SUNSET SHORESOffering Memorandum

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Jason KonoP: 206.566.6595C: 206.920.0187jason@pilotnw.com

Casey ZejdlikP: 206.566.6599C: 206.280.1871casey@pilotnw.com

EXCLUSIVELY LISTED BY

Investment Overview

Location

Financials

Comparables

Offer Guidelines

TABLE of CONTENTS

The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. © Pilot Ventures LLC.

INVESTMENT OVERVIEW

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A value-add investment opportunity with prime beach access in Bremerton, WA.

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Price $ 3,200,000

Units 18

Price Per Unit $ 177,778

Rentable SF 15,790

Price Per SF $ 203

Current Cap Rate 5.64 %

Proforma Cap Rate 6.60 %

Current GRM 12.4

Proforma GRM 10.7

Year Built 1984

Parcel Number 3902-002-003-0006

Land SF 29,621

Zoning R-20

Construction Type Wood Frame

Plumbing Copper

Parking Carport & Open

Laundry In-Unit Washer & Dryer

Hot Water In-Unit Hot Water Tanks

Heating Electric

Roof Type Torchdown

Roof AgeBldgs A & B: New August 2010Bldg C: Unknown

Interior Photos

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Interior Photos

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LOCATION OVERVIEW

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SUNSET SHORES1115 Wheaton Way, Bremerton, WA 98310

The Sunset Shores Apartments are located on the waterfront with beach access in

Manette, a growing neighborhood in the city of Bremerton. The location offers a small-town

vibe, while being a short walk across the Manette bridge to everything Downtown Bremerton

has to offer. This unique value-add opportunity offers an investor the chance to increase

NOI through basic unit turns or to fully renovate units and take advantage of even greater

increases to NOI.

The Sunset Shores Apartments offer seventeen 2 bed / 1 bath apartments, and one 1 bed /

1 bath apartments spread evenly across three buildings. Many units have views of the water

and sliding glass doors opening to small balconies or patios. Every unit is equipped with full-

sized washers and dryers. Plentiful open parking stalls and some carports provide at least

one spot per unit. There is a landscaped courtyard between the two waterfront buildings,

providing access to the beach via concrete stairs. Two expansive storage spaces are available

under one building. Some units have new flooring and appliances.

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INK 1 Boat Shed

2 El Balcon

3 Umami Kitchen

4 Anthony’s

5 Bremerton Bar & Grill

6 Kama’Aina Grill

7 Sabaidee Thai Cuisine

8 Happy Teriyaki & Sushi

9 Noah’s Ark Restaurant

10 Island Hut

11 La Poblanita

12 Greek Connextion

13 Pho Tai

14 State Gate Cafe

15 The Coffee Oasis

16 6th & Java

17 The Manette Saloon

18 La Fermata

1 Harborside Fountain Park

2 Marvin Williams

3 Evergreen Rotary Park

4 Sheridan Park Rec Center

5 Lions Park

6 Blueberry Park

7 Illahee State Park

1 Sheridan Village Office

2 F.R.O.G. Soap

3 Millie’s Tux & Bridal

4 Bella Luna Consignment

5 Navy Exchange Services

6 NEX

7 RK Mart

8 Kitsap Sports

9 Walgreens

Safeway

1 Massage Wellness

2 Olympic Wellness

3 Thrive Yoga

4 Indigo Moon Yoga

5 Bremerton Family YMCA

6 Cascadia Strength

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MANETTE

MANETTE | Bremerton, WA | 98310

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EAST BREMERTON

BREMERTON

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Manette is a charming neighborhood

located on a jut of land connected to

downtown Bremerton by the Manette

Bridge, which was rebuilt in 2011 and

features a protected walkway and bike

lanes. Since 2017, the city hosts the

Bremerton Bridge Blast on the last

Saturday of June, including free concerts,

food vendors, a carnival for children, an

air show, and a dramatic fireworks show

from the Manette Bridge. Sunset Shores

Apartment tenants and their guests have

front row seating for the fireworks, as well

as sweeping views of the waterway.

The Manette neighborhood is also home

to a burgeoning food scene, including the

Boat Shed restaurant, Saboteur Bakery,

Hound and Bottle restaurant, and the euro-

styled brewery Der Blokken. The Manette

Garage is a popular destination for curated

vintage goods. The neighborhood features a variety of arts, entertainment, and outdoor activities, and is just a short walk from downtown Bremerton, Sheridan, and East Bremerton for even more amenities such as the Bremerton Boardwalk, the Puget Sound Navy Museum, the Admiral Theater, the USS Turner Joy Museum Ship, and the Bremerton Ice Center.

Manette is located one mile from the vehicle and passenger ferries to Seattle and the Puget Sound Naval Shipyard. The Puget Sound Naval Shipyard is located near other major employers in Kitsap County including Naval Base Kitsap, the Naval Hospital Bremerton, Lockheed Martin Space Systems, Skookum, EJB, SAFE Boats International, Harrison Medical Center, Port Madison Enterprises, Martha & Mary Health Services, IBM (Manpower), and Olympic College.

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Seattle is a bustling metropolis, ranked by the U.S. Census in the “Top 4 for Growth” for five consecutive years.

Since 2010, our population has increased 18.7%, bringing an additional 114,412 people to America’s beloved Emerald City.

It’s no stretch to appreciate how the lush, green foliage and shimmering waters led a few to Seattle.Unparalleled beauty and access to the outdoors have helped attract some of the best companies in the country. To the east and west, the city is bordered by Lake Washington and the Puget Sound. Out further, snowcapped mountain ranges can be seen in every direction.

Home to a diverse and robust community, Seattle is the cultural and business center of the Pacific Northwest. The thriving tech sector has pushed up the wages, software engineers averaging $132,000/year, as well as the cost of rent.

Employment and population growth rates are strong and stable, supported by the variety of commerce and an ongoing demand for skilled workers.

Seattle was ranked the second-best city for STEM workers by NerdWallet. The University of Washington, a highly ranked school with a variety of nationally recognized programs, prepares top-tier students for roles at companies, such as Amazon, the Fred Hutchinson Cancer Research Center, Facebook, and the Allen Institute.

Buzzing with new infrastructure, jobs and residents, Seattle’s evergrowing metropolis is considered home to many major employers who drive growth and fuel our economic climate including:

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POPULATION OF

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WAGE GROWTH

12%

FINANCIALS

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* Unit square footages are estimated and based off the Owner’s Rent Roll

Rent Roll

UNIT Type ApproxSF

CurrentRent

Current/ SF

Pro Forma Rent

Pro Forma/ SF

Renovated Rent

Renovated/ SF

A-01 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

A-02 1 Bd / 1 Bth 575 $ 1,050 $ 1.83 $ 1,195 $ 2.08 $ 1,295 $ 2.25

A-03 2 Bd / 1 Bth 895 $ 1,175 $ 1.31 $ 1,395 $ 1.56 $ 1,595 $ 1.78

A-04 2 Bd / 1 Bth 895 $ 1,220 $ 1.36 $ 1,395 $ 1.56 $ 1,595 $ 1.78

A-05 2 Bd / 1 Bth 895 $ 1,150 $ 1.28 $ 1,395 $ 1.56 $ 1,595 $ 1.78

A-06 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-07 2 Bd / 1 Bth 895 $ 1,250 $ 1.40 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-08 2 Bd / 1 Bth 895 $ 1,175 $ 1.31 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-09 2 Bd / 1 Bth 895 $ 1,250 $ 1.40 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-10 2 Bd / 1 Bth 895 $ 1,220 $ 1.36 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-11 2 Bd / 1 Bth 895 $ 1,200 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

B-12 2 Bd / 1 Bth 895 $ 1,300 $ 1.45 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-13 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-14 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-15 2 Bd / 1 Bth 895 $ 1,200 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-16 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-17 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

C-18 2 Bd / 1 Bth 895 $ 1,195 $ 1.34 $ 1,395 $ 1.56 $ 1,595 $ 1.78

15,790 $ 21,555 $ 1.37 $ 24,910 $ 1.59 $ 28,410 $ 1.81

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CURRENT PRO FORMA RENOVATED

Gross Potential Rent $ 258,624 $ 298,920 $ 340,920

Vacancy $ (12,931) 5.00 % $ (14,946) 5.00 % $ (17,046) 5.00 %

NET RENTAL INCOME $ 245,693 $ 283,974 $ 323,874

OTHER INCOME

Utility Billback $ 8,640 $ 8,640 $ 8,640

Total Other Income $ 8,640 $ 8,640 $ 8,640

EFFECTIVE GROSS INCOME $ 254,333 $ 292,614 $ 332,514

EXPENSES

Property Taxes $ 17,758 $ 18,500 $ 18,500

Insurance $ 6,300 $ 7,200 $ 7,200

Utilities $ 18,186 $ 18,186 $ 18,186

Maintenance / Repairs $ 7,521 $ 15,300 $ 15,300

Resident Manager $ 2,395 $ 2,000 $ 2,000

Professional Management $ 16,185 $ 14,631 $ 16,626

Administrative / Misc $ 1,000 $ 1,000 $ 1,000

Reserves $ 1,000 $ 1,000 $ 1,000

Landscaping $ 3,488 $ 3,488 $ 3,488

Total Expenses $ 73,833 $ 81,305 $ 83,300

NET OPERATING INCOME $ 180,500 $ 211,309 $ 249,214

Financial Analysis

Rare waterfront ownership opportunity

1984 Construction provides modern pluming and electrical systems

Significant upside in NOI through unit renovation and modernization

COMPARABLES

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PROPERTY ADDRESS Building Name Unit Type Unit SF Rent Rent /SF Year Built

1 632 Washington Ave Soundview Apartments 2 Bd / 1 Bth 600 $ 1,650 $ 2.75 1915

2 1901 Winfield Ave Baybridge Apartments 2 Bd / 1 Bth 888 $ 1,375 $ 1.55 1970

3 1619 Wheaton Way Seaglass Village 2 Bd / 1 Bth 1,125 $ 1,600 $ 1.42 1937

3 1619 Wheaton Way Seaglass Village 2 Bd / 1 Bth 1,050 $ 1,485 $ 1.41 1937

AVERAGES 916 $ 1,528 $ 1.78

SOUNDVIEW APARTMENTS

• Waterfront location• Renovated interiors• New appliances• On-site laundry• Quartz countertops &

hardwood floors

SEAGLASS VILLAGE

• Recent upgrades• On-site laundry• Sundeck, gym, &

outdoor grill area• Quartz countertops

& hardwood floors

BAY BRIDGE APARTMENTS

• Recent upgrades• On-site laundry• Clubhouse w/ sauna &

seasonal pool• Private decks / patios

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Rent Comparables

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SOUNDVIEW APARTMENTS

632 Washington Ave

BAYBRIDGE APARTMENTS

1901 Winfield Ave

SEAGLASS VILLAGE

1619 Wheaton Way

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BREMERTON

OFFER GUIDELINES

Pilot Ventures is pleased to announce

All questions and inquiries regarding tours and this opportunity should be addressed to the Pilot Ventures representatives listed herein. Pilot Ventures’ team will be available to assist prospective investors with questions upon their review of the offering. Investors will receive advanced notification of the bid deadline via email. Offers should include, at a minimum, the following:

• The purchase price, contingencies and closing date;

• The amount of earnest money deposit;

• The source of capital for down payment;

• A detailed timeline for the transaction;

• A brief overview of the Buyer’s qualifications.

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Built upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono.

Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do.

At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results.

Together, we don’t just build equity— we build relationships.

BrokerageWhether you’re buying or selling, our experienced team of brokers will ensure you receive the best possible representation.

SyndicationOur firm’s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment.

ManagementManaging properties can be an overwhelming experience— in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI.

pilotNW.com

Brokerage / Syndication / Management