SUMMIT TERRACE OFFERING

Paragon Real Estate Advisors is pleased to exclusively offer for sale the Summit Terrace. This urban infill redevelopment site is exceptionally well located in the highly desirable Capitol Hill neighborhood of Seattle, just a stone’s throw away from Downtown Seattle, South Lake Union, Link light rail, and countless shops, restaurants, and other amenities. Any potential future development would not only feature amazing location but also dramatic city, water, and mountain views. The 7,200 square foot lot is zoned Midrise and located in the Capitol Hill Urban Center. This flexible, high-density zoning allows for development of apartments, condominiums, congregate “micro” housing, or townhouses. The property is currently improved with a 10-unit apartment building. The existing building provides solid income that could help offset carrying costs while waiting entitlements.

NAME Summit Terrace

ADDRESS 406 Summit Ave E, Seattle, WA 98102

PARCEL NUMBERS 684820-0465

LOT INFORMATION 7,200 Square Feet Zoned MR (Urban Center), UV

PRICE $3,400,000

PRICE PER LOT SQFT $472.22

EXISTING IMPROVEMENTS 10 Unit Apartment

SUMMIT TERRACE

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

„„ 50-yard line location

„„ 3 blocks to Broadway retail shopping area amenities

„„ 1 mile to the downtown CBD

„„ Short walk/bus ride to South Lake Union

„„ 9 minute walk to Capitol Hill Light Rail Station

„„ 3 miles to the University of Washington

„„ Flexible high-density zoning, midrise – urban center

„„ 75 foot height limit

„„ Potential city/lake views

„„ Alley access

SUMMIT TERRACE NEIGHBORHOOD MAP

BELLTOWN SEATTLE CBD

QUEEN ANNE

CAL ANDERSON SUMMIT TERRACE PARK SOUTH LAKE UNION

CAPITOL HILL

LAKE UNION

VOLUNTEER PARK

EASTLAKE LOCATION HIGHLIGHTS

„„ Superior Capitol Hill location perfectly positioned between the University of Washington, South Lake Union,and the Downtown CBD

„„ Minutes to Amazon’s 30,000+ employee corporate campus in South Lake Union

„„ Tech and bio-tech companies are expanding their presence in South Lake Union and WALK SCORE nearby Fremont neighborhoods 94 „„ Short walk to the shores of Lake Union

„„ 3 blocks to the excellent restaurant, bar and retail amenities on the Broadway corridor

„„ Quick access to I-5, 520 and I-90

„„ Walkable to major employers in the Seattle Central Business District and South Lake Union neighborhoods. TRANSIT SCORE

„„ Nearby Grocery – Quality Food Center (QFC) just two blocks away. 85

„„ Walking distance to Seattle Central College, Seattle University and Seattle Academy of Arts & Sciences

„„ Cal Anderson Park – 7 acre park with water features, large lawn area, footpaths, a play area, an athletic field and oversized chess boards.

„„ Sound Link Light Rail – Just a short walk away, the Capitol Hill Light Rail Station BIKE SCORE provides frequent service to places like Downtown Seattle, Century Link Field, Pioneer Square, the University of Washington, and the Seattle Tacoma Airport. The Roosevelt 65 Station and Northgate Station are scheduled to open in 2021. CAPITOL HILL

Capitol Hill is situated on a hill just east To the north is Capitol Hill’s largest and of the city’s downtown central business most popular public park. The 48 acre district. This popular residential Volunteer Park is home to Seattle’s neighborhood is funky and fast-paced, Asian Art museum, tennis courts, a with an endless number of cool blocks conservatory, and a variety of city-wide to explore. During the day, markets, events. boutiques, and salons are a big draw. The demand for Capitol Hill apartments Nightlife is hopping with clubs, bars, and continues to rise as nearby Amazon music venues, and you’ll often find coffee continues its feverish hiring pace shops that moonlight as cocktail lounges alongside other technology companies This desirable location contains some that are hiring as well as relocating of Seattle’s wealthiest neighborhoods, to the South Lake Union area. This including “Millionaire’s Row” along 14th location is also home to longstanding Avenue E, a charming collection of single health care providers including family residences on tree-lined streets, Swedish Medical Center, Group Health and the Harvard-Belmont Landmark and Virginia Medical Center. Nearby District. It also has many distinguished Seattle University and Seattle Central apartment houses, including several College provide a consistent base to the designed by the distinguished builder apartment demand in the area. Fred Anhalt. The neighborhood figures prominently in nightlife and entertainment, with many bars hosting live music and with numerous avant-garde theaters. Most of the Hill’s major thoroughfares are dotted with coffeehouses, taverns and bars, and residences cover the gamut from modest motel-like studio apartment buildings to some of the city’s most historic mansions, with the two types sometimes shoulder-to-shoulder. DEVELOPMENT HIGHLIGHTS

PROPERTY SUMMARY DEVELOPMENT POTENTIAL

ADDRESS 406 Summit Ave E, Seattle WA 98102 HIGHEST/BEST USE 7 Story Apartment/Condo Building PARCEL NUMBERS 684820-0465 FLOOR AREA RATIO (FAR) 4.25 Bonus LOT SIZE 7,200 Square Feet HEIGHT LIMIT 80’

LOT DIMENSIONS 60’ x 120’ (Approximate) BUILDING SETBACKS Front: 5’ Minimum, 7’ Average ZONING MidRise - MR(M) Rear: 10’ with Alley or 15’ without Alley Side: 7’ Minimum, 10’ Average DEPTH 80% of Lot PARKING No Minimum MHA/HALA FEE $22.65/foot 60’

120’ IMPROVEMENTS

The property has an existing 10-unit apartment building, consisting of four studio units (380sf) and six one-bedroom units (530sf). Built in 1924, the wood-framed structure is situated with the apartments entering from a private gated courtyard. Units are light filled with well-laid out kitchens, baseboard electric heat, and newer circuit breakers. Tenant storage and common laundry is available on-site for residents’ convenience.

EXISTING IMPROVEMENTS 10 Unit Apartment YEAR BUILT 1924 BUILDING SIZE 4,700 Sq.Ft. STORIES 2 CONSTRUCTION Wood Framed

NO.OF UNIT TYPE SIZE CURRENT AVG. 4 Studio 380 Sq.Ft. $1,245 6 1 Bd/1 Bth 530 Sq. Ft. $1,613 Total 470 Sq.Ft. $14,655 Unit Breakdown SUMMIT TERRACE

APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. A Studio 380 Sq.Ft. $1,295 $3.41 $1,295 $3.41 B Studio 380 Sq.Ft. $1,195 $3.14 $1,295 $3.41 C 1 Bd/1 Bth 380 Sq.Ft. $1,650 $4.34 $1,650 $4.34 D 1 Bd/1 Bth 560 Sq.Ft. $1,595 $2.85 $1,650 $2.95 E 1 Bd/1 Bth 560 Sq.Ft. $1,575 $2.81 $1,650 $2.95 F 1 Bd/1 Bth 560 Sq.Ft. $1,600 $2.86 $1,650 $2.95 G Studio 380 Sq.Ft. $1,295 $3.41 $1,295 $3.41 H Studio 380 Sq.Ft. $1,295 $3.41 $1,295 $3.41 I 1 Bd/1 Bth 560 Sq.Ft. $1,650 $2.95 $1,650 $2.95 J 1 Bd/1 Bth 560 Sq.Ft. $1,600 $2.86 $1,650 $2.95 Totals/Avg 4,700 Sq.Ft. $14,750 $3.14 $15,080 $3.21

*Unit square footages are approximate and taken from King County Records Income and Expenses ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $186,910 $190,870 Units 10 Price $3,400,000 Less Vacancy 3.0% $5,607 4.0% $7,635 Year Built 1924 Per Unit $340,000 Gross Operating Income $181,303 $183,235 Rentable Area 4,700 Per Sq. Ft. $723.40 Less Expenses $57,709 $57,709 Down Pmt $1,700,000 Current GRM 18.19 Net Operating Income $123,594 $125,526 Loan Amount $1,700,000 Current CAP 3.64% Annual Debt Service ($7,970/mo) $95,637 $95,637 Interest Rate 3.85% Market GRM 17.81 Cash Flow Before Tax 1.64% $27,957 1.76% $29,889 Amortization 30 years Market CAP 3.69% Principal Reduction $30,725 $30,725 Total Return Before Tax 3.45% $58,682 3.57% $60,615

UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT ANNUALIZED OPERATING EXPENSES CURRENT MARKET 4 Studio 380 $1,195 - $1,295 $1,295 RE Taxes 2019 Actual $23,283 $23,283 6 1 Bd/1 Bth 530 $1,575 - $1,650 $1,650 Insurance 2018 Actual $4,924 $4,924 10 Total/Avg 470 $3.14 $3.21 Utilities 2018 Actual $10,302 $10,302 On-Site Mgmt Proforma $4,800 $4,800 Maint/Repairs Proforma $9,000 $9,000 Landscaping Proforma $2,400 $2,400

MONTHLY INCOME CURRENT MARKET Admin/Legal Proforma $500 $500 Gross Potential Rent $14,750 $15,080 Reserves Proforma $2,500 $2,500 Utility Bill Back $726 $726 Total Expenses $57,709 $57,709 Laundry Income $100 $100 Gross Potential Income $15,576 $15,906 CURRENT MARKET Expense/Unit $5,771 Expense/Unit $5,771 OPERATIONS OPERATIONS Expense/Foot $12.28 Expense/Foot $12.28 Percent of EGI 31.83% Percent of EGI 31.48%

*Unit square footages are approximate and taken from King County Records BUILDING PHOTOS UNIT PHOTOS UNIT PHOTOS UNIT PHOTOS WHY CHOOSE SEATTLE - KING COUNTY?

A HIGHLY-SKILLED WORKFORCE The region’s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor’s degree or higher. Top-tier talent is one of the key reasons out-of- state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County.

ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known

CUTTING-EDGE RESEARCH Top-ranked research institutions, including the world-renowned University of Washington, contribute to a high-caliber talent pipeline and encourage record levels of research & development spending from the private, non-profit and public sectors. The region has always fostered the next generation of business, from early-stage startups to high-growth companies with long-term success.

*Data Sources: Washington State Employment Security Department, 2015; Washington State Department of Revenue, 2015; Washington Military Alliance; Washington Aerospace Economic Impacts 2016 Update; US International Trade Administration, 2014. POPULATION, EDUCATION, INCOME

King County contains estimated 872,411 households. This number is forecast to increase to more than 912,000 by the year 2021. The county currently has 18 cities with populations greater than 20,000. Seattle is one of the most educated cities in the United States. Over 57 percent of Seattle’s adult residents have a Bachelor’s degree or higher, nearly twice the national average. An educated city means an educated workforce—a solid backbone for the innovative, knowledge-based industries that drive Seattle’s economy. King County also boasts high educational attainment, with 47 percent of residents over 25 having received a Bachelor’s degree or higher. Roughly 28 percent of King County residents are in professional business/managerial positions. As a result, median household income in King County is well above the U.S. average. Cost of living is generally higher than the U.S. average, but it is in line with other metropolitan areas with similar income levels. MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT MAJOR EMPLOYERS - SOUTH LAKE UNION 600 University St, Suite 2018 Seattle Washington 98101

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

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.