1608 Washington St, Sumner WA 98390

Nor Wester APARTMENTS UNIVERSITY TACOMA LAKEWOOD PLACE

MILTON

PUYALLUP

SUMNER STATION

SUMNER Nor Wester APARTMENTS OFFERING

Paragon Real Estate Advisors is pleased to offer for sale the Nor’Wester Apartments, a 16 unit community located in Sumner, Washington Constructed in 1975 and updated through the years, the property features two -8 unit buildings separated by a secured courtyard. Each building consists of all 2bd/1.5bth townhouse style units with washers and dryers, covered patios and ample parking. The apartments are located within walking distance to downtown Sumner and less than a mile from Sumner station providing convenient transportation to several major employment centers. The property has been well maintained and is a prime target for renovation and repositioning.

NAME Nor’Wester Apartments

ADDRESS 1608 Washington St, Sumner WA 98390

TOTAL UNITS 16

BUILT 1975

SQUARE FEET 15,232 Total Net Rentable

PRICE $2,395,000

PRICE PER UNIT $149,688

PRICE PER FOOT $157.23

CURRENT GRM/CAP 12.0/4.4%

MARKET GRM/CAP 8.6/7.3%

LOT SIZE 29,890 Square Feet

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

 16 – 2bd/1.5bth units

 All townhouse style units

 Spacious 952 square foot units

 Washer and dryer hook-ups in unit

 Exterior storage spaces

 Parking for 18 vehicles

 Double pane vinyl windows

 Pitched composition roof

 Secured courtyard entry

 Covered patios

 Walking distance to downtown Sumner & Sounder train

 Substantial rental upside

 Prime repositioning target

Nor Wester APARTMENTS LOCATION

Sumner is located in north central Pierce County and is 34 miles south of Seattle CBD and 15 miles east of Tacoma. The City of Sumner was established in 1981 and has grown from 531 residents in the year of 1900 to over 9,700 residents today. Sumner commercial and industrial jobs currently support nearly 9,000 employees. In addition to excellent road and highway access to Seattle and Tacoma, Sumner beneﬁ ts from rail links to both via Sounder commuter rail. Sound Transit will improve access to Sumer Station for pedestrians, bicyclists, and drivers. Access improvements for the project include a new parking garage with approximately 623 parking stalls, including sidewalk and lighting improvements. There will POPULATION also be surface parking expansion to the current parking lot to net a total of 857 stalls. Improvements are expected to be completed by 2021. 9,789

 70 Walk Score – Very Walkable

 .7 Miles to Sumner Station

 Less than half a mile from Main Street bars and restaurants

 34 Miles from downtown Seattle MEDIAN INCOME $56,991 SOUNDER COMMUTER RAIL

Sounder commuter rail is a commuter rail service operated by BNSF on behalf of Sound Transit. Service operates Monday through Friday during peak hours from Seattle, Washington, north to Everett and south to Lakewood. There are currently thirteen round trips on the South Line, with three operating in the reverse commute direction. The current average ridership on the South Line is approximately 16,500 passengers per day The recently passed ST3 project establishes a program of capital improvements that would be used to meet growing demand for Sounder South. Access elements could include improvements for pedestrians, bicyclists, buses, and private vehicles. Additional program elements include extending platforms to accommodate trains up to 10 cars in length, track and signal upgrades, and other related infrastructure to facilitate additional capacity. Sound Transit plans to add additional Sounder South Line stations at Tillicum and DuPont. The track has already been constructed by Sound Transit with funding from WSDOT as part of the Point Deﬁ ance Bypass project. The construction of the stations will be funded by the Sound Transit 3 ballot measure passed in 2016. The two stations are expected to open in 2036 and cost $300 million. ECONOMY

From 2017 to 2018, employment in Pierce County, WA grew at a rate of 4.82%, from 407k employees to 427k employees. The most common job groups, by number of people living in Pierce County, WA, are Ofﬁ ce & Administrative Support Occupations, Management Occupations, and Sales & Related Occupations.

Compared to other counties, Pierce County, WA has an unusually high number of residents working as Transportation Occupations (1.31 times higher than expected), Law Enforcement Workers Including Supervisors (1.29 times), and Community & Social Service Occupations (1.29 times).

Management Education Business Ofﬁ ce & Administrative Sales Production Material Instruction & Financial Moving & Library Operations Support

5.48%

Transportation

11.7% 9.14% 9.22% 6.1% 5.05% 5.09% Food Preparation & Building Fire 4.73% Serving Maintenance Services Health Diagnosing & Community & Arts & Arch & Construction & Installation Treating Practitioners Social Services Ent. Engin Extractions Maintenance & Repairs 3.38% 2.22% 5.58% 1.55% 3.47% Health Personal Care Law 1.63% Healthcare Support Enforc. Computer & Math Technicians 1.63% 3.65% Life Legal Sciences Fishing & 2.45% 2.22% 0.65% 0.59% 4.17% 2.81% 1.18% 6.11% Farming

*https://datausa.io/proﬁ le/geo/pierce-county-wa#economy MAJOR EMPLOYERS - SEATTLE CBD MAJOR EMPLOYERS - SOUTH LAKE UNION BUILDING PHOTOS UNIT PHOTOS Unit Breakdown Nor Wester APARTMENTS

APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. 1 2 Bd/1.5 Bth 952 Sq.Ft. $975 $1.02 $1,395 $1.47 2 2 Bd/1.5 Bth 952 Sq.Ft. $1,200 $1.26 $1,395 $1.47 3 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 4 2 Bd/1.5 Bth 952 Sq.Ft. $1,025 $1.08 $1,395 $1.47 5 2 Bd/1.5 Bth 952 Sq.Ft. $1,295 $1.36 $1,395 $1.47 6 2 Bd/1.5 Bth 952 Sq.Ft. $1,050 $1.10 $1,395 $1.47 7 2 Bd/1.5 Bth 952 Sq.Ft. $975 $1.02 $1,395 $1.47 8 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 9 2 Bd/1.5 Bth 952 Sq.Ft. $975 $1.02 $1,395 $1.47 10 2 Bd/1.5 Bth 952 Sq.Ft. $975 $1.02 $1,395 $1.47 11 2 Bd/1.5 Bth 952 Sq.Ft. $1,200 $1.26 $1,395 $1.47 12 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 13 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 14 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 15 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 16 2 Bd/1.5 Bth 952 Sq.Ft. $1,000 $1.05 $1,395 $1.47 Totals/Avg 952 Sq.Ft. $16,670 $1.09 $22,320 $1.47 Income and Expenses ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $200,400 $279,720 Units 16 Price $2,395,000 Less Vacancy 3.0% $6,012 5.0% $13,986 Year Built 1975 Per Unit $149,688 Gross Operating Income $194,388 $265,734 Rentable Area 15,232 Per Sq. Ft. $157.23 Less Expenses $87,990 $92,028 Down Pmt $838,250 Current GRM 11.95 Net Operating Income $106,398 $173,706 Loan Amount $1,556,750 Current CAP 4.44% Annual Debt Service ($7,343/mo) $88,112 $88,112 Interest Rate 3.90 Market GRM 8.56 Cash Flow Before Tax 2.18% $18,285 10.21% $85,593 Amortization 30 years Market CAP 7.25% Principal Reduction $27,894 $27,894 Total Return Before Tax 5.51% $46,180 13.54% $113,487

UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT ANNUALIZED OPERATING EXPENSES CURRENT MARKET 16 2 Bd/1.5 Bth 952 $975 - $1,295 $1.395 Real Estate Taxes 2019/Proforma $21,349 $23,950 16 Total/Avg 952 $1.09 $1.47 Insurance 2019 $5,145 $5,145 Utilities 2019 $26,507 $26,507 Professional Mgmt 2019/ Proforma 6% $14,506 $15,944 Maint & Repairs Proforma $12,000 $12,000 Landscaping 2019 $2,882 $2,882 Administration Proforma $1,600 $1,600

MONTHLY INCOME CURRENT MARKET Reserves Proforma $4,000 $4,000 Gross Potential Rent $16,670 $22,320 Total Expenses $87,990 $92,028 Utility Bill Back $0 $960 Parking Income $0 $0 CURRENT MARKET Other Income $30 $30 Expense/Unit $5,499 Expense/Unit $5,752 OPERATIONS OPERATIONS Gross Potential Income $16,700 $23,310 Expense/Foot $5.78 Expense/Foot $6.04 Percent of EGI 43.91% Percent of EGI 32.90% SALES COMPARABLES

2 Nor’Wester Apartments 1608 Washington St Sumner, WA 98390 Year Built 1975 Units 16 Sales Price $2,395,000 Price/Unit $149,688 Price/Foot $157.23 Current GRM/CAP 12.0/4.4% Market GRM/CAP 8.6/7.3%

1 Year Built 1973 2 Year Built 1966 Units 40 Units 12 Sales Price $6,477,000 Sales Price $1,600,000 Price/Unit $161,925 Price/Unit $133,333 Price/Foot $162.48 Price/Foot $183.91 GRM/CAP 9.7/6.4% GRM/CAP 10.2/5.4% Sales Date 7.31.2019 Sales Date 7.18.2019 Aria Apartments Harvey View Apartments 15817 64th St E 1214 Harvey Rd Nor Wester Sumner, WA 98390 Auburn, WA 98002 APARTMENTS

3 Year Built 1968 4 Year Built 1968 Units 8 Units 8 3 Sales Price $1,160,000 Sales Price $1,290,000 Price/Unit $145,000 Price/Unit $161,250 4 Price/Foot $164.03 Price/Foot $202.19 1 GRM/CAP 13.7/3.7% GRM/CAP 13.4/4.5% Sales Date 6.25.2019 Sales Date 5.23.2019 8 Unit Apartment 8 Unit Apartment 1412 Valley Ave E 1103 Thompson St Sumner, WA 98372 Sumner, WA 98390 600 University St, Suite 2018 Seattle Washington 98101

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