THE MERCER APARTMENTS 105 MERCER STREET | , 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 , 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 • 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 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. The neighborhood with coffee shops, restaurants, boutiques, grocery sits on the highest hill in the city, with a maximum stores and other service-oriented businesses. elevation of 456 FT. Equally accessible is Lower Queen Anne; home Queen Anne Hill has long been considered Seattle’s to vibrant night life, numerous neighborhood premier residential neighborhood due to its close restaurants and the 64-acre Seattle Center, site proximity to Seattle’s CBD, easy access to public of the 1962 Seattle World’s fair. Today the Seattle transportation and the ability to maintain a family- Center is home to the Ballet, friendly neighborhood with strong community ties. the Pacific Science Center, the Seattle Opera, the Seattle Children’s Theatre, the Space Needle, Paul One of the most attractive views of the city, the Allen’s MoPOP Museum and the Chihuly Garden and Space Needle and Mount Rainier can be observed Glass. from Kerry Park, located on Highland Drive.

Click here for more about the Seattle Center

WESTLAKE ASSOCIATES, INC. SOUTH LAKE UNION

SOUTH LAKE UNION

ALTHOUGH SOUTH LAKE UNION HAD HUMBLE BEGINNINGS, starting out as the city’s hub for logging, maritime industry and manufacturing, the South Lake Union neighborhood has transformed into a modern, diverse community. Today, businesses range from biotechnology and medical research centers to thriving shops and restaurants. There are various parks, open green spaces, water access, and efficient public transportation, including the Seattle Streetcar.

$2.84 billion in public and private funds have been invested into the revival of the neighborhood. Microsoft co-founder Paul Allen and his Vulcan Real Estate company have rapidly changed the deserted warehouse district into a thriving tech-hub. The addition of a trolley system, a park along the shore of Lake Union, and retail/apartment buildings have, in recent years, given South Lake Union a great vibe that people can’t get enough of. South Lake Union is home to some of the largest companies in Washington State. Major employers in the neighborhood include Amazon.com, University of Washington Medicine, Facebook, Fred Hutchinson Cancer Research Center, REI flagship store, Google, NBBJ, Pemco, and Seattle Cancer Care Alliance.

South Lake Union’s unbeatable location makes it an ideal place to live. The residential options are growing, as builders expand the selection of apartments and condominiums. A charming neighborhood characteristic, houseboats are a common sight in the area.

South Lake Union is experiencing an influx of new restaurants that add to its already vibrant culinary scene. World-class dining experiences and delicious happy hours abound. Stop at always-festive taqueria El Grito for tacos and mezcal cocktails or try German specialist Feierabend for crisp schnitzel and schwarzbier. Everything is made with care at Teinei, from handmade ramen noodles to fresh maki rolls. Saigon street food has been refined at Ba Bar, with unbeatable pho, vermicelli noodle bowls and rotisserie meats. And Caffe Torino covers all of our caffeine needs, including Italian specialties like Bicerin, a mix of coffee, cream, and hot chocolate.

Stroll through the South Lake Union Saturday Market, where local food vendors and craftspeople occupy more than 100 booths. To experience commerce, download and activate ’s app, grab your supplies or takeout lunch, and walk out the door - the digital transaction is lightning-quick, no cashiers necessary. Feast your eyes on Verde & Co., a flower and plant boutique, and browse the Asian snacks, staples, seafood, and grab-and-go meals at Kai Market, a sleek offshoot of the city’s famed Uwajimaya grocer.

To learn about the history of Lake Union and the surrounding neighborhood, the Museum of History and Industry (MOHAI) hosts exhibits on innovative technology, local history and fashion. The Center for Wooden Boats offers sailing and paddling on dragon boats, and classes on carving your own wooden boat. You can rent kayaks and paddle boards and float through Lake Union. PUGET SOUND SUMMARY

PUGET SOUND PUGET SOUND LARGEST EMPLOYERS Set in the beautiful Pacific Northwest, the largest maker of large commercial jets, and greater Seattle area is a national center second largest global defense contractor. JOINT BASE for manufacturing, technology, services, Boeing is one of the largest employers in LEWIS-MCCHORD international trade and tourism. the Puget Sound, employing approximately 80,000 in Washington. 80,000 56,000 MAJOR EMPLOYERS Employees Employees Employment is expanding through the Today some of the world’s most recognizable greater Seattle area. The Puget Sound region Fortune 500 companies call Seattle home: is projected to generate 1.2 million new jobs Microsoft, Starbucks, Amazon, Nordstrom, by 2040. and REI. Other major companies in the area include Boeing, T-Mobile. Expedia, F5 INTERNATIONAL TRADE Networks and Nintendo of America. 42,000 25,000 Seattle has remained one of the most resilient Employees Employees According to the Puget Sound Business cities due to its diverse industries, making it Journal, technology companies are leading more attractive for new companies to relocate the way in employment growth in the Seattle and expand in the area. The Port of Seattle, MSA. As the home of Microsoft and Amazon, which also operates the Seattle-Tacoma Seattle accounts for over 20% of the nation’s International Airport, is a major gateway to software publishing employment. Microsoft Asia and cruises to Alaska. The Port of Seattle is one of the top employers in the sate ranks as the 6th business seaport in the US, with over 42,000 employees. Their World playing a key role in bringing international 40,000 20,000 Headquarters, located in Redmond is over 10 trade, transportation and travel to the Pacific Employees Employees million square feet. Northwest.

The Puget Sound has become a international RECREATION leader in innovative industries with organizations such as the Fred Hutchinson The region is known for its quality of life, arts, Cancer Research Center, the University of and outdoor lifestyle which helps attract an Washington Medical Center and the Bill educated workforce. Numerous camping, and Melinda Gates foundation. Healthcare hiking, winter sports, and recreational employment is projected to continue to grow activities are located a short drive from 20,000 10,000 dramatically and Seattle has the 5th largest the city. Seattle’s main attractions include Employees Employees biotechnology Research and Development Pike Place Market, the Space Needle, and alliance between the University of Washington Seattle Center, home of the 1962 World’s Fair. and the Fred Hutchinson Cancer Research Seattle is home to a number of professional Center. sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle The Puget Sound is one of the capitals of the Mariners, and the Seattle Sounders FC soccer aerospace industry anchored by Boeing, the team. world’s largest aerospace company, second- 15,000 13,000 Employees Employees SOUND TRANSIT - BALLARD

Ballard Link Extensions Project Map & Summary

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Sound Transit is working on a project for a Ballard Link Extension that will provide fast, reliable light rail connections to dense residential and job centers throughout the region. In addition, a new downtown Seattle light rail tunnel will provide capacity for the entire regional system to operate efficiently. This light rail extension is a part of the regional ST3 package that voters approved funding for in November 2016.

2035 - Ballard to Downtown

• Adds 7.1 miles of light rail service from downtown Seattle to Ballard, including a new downtown Seattle rail-only tunnel.

• Includes 9 stations between International District/Chinatown and NW Market Street in Ballard.

Design is expected to begin in 2023 and be completed in 2026. Construction and testing is expected to begin in 2027 and be completed in 2035. 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 thirty real 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 representation 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.

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