Offering Memorandum
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Offering Memorandum PARK APARTMENTS 4700 SW Othello St Seattle, WA 98136 Exclusively offered by Paragon Real Estate Advisors DAVID PETERSEN D 2206.623.8413 C 206.300.8909 [email protected] 600 University Street | Suite 2018 | Seattle, WA 98101 1 P 206.623.8880 | E [email protected] | ParagonREA.com Offering Summary Paragon Real Estate Advisors is pleased to exclusively offer for sale the Park Apartments, a six-unit building located in the Lincoln Park/Fauntleroy neighborhood. This area is one of West Seattle’s most popular residential neighborhoods and is known for its high-end waterfront and bluff-view homes as well as three popular public parks. The Park Apartments is a quintessential San Francisco-style charmer. This architecture is coveted by Seattle owners due to its popularity with tenants. Residents who seek character tend to stay longer. They appreciate charm, a small building community, and the feeling of a true home. Name Park Apartments Address 4700 SW Othello St, Seattle WA Total Units 6 Built 1910 Square Feet 3,845 Total Net Rentable Price $1,250,000 Price Per Unit $208,333 Price Per Foot $325.10 PARK Current GRM/CAP 15.06/4.40% (3% Vacancy) APARTMENTS Market GRM/CAP 13.34/4.91% (5% Vacancy) Expense Per Unit $4,239/Year (Market) Terms Owner Financing Lot Size 4,170 Square Feet Zoning LR1/SF 5000 600 University Street | Suite 2018 | Seattle, WA 98101 2 P 206.623.8880 | E [email protected] | ParagonREA.com Investment Highlights Six Apartment Units and Four Car Garage High Ceilings, Era Charm, Oak Hardwood Floors MORGAN JUNCTION Unique Floor Plans Long Term Residents Private Patio Area SUBJECT PROPERTY SOLSTICE PARK Corner Lot -Zoned LR2 Owner Financing Available with 30% Down Payment Excellent Location 600 University Street | Suite 2018 | Seattle, WA 98101 3 P 206.623.8880 | E [email protected] | ParagonREA.com Neighborhood Map QUEEN ANNE SEATTLE CBD SODO ALKI ALASKA JUNCTION WEST SEATTLE GOLF COURSE PUGET SOUND MORGAN JUNCTION PARK APARTMENTS 600 University Street | Suite 2018 | Seattle, WA 98101 4 P 206.623.8880 | E [email protected] | ParagonREA.com Location West Seattle is the number one neighborhood in the United States searched by Silicon Valley residents looking to relocate. West Seattle is a place of natural beauty, from the many parks and outdoor recreational spaces to the breathtaking panoramic views of the water and mountains. Immediately south of the property is Lincoln Park, a 135-acre waterfront park with walking and bike trails, a saltwater pool, picnic and play areas, and beach access. Just to the east is Solstice Park with six lighted outdoor tennis courts and a community pea patch. To the west is Lowman Beach Park with 300’ of waterfront and a soon to be completed Roof Top Park. Here you can enjoy commanding views of Puget Sound, the Olympic Mountains, and Vashon and Blake Islands. For entertainment and services, the Morgan Junction retail area is blocks away. It features a locally owned Thriftway grocery store, Starbucks and Café Ladro coffee shops, Zeek’s Pizza, Whisky West, Beverage Place and The Bridge Restaurant and Pub. These are all popular and fun places to shop, eat and socialize. 600 University Street | Suite 2018 | Seattle, WA 98101 5 P 206.623.8880 | E [email protected] | ParagonREA.com West Seattle Highlights 18 Hole West Seattle Public Golf Course 10 minutes to Alki Beach Served by Admiral, Alaska Junction, Morgan Junction and Westwood Village Urban Villages Other Recreational Amenities include Camp Long, Schmitz Park, Fauntleroy Ferry Terminal Access 15 Minutes to Downtown Seattle 15 Minutes to Safeco Field and Century Link Field 20 Minutes to Seattle Tacoma International Airport 10 Minutes to South Seattle College 600 University Street | Suite 2018 | Seattle, WA 98101 6 P 206.623.8880 | E [email protected] | ParagonREA.com Improvements The subject property was originally built in the early 1900’s and consist of six units. There are a two bedroom and studio unit on the top floor, three one bedroom units on the main floor and one studio in the basement. The building is characterized by its high ceilings, oak hardwood floors, molding, and unique and individualized spaces. The apartments themselves are served by electric breaker panels, electric baseboard heat, and both central (for two units) and individual hot water systems. 600 University Street | Suite 2018 | Seattle, WA 98101 7 P 206.623.8880 | E [email protected] | ParagonREA.com Unit Photos 600 University Street | Suite 2018 | Seattle, WA 98101 8 P 206.623.8880 | E [email protected] | ParagonREA.com Unit Photos 600 University Street | Suite 2018 | Seattle, WA 98101 9 P 206.623.8880 | E [email protected] | ParagonREA.com Floorplan - Basement Storage Living/Sleeping STUDIO UNIT Crawl Space Kitchen Bath Launrdy Room Entry Up to 1st Floor 600 University Street | Suite 2018 | Seattle, WA 98101 10 P 206.623.8880 | E [email protected] | ParagonREA.com Floorplan - First Floor Living Kitchen Bath Kitchen 1BD/1BTH UNIT 1BD/1BTH UNIT Bedroom Kitchen Bedroom 1BD/1BTH UNIT Bedroom Living Bath Living Bath 600 University Street | Suite 2018 | Seattle, WA 98101 11 P 206.623.8880 | E [email protected] | ParagonREA.com Floorplan - Second Floor Porch Study Dining Kitchen Kitchen Living 2BD/1BTH UNIT Bedroom Bath Bedroom Bath STUDIO UNIT 600 University Street | Suite 2018 | Seattle, WA 98101 12 P 206.623.8880 | E [email protected] | ParagonREA.com Operating Summary Annualized Operating Data Current Market Units 6 Price $1,250,000 Scheduled Gross Income $82,980 $93,720 Less Vacancy 3.00% $2,489 5.00% $4,686 Year built 1910 Price Per Unit $208,333 Gross Operating Income $80,491 $89,034 Rentable Area 3,845 Sq.Ft. Per Square Foot $325.10 Less Expenses $25,435 $27,600 Down Payment $375,000 30% Current GRM 15.06 Net Operating Income $55,056 $61,434 Loan Amount $875,000 70% Current CAP 4.40% Annual Debt Service ($2,916/mo) $35,000 $35,000 Interest Rate 4.00% Market GRM 13.34 Cash Flow Before Tax 5.35% $20,056 7.05% $26,434 Amortization 30 Years Market CAP 4.91% Principal Reduction $0 $0 Total Return Before Tax 5.35% $20,056 7.05% $26,434 Current Monthly Market Monthly Units Type Size Rent Income Rent Income Annualized Operating Expenses Current Market 2 Studio 350-450 $695-$850 $1,545 $760-$850 $1,610 Real Estate Taxes 3 1Bd/1Bth 550-850 $975 - $1,150 $3,175 $995-$1,350 $3,445 $8,835 $11,000 Current Insurance Operations 1 2Bd/1Bth 1,150 $1,795 $1,795 $1,995 $1,995 Proforma $2,500 $2,500 6 Avg S.F. 667 $1.69 $1.83 Utilities $6,600 $6,600 Expenses/Unit $4,239 On-Site Management $2,400 $2,400 Expenses/Foot $6.62 Percent of EGI 30.65% Total Monthly Income Maintenance/Repairs $3,000 $3,000 Monthly Scheduled Rent $6,515 $7,050 Landscaping $300 $300 Maarket Operations Garage Parking/Storage $400 $400 Administration $600 $600 Expenses/Unit $4600 Utility Bill Back $0 $360 Reserves $1,200 $1,200 Expenses/Foot $7.18 Total Monthly Income $6,915 $7,810 Total Expenses $25,435 $27,600 Percent of EGI 29.45% 600 University Street | Suite 2018 | Seattle, WA 98101 13 P 206.623.8880 | E [email protected] | ParagonREA.com Sale Comparables SUBJECT - PARK APARTMENTS 1. 6 UNIT 4700 SW Othello St, Seattle WA 4050 California Ave SW, Seattle, WA Year Built 1910 Year Built 1977 Units 6 Units 6 Sales Price $1,250,000 Sales Price $1,700,000 Price/Unit $208,333 Price/Unit $283,333 Price/Foot $325 Price/Foot $365 GRM/CAP 15.06/4.40% GRM/CAP 17.5/3.8% Sales Date TBD Sales Date 6.17.2016 2. 6 UNIT 3. ALASKA 45 4012 California Ave SW, Seattle WA 4546 45th Ave SW, Seattle WA Year Built 1977 Year Built 1962 Units 6 Units 18 Sales Price $1,700,000 Sales Price $5,650,000 Price/Unit $283,333 Price/Unit $313,889 Price/Foot $352 Price/Foot $433 GRM/CAP 15.8/4.4% GRM/CAP 15.5/4.5% Sales Date 4.01.2016 Sales Date 2.11.2016 4. ADMIRAL FLATS 5. BEACHWOOD 3431 California Ave SW, Seattle WA 4027 Beach Drive SW, Seattle WA Year Built 1977 Year Built 1901 Units 8 Units 10 Sales Price $2,450,000 Sales Price $2,965,000 Price/Unit $306,250 Price/Unit $286,500 Price/Foot $415 Price/Foot $312 GRM/CAP 13.5/5.3% GRM/CAP 18.3/3.5% Sales Date 2.08.2016 Sales Date 4.15.2015 600 University Street | Suite 2018 | Seattle, WA 98101 14 P 206.623.8880 | E [email protected] | ParagonREA.com Sales Comparables Map Park Apartments 4 4700 SW Othello St Seattle, WA 5 2 1. 6 Unit 4050 California Ave SW, Seattle, WA 1 2. 6 Unit 3 4012 California Ave SW Seattle, WA 3. Alaska 45 4546 45th Ave SW Seattle, WA 4. Admiral Flats 3431 California Ave SW, Seattle, WA 5. Beachwood 4027 Beach Drive SW Seattle, WA PARK APARTMENTS 600 University Street | Suite 2018 | Seattle, WA 98101 15 P 206.623.8880 | E [email protected] | ParagonREA.com Paragon Real Estate Advisors ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi-family property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with.