Essex Apartments

ESSEX APARTMENTS

4200 SW MANNING STREET, SEATTLE, WA 98116 CONTACT INFORMATION:

IAN BROWN PRINCIPAL | BROKER 206.505.9414 [email protected] OFFERING SUMMARY

WESTLAKE ASSOCIATES IS PLEASED TO PRESENT THE ESSEX APARTMENTS FOR SALE.

The Essex Apartments is a stunning 10 unit classic cottage brick apartment building that has been completely renovated to enhance the existing old world charm. Originally built in 1928, the subject property was designed as row housing with the charm of that era including coved ceilings, arched doorways, oak flooring and mahogany woodwork. The updates to the building include new plumbing and electrical service, windows and updated lighting throughout the property. The apartment homes now include individual washers and dryers, granite countertops in the kitchens and new cabinetry. The units have all been efficiently modified with the addition of a bonus second bedroom or den.

All of the units have direct access from a front and back door that lead to a private courtyard, which is perfect for gathering and entertaining. There are 7 detached garages off the alley and additional storage for the building. The property is ideally situated in a quiet residential neighborhood, which has great walkability and convenient street parking. The high-quality renovations and old world charm of the property are ideal to capitalize on the robust in-city rental market. Price: $3,500,000 ADDRESS Price Per Unit: $350,000 4200 SW Manning Street, Seattle, WA 98116 Price Per NRSF: $514.10 PROPERTY HIGHLIGHTS Cap Rate: 4.74% BEAUTIFUL TROPHY BUILDING Market Cap Rate: 5.33 % GRM: 15.77 WASHER / DRYER IN UNITS Building Size: 6,808 SF QUIET RESIDENTIAL STREET Lot Size: 12,500 SF GARAGE PARKING Year Built: 1928 COMPLETELY RENOVATED CLASSIC BRICK ALL TWO BEDROOM UNITS WALK SCORE: 76 --- VERY WALKABLE FINANCIAL OFFERING

PROPERTY OVERVIEW # UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF

Number of Units 10 10 2 BD | 1 BA 680 $1,755 $2.58 $1,900 $2.79

Year Constructed 1928 TOTAL $17,555 $2.58 $19,000 $2.78

Exterior Brick INCOME CURRENT PRO FORMA Rentable SF 6,808 SF Schedule Rental Income $210,600 $228,000 Lot Size 12,500 SF + Utilities W / S / G 9,900 10,800 Zoning LR2 + Miscellaneous 600 3,600 + Parking 3,600 3,600 PRICE ANALYSIS Scheduled Gross Income $224,700 $246,000 PRICE $3,500,000 - Vacancy & Cr Losses (3.00%) ($6,742) ($7,380) Price per Unit $350,000 Effective Gross Income $218,017 $238,620 Price per NRSF $514.10 EXPENSES CURRENT PRO FORMA Price per Land SF $280.00 - Real Estate Taxes $18,770 $18,770 Current Cap 4.74% - Property Insurance 3,024 3,024 Current GRM 15.77

Market Cap 5.33% - Professional Management 10,296 10,296

Market GRM 14.66 - Utilities 11,448 11,448 - Repairs & Maintenance 6,563 6,563 FINANCING - Reserves 2,000 2,000 Loan Amount $2,000,000 Total Operating Expenses $52,101 $52,101 Down Payment $1,500,000 CASH FLOW CURRENT PRO FORMA Rate 4.500% Net Operating Income $165,916 $186,519 % Down 42.9% Less Annual Debt Service ($121,604) ($121,604) Amortization 30 Cash Before Taxes $44,312 $64,915 Term 5 Years Plus Principal Reduction $32,264.06 $32,264.06 Monthly Payment 10,133 Total Return Before Taxes $76,576.26 $97,179.06 Annual Payment $121,604

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. RENT ROLL

BEDROOM/ MARKET MARKET UNITS SIZE RENT PSF BATH RENT RENT PSF

3611 2 x 1 680 $1,750 $2.57 $1,900 $2.79

3615 2 x 1 660 $1,795 $2.72 $1,900 $2.88

3617 2 x 1 660 $1,720 $2.61 $1,900 $2.88

3619 2 x 1 660 $1,750 $2.65 $1,900 $2.88

3621 2 x 1 660 $1,695 $2.57 $1,900 $2.88

4202 2 x 1 660 $1,750 $2.65 $1,900 $2.88

4204 2 x 1 660 $1,750 $2.65 $1,900 $2.88

4204.5 2 x 1.5 830 $1,850 $2.23 $1,900 $2.29

4206 2 x 1 660 $1,700 $2.58 $1,900 $2.88

4206.5 2 x 1 678 $1,795 $2.65 $1,900 $2.80

10 6,808 $17,555 $2.58 $19,000 $2.80

Averages 680 $1,755 $2.58 $1,900 $2.79

INVESTMENT OVERVIEW CURRENT MARKET

Price $3,500,000 $3,500,000 Price per Unit $350,000 $350,000 CAP Rate 4.74% 5.33% GRM 15.77 14.66 Cash-on-Cash Return (yr 1) 2.95% 4.33% Total Return (yr 1) $76,576 $97,179 Debt Coverage Ratio 1.36 1.53

OPERATING DATA CURRENT MARKET

Gross Scheduled Income $210,660 $228,000 Other Income $14,100 $18,000 Total Scheduled Income $224,760 $246,000 Vacancy Cost $6,742 $7,380 Gross Income $218,017 $238,620 Operating Expenses $52,101 $52,101 Net Operating Income $165,916 $186,519 Pre-Tax Cash Flow $44,312 $64,915

FINANCING DATA CURRENT MARKET

Down Payment $1,500,000 $1,500,000 Loan Amount $2,000,000 $2,000,000 Debt Service $121,604 $121,604 Debt Service Monthly $10,133 $10,133 Principal Reduction (yr 1) $32,264 $32,264 LOCATION

Essex Apartments 4200 SW Manning St INTERIOR PHOTOS INTERIOR PHOTOS INTERIOR PHOTOS TYPICAL FLOOR PLAN WEST SEATTLE

WEST SEATTLE

JUST MINUTES FROM DOWNTOWN SEATTLE, West Seattle Colman Pool is a wonderful saltwater summer swimming hole is a wonderful local retreat for Seattle residents. located in Lincoln park. Actually built along the shores of Elliot Bay, it is only open during the warmer months due to the cold- West Seattle is comprised of two of the thirteen districts of water temperatures. Seattle, Delridge and Southwest, and encompasses all of Seattle west of the Duwamish River. Within its borders are The High Point neighborhood located in the Delridge district is neighborhoods of small well-kept homes, many with views. named because it contains the highest point in Seattle. At the Alki Beach residents enjoy their stretch of waterfront. Much intersection of 35th Avenue Southwest and Southwest Myrtle of the housing reflects the beach community atmosphere with Street is 520 feet above sea level. Today High Point is one old cottages, new condominiums, and elegant manors nestled of Seattle’s most diverse neighborhoods featuring housing above the bluffs. affordable to many different income levels. 5 MILES DOWNTOWN Alki Beach is a popular hot spot during the summer months Two neighborhoods not located on the water are Highland with roller-bladers, walkers, and joggers clustering the sandy Park and White Center. Residents in these communities SEATTLE beaches of the shore. Many people flock to the area to fly kites, have developed strong ties through local businesses and have picnics, and play in the water. neighborhood participation. Nearby recreational choices, easy access to the freeways, and the short commute to Seattle West Seattle, Fauntleroy and Arbor Heights stretch to the make this area and the surrounding area attractive to residents. south of Alki Beach, housing more than 50,000 residents. The

WESTLAKE ASSOCIATES, INC. PUGET SOUND EMPLOYER MAP

SEATTLE AREA EMPLOYERS

1. Adobe 10. Expedia, Inc. 19. Holland America 28. Safeco Insurance 37. Valve 2. Alaska Airlines 11. Expeditors International 20. Microsoft 29. Saltchuck Resources 38. Virginia Mason 3. Amazon 12. F5 Networks 21. Nordstrom 30. Starbucks 39. Weyerhaeuser 4. Bartells Drugs HQ 13. Facebook 22. Paccar 31. Swedish Health Services 40. Zillow 5. Big Fish Games 14. Fred Hutch 23. PATH 32. Symetra Financial 41. Zulily 6. Children’s Hospital 15. Gates Foundation 24. Pemco Insurance 33. Tableau Software 7. City of Seattle 16. Getty Images 25. Plum Creek Timber Co. 34. T-Mobile 8. Costco 17. Google 26. RealNetworks 35. Uber 9. Cutter & Buck 18. Group Health 27. REI 36. University of Washington

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4 2 LOCATION MAP

PARKS IN WEST SEATTLE Alki Beach Park Alki Playground & Whale Tail Alki Point Lighthouse Hamilton Viewpoint Park Park Schmitz Preserve Hiawatha Playfield Charles Richey Sr Belvedere Park Park Viewpoint Me-Kwa-Mooks Park Dakota Place Park Ercolini Park Seacrest Park SALES COMPS SUMMARY

SALE COMPS PRICE BLDG SF PRICE / SF PRICE / UNIT CAP GRM # OF UNITS CLOSE

Subject Property Essex Apartments $3,500,000 6,808 SF $514.10 $350,000 4.75% 15.77 10 - 4200 SW Manning Street

1. Admiral $2,425,000 5,863 SF $414 $346,429 3.47% 19.0 7 07/10/2017 3056 60th Avenue SW

2. 6408 Phinney $2,250,000 3,747 SF $600 $321,429 4.44% 16.0 7 08/04/2017 6408 Phinney Avenue N

3. 1300 Mercer $4,525,000 5,383 SF $841 $565,625 1.89% 31.5 8 09/08/2017 1300 E Mercer Street

4. Alki Canoe Club $4,419,080 10,500 SF $421 $368,257 4.22% 16.5 12 10/31/2017 3036 60th Avenue SW

5. Beach House $3,780,000 7,005 SF $540 $540,000 4.25% 16.0 7 03/06/2018 3306 Beach Drive SW

Total | Averages $3,479,816 6,500 SF $383 $282,299 3.65% 19.8 8 - SALES COMPS MAP

1. Admiral

2. 6408 Phinney

3. 1300 Mercer

4. Alki Canoe Club

4 1 5 Essex Apartments

5. Beach House 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 ealr 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 eprr esentation 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 Real Estate Institute (CREI) MEMBER: Washington State Realtors Association (WSMA)