Cornerstone Apartments 2531 Grand Ave | Everett, Wa 98201
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CORNERSTONE APARTMENTS 2531 GRAND AVE | EVERETT, WA 98201 TYLER SMITH STEVE FISCHER JOE KINKOPF PRINCIPAL | BROKER PRINCIPAL | BROKER BROKER P: 206.505.9425 P: 206.505.9435 P: 206.505.9403 [email protected] [email protected] [email protected] Offering Summary WESTLAKE ASSOCIATES IS PROUD TO EXCLUSIVE LIST THE CORNERSTONE $1,030,000 APARTMENTS FOR SALE. LIST PRICE The Cornerstone Apartments is a well-located apartment community in the scenic Bayside neighborhood. Boasting spacious and efficient layouts, the Cornerstone offers investors a large $198 footprint in a high growth suburb of the Seattle/Puget Sound area. PRICE PER SF Everett has seen a boom in rental rate growth. Since January 2021, rents in this market have risen 6%, making this deal perfectly poised for repositioning through a value-add strategy. We expect this trend to continue as a host of transportation options are coming available in preparation of the $171,667 eventual addition of the Light Rail in Everett. PRICE PER UNIT PROPERTY HIGHLIGHTS • Scenic views of Puget Sound • Spacious two-bedroom units • Covered tenant parking • Carefully manicured landscaping • Charming mid-century construction • On-site laundry facilities • Vaulted Ceilings WESTLAKE ASSOCIATES | 2 Property Profile PROPERTY DETAILS County Snohomish Market Everett Land Use Apartment Style Low-Rise APN# 004391-559-015-00 Zoning R5 BUILDING INFORMATION Name Cornerstone Apartments Address 2531 Grand Ave Everett, WA 98201 Year Built 1967 # of Floors 2 # of Units 6 Lot Size 6,098 SF Net Rentable SF 5,200 SF Construction Wood Frame Heat Electric Laundry Common Parking Surface / Carport WESTLAKE ASSOCIATES | 3 Location CORNERSTONE APTS CORNERSTONE APTS WESTLAKE ASSOCIATES | 4 Financial Analysis PRICE ANALYSIS INCOME CURRENT PRO FORMA PRICE $1,030,000 Scheduled Rent Income $69,600 $105,240 Price per Unit $171,667 + Other Income $1,200 $1,200 Price per NRSF $198.08 + Utility Recovery $0 $7,560 Price per Land SF $168.90 + Laundry Income $600 $600 Current Cap 3.61% Scheduled Gross Income $71,400 $114,600 Current GRM 14.43 - Vacancy & Credit Losses ($3,570) 5.00% ($5,730) 5.00% Market Cap 7.48% Gross Income $67,830 $108,870 Market GRM 8.99 EXPENSES PROPOSED FINANCING CURRENT PRO FORMA RE Taxes $7,748 $9,113 Loan Amount $754,650 Insurance $4,091 $1,800 Down Payment $360,500 Utilities W/S/G/E $4,918 $4,918 Rate 3.50% Management $3,392 $5,444 % Down 35.0% On-Site Management $1,200 $1,200 Amortization 30 Years Maintenance / Turnover $5,700 $5,700 Term 5 Years Grounds $2,400 $2,400 Monthly Payment $3,388 Reserves $1,250 $1,250 Annual Payment $40,665 Total Expenses $30,699 $31,825 OPERATING DATA CURRENT PRO FORMA Net Operating Income $37,132 $77,045 Less Loan Payments ($40,665) ($40,655) Pre-Tax Cash Flow ($3,533) -0.98% $36,380 10.09% Plus Principal Reduction $14,483 $14,483 Total Return Before Taxes $10,950 3.04% $50,863 14.11% Rent Roll UNIT UNIT TYPE SF CURRENT RENT / SF MARKET RENT / SF 1 2 BD | 1 BA 900 $1,025 $1.14 $1,495 $1.66 2 2 BD | 1 BA 900 $925 $1.03 $1,495 $1.66 3 1 BD | 1 BA 700 $975 $1.39 $1,295 $1.85 4 2 BD | 1 BA 900 $975 $1.08 $1,495 $1.66 5 2 BD | 1 BA 900 $925 $1.03 $1,495 $1.66 6 2 BD | 1 BA 900 $975 $1.08 $1,495 $1.66 TOTAL | AVG 6 5,200 SF $5,800 $1.12 $8,770 $1.69 WESTLAKE ASSOCIATES | 6 Site Demographics & Amenities WHAT’S NEARBY POPULATION 1-MILE 5-MILE 10-MILE RETAIL Wilson’s Market Total Population 17,428 48,692 113,243 Everett Public Market Median Age 38.5 38.4 37.0 QFC 91 Walgreens Est Growth 2021-2026 5.39% 4.76% 5.40% Goodwill HOUSEHOLDS & INCOME 1-MILE 3-MILE 5-MILE Lowe’s WALKSCORE Funko Total Households 7,441 19,869 43,809 Walker’s Paradise Average HH Income $71,120 $83,418 $89,516 SERVICES Renter Occupied Housing 66.53% 53.79% 46.28% Everett High School Everett Public Library Bayside Park FOOD & DRINKS 70 Kate’s Greek & American Deli A Pizza House The Sisters Restaurant At Large Brewing & Taproom BIKESCORE K Fresh Very Bikeable El Paraiso Mexican Grill Kai Sushi Fusion Espresso Avenue Grandma’s in Da Kitchen Soundview Tavern J Ramen & Sushi The Loft Coffee Bar 1.5 Choux Choux Bakery Cafe Wylde The Irishmen The Bayside Cafe MILES Romio’s Pizza & Pasta I-5 Freeway Ramp Best Teriyaki & Wok WESTLAKE ASSOCIATES | 7 Everett EVERETT is a beautiful city of more than 100,000 people located in North Mukilteo now stands on the one square mile which was deeded to the United Puget Sound Area. Located about 25 miles north of Seattle, Everett is a States by the Tulalip Indians. It is geographically situated as the gateway to Pacific-Rim city situated on Port Gardner Bay. Nestled along the nationally- Island and San Juan counties and is home to the Whidbey Island (Mukilteo- acclaimed Puget Sound coast, Everett is a city rich with opportunity and is Clinton) ferry terminal. The lighthouse which is adjacent to the ferry terminal on the way to becoming a leading Northwest business center. Starting in is still functional and is open for free tours on Saturday and Sunday afternoons. the 1890’s as a lumber port that attracted the eyes of mogul investors like With a first class golf course, new schools, and an ever expanding business J.D. Rockefeller. The small port rapidly became a boom town and many local core the Mukilteo area is growing by leaps and bounds. A quaint down town lumber barons made their homes in town. Several of the elaborate mansions corridor compliments the southern annexed area of the city, where commerce can still be found in the north end of town on Rucker and Grand Avenues. and industry abound. Mukilteo holds on to its friendly small town charm and Everett is an All-American City that has focused on citywide investments, remains a wonderful place to live. growing our economy and creating a better quality of life. Once a mill town built on wood-based industries today’s labor force of more than 80,000 is predominately employed in technology, aerospace and service based industries. Despite its historical past, Everett offers a expanding high-tech industry, a deep water port accessing the Pacific Ocean, established and diverse manufacturing and retail core and Naval Station with it’s 16,000 personnel and family members. Companies in this area are well positioned to tap markets from around the Puget Sound and the World. The Boeing Company, a world-wide manufacturer assembles 747’s and 767’s at the Everett Plant. Planned bicycle and jogging trails weave through Snohomish County and let you see the beauty of tall Evergreen Trees that Washington is known for. With more than 40 parks, trails, golf courses and open spaces, residents and visitors enjoy the great outdoors. Summer and winter sports opportunities abound at nearby lakes, rivers and campgrounds, the Cascade and Olympic Mountains, Whidbey and San Juan Islands. WESTLAKE ASSOCIATES | 8 About Westlake Since 1975, Westlake Associates, Inc. has been the premier provider of commercial real estate brokerage services in the Puget Sound Region. Our unsurpassed commitment to creating and preserving our clients’ real estate investment wealth has resulted in thousands of successful transactions and a long history of repeat business and client referrals. The professionals at Westlake Associates collaboratively work with clients to develop customized, creative solutions designed to maximize investment returns. EXCLUSIVELY LISTED BY: We’ve built a strong foundation of experience in Investment Property Sales, Commercial Leasing, Property Management, TYLER SMITH and comprehensive real estate services over our 40 year history. PRINCIPAL | BROKER We operate as a team and leverage each other’s resources and P: 206.505.9425 experience to provide the highest level of client services. [email protected] PROUD MEMBERS OF: STEVE FISCHER Commercial Brokers Association (CBA) PRINCIPAL | BROKER Northwest Multiple Listing Services (NWMLS) P: 206.505.9435 LoopNet National Listing Services [email protected] CoStar Commercial Real Estate Data & National Listing Commercial Investment Real Estate (CREI) JOE KINKOPF Washington State Realtors Association (WSMA) BROKER P: 206.505.9403 [email protected] 1200 Westlake Avenue N, Suite 310 DISCLAIMER: This information has been secured from sources we believe to be reliable, but we make no representa- tions or warranties, expressed or implied, as to the accuracy of the information. References to square footage, age, and Seattle, Washington 98109 numbers are approximate. Parties must verify the information and bear all risk for any inaccuracies. ©2021 WESTLAKE ASSOCIATES, INC. .