View
1
Download
0
Category
Preview:
Citation preview
KW COMMERCIAL1100 Dexter Avenue North,Suite 275Seattle, WA 98109
CHARLES BURNETTManaging Broker206.931.6036charles@SoundRealtyGroup.com
Milton Apartments
OFFERING MEMORANDUM
PRESENTED BY:
1307 10TH AVE, MILTON, WA
OFFERING MEMORANDUM
www.kwcommercial.com 2
KW COMMERCIAL1100 Dexter Avenue North,Suite 275Seattle, WA 98109
CHARLES BURNETTManaging Broker206.931.6036charles@SoundRealtyGroup.com
Confidentiality & Disclaimer
OFFERING MEMORANDUM
All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.
Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.
All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Downtown Seattle in compliance with all applicable fairhousing and equal opportunity laws.
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
PRESENTED BY:
1307 10TH AVE, MILTON, WA 98354
www.kwcommercial.com 3
PROPERTY INFORMATION
1 | PROPERTY INFORMATION
EXECUTIVE SUMMARY
PROPERTY DETAILS
ADDITIONAL PHOTOS
ADDITIONAL PHOTOS
1PROPERTY INFORMATION
MILTON APARTMENTS
MILTON APARTMENTS
PROPOSAL FOR COMMERCIAL SERVICES
OFFERING MEMORANDUM
Executive Summary
MILTON APARTMENTS 1 | PROPERTY INFORMATION
PROPERTY OVERVIEW23-unit apartment complex located in the desirable community ofMilton. Property underwent a complete and immaculate remodel in2017 with new unit interiors, windows throughout, plumbing/mechanical systems and more. Fully occupied with quality tenants; asolid turn-key investment property; 6.5% Cap Rate with goodcashflow! Onsite coin-operated laundry facility, storage, and a spacefor an office. Sale includes 3 parcels (2.75 acres) with opportunity forfurther development. Near I-5, transit and amenities.
PROPERTY FEATURESOnsite Laundry and Storage
3 Lots included in sale
Potential for Additional Development
Completely Remodeled
Fully Occupied
SALE PRICE: $3,450,000
UNITS: 23
PRICE PER UNIT: $150,000
CAP RATE: 6.4%
GRM: 13.39
NOI: $220,673
LOT SIZE: 2.75 Acres
BUILDING SIZE: 19,749 SF
YEAR BUILT: 1951
RENOVATED: 2017
ZONING: RMD (Residential Moderate Density)
MARKET: Pierce County, WA
SUB MARKET: Milton, WA
CROSS STREETS: Nevada Street
www.kwcommercial.com 4
Property Details
MILTON APARTMENTS 1 | PROPERTY INFORMATION
www.kwcommercial.com 5
PROPERTY NAME: Milton Apartments
STREET ADDRESS: 1307 10th Avenue
CITY, STATE, ZIP: Milton, WA 98354
APN: 5985002370; 5985002380; 5985002400
LOT SIZE: 2.75 AC
BUILDING SIZE: 18,041
ZONING: RMD (Residential Moderate Density)
PARKING SPACES: 51
PARKING RATIO: 2.21
YEAR BUILT: 1951
NUMBER OF STORIES: 4
FOUNDATION: Poured Concrete
NUMBER OF UNITS: 23
ROOF: Composition
www.kwcommercial.com 6
Additional Photos
MILTON APARTMENTS 1 | PROPERTY INFORMATION
www.kwcommercial.com 7
Additional Photos
MILTON APARTMENTS 1 | PROPERTY INFORMATION
LOCATION INFORMATION
2 | LOCATION INFORMATION
REGIONAL MAP
LOCATION MAPS
AERIAL MAP
2LOCATION INFORMATION
MILTON APARTMENTS
MILTON APARTMENTS
PROPOSAL FOR COMMERCIAL SERVICES
OFFERING MEMORANDUM
1307 10th Avenue
Regional Map
MILTON APARTMENTS 2 | LOCATION INFORMATION
www.kwcommercial.com 9
www.kwcommercial.com 10
Location Maps
MILTON APARTMENTS 2 | LOCATION INFORMATION
Aerial Map
MILTON APARTMENTS 2 | LOCATION INFORMATION
www.kwcommercial.com 11
FINANCIAL ANALYSIS
3 | FINANCIAL ANALYSIS
FINANCIAL SUMMARY
INCOME & EXPENSES
RENT ROLL
UNIT MIX SUMMARY
SITE PLAN
FLOOR PLANS
3FINANCIAL ANALYSIS
MILTON APARTMENTS
MILTON APARTMENTS
PROPOSAL FOR COMMERCIAL SERVICES
OFFERING MEMORANDUM
INVESTMENT OVERVIEW
Price $3,450,000
Price per Unit $150,000
GRM 13.4
CAP Rate 6.4%
Cash-on-Cash Return (yr 1) 6.72 %
Total Return (yr 1) $106,765
Debt Coverage Ratio 1.46
OPERATING DATA
Gross Scheduled Income $257,580
Other Income $19,560
Total Scheduled Income $277,140
Vacancy Cost $8,314
Gross Income $268,825
Operating Expenses $48,152
Net Operating Income $220,673
Pre-Tax Cash Flow $69,500
FINANCING DATA
Down Payment $1,035,000
Loan Amount $2,415,000
Debt Service $151,173
Debt Service Monthly $12,597
Principal Reduction (yr 1) $37,264
Financial Summary
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
www.kwcommercial.com 13
INCOME SUMMARY PER SF
Rent $258,600 $13.09
Utility Charge-Back $16,560 $0.84
Laundry income $3,000 $0.15
GROSS INCOME $278,160 $14.08
EXPENSE SUMMARY PER SF
Property Tax $16,472 $0.83
Insurance $5,000 $0.25
Misc Utiltity $6,100 $0.31
Sewer $8,642 $0.44
Garbage $11,938 $0.60
GROSS EXPENSES $48,152 $2.44
NET OPERATING INCOME $220,673 $11.17
Income & Expenses
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
www.kwcommercial.com 14
Rent Roll
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
TENANTNAME
UNITNUMBER
UNITBED
UNITBATH
UNITSIZE (SF)
LEASESTART
LEASEEND
CURRENTRENT
CURRENTRENT (PER SF)
MARKETRENT
MARKETRENT/SF
SECURITYDEPOSIT
1 2 1 737 2/1/17 1/31/18 $975 $1.32 $500
2 1 1 419 2/1/17 1/31/18 $750 $1.79 $500
3 2 1 737 4/1/17 3/31/18 $975 $1.32 $975
4 2 1 737 3/2/17 2/28/18 $975 $1.32 $975
5 1 1 419 2/3/17 1/31/18 $790 $1.89 $1,580
6 2 1 737 2/5/17 1/31/18 $975 $1.32 $975
7 2 1 737 3/11/17 2/28/18 $975 $1.32 $975
8 1 1 419 3/12/17 2/28/18 $790 $1.89 $790
9 2 1 737 4/7/17 3/31/18 $975 $1.32 $975
10 2 1 742 3/8/17 2/28/18 $975 $1.31 $975
11 1 1 419 7/1/17 6/30/18 $790 $1.89 $835
12 2 1 651 2/1/17 1/31/18 $910 $1.40 $500
14 2 1 600 2/1/17 1/31/18 $850 $1.42 $1,000
15 2 1 600 9/1/17 8/31/18 $935 $1.56 $935
16 2 1 651 3/18/17 2/28/18 $975 $1.50 $975
17 2 1 645 3/1/17 2/28/18 $975 $1.51 $975
18 2 1 742 4/13/17 3/31/18 $975 $1.31 $975
19 2 1 742 3/17/17 2/28/18 $975 $1.31 $975
20 2 1 742 9/15/17 9/30/18 $1,025 $1.38 $1,025
21 2 1 742 2/1/27 1/31/18 $975 $1.31 $500
www.kwcommercial.com 15
Rent Roll
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
TENANTNAME
UNITNUMBER
UNITBED
UNITBATH
UNITSIZE (SF)
LEASESTART
LEASEEND
CURRENTRENT
CURRENTRENT (PER SF)
MARKETRENT
MARKETRENT/SF
SECURITYDEPOSIT
22 2 1 742 3/11/17 2/28/18 $975 $1.31 $975
23 2 1 742 2/1/17 1/31/18 $975 $1.31 $500
24 2 1 742 9/1/17 8/31/18 $1,025 $1.38 $1,025
TOTALS/AVERAGES 15,181 $21,515 $1.42 $20,415
www.kwcommercial.com 16
Unit Mix Summary
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT
1 bed / 1 bath 4 17.4 419 $791 $1.89 $800 $1.91 $3,705
2 bed / 1 bath 2 8.7 600 $893 $1.49 $975 $1.63 $1,935
2 bed / 1 bath 1 4.3 645 $975 $1.51 $975 $1.51 $975
2 bed / 1 bath 2 8.7 651 $943 $1.45 $975 $1.50 $1,475
2 bed / 1 bath 6 26.1 737 $973 $1.32 $975 $1.32 $5,375
2 bed / 1 bath 8 34.8 742 $988 $1.33 $1,025 $1.38 $6,950
Totals / Averages 23 100% 15,181 $21,553 $1.42 $22,125 $1.46 $110,465
www.kwcommercial.com 17
Site Plan
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
www.kwcommercial.com 18
Lot Detail
MILTON APARTMENTS 3 | FINANCIAL ANALYSIS
www.kwcommercial.com 19
DEMOGRAPHICS
4 | DEMOGRAPHICS
DEMOGRAPHICS MAP
4DEMOGRAPHICS
MILTON APARTMENTS
MILTON APARTMENTS
PROPOSAL FOR COMMERCIAL SERVICES
OFFERING MEMORANDUM
www.kwcommercial.com 21
* Demographic data derived from 2010 US Census
Demographics Map
MILTON APARTMENTS 4 | DEMOGRAPHICS
POPULATION 1 MILE 3 MILES 5 MILES
TOTAL POPULATION 7,093 47,525 155,982
MEDIAN AGE 39.1 38.0 36.9
MEDIAN AGE (MALE) 38.7 37.4 36.0
MEDIAN AGE (FEMALE) 39.4 38.2 37.6
HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES
TOTAL HOUSEHOLDS 3,032 18,584 61,486
# OF PERSONS PER HH 2.3 2.6 2.5
AVERAGE HH INCOME $71,844 $73,038 $70,324
AVERAGE HOUSE VALUE $367,588 $366,690 $326,868
Recommended