2415 - 2473 Aurora Ave N

Redevelopment The Hillside Motel 2415 - 2473 Aurora Ave N

Prepared by: TALOR OKADA +1 425 586 5605 [email protected]

NICK BIERLY +1 425 586 5631 [email protected] 2451-2473 Aurora Ave N

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 2 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum Property Overview

2451-2473 Aurora Ave 91 N Walk Score • High visibility location with 229’ of frontage off Hwy I – 99 in popular Queen Anne Neighborhood

• Two lots total 19,723 SF • Parcel Number: 352890-1186, 352890-1185 64 • Existing buildings on site: Transit Score

• 12 Unit Hillside Motel – 3,182 SF

• 8 – Plex – 3,582 (Fire Damage in 2019)

• Land bank with motel business income • Zoning: C1 – 55 (M) 87 • 3.75 FAR allows for flexible redevelopment Bike Score options with a wide variety of permitted uses

• Daily traffic counts exceed 102,000 cars per day

• Close to RapidRide bus line to Downtown

• List Price: $2,400,000

Bellevue | Tacoma nai-psp.com 3 2451-2473 Aurora Ave N

Development Analysis

**Architectural Massing Study Determining Highest and Best Use to be Included Soon

NC1 – 55 – Zoning Description

A small shopping area that provides primarily convenience retail sales and services to the surrounding residential neighborhood, such as small grocery stores, hair salons, and coffee shops. Building types are small commercial structures, multi-story mixed use and residential structures. Non-residential uses typically occupy the street front. 10,000 square feet is the maximum size for some commercial uses.

While the C1 zoning allows most any kind of commercial use, the reality of new office or hospitality development in the current environment seems unlikely. The typical Multi-Family market rent and dimensions in the Queen Anne submarket is as follows. Blend of Studio, One and Two-bedroom apartments: (Average size 625sf, rent $2000/mo), and single room micro units: (Average size 325sf, rent $1300). Given the lack of views which projects on the other side of Aurora have, and the necessity of orienting units away from the steep hillside to the west it may make more sense to do the micro units. We’ve determined the highest of best use of the site as it relates to value is as a development site. The motel and 8 – Unit Multifamily building would equate to a lower value in terms of owner-user or investment pricing.

The 55’ height limit makes it easy to accommodate a 4 over 1 podium style building, 15’ floor to floor at the base and then 10’ for the residential floors. The limiting factor is going to be number of units per floor since you really can’t double load a corridor given the inability to use the West side due to the slope. A residential floor plate with a “C” shaped configuration using the N, E, and S sides for unit windows, with a single loaded corridor at the back, would appear to be the most efficient approach. Using the overall site dimensions, and subtracting

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 4 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum Property Overview

Conv MF SEDU MF for required setbacks, yields the following unit counts: Unit SF 625 325 However, these need to be parked per the Seattle code at 1 per unit Unit Frontage 15 12 for the standard multifamily, and .5 per unit for the micro units. The Unit Depth 42 27 amount of parking spaces that can be generated will be a function Total Frontage 275 304 of the area that can be generated that is devoted to parking within Units Per Floor 18 25 the podium, which I’ve calculated at 15600sf (site area of 19,723 Total Units 72 100 less setbacks). The area available for parking needs to be further reduced by allocations to stairs, elevators, and lobby (2000sf), MHA units (2000sf), and parking ramp (2000sf); so a total of about 9600 sf for parking. 2 levels of parking at 325sf per vehicle yields a parking total of about 60 spaces. Thus, parking sets the upper limit for a conventional MF scheme of around 60 units, while frontage defines the number of micro units at around 100 units. So, project valuation using the income capitalization approach would be as follows:

A reasonable approach to land value would then be to pay 12.5% of the ultimate project value, so: Conv MF SEDU MF

Market Units 57 95 Conv MF SEDU MF Land Value @ 12.5% $2,342,600 $2,548,400 Market Rent/Unit $2,000 $1,300 Based on this development analysis and the supporting sales Potential Rent/Mar- $1,368,000 $1,482,000 ket comparables, we believe the market value of the property MHA Units 3 5 circa December 22, 2020 would be approximately $120 per square foot for the land, which would equate to a sales price MHA Rent/Unit $1,200 $800 of $2,400,000.

Potential Rent/MHA $43,200 $48,000 Disclaimers which should be communicated to potential Total Potential Rent $1,411,200 $1,530,000 buyers:

Vacancy $70,560 $70,560 • Assumptions have not been reviewed by City of Seattle in a preapplication meeting Net Rent $1,297,440 $1,411,440 • No survey provided, dimensions estimated off of County OPX (34%) $454,104 $494,004 Assessor maps

NOI $843,336 $917,436 • Site shows as a slide hazard zone due to the steep hillside

Cap Rate 0.045 0.045 to the west, impacts are unknowns. A buyer should address this in more detail during their due diligence Value $18,740,800 $20,387,467 process.

Bellevue | Tacoma nai-psp.com 5 2451-2473 Aurora Ave N

Executive Summary

NAI Puget Sound Properties is pleased to offer for sale the Hillside Motel Development site, a 12-unit motel bordering Queen Anne and South Lake Union neighborhoods. The property offers a developer or investor the opportunity to purchase a 19,500+ “ square foot rectangular lot that is ready for future The property development. The property currently operates as the Hillside Motel. offers a

The property is well located off Aurora Avenue in the Queen Anne neighborhood. It is a high visibility developer or location with 229’ of frontage off Aurora. The property was rezoned to C1-55 (M) in 2019, to allow larger investor the development and encourage more affordable housing. 3.75 FAR allows for a wide range of redevelopment opportunity options including Multi-Family, Office, Retail and Hotel. Located within minutes to South Lake Union home to purchase to several Fortune 500 companies such as Amazon, Facebook and Google the Hillside Motel Development a 19,500+ site provides an exceptional opportunity for a project in one of the most sought after neighborhoods in square foot Seattle. rectangular lot Name Hillside Motel 2451 & 2473 Aurora Avenue N that is ready Address Seattle, WA Parcel 352890-1186, 352890-1185 for future Number Lot Size Two lots total 19,723 SF development. Zoning C1 – 55 (M)

Price $2,400,000

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 6 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum Property Overview

2451-2473 Aurora Ave N

Bellevue | Tacoma nai-psp.com 7 “ This highly sought after neighborhood community is vast in its offerings with a mix of commercial hubs and residential streets throughout. Location Overview

Queen Anne

The 2451 & 2473 Aurora property is located in the Queen Anne neighborhood of Seattle, just minutes from South Lake Union which is home to several Fortune 500 companies and provides countless amenities for its visitors to enjoy. Queen Anne is defined to the north by the Fremont Cut of the Lake Washington Ship Canal, by 15th Avenue W to the West, Lake Union and Aurora Avenue N to the East, and by Belltown to the south. This highly sought after neighborhood community is vast in its offerings with a mix of commercial hubs and residential streets throughout. Being home to the attraction heavy Seattle Center in Lower Queen Anne, this area often hosts cultural festivals and is home to the Space Needle, Pacific Science Center, Museum of Pop Culture, and the Climate Pledge Arena.

The Queen Anne neighborhood’s prime location is well served by Highways and bus lines, making for a quick commute to many of the region’s top employers. This affluent area of Seattle has something for everyone; foodies, coffee connoisseurs, nightlife enthusiasts and nature-lovers alike will find plenty of activities to do and places to visit in Queen Anne. Residents will enjoy an impressive walk score of 91 with nearly everything at their fingertips. There is no surprise this area is consistently rated a top ten neighborhood in Seattle.

Queen Anne is situated between several major parks, with many vantage points offering views of Elliot Bay, West Seattle, the Space Needle, and Mount Rainier in the background on clear days. The most notable being Kerry Park for its picturesque views and the largest being Kinnear Park with over 14.1 acres of coverage.

Bellevue | Tacoma nai-psp.com 9 2451-2473 Aurora Ave N

Vibrant Neighborhood

FOOD & DRINKS

1. Canlis 16. Starbucks 2. Zeeks Pizza 17. Caffe Fiore 3. Grappa 18. Molly Moon’s Ice Cream 4. Ikiiki Sushi Bar 19. Sazon d’ la baja 5. Bounty Kitchen 20. Tacos Chukis 6. Eden Hill Provisions 21. Art Marble 7. Heartbeet Organic Superfoods 22. Buca di Beppo Italian 8. Queen Anne Coffee Co. 23. Flat Stick Pub 9. Domani Pizzeria & Restaurant 24. Cafe Turko 10. Koku Cafe + Market 25. Pablo y Pablo 11. Arista Catering 26. Varsity Inn Restaurant 12. Boat House Deli 27. Fiasco 13. Pasta Freska Italian 28. Just Burgers Fremont 14. Tea King 29. Byen Bakeri 15. Gyro & More 30. China Harbor

PARKS & RECREATION

1. Westlake Greenbelt 10. The Electric Boat Company 2. Thomas C. Wales Park 11. Northwest Outdoor Center 3. MacLean Park 12. Safe N Sound Swimming 4. NE Queen Anne Greenbelt 13. Wolf Creek Ravine Natural Area 5. Trolley Hill Park 14. David Rodgers Tennis Courts 6. East Queen Anne Playground 15. Gas Works Park 7. West Queen Anne Playfield 16. Kerry Park 8. 5th and Lynn Park 17. Kinnear Park 9. Hot Tub Boats

RETAIL

1. Lyon’s Grocery 6. EVO Seattle 2. Safeway 7. Fremont Vintage Mall 3. Trader Joe’s 8. Indoor Sun Shoppe 4. 7-Eleven 9. Performance Kitchen 5. PCC Community Market 10. Paper Source

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 10 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum Location Overview

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1 2451 - 2743 Aurora Ave N

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Seattle CBD Greenlake Capitol Hill

Westlake Eastlake Lake Union

Gas Works Park Fremont

Wallingford

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 12 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum

Imagery date: 8/16/20 Google Landsat / Copernicus Data LDEO-Columbia, NSF, NOAA Data SIO, NOAA, U.S. Navy, NGA, GEBCO 200 m Camera: 833 m 47°40'00"N 122°20'35"W 87 m Location Overview

West Seattle Alki Beach

Puget Sound

Queen Anne Westlake

Subject Property Fremont

Aurora Ave

Ballard

Bellevue | Tacoma nai-psp.com 13

Imagery date: 8/16/20 Google Landsat / Copernicus Data LDEO-Columbia, NSF, NOAA Data SIO, NOAA, U.S. Navy, NGA, GEBCO 200 m Camera: 833 m 47°40'00"N 122°20'35"W 87 m Custom Map

July 22, 2021

Demographics

Population 1 Mile 3 Miles 5 Miles

Total Population 35,452 320,433 515,939

Median Age 33.9 33.1 35

Per Capita Income $91,252 $77,694 $75,216

Household 1 Mile 3 Miles 5 Miles

Households 15,400 125,654 202,069

Median Household Income $125,721 $101,615 $104,901

Average Household Income $168,390 $145,704 $150,563

Business 1 Mile 3 Miles 5 Miles

Total Businesses 2,210 20,906 27,776

Total Employees 21,117 345,476 425,215

Unemployment Rate 3.5% 4.7% 4.6%

Education 1 Mile 3 Miles 5 Miles

High School Diploma 4% 6% 7%

Some College 15% 17% 18% Bachelor’s/Graduate/ 81% 75% 72% Professional Degree

Bellevue | Tacoma nai-psp.com 15 2451-2473 Aurora Ave N

Offering Terms & Procedures

Terms of Sale The Property is being offered “as is”, “where is” and subject to all agreed terms. Seller makes no representation or warranty with respect thereto. Buyer acknowledges that buyer is not relying on any representation or warranty of Seller or of any agent or representative of Seller. All information furnished regarding property for sale is from sources deemed reliable, but no warranty or representation is made as to the accuracy thereof and the same is subject to errors, omissions, changes of prices, rental or other conditions, prior sale or lease or withdrawal without notice.

No Contact with Seller All contact with seller shall be conducted through listing agents with prior written approval.

Offering Procedure NAI Puget Sound Properties hereby solicits offers to purchase 2451-2473 Aurora Avenue N. Offers may be responded to as received or “Best and Final” offers may be requested. Inquiries concerning the procedures outlined in this Offering Memorandum may be directed to:

Talor Okada Nick Bierly +1 425 586 5605 +1 425 586 5631 [email protected] [email protected]

The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its 16 accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. G:\Shared drives\ADMIN TEAM\MARKETING\Marketing - InDesign\2021\Brokerage\Offering Memorandums\2451-2473 Aurora Ave N\2451-2473 Aurora Ave N Offering Memorandum Offering Terms & Procedures

Aurora Avenue North

6th Avenue N

Halladay Street

Bellevue | Tacoma nai-psp.com 17 Exclusively marketed by:

Talor Okada +1 425 586 5605 [email protected]

Nick Bierly +1 425 586 5631 [email protected]