq.Ft. No $2,495 $3.06 $2,350 $2.88 405 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,695 $2.83 $1,900 $3.17 406 1 Bd / 1 Bth 600 Sq.Ft. Yes $1,595 $2.66 $1,900 $3.17 407 1 Bd / 1 Bth 650 Sq.Ft. Yes $1,695 $2.61 $1,900 $2.92 Totals/Avg 628 Sq.Ft. $49,955 $2.84 $54,850 $3.12

SALES COMPARABLES 6 The Melmar Apts 219 Harvard Ave E Year Built 1962 Units 28 Sales Price $10,500,000 Price/Unit $375,000 Price/Foot $597 GRM/CAP 15.7/4.4% Year Built 1 1996 Units 34 + Com Sales Price $17,733,000 Price/Unit $466,658 Price/Foot $561 GRM/CAP 17.7/3.5% Remi Apartments 2727 Eastlake Ave E Sales Date 4.12.2018 7 1 5 2 Year Built 1948 Units 69 Sales Price $22,000,000 Price/Unit $318,841 Price/Foot $557 GRM/CAP 13.4/5.0% Roy Street Apts 100 W Roy St Seattle, WA 98119 4 Year Built 1930 Units 16 Sales Price $4,600,000 Price/Unit $287,500 Price/Foot $516 GRM/CAP 16.3/3.8% Normandy Arms 420 13th Ave E Sales Date 3.1.2018 Sales Date 9.29.2017 Year Built 3 1960 Units 9 Sales Price $3,660,000 Price/Unit $406,667 Price/Foot $588 GRM/CAP 17.3/4.3% Harriet Manor 1304 E Harrison St 5 Year Built 1962 Units 9 Sales Price $3,925,000 Price/Unit $436,111 Price/Foot $553 GRM/CAP 16.9/4.3% Mersoleil Franklin 2635 Franklin Ave E Sales Date 1.12.2018 Sales Date 9.18.2017 2 THE MELMAR APARTMENTS 3 4 Year Built 6 1960 Units 5 Sales Price $2,500,000 Price/Unit $500,000 Price/Foot $498 GRM/CAP 22.3/3.2% Portage Bay Flats 3232 Fuhrman Ave E Sales Date 9.13.2017 7 Year Built 1976 Units 8 Sales Price $3,564,000 Price/Unit $445,500 Price/Foot $460 GRM/CAP 18.0/4.1% Mali Hus Apts 2462 Dexter Ave N Seattle, WA 98109 Sales Date 8.10.2017

RENT COMPARABLES The Melmar Apts 219 Harvard Ave E 1962-28 Units Studio 1 Bd/1 Bth 2 Bd/1.5 Bth 300 600-650 815 $1,150 - $1,345 $1,495 - $1,695 $2,095 - $2,495 $3.83 - $4.48 $2.49 - $2.61 $2.57 - $3.06 1 1 Roy Street Apts 1005 E Roy St 1 Bd/1 Bth 800 $2,395 $2.99 3 4 1930-25 Units 2 Harvard House 224 Harvard Ave E 1964-29 Units Studio 1 Bd/1 Bth 350 475 $1,425 $1,495 $4.07 $3.15 6 2 THE MELMAR APARTMENTS 3 Sherrydon 411 Bellevue Ave E Studio 1 Bd/1 Bth 520 677 $1,850 $2,095 $3.56 $3.09 1928-14 Units 5 4 The Marianne 414 Belmont Ave E 1 Bd/1 Bth 2 Bd/1 Bth 700 1,000 $1,595 - $1,650 $2,495 $2.28 - $2.36 $2.50 1958-15 Units 5 Bellevue Place 1717 Bellevue Ave Seattle, WA 98122 1963-30 Units Studio 1 Bd/1 Bth 2 Bd/1 Bth 380 647 1,575 $1,275 $1,650 $2,800 $3.36 $2.55 $1.78 6 The Scandia 205 Summit Ave E 1 Bd/1 Bth 530 $1,595 $3.01 1905-30 Units

TOURS AND OFFERS The Melmar Apartments offering is being conducted by Paragon Real Estate Advisors. Questions and inquiries should be addressed to the Paragon representatives listed herein. Paragon will be able to assist investors with on-site tours and due diligence materials. A call for offers will be announced via email for the bid deadline. Offers should detail the following: Purchase price Closing date Source of capital Earnest money deposit amount Schedule of due diligence Description of assumptions for offer This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information and bears all risk for inaccuracies.

CONTACTS 600 University St, Suite 2018 Seattle Washington 98101 206.623.8880 / info@paragonrea.com www.paragonrea.com