The Zindorf Apartments Queen Anne

THE ZINDORF APARTMENTS QUEEN ANNE

SOUTH LAKE UNION

DOWNTOWN BUSINESS DISTRICT

BELLTOWN

THE ZINDORF APARTMENTS

PIONEER SQUARE OFFERING

Paragon Real Estate Advisors is proud to present you with the exclusively listed Zindorf Apartments located at 714 7th Ave in the First Hill/ Downtown neighborhood of Seattle. This 75-unit community provides an excellent opportunity to own an apartment in Seattle’s core market. The Zindorf is located one block east of downtown and has a 98 Walk Score and 100 Transit Score. This neighborhood is going through significant redevelopment with luxury apartments, senior assisted living facilities, expansion of major medical centers including Swedish Hospital, Harborview Medical Center as well as the development of many highrise office developments within walking distance of the subject property including the recently finished F5 Networks Tower. This is a unique opportunity to own an apartment building in this area where apartments rarely change hands.

NAME The Zindorf Apartments

ADDRESS 714 7th Ave, Seattle WA 98104

TOTAL UNITS 75

BUILT 1911

SQUARE FEET 26,545 Total Net Rentable

PRICE $14,950,000

PRICE PER UNIT $199,333

PRICE PER FOOT $563 (net) $482 (gross)

CURRENT GRM/CAP 12.8/4.2%

MARKET GRM/CAP 11.6/5.0%

LOT INFO 7,200 Square Feet Zoned HR

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

Adjacent to Downtown Seattle and First Hill

98 Walkscore and 100 Transit Score

Area of high paying medical and corporate jobs

Unobstructed Seattle skyline views

Formal entry with era appropriate style

Vintage apartments with hardwood floors and large bay windows

Updated plumbing, electrical and heating systems

Highrise zoning (M) – Located in the Capitol Hill/First Hill Urban Center

Reinforced concrete / wood frame construction

THE ZINDORF APARTMENTS LOCATION HIGHLIGHTS

Located one block from downtown Seattle

Transit Paradise: Metro Bus Service, Lightrail, First Hill Street Car

Walking distance to all necessities including restaurants, parks, grocery stores, shopping and entertainment amenities WALK SCORE

Direct Access to South and Northbound Interstate 5 97

300,000+ jobs in the immediate area

First Hill is home to all the major medical centers in Seattle including Swedish, Harborview, Virginia Mason and Providence Medical Centers as well as the many health and wellness support businesses.

Located within walking distance to Seattle Central College and Seattle University TRANSIT SCORE

Short distance to Seattle Mariner’s T-Mobile Park, Seattle Seahawks and Seattle 100 Sounders Century Link Field

BIKE SCORE 71 FIRST HILL

Rising behind the downtown retail core, First Hill is a diverse jumble of high-rise apartments, historic mansions and hospitals. First Hill is one of the few neighborhoods in Seattle to have fairly easily discernible border lines, with Yesler to the south separating First Hill from the International district, 12th Avenue on the east acting as the borderline to the Central district, and East Pike Street as the northern boundary with Capitol Hill. Interstate 5 divides downtown from First Hill on the west side. Knowns for the high concentration of churches and hospital buildings this area is also home to many of the well-known private schools in the area. Seattle Academy of Arts and Sciences and the Northwest School are both highly regarded middle and high schools, while O’dea is a catholic high school for boys. In higher education, the Jesuit school Seattle University has been located in the neighborhood since 1898. The neighborhood is no longer the mecca for well-to-do business people that it once was; however, it is having a resurgence as a residential area. In recent years the trendy restaurants of Capitol Hill have been spilling south of Pike and into First Hill, adding to the allure of the neighborhood. B e lm

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t 9 S AMENITIES MAP d a ay ro W B E Denny Way e FOOD & DRINK HEALTH & WELLNESS Denny Way v li O 4 th E A v W 2nd Ave e 1. Sushi Kanpai 1. Harborview Medical Center Western Ave e s

t l a Elliott Ave t k 1 2. Metropolitan Grill 2. NW Fitness Gym S e t 3 5 A S ry l v l te e t t e S a w l B o 3. Vito’s 3. Downtown Seattle YMCA l t H a Broadway W S rt 13 a w 4. Cedars in Capitol Hill 4. Virginia Mason Hospital te ay 1 S W st e 1 A liv 4 E Pike St W ve 5 O est 4th Aveth Virginia St 5. Rhein Haus 5. Swedish First Hill e A 12 rn ve A E Madison St ve E Union St Pine St 6. Sugar Bakery & Cafe E l 11 lio 14 tt B A o 7. Tulio v 2 r e 3 e Alaskan Way n St 4 A 6 5 ke v GROCERY Pi e 8. The Hideout

2 8th Ave 99 7 3 15 9. Dick’s Drive-In 1. Quality Food Center (QFC) t 4 S 2 n t 10. Primo Pizza Parlor n nio S 5 d U ity 2. Stockbox First Hill Grocery A rs 5 v ve 2 9e ni 8 U 6 11. 8oz Burger & Co 7th Ave E Cherry St 3. Han’s Deli & Grocery A la 10Madison St s k 7Seneca St 3 12. Skillet diner a n 4. Plaza Select Foods W a 5 y t h 13. Pie Bar V Boren Ave A 1 4 i 1 4 5. Trader Joe’s a s t v d S th t g e A rin 3 A v p v 3 e S e 14. Lark 166th Ave 2 2 St 1 1 15. Mad Pizza ia b James St ACTIVITIES lum 2 Marion St Co 5 1 16. Bebas & Amigos 3 1. Frye Art Museum 1 s t A v 4 PARKS e 2. Pike Place Market Yesler Way E Yesler Way

B 1. Seattle University Park 3. Seattle Public Library o re n A 2 v 2. Freeway Park 4. Convention Center n e d 5 S THE ZINDORF A v e APARTMENTS 3. Cal Anderson Park 5. Seattle Aquarium E x S Jackson St t S 4. City Hall Park 6. Century Link Field

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0 0.25 0.5 Mile

0 0.25 0.5 KM MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT MAJOR EMPLOYERS - SOUTH LAKE UNION SEATTLE ECONOMY

Washington was recently ranked as the #1 economy in the United THE FUTURE OF INDUSTRY IS IN SEATTLE States. It is leading innovation potential, economic activity, and economic health. Seattle’s diversified industry is made up of older industrial and new technology companies. Seattle’s growth is driven by cloud services, AI, bio tech, aerospace engineering, green technology, e-commerce, and financial service enterprises. Large companies continue to dominate the business landscape. Seattle is home to 16 headquartered companies that are on Fortune 500’s list TECHNOLOGY CONSUMER GOODS as the largest companies in the United States. Seattle employs more Seattle is home to many than 165,300 people in national leaders in

Company Employees Revenue the technology sector consumer goods such with an average wage of as Starbucks, Costco, Amazon.com 647,500 $232,887,000 $130,000. Nordstrom, REI and Costco Wholesale 194,000 $141,576,000 Weyerhaeuser. Microsoft 131,000 $110,360,000 Starbucks 291,000 $24,719,500 Paccar 28,000 $23,495,700 Nordstrom 74,000 $15,860,000 Expedia Group 24,500 $11,223,000 Alaska Air Group 23,376 $8,264,000 LIFE SCIENCES AEROSPACE Expeditors Int’l of Washington 17,400 $8,138,400 With over 1,700 research, Home to Boeing, the Weyerhaeuser 9,300 $7,476,000 medical device, biggest airline producer Fortive 24,000 $7,203,200 distribution and drug in the world, Washington Puget Sound Energy 3,140 $3,346,500 companies are located state produces 90% of all TrueBlue 6,700 $2,499,200 here, and this area commercial aircrafts in employs more than the United States. Itron 7,350 $2,376,100 36,000 people. F5 Networks 4,409 $2,161,400 Esterline Technologies 12,609 $2,034,800 WHY INVEST IN SEATTLE?

57% of the Seattle population has a Seattle offers high rents with an Seattle is home to many large bachelors degree or higher. occupancy rate of 95% companies in technology, life sciences, consumer goods and aerospace.

Seattle is expected to add an additional Central business district provides Seattle has 59+ cranes hovering 40,000 to 50,000 jobs in 2019. more than 410,000 jobs. over the skyline, the highest number in any US city. The top 25 construction projects are Growing population of 3.87 million in High median income of $79,565. estimated to cost $23 Billion. the Seattle Metro area. AERIAL VIEW

THE ZINDORF APARTMENTS AERIAL VIEW NEARBY DEVELOPMENTS

707 TERRY ST 606 TERRY ST 800 COLUMBIA ST

715 8TH AVE

615 8TH AVE

THE ZINDORF APARTMENTS NEARBY DEVELOPMENTS

615 8TH AVE 715 8TH AVE 800 COLUMBIA ST 707 TERRY ST 606 TERRY ST

• 204 Residential • 77 Residential units • 287 Residential units • 486 Units • Assisted Living Condominium Units • Senior Living • 16 Stalls

• 187,000 GSF BUILDING PHOTOS UNIT PHOTOS FLOOR PLANS

STUDIO A STUDIO B

STUDIO C STUDIO D Income and Expenses The Zindorf Apartments is encumbered with a Freddie Mac interest-only loan that originated in January 2018. The current loan is for $8,000,000 with a 10 Units 75 Price $14,950,000 year loan term at 4.41%. The purchaser of Zindorf will need to assume the Year Built 1911 Per Unit $199,333 existing loan at closing and pay any associated assumptions costs including a 1% assumption fee. For further questions or details of the assumption, please Rentable Area 26,545 Sq.Ft. Per Sq. Ft. $563.19 contact the listing brokers. Down Pmt $6,950,000 Current GRM 12.84 Loan Amount $8,000,000 * Current CAP 4.22%

Interest Rate 4.41% Int Only Market GRM 11.59 MONTHLY INCOME CURRENT MARKET Lot Size 7,200 Sq.Ft Market CAP 5.01% Gross Potential Rent $86,485 $96,931 Utility Bill Back $4,836 $4,836 UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT Laundry/Vending Machines $722 $722 73 Studio 300-350 $949 - $1,369 $1,205 - $1,400 Misc. Fees/Renters Insurance $3,602 $3,602 2 1 Bd/1 Bth 575 $1,399 $1,625 Pet Rent $96 $96 75 Total/Avg 353 $3.26 $3.65 Miscellaneous (Sec/Bad Debt) $1,310 $1,310 Gross Potential Income $97,051 $107,497 ANNUALIZED OPERATING EXPENSES CURRENT MARKET

Real Estate Taxes 2020 Actual $125,531 $125,531 ANNUALIZED OPERATING DATA CURRENT MARKET Insurance 2019 Actual $20,623 $20,623 Scheduled Gross Income $1,164,612 $1,289,964 Utilities 2019 Actual $70,168 $70,168 Less Vacancy 5.0% $58,231 5.0% $64,498 Property Management 2019 Actual $32,343 $32,343 Gross Operating Income $1,106,381 $1,225,466 On-Site Mgmt. Payroll 2019 Actual $68,305 $68,305 Less Expenses $475,906 $475,906 Maint. Payroll 2019 Actual $59,497 $59,497 Net Operating Income $630,475 $749,560 Maintenance & Repairs 2019 Actual $24,040 $24,040 Annual Debt Service ($29,400/mo) $352,853 $352,853 Turnover 2019 Actual $9,518 $9,518 Cash Flow Before Tax 3.99% $277,622 5.71% $396,707 Marketing & Retention 2019 Actual $16,246 $16,246

Administration 2019 Actual $30,885 $30,885 Expense/Unit $6,345 Expense/Unit $6,345

Reserves Proforma $18,750 $18,750 Expense/Foot $17.93 Expense/Foot $17.93 Total Expenses $475,906 $475,906 Percent of EGI 40.86% Percent of EGI 36.89% MARKET OPERATIONS OPERATIONS CURRENT SALES COMPARABLES

The Zindorf Apartments 714 7th Ave Seattle, WA 98104 Year Built 1911 Units 75 Sales Price $14,950,000 Price/Unit $199,333 Price/Foot $563 Current GRM/CAP 12.8/4.2% 4 Market GRM/CAP 11.6/5.0%

1 Year Built 1902 2 Year Built 1917 Units 30 Units 36 3 Sales Price $7,444,000 Sales Price $8,265,000 2 Price/Unit $248,133 Price/Unit $229,583 Price/Foot $543 Price/Foot $549 GRM/CAP 13.9/4.8% GRM/CAP 14.7/4.4% THE ZINDORF APARTMENTS Sales Date 12.20.2019 Sales Date 9.30.2019 The Bradbury The Virginian 718 Cherry St 2014 4th Ave Seattle, WA 98104 Seattle, WA 98121

3 Year Built 1925 4 Year Built 1925 Units 32 Units 79 Sales Price $9,250,000 Sales Price $18,220,000 Price/Unit $289,062 Price/Unit $230,632 Price/Foot $561 Price/Foot $512 GRM/CAP 15.2/4.4% GRM/CAP Unknown Sales Date 9.25.2019 Sales Date 10.29.2018 Swansonia Apartments John Winthrop Apts 1017 E Harrison St 1020 Seneca St Seattle, WA 98102 Seattle, WA 98101 THE ZINDORF APARTMENTS

600 University St, Suite 2018 Seattle Washington 98101

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