ACADEMIA APARTMENTS NORTHGATE ACADEMIA APARTMENTS GREENWOOD BALLARD GREEN LAKE FREMONT UNIVERSITY WALLINGFORD DISTRICT MAGNOLIA INTERBAY QUEEN ANNE CAPITOL HILL SEATTLE CBD CENTRAL DISTRICT WEST SEATTLE SEATTLE CBD UNIVERSITY WAY FRATERNITY/SORORITY ROW ACADEMIA APARTMENTS OFFERING Paragon Real Estate Advisors is pleased to offer for sale, The Academia Apartments, a 27-unit community located in Seattle’s University District neighborhood. Built in 1998, the building consists of 27 studios with efficient layouts all about 225 square feet in size. There are three shared kitchens, one on each floor. The kitchen areas provide appliances work areas, and individual cabinets for tenant’s use. Additionally, there is a coinop washer and dryer on each floor for resident’s convenience. Many of the apartments boast the true amenity of either a large deck or balcony, which are very uncommon for most student housing properties. The property lends itself well for the individual tenants who typically seeking a reasonable rental rate, has limited cooking needs and relies on the many amenities the “Gig Economy” provides. This in effect reduces the many maintenance issues of a typical apartment complex that would have 27 kitchens, many more residents leading to more wear and tear on a property. With a “WalkScore” of 95 and a “BikeScore” of 97, and just one block East of the popular “University Way”, makes Academia’s location highly desirable to a wide array of high paying quality renters. The property is also remarkably close to The University of Washington and just under 2 miles north of the UW Link Light rail Station which provides service to places like: Northgate, Capitol Hill, NAME Academia Apartments CenturyLink Field, T-Mobile Park, Downtown and the Seattle Tacoma Airport. ADDRESS 5608 15th Ave NE, Seattle, WA The Academia Apartments provides a rare opportunity to own a very well- TOTAL UNITS 27 maintained, low maintenance, cash producing asset in arguably one of the strongest and most recession proof neighborhood’s in Seattle. With the never- BUILT 1998 ending demand of University of Washington students, and being in one of the SQUARE FEET 6,075 Total Net Rentable most affordable price points, and within walking distance to a wide range of PRICE $3,995,000 amenities makes this an amazingly easy property to keep rented for years to come. A new owner can also immediately increase revenue by raising rents in PRICE PER UNIT $147,963 units that are below todays market rates. CURRENT GRM/CAP 13.10/4.63% 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 Very low maintenance property with modern systems (built in 1998) Achievable Market 5.01% CAP! Some of the most affordable rents Seattle Excellent University District location Located in one of the strongest rental markets in Seattle Secured parking garage (10 total) $147,963 per unit Partial Views from upper units Most units have Balconies or Decks BUILDING HIGHLIGHTS Secured Entry building Secured Parking Garage Bike Storage Double Pane Windows Owner Storage Areas Pitched Composition Roof Intercom System 1998 construction Modern Systems including Fire Sprinkler System, Central Hot Water 27 efficient studios (shared kitchens) Most Units have Balconies/Decks 3 shared kitchens All units have separate bathrooms and refrigerators Electric Wall Unit Heating Central Hot Water (2 newer commercial boilers) LOCATION HIGHLIGHTS One Block from the popular “University Ave” 5-miles North of Downtown Seattle (300,000+ Jobs) Walking distance to University of Washington Located near several different bus lines. Short distance to Brooklyn UW Light rail Station Close to University Village Shopping Center which has popular amenities such as: (Apple Store, QFC Grocery Store, AT&T, Bank WalkScore of “95” with easy access to anything you need! of America, Bartell Drugs, Chipotle, Din Tai Fung, Eddie Bauer, Evergreens, H&M, Menchies, Pottery Barn, SoulCycle, Starbucks, The North Face, Tesla, Shake Shack, Tommy Bahama and many Bike Score “97” more!). Located on the ever-popular Green Lake and Ravenna Park side of the University Campus NEIGHBORHOOD AMENITIES Restaurants & Bars 1. U:Don 2. Thai Tom 3. Duchess Tavern 4. Pair 5. Franks’s Oyster House 6. Din Tai Fung 7. La Villa Mexican Restaurant 8. Zoka Coffee 9. The Kraken Lounge ACADEMIA APARTMENTS Shops & Services 23 26 10. Safeway 18 11. Trader Joe’s 17 12. Metropolitan Market 13. University Village 20 14. Amazon Books 4 12 5 7 15. H Mart UW 9 3 25 16. QFC 10 8 24 11 17. Whole Foods 13 2 16 18. PCC Community Markets 1 14 6 Schools & Parks 15 19 21 22 19. University of Washington 20. Ravenna Park 21. Union Bay Natural Area 22. Center for Urban Horticulture 23. Green Lake 24. Calvary Catholic Cemetery 25. Burke-Gilman Playground Park 26. Sand Point UNIVERSITY DISTRICT The University District is ten minutes from the Seattle Central Business District and five minutes North of the Fred Hutchinson Cancer Research Center and the expanding Amazon Campus located in the bustling employment center that is the South Lake Union BURKE-GILMAN TRAIL neighborhood. UW CAMPUS The University of Washington is a world renowned research and educational institution that currently has a large and internationally diverse student population that totals approximately 46,000 students, and employs over 3,800 faculty members. The strength of the University and private research institutions and businesses that have chosen to locate in the area provide a stable tenant base. THE AVE The University District also features many coffee shops, great restaurants and grocery stores, unique shops including the famous University Book Store, and HUSKY STADIUM UNIVERSITY DISTRICT service businesses that line University Way NE, which is commonly known as the “Ave”. In addition, this location provides tenants with many recreational amenities including Lake Union, the Burke Gilman Trail system, UW CAMPUS Green Lake Park, and Gas Works Park. POPULATION MEDIAN HOUSEHOLD RENTER-OCCUPIED MEDIAN RENT INCOME HOUSING 26,699 $56,697 87% $1,399 SEATTLE EMPLOYER MAP SEATTLE’S BOOMING TECH MARKET SEATTLE LOCAL TECH COMPANIES IN SEATTLE PACIFIC OCEAN T E C H M I G R A T I O N F R O M S A N F R AN C IS CO B AY AR EA SAN FRANCISCO KING COUNTY INFORMATION KING COUNTY 2.3 million SINCE 2O1O, ON AVERAGE, KING COUNTY HAS ADDED 31,8OO PEOPLE PER YEAR, OR POPULATION GROWTH HAS BEEN GREATER THAN 13,OOO HOUSEHOLDS AT 2.45 PERSONS PER HOUSING PRODUCTION CONSISTENTLY SINCE 2O11. HOUSEHOLD. POPULATION KING COUNTY MEDIAN NATIONAL MEDIAN $95,009 $63,179 HOUSEHOLD INCOME HOUSEHOLD INCOME KING COUNTY by 78% NATIONAL INCREASE by 3% HOUSEHOLD INCOME INCREASE SINCE 2OOO ($41,852) SINCE 2OOO ($1,780) KING COUNTY NATIONAL BACHELOR’S OR 53.2% BACHELOR’S OR 32.6% HIGHER DEGREE RATE HIGHER DEGREE RATE KING COUNTY NUMBER 10 EDUCATION OF UNIVERSITIES KING COUNTY RENTAL NATIONAL RENTAL 43% 36% HOUSING RATE HOUSING RATE KING COUNTY MEDIAN $1,494 NATIONAL MEDIAN $1,023 MONTHLY RENT REAL ESTATE MONTHLY RENT BUILDING PHOTOS BUILDING PHOTOS BUILDING PHOTOS BUILDING PHOTOS BUILDING PHOTOS UNIT PHOTOS Unit Breakdown UNIT TYPE APPROXIMATE UNIT SIZE CURRENT RENT MARKET RENT BALCONY TYPE 101 Studio 225 Sq. Ft. $875 $900 102 Studio 225 Sq. Ft. $875 $900 103 Studio 225 Sq. Ft. $875 $900 104 Studio 225 Sq. Ft. $875 $900 105 Studio 225 Sq. Ft. $875 $900 106 Studio 225 Sq. Ft. $850 $900 107 Studio 225 Sq. Ft. $950 $995 Full Balcony 108 Studio 225 Sq. Ft. $950 $995 Full Balcony 109 Studio 225 Sq. Ft. $900 $900 201 Studio 225 Sq. Ft. $925 $975 Smaller Balcony 202 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 203 Studio 225 Sq. Ft. $875 $900 204 Studio 225 Sq. Ft. $895 $900 205 Studio 225 Sq. Ft. $875 $900 206 Studio 225 Sq. Ft. $875 $900 207 Studio 225 Sq. Ft. $875 $995 Full Balcony 208 Studio 225 Sq. Ft. $950 $995 Full Balcony 209 Studio 225 Sq. Ft. $900 $975 Smaller Balcony 301 Studio 225 Sq. Ft. $875 $975 Smaller Balcony 302 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 303 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 304 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 305 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 306 Studio 225 Sq. Ft. $875 $950 Juliet Balcony 307 Studio 225 Sq. Ft. $950 $995 Full Balcony 308 Studio 225 Sq. Ft. $900 $995 Full Balcony 309 Studio 225 Sq. Ft. $925 $975 Smaller Balcony Totals/Avg 225 Sq.Ft. $24,095 $25,470 Income and Expenses ANNUALIZED OPERATING DATA CURRENT MARKET Units 27 Price $3,995,000 Scheduled Gross Income $305,040 $321,540 Year Built 1998 Per Unit $147,963 Less Vacancy 4.00% $12,202 4.00% $12,862 Rentable Area 6,075 Per Sq. Ft. $657.61 Gross Operating Income $292,838 $308,678 Down Pmt $1,398,250 Current GRM 13.10 Less Expenses $108,060 $108,694 Loan Amount $2,596,750 Current CAP 4.63% Net Operating Income $184,778 $199,984 Interest Rate 3.60% Market GRM 12.42 Annual Debt Service ($11,806/mo) $141,672 $141,672 Amortization 30 years Market CAP 5.01% Cash Flow Before Tax 3.08% $43,106 4.17% $58,312 Principal Reduction $48,992 $48,992 Total Return Before Tax 6.59% $92,098 7.67% $107,305 UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT 27 Studio 225 $850 - $950 $950 - $995 ANNUALIZED OPERATING EXPENSES CURRENT MARKET 27 Total/Avg 225 $3.97 $4.19 RE Taxes 2020 Actual $29,275 $29,275 MONTHLY INCOME CURRENT MARKET Insurance 2020 Actual $4,197 $4,197 Gross Potential Rent $24,095 $25,470 Utilities 2019 Actual $17,995 $17,995 Laundry $225 $225 Maintenance & Repairs 2019 Actual $15,270 $15,270 Parking $1,000 $1,000 Professional Mgmt Proforma $11,714 $12,347 Misc/Security/Fees $100 $100 On-Site Mgmt Proforma $11,340 $11,340 Gross Potential Income $25,420 $26,795 Misc.