The Mercer Apartments 105 Mercer Street | Seattle, Wa 98109 for More Information
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THE MERCER APARTMENTS 105 MERCER STREET | SEATTLE, WA 98109 FOR MORE INFORMATION: A CLASSIC 41-UNIT APARTMENT BUILDING IAN BROWN PRINCIPAL | BROKER 206.505.9414 ian@ westlakeassociates.com OFFERING SUMMARY WESTLAKE ASSOCIATES, INC. IS PLEASED TO PRESENT THE MERCER APARTMENTS FOR SALE. Located on the 50-yard line of Seattle’s prestigious Queen Anne/Uptown neighborhood, this 41-unit classic courtyard brick gem provides investors with the rare opportunity to own a legacy building. Mercer Apartments has significant income upside and long-term redevelopment potential and is in the heart of the most economically robust sub-market of Seattle. Additionally, the Queen Anne/ Uptown area is slated to benefit from the substantial redevelopment of Key Arena, scheduled to open in the summer of 2021, and the associated growth in the surrounding area. The charming Mercer Apartments was built in 1929 and is comprised of 22 spacious one Bedroom and 19 large studio units with dressing rooms/dens. The Mercer has been tastefully updated with timeless improvements to the kitchens and baths that offer functionality while maintaining the character of the building. Price: $13,000,000 Classic brick buildings with hardwood floors, coved ceilings and abundant period Price Per Unit: $317,073 charm like the subject property always enjoy excellent sustained rental Price Per NRSF: $525.40 performance. The Mercer Apartments is perfectly positioned to capitalize on the Cap Rate: 3.49% demand for updated apartments with old world charm and modern amenities. Market Cap Rate: 4.68 % Located in lower Queen Anne, the Mercer Apartments is within walking distance GRM: 18.09 to some of Seattle’s strongest employment growth including Amazon, Apple, Building Size: 24,743 SF Google and other tech giants rapidly expanding in South Lake Union. Residents Lot Size: 12,514 SF can run all daily errands and get to and from work without a car. The building is Year Built: 1929 walking distance to many trendy restaurants, coffee shops and entertainment amenities, offering tenants an unmatched urban lifestyle. Several mass transit options are also within walking distance to the property including local buses, the Seattle Monorail with connection to the Sound Transit Link Light Rail, and the Street Car Station. ADDRESSADDRESS 105 Mercer Street, Seattle, WA 98109 TROPHY BUILDING ON 50 YYARDARD LINE LLOCAOCATIONTION CLCLASSICASSIC BRICK VENEER WWITH SEITH SECURE CCURE COURTOURTYYARDARD TIMELESS RENORENOVVAATION OF CTION COMMONOMMON AREAS AND MOST OF THE UNITS CCOPPER PLOPPER PLUMBINGUMBING BELBELOOW MARKW MARKET RENTSET RENTS FIRE SPRINKSPRINKLERLER SYSTEM STEPS FROM ICICONIC SPONIC SPAACECE NEEDLE MINUTES TTO SEAO SEATTTLETLE CBD VIA MONORAIL WWALK TALK TO SLO SLUU SPSPAACIOUSCIOUS UNITS WWITH OLD WITH WORLDORLD CHARM POPOTENTIAL VTENTIAL VALALUEUE-ADD B-ADD BYY ADDING BASEMENT UNITS GARAGARAGE PGE PARKARKINGING IDEAL UNIT MIX PROPERTY HIGHLIGHTS PHENOMENAL QUEEN ANNE/UPTOWN LOCATION • Half block to new Seattle Center Sports Arena (formerly Key Arena, opening Summer 2021) • On proposed new regional ST-3 light rail expansion • Steps to monorail station and the iconic Space Needle and Seattle Center • Walking distance to many trendy coffee shops, restaurants and retail • 1.5 miles to Seattle CBD • Situated across the street from the Metropolitan Market Uptown location VALUE-ADD POTENTIAL • Immediate income upside potential • Current rents at $2.32 per foot • SM-UP 85 (M1) Urban Village Zoning • Preliminary plans to add 2 units in storage area • Additional possibility to add units in parking garage • Potential to add bedrooms to studios • Buyer to verify feasibility of redevelopment potential LEGACY ASSET • Timeless renovation to most kitchens and bathrooms • Coved ceilings, arched doorways, crown moldings • Original wood millwork and doors • New common area carpet and paint throughout • All copper plumbing supply lines • New Boiler (2016) • Refinished oak hardwood floors in most units • New vintage lighting in common areas • Fire Sprinkler System PROPERTY DETAILS PROPERTY DETAILS SALE PRICE $13,000,000 Property Type Multifamily Property Subtype Low-Rise LOCATION INFORMATION Zoning SM-UP 85 (M1) Building Name Mercer Apartments Land Area 12,514 SF Street Address 105 Mercer Street APN# 198820-0240 City, State, Zip Seattle, WA 98109 County / Township King PARKING & TRANSPORTATION Market Seattle Parking Type Garage Submarket Lower Queen Anne Number of Spaces 8 ASSESSOR’S INFORMATION UTILITIES & AMENITIES Total Building Size 32,908 SF Central HVAC Central Heat Net Rentable Area 24,743 SF Laundry Description Common Number of Floors 3 Plumbing Description Copper Supply Year Built 1929 LAKE WASHINGTON BEACON HILL CENTURYLINK T-MOBILE F5 Networks, FIELD PARK Inc. CAPITOL HILL NORDSTROM HQ ZILLOW GROUP DOWNTOWN SEATTLE PIKE PLACE MARKET SEATTLE AQUARIUM FRED HUTCH AMAZON GOOGLE CAMPUS AMAZON DENNY PARK ZULILY MUSEUM OF SPACE NEEDLE PUGET SOUND SOUTH LAKE UNION POP CULTURE LAKE UNION BILL & MELINDA OLYMPIC GATES FOUNDATION MERCER APARTMENTS SCULPTURE PARK MCCAW HALL KEY ARENA CORNISH PLAYHOUSE TARGET COMPLETION: JUNE 2021 QUEEN ANNE ELLIOT BAY & CENTENNIAL PARK EXPEDIA GROUP COMPLETION: OCTOBER 2019 4,500 EMPLOYEES FINANCIAL OFFERING PROPERTY OVERVIEW # OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF Number of Units 41 19 Studio 540 $950 - $1,450 $2.50 $1,450 $2.68 Year Constructed 1929 22 1 BD | 1 BA 670 $1,195 - $1,850 $2.23 $1,750 $2.61 Total | AVG $57,355 $2.32 $66,050 $2.67 Zoning SM-UP 85 (M1) Rentable SF 24,743 SF INCOME Lot Size 12,514 SF CURRENT PRO FORMA Scheduled Rent Income $686,400 $792,600 + W/S/G + Laundry $24,000 $60,000 PRICE ANALYSIS + Parking/Basement $8,160 $26,400 SSale Pale Pricerice $13,$13,000,000,000000 Scheduled Gross Income $718,560$718,560 $879,000 Price per Unit $317,073 - Vacancy & Credit Losses (4.00%) $28,742 $35,160 Price per NRSF $525.40 Gross Income $689,818 $843,840 Price per Land SF $1,038.84 EXPENSES Current Cap 3.49% CURRENT PER UNIT PRO FORMA PER UNIT Current GRM 18.3 RE Taxes $84,477 $2,060 $98,000 $2,390 Market Cap 4.68% Property Insurance $11,095 $270 $11,095 $270 Market GRM 15.25 Professional / Onsite Management $40,000 $975 $35,000 $853 Utilities $58,859 $1,435 $58,859 $1,435 FINANCING Repairs & Maintenance $30,000 $731 $20,000 $487 Loan Amount $6,500,000 Reserves $12,000 $292 $12,000 $292 Down Payment $6,500,000 Total Operating Expenses $236,431$236,431$5,7$5,76666 $234,$234,954954 $5,730$5,730 Rate 3.70% Net Operating Income $453,387$453,387$11,$11,058058 $608,886 $14,850 % Down 50.0% Less Annual Debt Service ($359,021) ($8,756) ($359,021) ($8,756) Amortization 30 Term 5 Years Monthly Payment $29,918 Annual Payment $359,021 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. Cash Before Taxes $94,366 $2,301 $226,249 $5,518 Total Return Before Taxes $214,917.72 $5,241.90 $346,800.72 $8,458.55 Cash-on-Cash 1.45% 3.48% UNIT MIX SUMMARY UNIT TUNIT TYPEYPE CCOUNTOUNT % T% TOOTTALAL SIZE (SF)SIZE (SF)RENTRENT RENTRENT/SF/SF MARKMARKET RENTET RENT MARKMARKET RENTET RENT/SF/SF Studio 3 7.3 508 $1,250 $2.46 $1,450 $2.85 Studio 6 14.6 525 $1,327 $2.53 $1,450 $2.76 Studio 3 7.3 539 $1,275 $2.37 $1,450 $2.69 Studio 5 12.2 551 $1,268 $2.30 $1,450 $2.63 Studio 2 4.9 578 $1,400 $2.42 $1,450 $2.51 1 BD | 1 BA 3 7.3 578 $1,488 $2.57 $1,750 $3.03 1 BD | 1 BA 6 14.6 593 $1,445 $2.44 $1,750 $2.95 1 BD | 1 BA 6 14.6 651 $1,447 $2.22 $1,750 $2.69 1 BD | 1 BA 6 14.6 707 $1,502 $2.12 $1,750 $2.48 1 BD | 1 BA 1 2.4 1,100 $1,850 $1.68 $1,750 $1.59 Totals/Averages 41 100% 24,742 $57,355 $2.32 $66,050 $2.67 POTENTIAL NEW UNITS IN STORAGE AREA SALE COMPS SUBJECT PROPERTY 1 2 419 QUEEN ANNE 105 Mercer Street 524 5th Ave W 419 Queen Anne Ave N Seattle, WA 98109 Seattle, WA 98119 Seattle, WA 98109 SALE DATE 09/14/2018 SALE DATE 05/01/2019 SALE PRICE $13,000,000 SALE PRICE $7,300,000 SALE PRICE $7,395,000 UNITS 41 UNITS 17 UNITS 31 YEAR BUILT 1929 YEAR BUILT 1966 YEAR BUILT 1912 PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM $317,073 $525.40 3.49% 18.3 $429,411 $398.58 4.12% 17.1 $238,548 $529.77 -% - 3 ROY STREET 4 CASTLE COURT 5 THE STANDARD 100 Roy St 822 Queen Anne Ave N 512 5th Ave W Seattle, WA 98119 Seattle, WA 98109 Seattle, WA 98119 SALE DATE 03/01/2018 SALE DATE 03/30/2018 SALE DATE 07/31/2018 SALE PRICE $22,000,000 SALE PRICE $7,270,000 SALE PRICE $7,252,676 UNITS 66 UNITS 22 UNITS 20 YEAR BUILT 1948 YEAR BUILT 1915 YEAR BUILT 1957 PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM PRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM $333,333 $509.92 2.83% 19.5 $330,454 $328.01 3.5% 15.8 $362,633 $590.51 4.3% - SALE COMPS SUMMARY SUBJESUBJECTCT PROPERTPROPERTYY PRICEPRICE BLDG SFBLDG SFPRICE/SFPRICE/SFPRICE/UNITPRICE/UNIT CAPCAP GRMGRM## OF UNITS Mercer Apartments 105 Mercer Street $13,000,000 24,743 SF $525.40 $317,073 3.49% 18.3 41 Seattle, WA 98109 SALE CSALE COMPSOMPS PRICEPRICE BLDG SFBLDG SFPRICE/SFPRICE/SFPRICE/UNITPRICE/UNIT CAPCAP GRMGRM## OF UNITS SALE DSALE DAATETE 1 524 5th Ave W Seattle, WA $7,300,000 18,315 SF $398.58 $429,411 4.12% 17.1 17 09/14/2018 98119 2 419 Queen Anne 419 Queen Anne Ave N $7,395,000 13,959 SF $529.77 $238,548 - - 31 05/01/2019 Seattle, WA 98109 3 Roy Street 100 Roy St $22,000,000 43,144 SF $509.92 $333,333 2.83% 19.5 66 03/01/2018 Seattle, WA 98119 4 Castle Court 822 Queen Anne Ave N $7,270,000 22,164 SF $328.01 $330,454 3.5% 15.8 22 03/30/2018 Seattle, WA 98109 5 The Standard 512 5th Ave W $7,252,676 12,282 SF $590.51 $362,633 4.3% - 20 07/31/2018 Seattle, WA 98119 PRICEPRICE BLDG SFBLDG SFPRICE/SFPRICE/SFPRICE/UNITPRICE/UNIT CAPCAP GRMGRM Totals/Averages $10,243,535 21,973 SF $471.36 $338,876 3.69% 17.47 BUILDING PHOTOS INTERIOR PHOTOS INTERIOR PHOTOS PUGET SOUND LAKE UNION 105 Mercer Street LOCATION QUEEN ANNE HILL QUEEN ANNE HILL is an affluent neighborhood Upper Queen Anne’s Queen Anne Avenue is bustling northwest of downtown Seattle.