Offering Memorandum

UNIVERSITY DISTRICT 5-UNIT

4761 22nd Ave NE , WA

Exclusively offered by Paragon Real Estate Advisors

600 University Street | Suite 2018 | Seattle, WA 98101 1 P 206.623.8880 | E [email protected] | ParagonREA.com Offering Summary

Name University District 5 Unit Address 4761 22nd Ave NE, Seattle WA 98105 Total Units 5 Built 1910 Square Feet 2,750 Total Net Rentable Price $1,300,000 Price Per Unit $260,000 Price Per Foot $473 Current GRM/CAP 17.7/3.7% (2% Vacancy) Market GRM/CAP 14.0/5.0% (4% Vacancy) Expense Per Unit $4,894/Year Terms Cash Out Lot Size 5,021 Square Feet Zoning LR3

U DISTRICT 5-UNIT

600 University Street | Suite 2018 | Seattle, WA 98101 2 P 206.623.8880 | E [email protected] | ParagonREA.com Investment Highlights

Extremely well-maintained

Copper plumbing

LR3 Urban Village zoning

Walking distance to University of campus

Double-pane vinyl windows

Recreational lawn area

Common laundry

600 University Street | Suite 2018 | Seattle, WA 98101 3 P 206.623.8880 | E [email protected] | ParagonREA.com Photos

600 University Street | Suite 2018 | Seattle, WA 98101 4 P 206.623.8880 | E [email protected] | ParagonREA.com Photos

600 University Street | Suite 2018 | Seattle, WA 98101 5 P 206.623.8880 | E [email protected] | ParagonREA.com Photos

600 University Street | Suite 2018 | Seattle, WA 98101 6 P 206.623.8880 | E [email protected] | ParagonREA.com Unit Photos

600 University Street | Suite 2018 | Seattle, WA 98101 7 P 206.623.8880 | E [email protected] | ParagonREA.com Neighborhood Map

SEATTLE CBD CAPITOL HILL

SOUTH MADISON PARK

MONTLAKE EASTLAKE

FREMONT LAURELHURST

UNIVERSITY UNIVERSITY DISTRICT DISTRICT 5 UNIT WALLINGFORD UNIVERSITY VILLAGE

ROOOSEVELT

600 University Street | Suite 2018 | Seattle, WA 98101 8 P 206.623.8880 | E [email protected] | ParagonREA.com Neighborhood Amenities - University District

Food/Drink Shopping/Services Parks/Schools 25

1 Kidd Valley 2 Papa John’s 3 Mamma Melina’s 4 Qdoba 14 29 20 5 The Ram 6 Elemental Pizza 12 7 Joey’s 8 Chipotle 9 Delfino’s Chicago Style Pizza 10 Cafe Racer 10 21 11 Morsel 12 Ravenna Alehouse 14 Top Pot Doughnuts 1 16 2 15 Earl’s on 3 UNIVERSITY 16 Sand Point Grill 17 4 DISTRICT 5 UNIT 17 Burke-Gilman Playground Park 11 24 22 18 Laurelhurst Park 5 6 19 University of Washington 9 20 Roosevelt High School 23 28 7 26 21 27 15 22 Apple 8 18 23 Trader Joe’s 19 24 QFC 25 Safeway 26 North Face

27 Neptune Theatre 29 28 Wells Fargo 29 UW Light Rail Station

600 University Street | Suite 2018 | Seattle, WA 98101 9 P 206.623.8880 | E [email protected] | ParagonREA.com University District

The University District is a great location and is all the remaining services they need from haircut just minutes North of . The salons, auto body repair shops, and dry cleaners. neighborhood is bound by I-5 to the West, beyond which is Wallingford and Fremont. To the With the neighborhoods central location, North you can find the Ravenna and Maple Leaf commuting to and from the area is easy with I-5 neighborhoods and to the South you can explore just to the West and the advanced transit system Montlake and Capitol Hill. Traveling East you have implemented over the past few years. The long the Laurelhurst area and . planned University Link Light Rail Station located at Husky stadium opened in March of 2016. The transit As the name describes it, the University District line runs from the University of Washington to is home to the University of Washington which is Angle Lake Station making 14 stops along the way a well renowned public university. The university including one at Sea-Tac Airport. In addition to the is ranked as the thirteenth best public school light rail, King County Metro has multiple transit in the world and second best public institution bus lines with easy connections making for easy in the country. The area thrives with excitement and hassle free transportation options. during the school year with more than 30,000 undergraduate students in attendance each year. During the football and basketball seasons alone, the campus draws in an additional 30,000+ dawg fans to the University District. On the eastern edge of the University District is University Village which is comprised of a wide variety of shops and restaurants. Many residents around the area find it easy to spend countless hours in the village exploring some of the shops including Lulu Lemon, North Face, Apple Store, Office Depot, and getting groceries at QFC. Many take a break from the window shopping at one of the many restaurants including Blue C Sushi, The Ram, Joey’s, Eureka, and Elemental. Just on the perimeter of University Village residents can find

600 University Street | Suite 2018 | Seattle, WA 98101 10 P 206.623.8880 | E [email protected] | ParagonREA.com University District Snapshot

Population 31,729

Median household income $49,571

Owner Occupied 17% Renters 83%

Walk Score 91 - Walkers Paradise Bike Score 85 - Very Bikable Transit Score 77 - Excellent Transit

Median Studio Rent $1,628

Median 1 Bd/1 Bth Rent $1,993

Median 2Bd/1 Bth Rent $2,267

Downtown Seattle Commute Times Bus: 26 min via Bus 372/Light Rail Car: 10 min via I5

Bellevue Commute Times Bus: 45 min via Bus 372/556 Car: 19 min via 520

TOP JOB SECTORS: *

Management: 15.5% Sales: 9.2% Business 7.7% Service: 6.3% Computer: 8.8% Healthcare: 5.1% Education 6.6% Legal 2.4% Engineering 3.3% Construction 2.1% Administrative: 8.7% Social Services: 1.7%

* https://www.niche.com/places-to-live/n/university-district-seattle-wa

600 University Street | Suite 2018 | Seattle, WA 98101 11 P 206.623.8880 | E [email protected] | ParagonREA.com Seattle Central Business District

Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children’s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health

Seattle Icons: Space Needle, , South Lake Union, Seahawks, Mariners

Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts

Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom’s, Boeing, Expeditors International, Payscale, Zulily

New Companies entering Seattle’s Market: Dropbox, Facebook, Tableau and Apple

Seattle is the number ten top fastest growing big U.S. cities

Amazon currently host’s 40,000 employees, and is projected to host an additional 31,000 more (total 71,000) by 2019

Projected to occupy over 9 million square feet of office space by 0192

600 University Street | Suite 2018 | Seattle, WA 98101 12 P 206.623.8880 | E [email protected] | ParagonREA.com University Link Light Rail and Future Light Rail Expansion

The University Link Light Rail station is located next to Husky Stadium and the platforms are big enough to handle game day crowds. Modern elevators and escalators connect the platforms to the nearby campus, UW Medical Center and surrounding neighborhoods. A new pedestrian bridge allows walkers and bikers to avoid traffic by connecting the station to upper campus and the Burke-Gilman Trail. By 2021, the University District is slated to gain a second link light rail station located on Brooklyn Ave NE between NE 45th and NE 43rd streets. It will serve the surrounding residential community, the “Ave” business district, other employment sites, the UW Tower and the north University of Washington campus. Its official name is now . Riders will board trains underground. The station will have two entrances along Brooklyn Ave NE with elevators, escalators and stairs. The station will have about 100 bike parking spaces. The site is designed to accommodate future development above the station. When it opens in 2021, projected transit times suggest a 5 minute commute to Northgate and 8 minutes to Westlake Station in Downtown Seattle.

600 University Street | Suite 2018 | Seattle, WA 98101 13 P 206.623.8880 | E [email protected] | ParagonREA.com Employment

Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world’s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston.

>> Adobe >> Nordstrom >> Alaska Airlines >> Paccar >> Amazon >> RealNetworks >> Apple >> REI >> AT&T Wireless >> Russell Investments >> Boeing >> SpaceX >> Costco >> Starbucks >> Expedia, Inc. >> Symetra Financial >> Expeditors International >> Tableau Software >> F5 Networks >> T-Mobile >> Facebook >> Twitter >> Fred Hutchinson >> Uber >> Gates Foundation >> University of Washington >> Getty Images >> Virginia Mason >> >> Weyerhaeuser >> Microsoft >> Zillow >> Nintendo >> Zulilly

600 University Street | Suite 2018 | Seattle, WA 98101 14 P 206.623.8880 | E [email protected] | ParagonREA.com Major Employers - Central Business District

600 University Street | Suite 2018 | Seattle, WA 98101 15 P 206.623.8880 | E [email protected] | ParagonREA.com Major Employers - South Lake Union

600 University Street | Suite 2018 | Seattle, WA 98101 16 P 206.623.8880 | E [email protected] | ParagonREA.com Population, Education and Income

King County contains estimated 872,411 households. This number is forecast to increase to more than 912,000 by the year 2021. The county currently has 18 cities with populations greater than 20,000. Seattle is one of the most educated cities in the United States. Over 57 percent of Seattle’s adult residents have a Bachelor’s degree or higher, nearly twice the national average. An educated city means an educated workforce—a solid backbone for the innovative, knowledge-based industries that drive Seattle’s economy. King County also boasts high educational attainment, with 47 percent of residents over 25 having received a Bachelor’s degree or higher. Roughly 28 percent of King County residents are in professional business/managerial positions. As a result, median household income in King County is well above the U.S. average. Cost of living is generally higher than the U.S. average, but it is in line with other metropolitan areas with similar income levels.

TOP KING COUNTY EMPLOYERS FT EMPLOYEES IN WA The Boeing Co 81,919 Microsoft Corp. 43,031 Amazon.com Inc 40,000 University of Washington 30,200 Starbucks Corp 13,400 Swedish Health Services 11,239 City of Seattle 10,758 Costco Wholesale Corp 10,080 Nordstrom 9,264 Group Health Cooperative 8,982

*Source: U.S Census Bureau

600 University Street | Suite 2018 | Seattle, WA 98101 17 P 206.623.8880 | E [email protected] | ParagonREA.com Operating Summary

Units 5 Price $1,300,000 Annualized Operating Data Current Market Year built 1910 Price Per Unit $260,000 Scheduled Gross Income $73,402 $92,662 Rentable Area 2,750 Per Square Foot $473 Less Vacancy 2.00% $1,468 4.00% $3,706 Down Payment $650,000 50% Current GRM 17.7 Gross Operating Income $71,934 $88,956 Loan Amount $650,000 50% Current CAP 3.65% Less Expenses $24,472 $24,472 Interest Rate 4.25% Market GRM 14.0 Net Operating Income $47,462 $64,484 Amortization 30 Years Market CAP 4.96% Annual Debt Service ($3,198/mo) $38,371 $38,371 Cash Flow Before Tax 1.40% $9,091 4.02% $26,112 Principal Reduction $10,958 $10,958 Current Monthly Market Monthly Total Return Before Tax 3.08% $20,049 5.70% $37,070 Units Type Size Rent Income Rent Income 4 1Bd/1Bth 510 ($1,100-$1,195) $4,545 $1,395 $5,580 Annualized Operating Expenses Current Market 1 2Bd/1Bth 685 $1,500 $1,500 $1,795 $1,795 Real Estate Taxes 2018 $11,801 $11,801 5 Avg S.F. 545 $2.20 $2.71 Insurance Proforma $1,750 $1,750 Utilities 2016 $5,921 $5,921 Total Monthly Income Maintenance & Repairs Proforma $3,750 $3,750 Monthly Scheduled Rent $6,045 $7,375 Reserves Proforma $1,250 $1,250 Utility Income $0 $50 - $75/unit $275 Total Expenses $24,472 $24,472 Laundry Income $72 $72 Current Expenses/Unit $4,894 Market Expenses/Unit $4,894 Total Monthly Income $6,117 $7,772 Operations Expenses/Foot $8.90 Operations Expenses/Foot $8.90 Percent of EGI 34.02% Percent of EGI 27.51%

600 University Street | Suite 2018 | Seattle, WA 98101 18 P 206.623.8880 | E [email protected] | ParagonREA.com Sale Comparables

SUB - UNIVERSITY DISTRICT 5 UNIT 1. OSWEGO APARTMENTS 4761 22nd Ave NE, Seattle, WA 6537 Oswego Pl NE, Seattle, WA

Year Built 1910 Year Built 1950 Units 5 Units 11 Sales Price $1,300,000 Sales Price $2,360,000 Price/Unit $260,000 Price/Unit $214,545 Price/Foot $473 Price/Foot $508 GRM/CAP 17.7/3.7% CAP 16.1/4.4% Sales Date TBD Sales Date 4.20.2018

2. 5036 NE 22ND AVE 3. 5204 18TH AVE NE Seattle, WA Seattle, WA

Year Built 1957 Year Built 1910 Units 6 Units 7 Sales Price $1,404,000 Sales Price $1,660,000 Price/Unit $234,000 Price/Unit $237,143 Price/Foot $442 Price/Foot $419 GRM/CAP 22.9/2.1% CAP 14.9/4.6% Sales Date 4.13.2018 Sales Date 3.23.2018

4. 815 15TH AVE E 5. 1633 10TH AVE W Seattle, WA Seattle, WA

Year Built 1902 Year Built 1905 Units 6 Units 6 Sales Price $1,799,000 Sales Price $1,625,000 Price/Unit $299,833 Price/Unit $270,833 Price/Foot $562 Price/Foot $468 GRM/CAP 15.3/4.5% GRM/CAP 13.4/5.0% Sales Date 10.30.2017 Sales Date 5.04.2017 Sales Date 5.08.2018

600 University Street | Suite 2018 | Seattle, WA 98101 19 P 206.623.8880 | E [email protected] | ParagonREA.com Sales Comparables Map

University District 5 Unit 4761 22nd Ave NE Seattle, WA 1. Oswego Apartments 6537 Oswego Pl NE Seattle, WA 1 2.5036 NE 22nd Ave Seattle, WA 3 3. 5204 18tH Ave NE 2 Seattle, WA 4. 815 15th Ave E U DISTRICT 5 UNIT Seattle, WA 5. 1633 10th Ave W Seattle, WA 5

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600 University Street | Suite 2018 | Seattle, WA 98101 20 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 $3.4 billion in sales and have closed over 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 region, we are the smart choice to partner with.

At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 23 years’ experience in the industry. Paragon’s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships.

The information found in this offering memorandum 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 the information and bears all risk for any inaccuracies.

600 University Street | Suite 2018 | Seattle, WA 98101 21 P 206.623.8880 | E [email protected] | ParagonREA.com