FRESCO APARTMENTS 3939 15TH AVE S | , WA 98108 FOR MORE INFORMATION:

STEVE FISCHER TYLER D SMITH PRINCIPAL | BROKER PRINCIPAL | BROKER 206.505.9435 206.505.9425 fischer@ tylersmith@ westlakeassociates.com westlakeassociates.com OFFERING SUMMARY

THE FRESCO APARTMENTS IS A TURNKEY PROPERTY CENTRALLY LOCATED NEAR DOWNTOWN SEATTLE IN THE THRIVING BEACON HILL NEIGHBORHOOD.

The offering provides an opportunity to acquire a beautiful turnkey, practically newly constructed asset less than 7 minutes from downtown Seattle and directly across the street from renowned . The interiors of the units offer tenants state of the art finishes, as all of the units have been updated with new kitchens, including cabinets and quartz counters, stainless steel appliances, bathrooms - including tile surrounds, the addition of in-unit laundry, new modern flooring, fixtures and all new mill work. In addition to the interior upgrades the building has been updated with new electrical panels, new plumbing, hot water tanks, heating, landscaping, structural upgrades, security access, new roof and windows.

The building consists of 16 one bed / one bath units, and 4 two bed / one bath units, with the ground floor units having large private patios. This is a chance to own a building with irreplaceable midcentury charm combined with finishes and systems of a brand new building.

ADDRESS

3939 15th Ave S | Seattle, WA 98108

PROPERTY HIGHLIGHTS Price: $5,200,000 + MAJOR SYSTEM UPGRADES / FULL UNIT REMODELS Cap: 5.22% + NEW CABINETS, QUARTZ COUNTERS, STAINLESS APPLIANCES GRM: 13.28 AND MODERN FLOORING THROUGHOUT + LARGE PRIVATE PATIOS Price Per Unit: $260,000 + EQUIPPED WITH MODERN TECHNOLOGY INCLUDING USB PORTS Price Per SF: $393.34 AND KEYLESS ENTRY + POTENTIAL TO ADD 1 UNIT + ACROSS THE STREET FROM RENOWNED JEFFERSON PARK + 6 MINUTES TO DOWNTOWN SEATTLE + DIRECT ACCESS TO INTERSTATE 5 VIA COLUMBIA WAY + 5 MINUTES TO SAFECO FIELD, CENTURY LINK AND PROPOSED SEATTLE ARENA + 10 BLOCKS FROM BEACON HILL LIGHT RAIL STATION

+ 1.5 MILES TO COLUMBIA CITY RETAIL, PCC NATURAL MARKET, AND THE LIGHT RAIL + PERFECTLY SITUATED SOUTH OF NEW EAST LINK LIGHT RAIL VIA I-90

WESTLAKE ASSOCIATES, INC. WESTLAKE ASSOCIATES, INC INVESTMENT CONSIDERATIONS

Price: $5,200,000 Units: 20 RENT SCHEDULE MARKET RENTS CURRENT RENTS Cap Rate: 5.22% (PRO-FORMA) No. of AVG SIZE UNIT TYPE CURRENT PSF PRO FORMA PSF Price Per Unit: $260,000 Units (SF) Price Per SF: $393.34 1 Bed | 1 Bath 16 620 $1,437 $2.32 $1,550 $2.50 2 Bed | 1 Bath 4 825 $1,845 $2.24 $1,895 $2.30 Type: Two Story, Wood Frame, Brick Veneer TOTALS 20 13,220 $30,372 $2.30 $32,200 $2.45 Year Built: 1959 TOTAL MONTHLY RENT: $30,385 $32,380 Lot Size: ±17,520 TOTAL ANNUAL RENT: $364,464 $386,560 Neighborhood: Beacon Hill Zoning: LR3

WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC AMENITIES

SAMPLING OF BEACON HILL CENTURYLINK MAJOR RETAIL FIELD PACIFIC TOWER & Bartell Drugs WAMU THEATER PACIFIC MEDICAL CENTER Domino’s Pizza SAFECO FIELD 90 Ezell’s Famous Chicken Lowe’s Home Improvement 5 McDonald’s PROPOSED MERCER LOCATION FOR NEW O’Reilly Auto Parts SEATTLE ARENA ISLAND Pizza Hut QFC

99 JEFFERSON PARK, Ross Dress for Less JEFFERSON PARK GOLF COURSE Safeway OLD RAINIER & BEACON FOOD FOREST BREWERY Starbucks Subway WEST SEATTLE BRIDGE Taco Bell FRESCO Taco Time APARTMENTS T-Mobile Walgreens COSTCO Wendy’s

BEACON COLUMBIA GEORGETOWN MICROBREWERIES HILL CITY & URBAN WINERIES

Charles Smith Wine Cloudlift Cellars Elysian Airport Way Brewery 509 Georgetown Brewing Co Laurelhurst Cellars GEORGETOWN Machine House Brewery OS Winery

5

BOEING FIELD

99

WESTLAKEN ASSOCIATES, INC WESTLAKE ASSOCIATES, INC FEATURED INTERIOR PHOTOS | ONE BEDROOM

CLICK HER E TO

TA KE A VIRTUAL TOUR

HIGHLIGHTS

+ ONE BEDROOM + ONE FULL BATH + KITCHEN WITH STAINLESS STEEL APPLIANCES

+ LIVING ROOM, KITCHEN, BEDROOM & BATHROOM HAVE WITH VINYL WOOD FLOORS THROUGHOUT

WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC FEATURED INTERIOR PHOTOS | TWO BEDROOM

CLICK HER E TO

TA KE A VIRTUAL TOUR

HIGHLIGHTS

+ TWO BEDROOMS + ONE FULL BATH + KITCHEN WITH STAINLESS STEEL APPLIANCES

+ LIVING ROOM, KITCHEN, BEDROOMS & BATHROOM HAVE WITH VINYL WOOD FLOORS THROUGHOUT

WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC FINANCIAL OFFERING

PROPERTY OVERVIEWPROPERTY OVERVIEW# of UNITS UNIT# ofTYPE UNITS AVG SIZEUNIT TYPECURRENT AVGPSF SIZEPROCURRENT FORMA PSFPSF PRO FORMA PSF Number of Units Number of Units 20 16 201 Bedroom16 | 1 Bath 1 620Bedroom | 1 Bath$1,437 $2.32620 $1,550$1,437 $2.50$2.32 $1,550 $2.50 Year Constructed Year Constructed1959 4 19592 Bedroom4 | 1 Bath 2825 Bedroom | 1 Bath$1,845 $2.24825 $1,895$1,845 $2.30$2.24 $1,895 $2.30 Remodel 2016 Total | AVG 13,220 $30,385 $2.30 $32,380 $2.45 Remodel 2016 Total | AVG 13,220 $30,385 $2.30 $32,380 $2.45 Rentable SF 13,220 Rentable SF INCOME 13,220 Lot Size 17,520 INCOME Lot Size 17,520 CURRENT PRO FORMA Zoning LR3 CURRENT PRO FORMA Zoning Scheduled RentalLR3 Income $364,620 $388,560 Roof Flat Scheduled Rental Income $364,620 $388,560 + Utility Bill Back $1,940 | $23,280 $2,035 | $24,420 Roof Flat Exterior Brick | Wood Frame + Parking + Utility Bill Back $0 | $0 $1,940$200 | |$2,400 $23,280 $2,035 | $24,420 Heat Exterior Electric Brick | Wood Frame + Misc Income + Parking $300 | $3,600 $300$0 | $3,600 | $0 $200 | $2,400 Heat Electric PRICE ANALYSIS Scheduled Gross Income + Misc Income $391,500 $300$418,980 | $3,600 $300 | $3,600 Sale Price PRICE ANALYSIS$5,200,000 - Vacancy & Cr Losses Scheduled Gross Income5.0% ($19,575) ($20,949)$391,500 $418,980 Price per Unit $260,000 Sale Price Gross$5,200,000 Income - Vacancy & Cr Losses $371,9255.0% $398,031($19,575) ($20,949) Price per NRSF Price per Unit$393.34 $260,000 EXPENSES Gross Income $371,925 $398,031 Price per Land SF $296,80 Price per NRSF $393.34 CURRENT PER UNIT PRO FORMA PER UNIT Current CAP Rate 5.22% EXPENSES Price per Land SF Real Estate$296,80 Taxes (2016) $19,287 $964 $35,000 $1,750 Current GRM 13.28 CURRENT PER UNIT PRO FORMA PER UNIT Current CAP Rate Insurance 5.22% $4,408 $220 $4,408 $220 Pro Forma CAP Rate 5.40% Real Estate Taxes (2016) $19,287 $964 $35,000 $1,750 Current GRM Utilities: W|S|G|Electric13.28 $24,000 $1,200 $24,000 $1,200 Pro Forma GRM 12.41 Insurance $4,408 $220 $4,408 $220 Pro Forma CAP Rate Professional 5.40%Management $14,877 $744 $15,839 $792 FINANCING Utilities: W|S|G|Electric $24,000 $1,200 $24,000 $1,200 Pro Forma GRM Resident Manager12.41 $8,400 $420 $8,400 $420 Loan Amount $3,700,000 Maintenances Professional Management $17,000 $850 $14,877$17,000 $850$744 $15,839 $792 Down Payment FINANCING$1,500,000 Miscellaneous Resident Manager $4,000 $200 $8,400$4,000 $200$420 $8,400 $420 Rate Loan Amount 3.25% $3,700,000 Landscaping Maintenances $3,600 $180 $17,000$3,600 $180$850 $17,000 $850 % Down Down Payment28.8% $1,500,000 Reserves Miscellaneous $5,000 $25 $4,000$5,000 $200$25 $4,000 $200 Amortization Rate 30 3.25% Total Operating ExpensesLandscaping $100,572 $5,029 $3,600$117,329 $5,866$180 $3,600 $180 Term % Down 5 28.8% Net Operating Income Reserves $271,353 $280,702$5,000 $25 $5,000 $25 Monthly Payment $16,103 Amortization 30 Less Annual Debt ServiceTotal Operating Expenses($193,232) $100,572($193,232) $5,029 $117,329 $5,866 Annual Payment $193,232 Term 5 Cash Before Taxes $78,121 5.21% $87,470 5.83% Net Operating Income $271,353 $280,702 Monthly Payment Plus Principal$16,103 Reduction $67,881 $67,881 Less Annual Debt Service ($193,232) ($193,232) The statements, figures & Annualcomputations Payment herein, while not $193,232 guaranteed, are secured from sources we believe reliable. Total Return Before Taxes $146,002 9.73% $155,351 10.36% Investors should verify all numbers, computations, and Cash Before Taxes $78,121 5.21% $87,470 5.83% assumptions before committing to an investment. Plus Principal Reduction $67,881 $67,881 Total Return Before Taxes $146,002 9.73% $155,351 10.36%

WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC LOAN TERMS

Matt Couch Vice President 720 4th Avenue, Suite 120 Kirkland, WA 98033 425-602-1250 [email protected] 10/19/2016 For property known as:

LLC TBD Fresco Apts L15154 3939 15th Ave S Seattle, WA 98108

We have received the preliminary package for the above referenced property. It appears to be an appropriate candidate for our income property loan program. Based on the information you provided to us, we should be able to achieve the following loan terms:

Check Desired Program [ ] [ ] Programs 5 Year Fixed / Adjustable 7 Year Fixed / Adjustable Loan Amount $3,700,000 $3,700,000 Est. Initial Interest Rate 3.250% 3.650% Initial Index & Rate SWAP 5 Year (1.280%) SWAP 7 Year (1.430%) Pricing Spread/Margin 1.900% 2.000% Interest Rate Floor 3.250% 3.650% Interest Rate Ceiling 9.500% 9.500% Reset Index & Margin 6 Month LIBOR (2.050%) 6 Month LIBOR (2.150%) Reset Rate Floor Initial Interest Rate Initial Interest Rate Loan Term / Amortization 30 / 30 30 / 30 Prepayment Program 3,2,1% 4,3,2,1% Operating Account Yes Yes Recourse Yes Yes Assumable 1% - Subject to credit approval 1% - Subject to credit approval Maximum LTV 75.00% 75.00% Minimum DSCR 1.15 1.15 Loan Fee 0.500% 0.500% Processing Fee $4,625 $4,625 Good Faith Deposit $5,000 $5,000 Periodic Rate Cap 1.00%/6 months 1.00%/6 months Comment: Non recourse available to qualified buyers.

It is our desire to work with you in structuring a mutually acceptable financing arrangement. This is our expression of interest only and is provided for purpose described above and may not be disclosed to any other party without the Lender's consent. The rates quoted above are as of 10/19/2016. Rates are subject to change until locked.

This is an expression of interest on our part and does not constitute as a commitment or an approval of your loan request. We do not issue verbal approvals. All loan approval must be in writing and are subject to the Lender's due diligence including the Lender's underwriting requirements, acceptable appraisal report by Lender's approved appraiser, satisfactory environmental report, the Lender's loan committee's approval and full execution of all necessary loan documentation.

If you wish to proceed with an application, please complete loan package and provide us with a good faith deposit check in the amount of $ 5,000. Such good faith deposit, less any costs incurred by Lender in connection with the Loan Application regardless of whether a specific fee for each cost incurred was identified in this LOI, is refundable if the loan is denied and is non-refundable if the Loan Application is withdrawn or Applicant fails to respond to requests for information. The good faith deposit will be applied as a credit to the borrower at closing in the event the loan is approved and funded.

Thank you for your consideration and cooperation, we look forward to accommodating you with your banking needs.

Matt Couch Vice President WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC

______Borrower Signature Date RENT COMPS

1505 13th Ave S

UNIT MIX 2X1 RENT $2,150 SF 975 RENT/SF $2.21

1701 12th Ave S

UNIT MIX 1X1 RENT $1,375 SF 581 RENT/SF $2.37

3315 Claremont Ave S

UNIT MIX 1X1 RENT $1,550 SF 600 RENT/SF $2.58

3300 York Road FRESCO APARTMENTS UNIT MIX 1X1 2X1 RENT $1,350 $1,795 SF 650 800 RENT/SF $2.08 $2.24 4329 15th Ave S

UNIT MIX 1X1 RENT $1,695 SF 658 RENT/SF $2.58

4926 17th Ave S

UNIT MIX 2X1 RENT $1,895 SF 1,100 N RENT/SF $1.72

WESTLAKE ASSOCIATES, INC WESTLAKE ASSOCIATES, INC SALE COMPS

1 6321 NE 181st St | Kenmore 2 8532 Phinney Avenue N 3 220 23rd Avenue E 1

PRICE / UNIT $310,000 PRICE / UNIT $322,917 PRICE / UNIT $328,571 PRICE / FT $339 PRICE / FT $396 PRICE / FT $514 CAP 4.80% CAP 5.00% CAP 5.30% GRM 14 GRM 14.5 GRM 13 BUILT 1966 BUILT 1968 BUILT 1991 UNITS 10 UNITS 12 UNITS 7 SALE DATE JUN-16 SALE DATE NOV-15 SALE DATE MAR-15 2 4 1140 18th Avenue 5 2011 13th Avenue S 6 3301 Beacon Avenue S

PRICE / UNIT $364,912 PRICE / UNIT $315,000 PRICE / UNIT $218,182 PRICE / FT $454 PRICE / FT $325 PRICE / FT $381 CAP 5.30% CAP 4.00% CAP 6.20% GRM 13 GRM 17.5 GRM 11 3 BUILT 1969 BUILT 1989 BUILT 1915 UNITS 57 UNITS 6 UNITS 22 4 SALE DATE SEPT-16 SALE DATE OCT-15 SALE DATE SEPT-15

7 2425 Harbor Avenue SW 8 3431 California Avenue SW 9 4546 45th Avenue SW

5 7

8 6

9 FRESCO PRICE / UNIT $277,778 PRICE / UNIT $306,250 PRICE / UNIT $313,889 APARTMENTS PRICE / FT $400 PRICE / FT $416 PRICE / FT $433 CAP 4.20% CAP 5.30% CAP 4.50% N GRM 15 GRM 13.5 GRM 15.5 BUILT 1990 BUILT 1977 BUILT 1962 UNITS 27 UNITS 8 UNITS 18 WESTLAKE ASSOCIATES, INC SALE DATE JUL-16 SALE DATE FEB-16 SALE DATE FEB-16 BEACON HILL

THE BEACON HILL NEIGHBORHOOD la Raza. Pacific Tower, the former home of Amazon, is Corso, and the bar and burger hangout, Oak. now home to Pacific Medical, a FareStart café, a num- JEFFERSON PARK GOLF COURSE The Beacon Hill neighborhood overlooks downtown ber of nonprofit organizations, the Community Health In addition to the thriving Beacon Hill Neighborhood, GETS AN UPGRADE Seattle from the southeast and is distinguished by the and Innovation Center, and Seattle Central College’s the Fresco Apartments sit a few blocks northwest of 16-story historic Pacific Medical Center building locat- medical training programs. In five years, there will be Columbia City. Columbia City is a thriving pedestrian CLICK HERE FOR MORE INFO ed on the northern crown of the hill. Although it is in vast change in the neighborhood, but given the focus business district that is home to several bars, hip gro- close proximity to downtown Seattle, Beacon Hill has on the existing neighborhood, the character that makes cery stores, countless well known restaurants, bakeries, worked to keep itself separate and maintain its tight- Beacon Hill special will continue to thrive. coffee shops, assorted retail, art galleries, breweries, and knit neighborhood ambiance. With the recent addition live music venues. of light rail, residents can more than ever enjoy great Beacon Hill boasts numerous gems that are attractive access into downtown and other thriving Seattle area to visitors. Jefferson Park, the beneficiary of major Transportation is a win-win, with Seattle Light Rail and neighborhoods. American Planning Association named investment in 2012, is the largest Olmsted-planned quick I-5 accessibility, which can be reached via 15th it one of the 10 best neighborhoods in the . greenspace in Seattle. The park has become a prime Avenue South or South Graham Street. Main arterials attraction and happens to be located directly across such as MLK and Rainier provide good alternative routes Since light rail arrived in 2009, businesses and new the street from the Fresco Apartments. Other draws to the North or South, connecting with I-90 for East- residents have been moving to Beacon Hill in droves. include the seven-acre Beacon Food Forest, the nation’s side commutes. Drive times to work average around 28 There is a large amount of new construction, street largest neighborhood urban community farming project; minutes — brought on by many having to commute over improvements, new parks, and several bike paths have and the music, dance and poetry events sponsored by Lake for Eastside careers. been developed. Large-scale renovations have likewise Beacon Arts. There has also recently been an influx of occurred in two major community hubs that are also new businesses that attract both visitors and locals, such Click here for the historic landmark sites — Pacific Tower and El Centro de as Tippe and Drague Alehouse, Italian eatery Bar del Beacon Hill Neighborhood Guide “

STARBUCKS HEADQUARTERS CENTURYLINK & SAFECO FIELD DOWNTOWN SEATTLE

JEFFERSON PARK

FRESCO APARTMENTS

JEFFERSON GOLF COURSE VA MEDICAL CENTER

WESTLAKE ASSOCIATES, INC N WESTLAKE ASSOCIATES, INC TRANSPORTATION

Bus Stops for Routes 50, 60 & 107 Three bus stops directly adjacent to subject with major routes – 50,60, and 107. 50 runs from Alki through Admiral West Seattle east into SoDo, through Beacon Hill directly to Columbia city light rail and ending at Othello station. The 60 route runs North and South from the subject directly into downtown and ending in BUS STOPS Capitol Hill. The 107 runs north South from Renton to Beacon Hill Station.

BEACON HILL STATION Judkins Park Station Travel Time to Westlake Station: 16 Minutes (Opening 2023)

Travel Time to Capitol Hill Station: 22 Minutes 2 Miles | 42 Min Walk

Travel Time to Stadium Station: 9 Minutes

Travel Time to University of Washington Station: 23 Minutes

COLUMBIA CITY STATION Travel Time to Westlake Station: 18 Minutes Beacon Hill Travel Time to SeaTac Station: 22 Minutes Station 0.8 Mile JUDKINS PARK STATION LIGHT RAIL 17 Min Walk STATIONS Opening: 2023 Location: The center roadway of I-90 at Rainier Ave S & 23rd Ave S

Distance from Montlake House Apartments: 2 Miles, 42 Minute Walk

Travel Time to Bellevue Transit Center: 10 Minutes

Travel Time to University of Washington Station: 20 Minutes FRESCO Amenities: Secure Bicycle Storage, Pasenger Drop-Off/Pick-U APARTMENTS

LIGHT RAIL SCHEDULE Bus Stop for Routes 50, 60 & 107 138 FT 1 Min Walk

Columbia City Station SOUND TRANSIT KEEPING CLOSE EYE ON CROWDED LIGHT RAIL TRAINS 1.5 Miles “About 65,000 riders a day are taking light rail, two-thirds more than a year ago...The numbers aren’t a N 29 Min Walk huge surprise in a densely populated corridor, but ridership has already reached the levels expected in 2018.”

READ THE FULL ARTICLE HERE KEY WESTLAKE ASSOCIATES, INC BUS STOPS LIGHT RAIL STATIONS WESTLAKE ASSOCIATES, INC DEMOGRAPHICS

5, 10 & 15 MINUTE 1,3 & 5 MILE RADIUS WALK TIME 69

Walk Score HOUSEHOLD INCOME HOUSEHOLD INCOME Somewhat Walkable DRIVE TIME RADIUS 5-MINS 10-MINS 15-MINS 1-MILE 3-MILES 5-MILES Median $58,195 $54,197 $60,816 Median $60,790 $54,181 $62,698 FRESCO Average $77,953 $82,401 $91,688 Average $79,829 $81,136 $94,798 66 APARTMENTS

Bike Score Bikeable 1-MILE POPULATION POPULATION DRIVE TIME RADIUS 5-MINS 10-MINS 15-MINS 1-MILE 3-MILES 5-MILES 60 2010 21,929 131,830 285,016 2010 13,935 116,465 340,643 3-MILES 2016 24,185 147,261 315,258 2016 15,508 129,073 378,764 Transit Score 2021 26,166 160,216 340,997 2021 16,873 139,962 411,736 Good Transit *by Walkscore.com N 5-MILES

FRESCO APARTMENTS

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WESTLAKE ASSOCIATES, INC N WESTLAKE ASSOCIATES, INC 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 over twenty full-time 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.

+ MEMBER: Commercial Brokers Association (CBA) + MEMBER: Northwest Multiple Listing Services (NWMLS) + MEMBER: Loop Net National Listing Services + MEMBER: Costar Commercial Real Estate Data and National Listing Service + MEMBER: Commercial Investment Real Estate Institute (CREI) + MEMBER: Washington State Realtors Association (WSMA)

WESTLAKE ASSOCIATES, INC. WESTLAKE ASSOCIATES, INC. FOR MORE INFORMATION:

STEVE FISCHER TYLER D SMITH PRINCIPAL | BROKER PRINCIPAL | BROKER 206.505.9435 206.505.9425 fischer@ tylersmith@ westlakeassociates.com westlakeassociates.com