KENSINGTON 1625-1627 BELMONT AVENUE SEATTLE, WA 98122 CONTACT INFORMATION: IAN BROWN PRINCIPAL BROKER 206.505.9414 ian@westlakeassociates.com
Table of Contents 1 overview 2 amenities 3 financials 4 comparables 5 location
1 overview
OFFERING SUMMARY $5,700,000 5.38% ($690.91 PSF) CAP 12.78 GRM 33 UNITS $172,727 PER UNIT 8,250 Net Rentable WESTLAKE ASSOCIATES IS PLEASED TO PRESENT THE KENSINGTON APARTMENTS FOR SALE. LOCATED IN THE CAPITOL HILL URBAN VILLAGE, ALL 33-UNITS HAVE BEEN UPDATED IN ONE OF THE BEST LOCATIONS IN THE CITY. THE OFFERING PROVIDES AN OPPORTUNITY TO ACQUIRE A STABILIZED ASSET WITH UPSIDE JUST BLOCKS FROM DOWNTOWN SEATTLE. The Kensington Property consists of 33 units in two buildings on a large 8,150 sq. ft. parcel. Both of the buildings have been recently painted to highlight their beautiful architecture and to provide better continuity between them. The main building has 27 tastefully updated SRO units that share six bathrooms throughout the building. The units have been fully renovated with new hardwood flooring, designer lighting, quartz counters and beautiful cabinets. The units are all accessed through the stately, secure entryway that includes the original mosaic tile as well as new signage that highlights the Kensington name. The wide hallways, with original fir flooring, provide unique separation not found in today's new construction. Other recent improvements, within the last six years, include a newer hot water tank for the central hot water system and new electrical service from the street. These modernized, quintessential working-class apartments are perfectly situated to offer residents an affordable alternative in one of Seattle's best rental sub-markets. The property is located within the Capitol Hill urban village in an amenity rich area. Blocks away from Seattle Central Community College, South Lake Union, the Amazon.com Headquarters, and the Downtown Seattle CBD, Kensington is an investment property in a prominent, highly desired location. The walk-able location allows residents to meet all life's needs on foot or with transit. ADDRESS 1625-1627 Belmont Avenue, Seattle, WA 98122 PROPERTY HIGHLIGHTS PRIME CAPITOL/FIRST HILL LOCATION TURN-KEY ASSET REDEVELOPMENT OPPORTUNITY (MR ZONING) MODERNIZED UNITS (2016) STEPS TO LIGHT RAIL, DOWNTOWN N AND AMAZON 99 WALK SCORE
PROPERTY DESCRIPTION PROPERTY OVERVIEW Westlake Associates is pleased to present the Kensington Apartments for sale. Located in the Capitol Hill Urban village, all 33-units have been updated in one of the best locations in the city. THE OFFERING PROVIDES AN OPPORTUNITY TO ACQUIRE A STABILIZED ASSET WITH UPSIDE JUST BLOCKS FROM downtown Seattle. LOCATION OVERVIEW The Kensington Property consists of 33 units in two buildings on a large 8,150 sq. ft. parcel. Both of the buildings have been recently painted to highlight their beautiful architecture and to provide better continuity between them. The main building has 27 tastefully updated SRO units that share six bathrooms throughout the building. The units have been fully renovated with new hardwood flooring, designer lighting, quartz counters and beautiful cabinets. The units are all accessed through the stately, secure entryway that includes the original mosaic tile as well as new signage that highlights the Kensington name. The wide hallways, with original fir flooring, provide unique separation not found in today's new construction. Other recent improvements, within the last six years, include a newer hot water tank for the central hot water system and new electrical service from the street. These modernized, quintessential working-class apartments are perfectly
PROPERTY DETAILS SALE PRICE $5,700, 00,000000 LOCATION INFORMATION Building Name Kensington Street Address 1625-1627 Belmont Avenue City, State, Zip Seattle, WA 98122 County/Township King PROPERTY DETAILS Property Type Property Subtype Zoning Lot Size PARKING & TRANSPORTATIONTION Multifamily Low-Rise/Garden MR 8,150 SF BUILDING INFORMATION Number Of Spaces 3 Building Size 12,068 SF Number Of Floors 2 Year Built 1914 Last Renovated 2017 Gross Leasable Area 8,250 SF Roof Torch down Exterior Walls Stucco/Cedar UTILITIES & AMENITIES Central HVAC Central Hot Water
INTERIOR PHOTOS
EXTERIOR PHOTOS
2 amenities
DOWNTOWN SEATTLE AMENITIES AND MAJOR EMPLOYERS SOUTH LAKE UNION CENTRAL BUSINESS DISTRICT Allen Institute Amazon Facebook Fred Hutch Google Group Health Microsoft NBBJ PATH REI Seattle BioMed Seattle Cancer Care Alliance UW Medicine Avvo Cobalt Cynergy Dell Deloitte Digital Expedia Getty Images Google Hines HTC Hulu Intel Microsoft Nordstrom Port of Seattle Russell Investments Seattle Art Museum Ticor Title Company Twitter URS Corp. Weyerhaeuser Wunderman Zillow Zynga BELLEVUE 5 5 SOUTH LAKE UNION CENTRAL BUSINESS DISTRICT HQ OPENING 2019
3 financials
FINANCIAL OFFERING PROPERTY OVERVIEW Number of Units 33 Year Constructed 1914 Remodel 2017 Rentable SF 8,250 SF Lot Size 8,150 SF Zoning MR PRICE ANALYSIS Sale Price $5,700,000 Price per Unit $172,727 Price per NRSF $472.32 Price per Land SF $699.39 Current Cap 5.38% Current GRM 12.78 Market Cap 6.17% Market GRM 11.56 FINANCING Loan Amount $4,000,000 Down Payment $1,700,000 Rate 4.0% % Down 33% Amortization 30 # OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF 31 Studio 225 $1,050 $4.67 $1,100 $4.89 1 1 BD 1 BA 775 $1,995 $2.57 $2,000 $2.58 1 2 BD 1 BA 850 $2,400 $2.82 $2,500 $2.94 Total AVG $36,945 $4.30 $38,600 $4.49 INCOME CURRENT PRO FORMA Scheduled Rent Income $415,500 $463,200 + Laundry $4,200 $4,800 + Utility $40,200 $40,200 Scheduled Gross Income $459,900900 $508,200 - Vacancy & Cr Losses $13,797 $15,246 Gross Income $446,103 $492,954 EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT Real Estate Taxes $43,710 $1,324 $43,710 $1,324 Property Insurance $6,945 $210 $6,945 $210 Management $22,995 $696 $24,648 $746 Utilities $37,470 $1,135 $37,470 $1,135 Repairs & Maintenance $19,787 $599 $19,787 $599 Reserves $8,500 $257 $8,500 $257 Total Operating Expenses $139,407 $4,224 $141,060 $4,274 Net Operating Income $306,696 $9,293 $351,894 $10, 0,663 Cash Before Taxes $77,537 $2,349 $122,735 $3,719 Plus Principal Reduction $70,441.12 $2,134.58 $70,441.12 $2,134.58 Total Return Before Taxes $147,978.12 $4,484.19 $193,176.12 $5,853.82 Annual Payment $229,159 Monthly Payment $19,096 The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment.
FINANCIAL SUMMARY INVESTMENT OVERVIEW CURRENT MARKET Price $5,700,000 $5,700,000 Price per Unit $172,727 $172,727 CAP Rate 5.38% 6.17% GRM 14.4 14.4 Cash-on-Cash Return (yr 1) 4.56% 7.22% Total Return (yr 1) $147,978 $193,176 Debt Coverage Ratio 1.34 1.54 OPERATING DATA CURRENT MARKET Gross Scheduled Income $415,500 $463,200 Other Income $44,400 $45,000 Total Scheduled Income $459,900 $508,200 Vacancy Cost $13,797 $15,246 Gross Income $446,103 $492,954 Operating Expenses $139,407 $141,060 Net Operating Income $306,696 $351,894 Pre-Tax Cash Flow $77,537 $122,735 FINANCING DATA CURRENT MARKET Down Payment $1,700,000 $1,700,000 Loan Amount $4,000,000 $4,000,000 Debt Service $229,159 $229,159 Debt Service Monthly $19,096 $19,096 Principal Reduction (yr 1) $70,441 $70,441
RENT ROLL UNITS BEDROOM/BATH SIZE RENT PSF LEASE EXPIRATION 01 Studio 260 $995 $3.83 08/31/2017 02 Studio 190 $950 $5.00 02/28/2018 03 Studio 175 $5.11 05/31/2018 04 Studio 180 $995 $5.53 05/31/2018 05 Studio 195 $975 $5.00 09/30/2017 06 Studio 175 $900 $5.14 09/30/2017 08 Studio 145 $900 $6.21 09/30/2017 09 Studio 190 $975 $5.13 08/31/2017 10 Studio 180 $950 $5.28 11 Studio 195 $995 $5.10 04/30/2018 12 1 x 1 330 $1,295 $3.92 03/31/2018 14 Studio 260 $895 $3.44 08/31/2017 15 Studio 190 $975 $5.13 01/31/2018 16 Studio 180 $950 $5.28 03/31/2018 17 Studio 180 $975 $5.42 01/31/2018 18 Studio 200 $975 $4.88 09/30/2017 19 Studio 175 $995 $5.69 06/30/2018 21 Studio 175 $895 $5.11 05/31/2018 22 Studio 190 $995 $5.24 11/30/2017 23 Studio 180 $995 $5.53 11/30/2017 24 Studio 195 $900 $4.62 08/31/2017 25 Studio 145 $950 $6.55 02/28/2018 26 Studio 185 $900 $4.86 08/31/2017 27 The statements, ts, 1 figures x 1 & computations 360 herein, ein, $1,195 while not $3.32 guaranteed, 02/28/2018 are secured ed from 28 sources we believe 1 x reliable. 0 Investors 480 should verify $1,095 all numbers, $2.28 computations, 08/31/2017 and assumptions before e committing to an investment. t.
RENT ROLL UNITS BEDROOM/BATH SIZE RENT PSF LEASE EXPIRATION 29 Studio 370 $1,095 $2.96 7/31/2017 30 Studio 220 $1,025 $4.66 08/31/2017 31 Studio 180 $950 $5.28 32 Studio 200 $950 $4.75 06/30/2018 33 Studio 180 $950 $5.28 08/31/2017 34 Studio 180 $950 $5.28 06/30/2018 1625 1 x 1 775 $1,995 $2.57 06/30/2017 1625.5 2 x 1 850 $2,295 $2.70 07/31/2017 33 8,265 $34,725 Averages 250 $1,052 $0.13 The statements, ts, figures & computations herein, ein, while not guaranteed, are secured ed from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before e committing to an investment. t.
UNIT MIX SUMMARY UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF Studio 31 93.9 225 $1,050 $4.67 $1,100 $4.89 1 BD 1 BA 1 3.0 775 $1,995 $2.57 $2,000 $2.58 2 BD 1 BA 1 3.0 850 $2,400 $2.82 $2,500 $2.94 Totals/Averages 33 100% 8,600 $36,945 $4.30 $38,600 $4.49
4 comparables
SALE COMPS SUBJECT PROPERTY 1 1819 BELLEVUE AVE. SEATTLE 2 1628 BELLEVUE AVENUE SEATTLE PRICE / UNIT $172,727 PRICE / FT $472.32 CAP 5.38 GRM 12.78 BUILT 1914 UNITS 33 SALE DATE PRICE / UNIT $202,419 PRICE / FT $447.00 CAP 4.1 GRM 14.5 BUILT 1929 UNITS 31 SALE DATE 11/30/2016 PRICE / UNIT $176,785 PRICE / FT $378.01 CAP 5.3 GRM 12.5 BUILT 1916 UNITS 28 SALE DATE 11/30/2016 3 3016 1ST AVENUE SEATTLE 4 421 SUMMIT AVE E SEATTLE 5 105 MERCER STREET SEATTLE PRICE / UNIT $198,684 PRICE / FT $498.02 CAP 4 GRM 14 BUILT 19110 UNITS 38 SALE DATE 03/02/2017 PRICE / UNIT $180,000 PRICE / FT $236.01 CAP 2.2 GRM 19.5 BUILT 1929 UNITS 18 SALE DATE 05/01/2017 PRICE / UNIT $218,292 PRICE / FT $362.01 CAP 3 GRM 17 BUILT 1929 UNITS 41 SALE DATE 05/01/2017
SALE COMPS SUMMARY SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS Kensington 1625-1627 Belmont Avenue Seattle, WA 98122 $5,700,000 12,068 SF $472.32 $172,727 5.38% 12.78 33 SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE 1 2 3 4 5 Bel-Vista Apartments 1819 Bellevue Ave. Seattle, WA 98122 Ansonia Apartments 1628 Bellevue Avenue Seattle, WA 98122 Centerview 3016 1st Avenue Seattle, WA 98121 Lombardy Court 421 Summit Ave E Seattle, WA 98102 Mercer Apartments 105 Mercer Street Seattle, WA 98109 $6,275,000 14,038 SF $447.00 $202,419 4.1% 14.5 31 11/30/2016 $4,950,000 13,095 SF $378.01 $176,785 5.3% 12.5 28 11/30/2016 $7,550,000 15,160 SF $498.02 $198,684 4.0% 14 38 03/02/2017 $3,240,000 13,728 SF $236.01 $180,000 2.2% 19.5 18 05/01/2017 $8,950,000 24,723 SF $362.01 $218,292 3.0% 17 41 05/01/2017 PRICE BLDG SF PRICE/SF PRICE/UNIT Totals/Averages $6,193,000 16,149 SF $383.49 $198,493 3.72% 15.5 31.2 CAP GRM # OF UNITS CLOSE
SALE COMPS MAP SUBJECT PROPERTY 1625-1627 Belmont Avenue Seattle, WA 98122 1 BEL-VISTA APARTMENTS 1819 Bellevue Ave. Seattle, WA 98122 2 ANSONIA APARTMENTS 1628 Bellevue Avenue Seattle, WA 98122 3 CENTERVIEW 3016 1st Avenue Seattle, WA 98121 LOMBARDY COURT 4 421 Summit Ave E Seattle, WA 98102 5 MERCER APARTMENTS 105 Mercer Street Seattle, WA 98109
5 location
PUGET SOUND PUGET SOUND 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, F5 Networks 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. largest 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. PUGET SOUND LARGEST EMPLOYERS 80,000 Employees 42,000 Employees 40,000 Employees JOINT BASE LEWIS-MCCHORD 56,000 Employees 25,000 Employees 20,000 Employees 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 Medical 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, second- 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. 20,000 Employees 15,000 Employees 10,000 Employees 13,000 Employees WESTLAKE ASSOCIATES, INC
CAPITOL HILL CAPITOL HILL Close to the center of downtown, Capitol Hill is one of the oldest neighborhoods in Seattle. It was named in hopes of being the state capitol, but Olympia claimed ownership to that title instead. Capitol Hill is a hot spot for young artists, a nucleus for medical personnel working at the many hospitals nearby, and is the hub to the Central District. Window shoppers enjoy the many stores along Broadway Avenue, which is the main street through the heart of Capitol Hill, and many food connoisseurs will find an array of dining options to fit their fancy. The local high school, Garfield High School, boasts among its attendees and alums, music legends Quincy Jones and Jimi Hendrix, martial arts legend Bruce Lee, New York Trade Center architect Minoru Yamasaki, Olympic and Baskin & Robbins co-founder Irv Robbins. Capitol Hill was once considered millionaire country because of the huge mansions and stately homes. Many of the large residences are passed down from generation to generation, and the area is still known for its large estates. Volunteer Park peeks out of the hill with the building that was once originally the Seattle Art Museum and a tower that has an extraordinary 360-degree view of the greater Puget Sound area. On a clear day, one can see the Cascades ranging from Mt. Rainier to the south and Mt. Baker to the north, with Lake Washington and the Eastside in the foreground. Towards the west, the picturesque and powerful Olympic Mountains engulf Queen Anne and the downtown area. WEYERHAEUSER WESTLAKE ASSOCIATES, HEADQUARTERS INC.
DEMOGRAPHICS MAP POPULATION 0.25 MILES 0.5 MILES 1 MILE Total population 7,377 22,436 57,498 Median age 31.3 32.8 32.9 Median age (Male) 32.2 33.6 33.7 Median age (Female) 30.2 31.5 32.7 HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE Total households 5,353 16,093 35,710 # of persons per HH 1.4 1.4 1.6 Average HH income $53,598 $58,445 $61,447 Average house value $363,037 $392,579 $448,227 * Demographic data derived from 2010 US Census
ABOUT WESTLAKE 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 t Real Estate Institute (CREI) MEMBER: : Washington State Realtors Association (WSMA)