Rainier 6 Renton

RAINIER 6 RENTON

LAKE WASHINGTON MERCER ISLAND

RAINIER STATION

RAINIER VALLEY

OTHELLO LIGHT RAIL STATION

RAINIER 6

BEACON HILL

COLUMBIA CITY COLUMBIA CITY STATION OFFERING

Paragon Real Estate Advisors is pleased to exclusively offer for sale the Rainier 6. This 6-unit apartment building is well located in South Seattle. The Rainier 6 is a solid 1960’s property that has recently been updated.

This property offers a buyer the opportunity to acquire a building in one of the best multi-family investment markets in the country, with the potential to produce excellent cash flow.

Exclusively offered by Paragon Real Estate Advisors

NAME Rainier 6

ADDRESS 6527 Rainier Ave S, Seattle, WA

TOTAL UNITS 6 BUILT 1967 SQUARE FEET 4,752 Total Net Rentable PRICE $1,100,000

PRICE PER UNIT $183,333

PRICE PER FOOT $231.48

CURRENT GRM/CAP 13.3/5.1%

MARKET GRM/CAP 11.8/6.0%

TERMS Cash Out

LOT SIZE 5,072 Square Feet

ZONING LR3

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. INVESTMENT HIGHLIGHTS

Less than 1 mile from Sound Transit light rail station New roof

15 minutes to Downtown Seattle Market 6.0% CAP

Potential to add bedrooms by reconfiguring living rooms Spacious 1 and 2 bedroom floorplans

The property is located in an Opportunity Zone Over $100k in improvements IMPROVEMENTS

1967 wood-framed construction

Three-story, wood-sided building

Desirable mix of 3 – 1 bedroom units and 3 – 2 bedroom units

Updated kitchens and bathrooms

New shower surrounds

New solid surface flooring

Windows replaced

Decks resurfaced

New roof

Common laundry

Potential to reconfigure living rooms to add bedrooms/den and convert 1 bedroom units to 2 bedroom unit and 2 bedroom units to 3 bedroom units MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT MAJOR EMPLOYERS - SOUTH LAKE UNION COLUMBIA CITY

Columbia City has the highest Walk Score of any neighborhood south of downtown, including the ever-popular “Junction” in West Seattle. There’s a lot to do here, and it’s all concentrated in one area. The people here love to support the local businesses. Today, the thriving pedestrian business district along Rainier Avenue South is home to six bars, a grocery store, a number of restaurants, bakeries, coffee shops, assorted retail, an art gallery, fitness facilities, a fraternal clubhouse, a movie theater, and multiple live music venues. With the neighborhoods mix of craftsman bungalows, market rate and low-income apartment buildings, and townhouse developments, this area is quickly becoming a popular neighborhood for those looking for an urban environment without the high prices of the downtown area. Community estimates have put the number of new homes in the planning pipeline as numbering at least 1,500. Many of these developments are in formerly vacant lots similar to the subject. Train service at the neighborhood’s Link Light Rail station began in July 2009. The station is situated between the Othello and Mount Baker stations on the Central Link line, which runs from Seattle–Tacoma International Airport to Downtown Seattle and the University of Washington as part of the Link light rail system. The station consists of two at-grade side platforms between South Alaska Street and South Edmunds Street in the median of Martin Luther King Jr. Way South in the Columbia City neighborhood, part of Seattle’s Rainier Valley. Trains serve the station twenty hours a day on most days; the headway between trains is six minutes during peak periods, with less frequent service at other times. Columbia City station is also served by two King County Metro bus routes that connect it to Mount Baker, Renton and West Seattle. UNIT PHOTOS FLOOR PLANS

1 BD/1BTH 2 BD/1BTH

BEDROOM

PATIO LIVING AREA BATH KITCHEN

LIVING AREA PATIO

BATH KITCHEN BEDROOM BEDROOM FLOOR PLANS: PROPOSED ADDITIONAL BEDROOM OR DEN*

1 BD/1BTH 2 BD/1BTH

LIVING AREA BEDROOM BEDROOM OR DEN KITCHEN PATIO BATH

PATIO BEDROOM BATH OR DEN LIVING AREA KITCHEN BEDROOM BEDROOM

*Buyer to verify Unit Breakdown RAINIER 6

APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 1 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,050 $1.75 2 2 Bd/1 Bth 1,000 Sq.Ft. $1,200 $1.20 $1,350 $1.35 3 2 Bd/1 Bth 1,000 Sq.Ft. $1,250 $1.04 $1,350 $1.75 4 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,350 $1.35 5 2 Bd/1 Bth 1,000 Sq.Ft. $1,200 $1.20 $1,350 $1.35 6 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,050 $1.75 Totals 4,800 Sq.Ft. $6,710 $1.43 $7,200 $1.50 Income and Expenses ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $82,680 $93,240 Units 6 Price $1,100,000 Less Vacancy 3.00% $2,480 3.00% $2,797 Year Built 1967 Per Unit $183,333 Gross Operating Income $80,200 $90,443 Rentable Area 4,752 Per Sq. Ft. $231.48 Less Expenses $23,968 $23,968 Down Pmt $330,000 Current GRM 13.30 Net Operating Income $56,232 $66,475 Loan Amount $770,000 Current CAP 5.11% Annual Debt Service ($3,676/mo) $44,113 $44,113 Interest Rate 4.00% Market GRM 11.80 Cash Flow Before Tax 3.67% $12,119 6.78% $22,362 Amortization 30 years Market CAP 6.04% Principal Reduction $13,560 $13,560 Total Return Before Tax 7.78% $25,679 10.89% $35,922

UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT ANNUALIZED OPERATING EXPENSES CURRENT MARKET 3 1 Bd/1 Bth 600 $1,020 $1,050 RE Taxes 2019 $6,986 $6,986 3 2 Bd/1 Bth 1,000 $1,200-$1,250 $1,350 Insurance Proforma $250/Unit $1,500 $1,500 6 Total/Avg 792 $1.43 $1.52 Utilities 2018 $8,384 $8,384 Maint/Repairs Proforma $800/Unit $4,800 $4,800 Admin/Legal Proforma $798 $798 Reserves Proforma $250/Unit $1,500 $1,500 Total Expenses $23,968 $23,968

MONTHLY INCOME CURRENT MARKET Gross Potential Rent $6,710 $7,200 Utility Bill Back $390 CURRENT MARKET Laundry Income $120 $120 Expense/Unit $3,995 Expense/Unit $3,995 OPERATIONS OPERATIONS Other Income $60 $60 Expense/Foot $5.04 Expense/Foot $5.04 Gross Potential Income $6,890 $7,770 Percent of EGI 28.99% Percent of EGI 25.71% SALES COMPARABLES

4 Rainier 6 6527 Rainier Ave S Seattle, WA 98118 Year Built 1967 Units 6 Sales Price $1,100,000 Price/Unit $183,333 Price/Foot $231.48 Current GRM/CAP 13.3/5.1% Market GRM/CAP 11.8/6.0% 3 1 Year Built 1966 2 Year Built 1956 Units 12 Units 11 Sales Price $3,100,000 Sales Price $2,800,000 Price/Unit $258,333 Price/Unit $254,545 Price/Foot $244.87 Price/Foot $341.71 GRM/CAP 21.3/2.6% GRM/CAP 16.0/4.1% Sales Date 09.18.2018 Sales Date 09.17.2018 Pearl St Lofts 3940 S Upland View Apts Pearl St 5716 Wilson Ave S 1 Seattle, WA 98118 Seattle, WA 98118 2 3 Year Built 1966 4 Year Built 1968 Units 10 Units 6 Sales Price $1,904,000 Sales Price $1,900,000 Price/Unit $190,400 Price/Unit $316,667 Price/Foot $284.09 Price/Foot $305.52 GRM/CAP Unknown GRM/CAP 27.4/2.1% Sales Date 08.24.2018 Sales Date 06.01.2018 Walden St Apts 14th Ave Apts RAINIER 6 2701 S Walden St 1307 14th Ave S Seattle, WA 98144 Seattle, WA 98144 LOGO LOGO 5 5 Year Built 1957 Units 4 Sales Price $750,000 Price/Unit $187,000 Price/Foot $200.53 GRM/CAP Unknown Sales Date 05.25.2018 Wabash Ave Apts 8316 Wabash Ave S Seattle, WA 98118 RENT COMPARABLES

Rainier 6 6527 Rainier Ave S 1 Bd/1 Bth 600 $1,020 $1.70 Seattle, WA 98118 2 Bd/1 Bth 1,000 $1,200-$1,250 $1.20 - 1.25

1967 - 6 Units

1 Myrtlewood Apts 7001 Rainier Ave S Seattle, WA 98118 1 Bd/1 Bth $1,250

1959 - 28 Units

2 Graham Place Apts 4601 S Graham Seattle, WA 98118 1 Bd/1 Bth 675 $1,375 $2.04

1968 - 60 Units

3 Cresent Apts 5210 42nd Ave S 3 Seattle, WA 98118 1 Bd/1 Bth 558 $1,205 $2.16 4

1963 - 37 Units 2 4 Wilson Ave Apts 5701 Wilson Ave S RAINIER 6 Seattle, WA 98118 1 Bd/1 Bth 650 $1,720 $2.65 1 1955 - 17 Units 5

5 Rainier 8 7310 Rainier Ave S Seattle, WA 98118 1 Bd/1 Bth $1,400

1960 - 8 Units 600 University St, Suite 2018 Seattle Washington 98101

206 623-8880 / [email protected] www.ParagonREA.com