exclusively offered by paragon real estate advisors › d2 › srq9_zrt_fwrlgcbr63... · paragon...

1600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com

Offering Memorandum

HILLSIDE APARTMENTS

602 N 42nd St Seattle, WA

Exclusively offered by Paragon Real Estate Advisors


Offering Summary

Name Hillside Apartments

Address 602 N 42nd St, Seattle WA

Total Units 16

Built 1909

Square Feet 7,472 Total Net Rentable

Price $3,450,000

Price Per Unit $215,625

Price Per Foot $461.72

Current GRM/CAP 19.51/2.87%

Market GRM/CAP 12.77/5.14%

Expense Per Unit $4,309/Year

Terms Cash Out

Lot Size 12,500 Square Feet Per KCR

Zoning LR2, Non Urban Village

Paragon Real Estate Advisors is pleased to exclusively offer for sale The Hillside Apartments, a well located 16-unit apartment building with immediate rental upside. Situated in the very walkable and amenity rich Fremont neighborhood, the Hillside offers residents a nice residential feel with quick access to the tech employment centers of Fremont, South Lake Union and Downtown Seattle.

This is the first time the Hillside has been available to purchase in over 10 years. The property offers the buyer a rare opportunity to purchase an extremely well-located building with immediate rental upside and potential to add a unit in the basement.

Please contact listing brokers for more information and available times to tour the property.

HILLSIDE APARTMENTS


Investment Highlights

Views of Downtown Seattle and Mt. Rainier and Cascade Mountains

Gently sloping Corner lot with large back yard for resident enjoyment

Off street parking for 8 cars

Large 12,500 Sq.Ft. LR2 lot

Ideal for a future townhome development

Very well maintained

Old world charm

Room for an additional unit in the basement

Partial copper plumbing upgrades

Individually metered gas heat and stoves


Building Photos


Parcel Information

100

125


Location

The Hillside Apartments are located at 602 N 42nd St in the Fremont neighborhood of Seattle. Residents have direct access to downtown Seattle and South Lake Union employment centers via Highway 99, and due west of the University of Washington.

Located just blocks from the Woodland Park Zoo, residents enjoy many recreational activities offered at Woodland Park and Green Lake Park including: soccer fields, tennis courts, summer concerts, boating, jogging, and relaxing in the sun.

This location is also a short walk or quick drive to some of the best entertainment venues, eateries, and services in the popular Ballard, Fremont, Phinney Ridge and Wallingford neighborhoods.


Neighborhood Map of Employers

GREEN LAKE

PUGET SOUND

HILLSIDE APARTMENTS

LAKE UNION

MAGNOLIA

BALLARDFREMONT

QUEEN ANNE

SOUTH LAKE UNION

SEATTLE CBD

U DISTRICT

UNIVERSITY OF WASHINGTON

EASTLAKE


Fremont Ave N Amenities

HILLSIDE APARTMENTS

FREM

ON

T AVE NAU

ROR

A AVE N


ELLIOTT BAY

Map of Key Employers

THE HILLSIDE APARTMENTS


Employment

> Adobe

> Alaska Airlines

> Amazon

> Apple

> AT&T Wireless

> Boeing

> Costco

> Expedia, Inc.

> Expeditors International

> F5 Networks

> Facebook

> Fred Hutchinson

> Gates Foundation

> Getty Images

> Google

> Microsoft

> Nintendo

> Nordstrom

> Paccar

> RealNetworks

> REI

> Russell Investments

> SpaceX

> Starbucks

> Symetra Financial

> Tableau Software

> T-Mobile

> Twitter

> Uber

> University of Washington

> Virginia Mason

> Weyerhaeuser

> Zillow

> Zulilly

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.


Operating Summary

Units 16

Year built 1909

Rentable Area 7,472

Down Payment $1,800,000

Loan Amount $1,650,000

Interest Rate 4.50%

Amortization 30

Lot 12,500 LR2, Non UV

Price $3,450,000

Price Per Unit $215,625

Per Square Foot $461.72

Current GRM 19.51

Current CAP 3.08%

Market GRM 12.62

Market CAP 5.54%

Current DCR 1.06

Units

Type

Size

Current Rent

Monthly Income

Market Rent

Monthly Income

16 Studio 467 $625 - $1,295 $14,360 $1,295 $20,720

16 Avg S.F. 467 $1.92 $2.77

Total Monthly Income

Monthly Scheduled Rent $14,360 $20,720

Parking (8 open) $0 $50/mo $450

MTM Fee $135 $0

Storage Income $160 $135

Laundry Income Proforma $0 $160

Utility Billback Income $80 $60/mo $960

Misc Proforma $0 $80

Pet Rent $0 $35/mo (1/2 units)

$280

Total Monthly Income $14,735 $22,785

Scheduled Gross Income $176,820 $273,420

Less Vacancy 1.00% $1,768 4.00% $10,937

Gross Operating Income $175,052 $262,483

Less Expenses $68,942 $71,480

Net Operating Income $106,110 $191,003

Annual Debt Service ($8,360) $100,324 $100,324

Cash Flow Before Tax 0.32% $5,786 5.04% $90,680

Principal Reduction $26,618 $26,618

Total Return Before Tax 1.80% $32,404 6.52% $117,298

Annualized Operating Expenses Current Market

RE Taxes 2018 Proforma $25,062 $27,600

Insurance 2017 $4,600 $4,600

Utilities 2017 $15,147 $15,147

Repairs/Maint/Turnover

2017 $10,934 $10,934

Landscaping 2017 $1,658 $1,658

On-Site Mgmt Proforma ($35/unit $6,720 $6,720

Admin/Misc 2017 $821 $821

Reserves Proforma $4,000 $4,000

Total Expenses $68,942 $71,480

Annualized Operating Data Current Market

Current Operations

Expenses/Unit Expenses/Foot Percent of EGI

$4,309$9.2339.38%

Market Operations

Expenses/Unit Expenses/Foot Percent of EGI

$4,468 $9.5727.23%


Sale Comparables

SUBJECT - HILLSIDE APARTMENTS 602 N 42nd St, Seattle WA

Year Built 1909 Units 16 Sales Price $3,450,000 Price/Unit $215,625 Price/Foot $462 GRM/CAP 19.51/3.08% Sales Date TBD

1. OSWEGO PLACE 6538 Oswego Pl NE, Seattle WA

Year Built 1950 Units 11 Sales Price $2,360,000 Price/Unit $214,546 Price/Foot $511 GRM/CAP 16.0/4.0% Sales Date 4.20.2018

2. BUGGE 6402 Phinney Ave N, Seattle


4. WESTERNER 4200 Fremont Ave N, Seattle WA


3. STRANDT APARTMENTS 4416 Linden Ave N, Seattle WA


5. NESTUN 4313 Fremont Ave N, Seattle WA



Sales Comparables Map

Hillside Apartments 602 N 42nd St Seattle, WA

1. Oswego Place 6537 Oswego Pl NE Seattle, WA

2. Bugge 6402 Phinney Ave N Seattle, WA

3. Strandt Apartments 4416 Linden Ave N Seattle, WA

4. Westerner 4200 Fremont Ave N Seattle, WA

5. Nestun 4313 Fremont Ave N Seattle, WA

3

1

4

2

HILLSIDE APARTMENTS5


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 Puget Sound 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.

exclusively offered by paragon real estate advisors › d2 › srq9_zrt_fwrlgcbr63... · paragon...

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