North Beacon Flats and Development Opportunity Queen Anne

NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY QUEEN ANNE

CAPITOL HILL MADRONA SOUTH LAKE UNION

SEATTLE CBD

JUDKINS PARK

SODO

NORTH BEACON FLATS MOUNT BAKER AND DEVELOPMENT OPPORTUNITY

BEACON HILL OFFERING

Paragon Real Estate advisors is please to exclusively offer for sale the North Beacon Flats & Development Opportunity. This 12-unit multifamily asset is well positioned in the North Beacon Hill sub-market of Seattle, less than 1.5 miles from the Seattle CDB, one of the fastest growing job centers in America. The property presents multiple opportunities to add value, whether through improved management and repositioning or redevelopment. The North Beacon Flats were constructed in 1962. The 8,060 sf wood-framed, NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY marble-crete building consists of 12 residential apartments and a large basement including storage, which could potentially be converted into one or more additional units. The property is situated on a relatively flat, rectangular 12,000 sf lot (100’ x 120’) zoned low rise (LR3), featuring approximately 2,500 sf of excess land in the front. The high-density zoning allows for development up to 4 stories.

NAME North Beacon Flats and Development Opportunity

ADDRESS 1330 12th Ave S, Seattle WA 98144

TOTAL UNITS 12 + 1

BUILT 1962

SQUARE FEET 7,562 Total Net Rentable

PRICE $2,945,000

PRICE PER UNIT $241,926

PRICE PER SQFT $389

PROFORMA CAP 5.9%

LOT INFORMATION 12,000 Square Feet Zoned LR3

PRICE PER LOT SQFT $245

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

Excellent North Beacon Hill location

Less than 1.5 miles to Seattle CBD

Value add opportunity

12 large 1 BD/1 BTH apartments

Potential to add one or more units in basement

Large, rectangular 12,000 sf lot

High-density LR3 zoning

Located on bus line with direct service to Downtown

Potential sweeping city and water views

Located in designated Opportunity Zone

NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY QUICK FACTS

Address 1330 12th Ave S, Seattle WA 98144 Parcel Number 766010-0115 Lot Size 12,000 Square Feet Zoning LR3 Units 12 + 1 Built 1962 Net Rentable 7,562 Square Feet Construction Wood Frame Roof Flat Torch Down Windows Single Pane Aluminum Plumbing Galvanized Heating Electric Laundry Common Parking 11 Open Spaces

Walking distance to the International District, the once sleepy neighborhood of Beacon Hill has seen a boom over the past ten years with great new restaurants, fun nightlife, a new library, and hundreds of new houses and modern townhomes. New eateries include the popular Bar Del Corso, Victrola Coffee, Oak, Tippe & Drague, and El Quetzal. North Beacon Hill also recently welcomed its own brewery, Perihelion Brewery, which opened last year and has been a popular neighborhood gathering spot. Beacon Hill offers some of the best transportation in the city with multiple bus routes within a few blocks, a Sound Transit Light Rail station within walking distance, and bike lanes running the length of Beacon Avenue. Both I-5 and I-90 are immediately accessible and Downtown Seattle is only two miles away. Other accessible points of interest include Jefferson Park & Golf Course (1.5 Miles), Century Link and Safeco Fields (2 Miles), the International District (2 miles), Seattle University (2 ½ miles), and Seattle Central College (3 miles). TRANSPORTATION

Beacon Hill station is part of Sound Transit’s Central Link line, which runs from Seattle–Tacoma International Airport through the Rainier Valley and Downtown Seattle to the University of Washington. It is the eighth northbound station from Angle Lake station and ninth southbound station from University of Washington station, and is situated between Mount Baker and SODO stations. Central Link trains serve Beacon Hill twenty hours a day on weekdays and Saturdays, from 5:00 Beacon Hill station is also served by am to 1:00 am, and eighteen hours on three bus routes operated by King County Sundays, from 6:00 am to 12:00 am; Metro that use bus stops adjacent to the during regular weekday service, trains station: Route 36, an electric trolleybus operate roughly every six to ten minutes route, runs along Beacon Avenue from during rush hour and midday operation, Othello station to the International with longer headways of fifteen minutes District and Downtown; Route 60 runs in the early morning and twenty minutes between West Seattle, Georgetown, at night. During weekends, Central Link Beacon Hill, First Hill and Capitol Hill; trains arrive at the station every ten and Route 107, which terminates at minutes during midday hours and every the station and travels southeasterly fifteen minutes during mornings and to Georgetown, Rainier Beach station, evenings. The station is approximately Skyway and Renton. 24 minutes from SeaTac/Airport station and fifteen minutes from Westlake station in Downtown Seattle. 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. MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT MAJOR EMPLOYERS - SOUTH LAKE UNION BUILDING PHOTOS FLOOR PLANS

FIRST FLOOR SECOND FLOOR FLOOR PLANS

GROUND FLOOR

Potential Additional Unit Space Unit Breakdown

APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 1 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74 2 1 Bd/1 Bth 582 Sq.Ft. $810 $1.39 $1,595 $2.74 3 1 Bd/1 Bth 582 Sq.Ft. $1,210 $2.08 $1,595 $2.74 4 1 Bd/1 Bth 582 Sq.Ft. $810 $1.39 $1,595 $2.74 5 1 Bd/1 Bth 582 Sq.Ft. $910 $1.56 $1,595 $2.74 6 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74 7 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74 8 1 Bd/1 Bth 582 Sq.Ft. $835 $1.43 $1,595 $2.74 9 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74 10 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74 11 1 Bd/1 Bth 582 Sq.Ft. $1,210 $2.08 $1,595 $2.74 12 1 Bd/1 Bth 582 Sq.Ft. $825 $1.42 $1,595 $2.74 *13 1 Bd/1 Bth 582 Sq.Ft. $1,595 $2.74 Totals/Avg 582 Sq.Ft. $10,225 $1.35 $20,735 $2.74

* Unit added in basement common area

NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY Financial Summary ANNUALIZED OPERATING DATA CURRENT PROFORMA

Units 12+1 Price $2,945,000 Scheduled Gross Income $133,800 $263,640 Year Built 1962 Per Unit $241,923 Less Vacancy 3.0% $4,014 3.0% $7,909 Rentable Area 7,562 Per Sq. Ft. $389 Gross Operating Income $129,786 $255,731 Per Lot Sq.Ft. $245 Less Expenses $55,305 $71,401 Down Pmt $936,250 Rehab Cost $200,000 Net Operating Income $74,481 $184,329 Loan Amount $2,208,750 Total Cost $3,145,000 Annual Debt Service ($10,545/mo) $126,539 $126,539 Interest Rate 4.00% Proforma GRM 11.9 Cash Flow Before Tax -5.6% ($52,058) 6.2% $57,790 Term 7 Yr ARM Proforma CAP 5.9% Principal Reduction $38,897 $38,897 Amortization 30 Years Total Return Before Tax -1.4% ($13,161) 10.3% $96,687

ANNUALIZED OPERATING EXPENSES CURRENT PROFORMA

UNIT CURRENT PROFORMA Real Estate Taxes 2019 $16,504 $23,560 UNITS TYPE SIZE RENT RENT Insurance Estimated $4,550 $4,550 12 1 Bd/1 Bth 582 $750 - $1,150 $1,595 Utilities 2018 $11,223 $11,223 1* 1 Bd/1 Bth 582 $0 $1,595 Professional Mgmt PF 6% $8,028 $15,818 13 Total/Avg 582 $1.35 $2.74 Administration PF $100/unit $1,200 $1,300 * Potential unit added Maintenance & Repairs PF $850/unit $10,200 $11,050 Contract Services PF $50/unit $600 $650 Reserves PF $250/unit $3,000 $3,250 MONTHLY INCOME CURRENT PROFORMA Total Expenses $55,305 $71,401 Gross Potential Rent $10,225 $20,735 Utility Bill Back $685 $975 CURRENT PROFORMA Laundry Income $120 $130 Expense/Unit $4,609 Expense/Unit $5,492 OPERATIONS OPERATIONS Other Income $120 $130 Expense/Foot $7.31 Expense/Foot $9.44 Gross Potential Income $11,150 $21,970 Percent of EGI 41% Percent of EGI 27% SALES COMPARABLES

North Beacon Flats and Development Opportunity 5 1330 12th Ave S Seattle, WA 98144 Year Built 1962 Units 12 Sales Price $2,945,000 Price/Unit $241,923 Price/Foot $389 Proforma GRM/CAP 11.9/5.9% 1

1 Year Built 1965 2 Year Built 1956 4 Units 11 Units 11 Sales Price $2,665,000 Sales Price $2,800,000 Price/Unit $242,273 Price/Unit $254,545 NORTH BEACON FLATS Price/Foot Price/Foot $380.95 $279.35 AND DEVELOPMENT OPPORTUNITY GRM/CAP 17.8/3.0% GRM/CAP 16.0/4.1% Sales Date 1.7.2019 Sales Date 9.24.2018 11 Unit Apartment Upland View 201 30th Ave S 5716 Wilson Ave S Seattle, WA 98144 Seattle, WA 98118

3 Year Built 1966 4 Year Built 1968 Units 12 Units 6 Sales Price $3,100,000 Sales Price $1,900,000 Price/Unit $258,333 Price/Unit $316,667 Price/Foot $311.50 Price/Foot $305.52 GRM/CAP 21.3/2.6% GRM/CAP Unknown Sales Date 9.18.2018 Sales Date 6.1.2018 Pearl Street Lofts 6 Unit Apartment 3 3940 S Pearl St 1307 14th Ave S Seattle, WA 98118 Seattle, WA 98144 2 5 Year Built 1971 Units 12 Sales Price $3,212,000 Price/Unit $267,667 Price/Foot $382.38 GRM/CAP 25.2/1.7% Sales Date 5.9.2018 Union 32 3200 E Union St Seattle, WA 98122 DEVELOPMENT POTENTIAL

Address 1330 12th Ave S, Seattle WA 98144 Lot Size 12,000 Square Feet Zoning LR3 Floor Area Ratio (FAR) 1.8 Height Limit 40 Ft Density Limit No Limit Set Backs Front - 5 Ft Minimum, 7 Ft Average Rear - 10 Ft Minimum 15 Ft Minimum if no alley Sides - 5 Ft Minimum, 7 Ft Average Parking Requirement 50% MHA Tax $13.25/Sq.Ft.

100’ 120’ 120’ NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY 100’ LAND COMPARABLES

North Beacon Flats and Development Opportunity 1330 12th Ave S Seattle, WA 98144 2 Parcel 766010-0115 Lot Size 12,000 Sq.Ft. Zoning LR3 Price $2,945,000 Price/Foot $245 NORTH BEACON FLATS AND DEVELOPMENT OPPORTUNITY

1 Parcel 754830-0813 2 Parcel 713230-0300 4 Lot Size 5,000 Sq.Ft. Lot Size 8,000 Sq.Ft. Zoning LR2 Zoning NC3-40 1 Price $1,100,000 Price $1,800,000 Price/Foot $220 Price/Foot $225 Sales Date 3.20.2019 Sales Date 8.31.2018 3 1716 19th Ave S 911 Hiawatha Pl S Seattle, WA 98144 Seattle, WA 98144

3 Parcel 149830-1200 4 Parcel 754830-0610 Lot Size 6,000 Sq.Ft. Lot Size 5,000 Sq.Ft. Zoning LR1 Zoning LR2 Price $1,525,000 Price $1,300,000 Price/Foot $254 Price/Foot $260 Sales Date 8.29.2018 Sales Date 7.18.2018 1922 15th Ave S 1716 18th Ave S Seattle, WA 98144 Seattle, WA 98144 600 University St, Suite 2018 Seattle Washington 98101

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