aria APARTMENTS 15238 10th Ave SW Burien, WA 98166 Licton Springs APARTMENTS :: FINANCIAL SUMMARY 1
For More Information Please Contact Isaac Chamberlin 206.774.5422 isaac@tfgre.com Aaron Locke 206.774.5436 aaron@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com
02 Investment Overview 05 Submarket Information 08 Financial Summary 10 Sales Comparables 14 Rent Comparables 18 Regional Information Maria APARTMENTS Licton Springs APARTMENTS :: FINANCIAL SUMMARY 1
Investment Overview Maria APARTMENTS :: INVESTMENT OVERVIEW 2 The Foundation Group is pleased to offer the opportunity to purchase the Maria Apartments, a rare 9-unit complex in the heart of old downtown Burien. It is not often that a proven high preforming asset like this comes on the market in one of the fastest growing neighborhoods. A new owner can come in and start collecting great cash flow, while still capitalizing on repositioning of units through updating and/or adding washer/dryers to the units. Burien continues to see rapid growth while still maintaining its affordability, which gives renters an opportunity to still live close to the bustling downtown Seattle. The Maria gives a buyer the opportunity to enter the Puget Sound market in a strong growth area with short and longer term upside. Built in 1974, the Maria Apartments has been meticulously maintained over the years. Current ownership has recently done light updates on two units with quartz countertops and tile flooring in the kitchens and bathrooms. With a complete renovation of the units, this property can capture further rental upside. Other amenities include decks with storage units, a secured storage locker room and an onsite laundry facility. Downtown Burien is a high density area that offers ample retail and dining experience within walking distance.
Quick Facts Price $1,625,000 M Units 9 Current Cap Rate 5.51% Market Cap Rate 7.37% Current GRM 11.49 Market GRM 9.68 Price/Sq.Ft $207 Price/Unit $180,555 Parking Spaces 18 Rentable Sq.Ft 7,865 Lot Sq.Ft 11,870 Zoning RM-24 Year Built 1974 Construction Type Wood Frame Heating Electric Wall Washer/Dryer Common Laundry Room Average Unit Size 874 Maria A PARTMENTS :: INVESTMENT OVERVIEW Parcel Number 122000-0065 Buyer to verify 3
Burien City Description Maria APARTMENTS :: SUBMARKET INFORMATION Burien is a relatively young city which got it s start as a summer waterfront community on the Puget Sound and homesteads on central Lake Burien. With six miles of shoreline and expansive mountain views, residents take pride in their neighborhoods, giving Burien a small town vibe in a high-density city whose location allows for a versatile and thriving community. Housing in Burien ranges from starter to high-end homes, condominiums and apartments of all sizes, including senior living. Walk Score lists Burien as the third most walkable city in Washington State. NerdWallet recently listed Burien as one of the top places to raise a family. The community offers a high quality of life where residents can access acres of public parks, trails, playgrounds, mature forest, and a beach recently restores to its natural state. The Puget Sound Regional Council designated Burien as one of the 25 Regional Growth Center that will experience focused urban growth in the decades ahead. Downtown Burien s recently completed a Town Square, a Joint King County Regional Library and Burien City Hall, and 500 new residential units with a new central park, featuring environmentally friendly landscaping and a splash pad park. BURIEN TOWN SQUARE RESIDENTIAL CONDOMINIUM Licton Springs APARTMENTS :: FINANCIAL SUMMARY BURIEN TOWN SQUARE PARK 5 5
Burien City Statistics Licton Springs APARTMENTS :: FINANCIAL SUMMARY TRANSPORTATION 2 2 3 6 4 4 5 4 1 1 3 2 3 1 2 3 1 RETAIL 1 Burien Plaza 2 Burien Town Plaza 3 CVS Pharmacy 4 Burien Town Square 5 The UPS Store 6 B&E Meat and Seafood CO HEALTHCARE 1 Highline Medical Center Foundation 2 Franciscan Medical Center 3 Immediate Clinic Burien RECREATION 1 Burien Parks, Recreation, and Cultural Services 2 Seahurst Park 3 Lake Burien 4 Seattle Ballooning SCHOOLS 1 Highline High School 2 Gregory Heights Elementary 3 Sylvester Middle School 4 Maria A PARTMENTS :: SUBMARKET INFORMATION 90 51 6
Licton Springs APARTMENTS :: FINANCIAL SUMMARY 7
Maria APARTMENTS :: FINANCIAL SUMMARY Scheduled Income Unit Type Units Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft Studio* 1 365 $800 $2.19 $900 $2.47 2 Bed/1 Bath 1 825 $1,300 $1.58 $1,595 $1.93 2 Bed/1 Bath 1 825 $1,300 $1.58 $1,595 $1.93 2 Bed/1 Bath 1 975 $1,300 $1.33 $1,650 $1.69 2 Bed/1 Bath 1 975 $1,300 $1.33 $1,650 $1.69 2 Bed/1 Bath 1 975 $1,300 $1.33 $1,650 $1.69 2 Bed/1 Bath 1 975 $1,495 $1.58 $1,650 $1.69 2 Bed/1 Bath 1 975 $1,495 $1.58 $1,650 $1.69 2 Bed/1 Bath 1 975 $1,495 $1.58 $1,650 $1.69 Average 874 $1.50 $1.78 Total 9 $11,785 $13,990 Property Notes & Assumptions Based off of a loan amount of $1,105,000 Interest Rate at 4.61% Rent Roll as of August, 2018 * Non-conforming studio unit 8
Financials Current Market Gross Potential Rent $141,420 $167,880 Vacancy $7,071 5% $8,394 5% Effective Gross Rent $134,349 $159,486 OTHER INCOME Utility Income $0 $10,200 Laundry (Proforma) $3,300 $3,300 Effective Gross Income $137,649 $172,481 EXPENSES Property Taxes (2018) $11,608 $15,000 Insurance (2018) $3,144 $3,144 Utilities (Proforma) $16,372 $16,372 Maintenance & Repairs (Proforma) $7,200 $7,200 Professional Management (Proforma) $6,882 $8,649 Admin/Misc. (Proforma) $675 $675 Reserves (Proforma) $2,250 $2,250 Total Expenses $48,131 $53,272 Net Operating Income $89,518 $119,714 Loan Payments $68,056 $68,056 Pre Tax Cash Flow $21,462 4.13% $51,658 9.93% Principle Reduction $17,482 $17,482 Total Pre Tax Return $38,944 7.49% $69,140 13.30% Maria A PARTMENTS :: FINANCIAL SUMMARY 9
Sales Comparables Building Name Address Sales Date # of Units Year Built Sales Price GRM CAP Price/ SqFt Price/Unit Maria A PARTMENTS :: RENT COMPARABLES Adreina Velma Normandy Park Apts. 15409 9th Ave SW 9/20/2017 6 1979 $988,000 12.4 4.06% $197 $164,667 130 SW 184th St 9/15/2017 8 1967 $1,245,000 11.7 5.01% $216 $155,625 The Olive Branch 427 SW 154th St 9/6/2017 6 1976 $1,250,000 12.7 5.30% $259 $208,333 Averages 12.3 5.00% $224 $176,208 Adreina Velma Normandy Park Apts. The Olive Branch 10
Sales Comparables Maria M 1 Adreina Velma 3 Olive Branch Maria APARTMENTS :: RENT COMPARABLES 2 Normandy Park Apts. 11
Sales Comparables Maria APARTMENTS :: RENT COMPARABLES Maria II Apartments 15238 10th Ave SW Units 9 Price $1,625,000 Sale Date TBD Price / Unit $191,667 Price / Sq Ft $207 Cap Rate 5.70% 90 51 1 Adreina Velma 15409 9th Ave SW Units 6 Price $988,000 Sale Date 9/20/2017 Price / Unit $164,667 Price / Sq Ft $197 Cap Rate 4.06% 90 51 GRM 11.23 GRM 12.04 12
2 Normandy Park Apts 130 SW 184th St Units 8 Price $1,245,000 Sale Date 9/15/2017 Price / Unit $155,625 Price / Sq Ft $216 Cap Rate 5.01% 50 3 Olive Branch 427 SW 154th St Units 6 Price $1,250,000 Sale Date 9/6/2017 Price / Unit $208,333 Price / Sq Ft $259 Cap Rate 5.30% 93 53 Maria A PARTMENTS :: RENT COMPARABLES GRM 11.7 GRM 12.7 13
Rent Comparables Property Name Property Address Unit Type Average SF Current Rent Current / SF Maria A PARTMENTS :: RENT COMPARABLES 49th St. Apartments 630 SW 149th St S 512 $1200 $2.34 Landmarc Villa 15325 6th Ave SW S 500 $980 $1.96 Burien Triplex 43 SW 156th St 2 Bed 1 Bath 900 $1,650 $1.83 Burien Lake View 15930 3rd Pl SW 2 Bed 1 Bath 1,100 $1,750 $1.59 The Olive Branch 427 SW 154th St 2 Bed 1 Bath 805 $1,344 $1.67 49th St. Apartments Landmarc Villa Burien Triplex Burien Lake View 14
Rent Comparables Maria The Olive branch M 1 5 2 4 49th St. Apartments Landmarc Villa 3 Burien Triplex Burien Lake View Maria APARTMENTS :: RENT COMPARABLES 15
Maria A PARTMENTS :: PHOTO GALLERY 16
Maria APARTMENTS :: PHOTO GALLERY 17
Maria APARTMENTS :: REGIONAAL INFORMATION Seattle / Puget Sound Region Seattle is the largest city in the state of Washington with an estimated population of 686,800 as of 2016. The Seattle metropolitan area, also known as the Puget Sound, is comprised of King, Pierce and Snohomish County. As an MSA, the Puget Sound is the 15th largest metropolitan area 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 Weyerhauser. In addition, Seattle is home to other notable tech companies such as Expedia, Zillow, Tableau and Zulily. It is quickly establishing itself as a national tech hub as multiple companies from Silicon Valley, such as Google and Facebook, have opened Seattle offices in an attempt to draw on the talented pool of tech workers living in and rapidly moving to Seattle. 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. Recently Conway Pederson forecasts they expect the Puget Sound region to add 47,900 jobs in 2016. 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. 18
Buoyed by its technology sector and the metro s appeal as a live-work-play environment, Seattle s economy and multifamily market continue to break new ground. Maria A PARTMENTS :: REGIONAAL INFORMATION 19
For More Information Please Contact Isaac Chamberlin 206.774.5422 isaac@tfgre.com Aaron Locke 206.774.5436 aaron@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.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.