Aladdin Townhomes - images2.loopnet.comimages2.loopnet.com/d2/zn3nzFDfSWh7zKyA2WAkTrh3VsqyXVHdu… · Aladdin Townhomes are located in close proximity to major retailers, distribution

32-Unit, Multifamily Property

in Tacoma, Washington

$4,500,000

Aladdin Townhomes

OFFERING MEMORANDUM

Tyler StanekAssociate Vice [email protected]

Arielle DormanAssociate Vice [email protected]

Dirk StegemanAssociate Vice [email protected]

Exclusively offered by

This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

This Offering Memorandum contains confidential information pertaining to the property known as Aladdin Townhomes and is provided by Kidder Mathews for the sole purpose of evaluating recipient’s possible interest in acquiring the property.

Kiddermathews.com

Table of Contents1. Offering Summary

2. The Property

• Property Overview• Property Highlights• Floor Plans• Site Aerial• Neighborhood Amenities• Regional Aerial

3. Financial Information

• Scheduled Income• Expenses and Operating Data• Rent Comparables• Sales Comparables

4. Market Overview

• Pierce County Overview• Puget Sound Overview

AladdinTownhomes

Aladdin Townhomes Offering Memorandum | Kidder Mathews 3

Offering Summary

01


THE INVESTMENT OPPORTUNITY

TACOMA POSTED 10.6% RENT INCREASE (4TH HIGHEST IN NATION) FROM MARCH 2016-2017

NOT ENOUGH CONSTRUCTION (APARTMENT OR HOME) TO MEET POPULATION GROWTH

TACOMA AREA IS A BEDROOM COMMUNITY FOR ALASKA AIR, AMAZON, BOEING, COSTCO, EXPEDIA, EXPEDITORS, NORDSTROM, PACCAR, REI, STARBUCKS, AND WEYERHAUSER

CLOSE IN TACOMA / INTERSTATE 5 LOCATION

TACOMA AREA VACANCY AT 2.8%

VALUE ADD OPPORTUNITY AND RENT GROWTH THROUGH MODEST INTERIOR IMPROVEMENTS


EXECUTIVE SUMMARY

As exclusive brokers for Aladdin Townhomes, we are pleased to offer for sale this 32 unit, town house style, multifamily property. One of Aladdin’s greatest attributes is its location relative to Interstate 5 for its ease of access to Tacoma, Joint Base Lewis-McChord (JBLM), Puyallup, and the Puget Sound metropolis.

Aladdin Townhomes are located in close proximity to major retailers, distribution facilities, healthcare providers, and private and government employers. The Tacoma Mall is 4 miles away and anchored by Nordstrom, Macy’s, JC Penney, and Sears. The main gate to JBLM, the largest military installation west of the Mississippi and the second largest employer in Washington State, is located 5 miles south. JBLM employs approximately sixty-six thousand military and civilian workers surrounding the base. Tacoma CBD is located approximately 7 miles away and Seattle-Tacoma International Airport and Seattle CBD and are located 30 and 38 miles, respectively. Interstate 5 links the Puget Sound markets to Oregon and California along with Canada and Mexico and it is critical to the region, state, and national economy. It is also the busiest roadway in Western Washington.

The Property

Aladdin Townhomes consists of 31 town house style homes and one flat. The property’s has four residential buildings that are wood framed with wood siding and mansard roofs. In 2017, the property was renovated including the installation of new, double-pane, insulated vinyl windows and sliding glass doors, new roofs (on the steep portion of the mansard) and new paint on the building exterior.

The Market

The hub of the Pierce County market consists of four cities: Tacoma, Lakewood, University Place and Puyallup/Fife. The Pierce County population is estimated at 831,928 for 2014. According to Puget Sound Regional Council, the population of Tacoma grew by 3,800 people or 1.9%

PROPERTY OVERVIEW

Address9009, 9021, 9031 S Hosmer1841 S 92nd St

# Units 32

Occupancy 100%

Net Rentable SF 37,120 SF

Year Built 1973

Parking 66 open spaces

Parking Ratio 1 unit: 2.06 spaces

Parcel #4530600110, 4530600120, 4530600130, 4530600140, 4530600150, 4530600160, 4530600171

FLOOR PLAN SIZEAVG CURRENT RENT

PRO FORMA

2 Bed / 1 Bath (flat)

900 SF $900 / $1.00 PSF $1,050 / $1.17 PSF

2 Bed / 1.5 Bath (townhouse)

1,168 SF $1,050 / $0.90 PSF $1,250 / $1.07 PSF

TOTAL / AVG 1,160 SF $1,050 / $0.99 PSF $1,244 / $1.07 PSF

Offering Summary


in 2016. The King County border is just 10 miles north, the largest county in Washington State with a population estimated at 2.08 Million in 2014.

According to rental firm RentCafe, Tacoma posted the fourth highest rent increase in the nation of 10.6% from March 2016 to March 2017, the full article can be read at http://www.thenewstribune.com/news/business/article143983299.html. Dupre + Scot report that south Tacoma’s market 2017 vacancy is 2.9% with 5 year average at 4.0 % and 29% rent growth since 2013.

Local Economy

Aladdin Townhome’s location allows for easy access to a diversified array of employment centers such as the Port of Tacoma, the Kent Valley’s ever-growing industrial market, Seattle-Tacoma Airport, Downtown Tacoma, JBLM, the rapidly expanding Fife/Puyallup industrial market, DuPont and the Fredrickson Industrial park. Notable companies and organizations located within these employment centers include the Boeing Company which has facilities in both Fredrickson and the Kent Valley, Weyerhaeuser, REI, the University of Washington - Tacoma, MultiCare Health System, one of the largest healthcare providers in the Nation, Franciscan Health System, Amazon, and State Farm Insurance who over the last 2 years have hired an additional 1,400 individuals. Other major employers include public and private school systems, hospitals, and State, County and Municipal government organizations. Employment diversity provides a hedge against downturns and future job growth appears positive. A recent study commissioned by the State Department of Transportation concluded that the planned completion of the State Route- 167 freeway from Puyallup to the Port of Tacoma will contribute to an additional 79,000 new jobs. Planning and design work for the freeway are in process and funding is a priority agenda item.

The Investment Opportunity

At 32 units, Aladdin Townhomes allows a multifamily owner the ability to increase their market presence and grow the operating income through management efficiencies by raising the balence of the rents from $0.87 psf to the current high value of $0.97 psf.

PROPERTY INFORMATION

Price $4,500,000 ($140,625 / unit)

Current (Pro Forma) Cap Rate

5.41% / 7.22%

Current (Pro Forma)Effective Gross Income

$425,992 / ($503,972)

Current (Pro Forma) Expenses with Reserves

$182,443 ($5,701) / unit / yr) /$187,724 ($5,866) / unit / yr)

Net Rentable SF 37,120 SF

Average Unit Size 1,160 SF

Current Average Monthly Rent

$1,050

Current Average Rent / SF $0.91

Overview The property consists of four, townhome style residential buildings on eight tax parcels.

Apartment Home Amenities

Range/oven, refrigerators/freezer, dishwashers, disposal, stacked washer/dryer, electric hot water tanks, baseboard heaters, blinds, and large decks or patios (30 of 32) with storage.

Property Amenities Professionally installed and maintained landscaping, new double-pane, insulated vinyl windows, new vinyl sliding glass doors with fresh air vents, covered deck or patio, and on-site trash/recycling area.

Location Located in Tacoma, close to I-5 and major employers located in Tacoma/Pierce County and Joint Base Lewis-McChord.


The PropertyProperty Overview

Property HighlightsFloor PlansSIte Aerial

Neighborhood Amenities Regional Aerial

02


Aladdin TownhomesPROPERTY SUMMARY

Address9009, 9021, 9031 S Hosmer1841 S 92nd St

Number of Units 32 Units

Age 1973

Number of Buildings Four, two-story residential buildings

Construction Wood frame construction with mansard roofs, and new, vinyl, double-pane, windows, and new sliding glass doors

Parcel Number4530600110, 4530600120, 4530600130, 4530600140, 4530600150, 4530600160, 4530600171

Land Area 1.67 AC / 74,052 SF

Density 19.16 units / acre

2017 Levy Rate $16.07 per thousand

Utility Providers Power - Tacoma Public UtilitiesSewer - Tacoma Public UtilitiesWater - Tacoma Public Utilities

FLOOR PLAN SIZEAVG CURRENT RENT

PRO FORMA

2 Bed / 1 Bath (flat)

900 SF $900 / $1.00 PSF $1,050 / $1.17 PSF

2 Bed / 1.5 Bath (townhouse)

1,168 SF $1,055 / $0.90 PSF $1,250 / $1.07 PSF

Monthly Rent $33,610 $39,800

Total Scheduled Rent $403,320 $477,600

PROPERTY OVERVIEW

Aladdin Townhomes is a 32-unit residential community located in Tacoma, Washington that underwent capital improvements over the last 6 months: new vinyl double pane windows and sliding doors, new mansard roofs, and new exterior building paint. The property has four, two-story residential buildings with enhanced sound proofing, large double-pane insulated windows, and mansard roofs.

Community Amenities

Aladdin Townhomes offer its residents a parking ratio over 2 stalls per unit consisting of 56 open parking spaces and 10 carports.

Unit Amenities

Each of the residences in Aladdin Townhomes were designed for efficiency. All apartments have new vinyl, double-pane insulated windows and sliding glass doors. The kitchens come with a standard oven/range combination, refrigerator, dishwasher, and disposal. In addition, the units are equipped with electric hot water heaters, balcony/patio with storage, stacked washer/dryer, and eight-foot ceilings.


PROPERTY HIGHLIGHTS

Unit Amenities

All kitchens are equipped with oven/range combination, refrigerator/freezer, dishwasher, garbage disposal

Stacked washer/dryer

Most apartment homes have 8-foot ceilings

Private decks or patios (30 of 32 units) with storage

Double-pane, insulated vinyl windows and sliding glass doors

Vinyl wood plank floors in approximately 20% of units

Community Amenities

56 stalls of open parking and 10 carports

On-site trash and recycling area

Close to Pierce Transit bus stop

Prime Pivot Point Location

Minutes to Downtown Tacoma and next to Interstate-5 and Highway 512

Close proximity to major employers, retailers and health care providers

Major retailers include: Costco, Nordstrom, Fred Meyers, Walmart

Appeals to broad resident base due to Interstate 5 corridor location

Easy access to Pierce Transit stop (3 blocks) via Hosmer


FLOOR PLANS

2 Bedroom / 1.5 Bath | 1,177 SF

CLICK HERE TO VIEW VIRTUAL TOUR

https://my.matterport.com/show/?m=WT16KwuQqet&brand=0

https://my.matterport.com/show/?m=WT16KwuQqet&brand=0


SITE AERIAL

S 92nd St

S 90th St

S H

osm

er S

t

ALADDIN TOWNHOMES


NEIGHBORING AMENITIES

TACOMA

LAKEWOOD

FIFE

ALADDIN TOWNHOMES

JBLMMCCHORD AFB

ST. CLAIR HOSPITAL

LAKEWOOD INDUSTRIAL

PARK PIERCE COUNTY TRANSIT

LAKE STEILACOOM

GRAVELLY LAKE

MT TAHOMA HS

GIG HARBOR

FIRCREST

PUYALLUP

THEA FOSS WATERWAY

LEMAY CAR MUSEUM & TACOMA DOME

UW TACOMA

ST. JOSEPH HOSPITAL

CHENEY STADIUM

ALLENMORE HOSPITAL

BELLARMINE PREP HS

STADIUM HS

LAKEWOOD TOWNE CENTER

TACOMA MALL

PORT OF TACOMA

TACOMA ART MUSEUM & MUSEUM OF GLASS


REGIONAL AERIAL

PORT OF TACOMA

LAKEWOOD

STEILACOOM

FIRCREST

FEDERAL WAY

PUYALLUP

SUMNER

DOWNTOWN TACOMA

ALADDIN TOWNHOMES

UNIVERSITY PLACE

GIG HARBOR

JBLMMCCHORD AFB

TACOMA MALL

LAKEWOOD TOWNE CENTER


Financial InformationScheduled Income

Expenses and Operating DataRent ComparablesSale Comparables

03


Financial Information

UNIT TYPE # OF UNITS APPROXIMATE / AVERAGE SF

CURRENT AVERAGE RENTS

CURRENT RENTS / SF

PRO FORMA RENTS

PROFORMA RENTS / SF

2 Bed / 1 Bath (Flat) 1 900 $900 $1.00 $1,050 $1.17

2 Bed / 1.5 Bath (TH) 31 1,168 $1,055 $0.90 $1,250 $1.07

Total / Avgs 32 1,160 $1,050 $0.91 $1,244 $1.07

Monthly Rent $33,610 $39,800

TOTAL SCHEDULED RENT $403,320 $477,600

OTHER INCOME T-12 (MARCH 2017 - FEBRUARY 2018)

PRO FORMA

Utility Reimbursment $31,488 $47,217

Late/NSF Fees $1,765 $1,818

Screening Fees $1,920 $2,613

Pet Fees $275 $177

Month to Month Premium $875 $618

Forfeit Deposit $4,570 $4,713

Bad Debt Recovery $349 $265

Garage Rental $570 $0

Miscellaneous $1,026 $1,589

Total Other Income $42,838 $59,010

SCHEDULED INCOME*

*CURRENT RENTS BASED ON FEBRUARY 2018 RENT ROLL ANNUALIZED WITH PRO FORMA RENTS REFLECTING CURRENT MARKET RENTS.

Notes

OTHER INCOME - PRO FORMA: This income based on 3% annual growth, except utility reimbursement estimated at 95% consumption

OTHER INCOME - T-12 (MARCH 2017 - FEBRUARY 2018): Utility reimbursement - Based on January 2018 billing for utility reimbursement, annualized


T-12 (MARCH 2017 - FEBRUARY 2018)

PRO FORMA

Wages / Salaries / Benefits / Taxes $15,510 $15,975

Repairs/Maintenance/TO $34,854 $35,900

Landscaping $1,395 $1,437

Utilities $49,702 $51,193

Marketing $1,607 $1,655

Administrative $11,274 $11,612

Insurance $7,619 $7,848

Management Fee $16,780 $17,283

Property Taxes $37,302 $38,421

TOTAL EXPENSES $176,043 $181,324

Reserves ($200 / unit) $6,400 $6,400

TOTAL EXPENSES W/ RESERVES $182,443 $187,724

Expenses Per Unit w/ Reserves $5,701 $5,866

Expenses Per SF w/ Reserves $4.92 $5.06

EXPENSES

Notes

EXPENSES - PRO FORMA: Based on current T-12 (March 2017 - February 2018) with a 3% annual growth.

PROPERTY TAX: Based on 2018 county assessors rate.


T-12 (MARCH 2017 - FEBRUARY 2018) EXPENSES

PRO FORMA

Scheduled Gross Rent $403,320 $477,600

Vacancy/Model ($20,166) 5.00% ($23,880)

Rent Booked $383,154 $453,720

Effective Gross Rent $383,154 $453,720

Utility Reimbursment $31,488 $47,217

Late/NSF Fees $1,765 $1,818

Screening Fees $1,920 $2,613

Pet Fees $275 $177

Month to Month Premium $875 $618

Forfeit Deposit $4,570 $4,713

Bad Debt Recovery $349 $265

Garage $570 $0

Miscellaneous $1,026 $1,589

Effective Gross Income $425,992 $512,730

Total Operating Expenses Before Reserves ($176,043) ($181,324)

NET OPERATING INCOME $249,948 $331,405

Less Reserves @ $200/unit ($6,400) ($6,400)

NOI AFTER RESERVES $243,548 $325,005

ANNUALIZED OPERATING DATA


RECENT RENT COMPARABLES

PROPERTY ADDRESS AVG UNIT SF # OF UNITS YEAR BUILT AVG RENT RENT / SF

Aladdin Townhomes 9009 S Hosmer, Tacoma 1177 32 1973 $1,023 $0.88

Notch 8 9210 S Hosmer St, Tacoma 765 126 1986 $1,147 $1.50

The Woodmark 2425 S 96th St, Tacoma 750 168 1976 $929 $1.24

Altitude 104 2201 104th St S, Tacoma 759 120 1989 $1,146 $1.51

Ainsworth Court 10610 16th Ave Ct S, Tacoma 1120 8 1985 $1,349 $1.20

Valley Vista 6830 Tacoma Mall Blvd, Tacoma 852 108 1987 $1,205 $1.41

AVERAGE 849 106 1985 $1,155 $1.37

SALE COMPARABLES

PROPERTY ADDRESSSALE DATE

SALE PRICE

PRICE / UNIT

PRICE / SF

# OF UNITS

YEAR BUILT

CAP RATE

Aladdin Townhomes 9009 S Hosmer, Tacoma TBD $4,600,000 $143,750 $124 32 1972 5.6%

Majestic Firs 6111 88th St SW, Lakewood Apr-17 $1,670,000 $119,286 $162 14 1971 5.8%

Oliver Apartments 420 Wheeler St S, Tacoma Jun-17 $5,300,000 $110,417 $129 48 1968 5.7%

Shasta Apartments 1545 Fawcett Ave, Tacoma Apr-17 $1,320,000 $132,000 $251 10 1919 4.9%

Wapato Creek Village 2335 58th Ave E, Fife Mar-17 $12,850,000 $110,775 $159 116 1980 3.3%

Rainier View Townhouses 5106 Parker Rd E, Sumner Jan-16 $1,320,002 $94,286 $163 14 1979 5.5%

Valley Vista 6830 Tacoma Mall Blvd, Tacoma Oct-16 $11,400,000 $105,556 $123 108 1987 5.75%

Vanessa View Estates 5608 112th Street E, Puyallup Jul-17 $7,404,634 $205,684 $137 36 2002 5%

AVERAGE $125,429 $161 49 1972 5.14%


Market OverviewPierce County OverviewPuget Sound Overview

04


PIERCE COUNTY OVERVIEW

In addition to being the home of the second largest city in Washington, Tacoma, Pierce County has been one of the fastest growing counties in the state of Washington since the 1960’s, and has consistently exceeded the state’s overall rate of growth. Pierce County supports manufacturers such as Boeing, Milgard Manufacturing, James Hardie Building Products, Toray Composites (America), Inc., and Medallion Foods. Recreational Equipment, Inc. (REI), Whirlpool, and Costco also have major distribution centers here. State Farm Insurance has a regional headquarters in Pierce County, and innovation thrives at the research divisions of Intel and Madigan Army Medical.

The majority of population increase has been due to the migration of people into the County. This continued migration is the result of Pierce County’s relatively stable economy and exceptional quality of life. The low-cost living, award-winning education, and lifestyle opportunities combined with the area’s competitive cost of doing business, create an outstanding environment for businesses and residents to work, play, and live.

Economy

Two words best describe the business climate found in Pierce County’s economy: emerging opportunity. In part, this is because of the county’s strategic location at the mid-point between the major metropolitan areas of the central Puget Sound to the north, and Portland, Oregon to the south. The presence of the military exerts a stabilizing influence on the Pierce County economy and employs nearly 57,000 residents of Pierce County.

In the last several years, the county has noticed quite a dramatic shift in the regional diversification of its workforce. Professional services rank as one of the leading components of industry. These include a solid anchor of Intel, multiple web design firms, and legal and consulting companies.

Impacts of Joint Base Lewis-McChord

Pierce County is home to Joint Base Lewis-McChord (JBLM), the largest military installation on the West Coast, and the 4th largest in the United

States. JBLM employs over 40,000 active, National Guard and Army Reserve service members, and approximately 15,000 civilian workers. The base supports 60,000 family members and nearly 30,000 retirees living within 50 miles, 65% of whom live in Pierce County. JBLM has a significant impact on the economy of Pierce County, providing a stable base of customers for retail trade, as well as providing a talented pool of trained workers who are transitioning out of the military and into the local workforce.

Port of Tacoma

The Port of Tacoma is an independent seaport located on more than 2,400 acres of land that are used for shipping terminal activity, warehousing, distributing and manufacturing. The port plays the largest international trade role in the Pacific Northwest handling between nine and thirteen million tons of cargo and more than $25 billion in commerce. Major imports include automobiles, electronics, and toys; major exports include grain, forest products, and agricultural products. Based on tonnage, the port’s largest export is grain (corn and soybeans) which comes into the port by rail from the Midwest.

In 2015, the Port of Tacoma’s top trading partner, based on two-way trade value, was China / Hong Kong. China / Hong Kong was also the top partner ranked by volume imported and value imported. Japan was the top partner ranked by volume exported and value exported. The top commodities exported, by value, were cereals and grains. The top commodities imported, by value, were vehicles and parts, followed by industrial machinery and electronics.

The port is among the top ten largest container ports in North America. Containers hold everything from computers and lawn furniture, to apples and frozen meat. More than 70 percent of the containers imported through the port move by rail to markets in the Midwest and East Coast. The port is served by the BNSF Railway and Union Pacific railroads. Shortline rail service is provided by Tacoma Rail, which is owned by the City of Tacoma.

Market Overview


U.S. Oil and Refining operates an oil refinery in the Port of Tacoma. Oil tankers bring crude oil, which is refined into a variety of products, including JP-8 jet fuel for McChord Field Air Force Base. Port activities are related to more than 43,000 jobs in Pierce County, and 113,000 jobs in Washington State.

Recreation Opportunities

Puget Sound bays and outlets offer an abundance of year-round outdoor recreational activities such as sailing, fishing, canoeing, diving, and kayaking. Numerous trails for biking and hiking are conveniently located 120 miles away at Mt. St. Helens, at Mt. Rainier which is 81 miles away, and 74 miles away at Ocean Shores. PGA level golf courses and many other fine public and private courses are also around the area. Entertainment attractions include several of the Northwest’s largest gaming casinos.

Art and Culture

Pierce County is home to some of the most active communities in Washington. Puyallup is home to numerous fairs, festivals, museums, galleries, and antique districts. Artists and performers showcase their talents through live theater at Broadway Center for the Performing Arts, Northwest Sinfonietta, Tacoma Art Museum, Tacoma Opera, and The Tacoma Symphony Orchestra.

Health Care Hub

Pierce County is home to six top-notch full-service hospitals, Good Samaritan Hospital and Rehab Center, Madigan Army Medical Center, St. Joseph Medical Center, Saint Clare Hospital, St. Anthony Hospital and Tacoma General Allenmore Hospital. The area’s health care hub has hundreds of clinical trials underway and a medical community committed to research and collaboration with local universities and other research institutions. Numerous specialized medical clinics are located throughout the region.


Education

The quality of education in Pierce County is a major draw to the South Puget Sound area. Pierce County students consistently show educational attainment levels exceeding both state and national averages. Thirty-five percent of Pierce County residents typically hold bachelor or graduate degrees, and more than ninety percent attain a high school or GED diploma. Pierce County students also consistently achieve SAT scores above state and national averages.

PACIFIC LUTHERAN UNIVERSITY

Pacific Lutheran University is a private institution that was founded in 1890. It has a total undergraduate enrollment of 3,195 students. Pacific Lutheran University’s ranking in the 2017 edition of Best Colleges in Regional Universities (West), was fifteenth.

UNIVERSITY OF PUGET SOUND

University of Puget Sound is a private institution that was founded in 1888. It has a total undergraduate enrollment of 2,651. University of Puget Sound’s ranking in the 2017 edition of Best Colleges is National Liberal Arts Colleges, was seventieth.

PIERCE COLLEGE

Pierce College is designated an institutional member of Service members Opportunity Colleges (SOC), a group of more than 1,700 colleges and universities providing voluntary postsecondary education to members of the military throughout the world. Pierce College provides education programs at Joint Base Lewis-McChord. These programs are specifically designed to serve the needs of active-duty military personnel, their family members, VA benefit recipients, and civilians in the community. Located on two campuses in Pierce County, current student enrollment is approximately 23,855.

TOP EMPLOYERS

RANK COMPANIES EMPLOYEES

1 Joint Base Lewis-McChord 57,120

2 Local Public School Districts (K-12) 13,408

3 Multicare Health System 8,247

4 State of Washington 6,844

5 Franciscan Health System 6,099

6 Pierce County Government 3,001

7 Fred Meyer 2,560

8 City of Tacoma 2,138

9 State Farm Insurance 2,050

10 Emerald Queen Casino 2,026

11 Boeing 1,750

12 Safeway Stores 1,512

13 Tacoma Public Utilities 1,417

14 Walmart 1,287

15 U.S. Postal Service 1,214

16 Costco 1,205

17 Puyallup Tribe of Indians 1,099

18 Milgard Manufacturing, Inc 1,061

19 Comcast Cable 1,046

20 Longshore Labor Union 1,026

21 Pierce Transit 884

22 Pierce College 830

23 Target 772

24 Group Health Cooperative 742

25 Home Depot 706

26 Amazon 700

27 University of Puget Sound 693

28 Tacoma Community College 688

29 Sears Roebuck 672

30 Davita 660

TOTAL 123,457


PUGET SOUND OVERVIEW

Greater Seattle Area

Seattle is the largest city in the four-county metropolitan area known as the Puget Sound region. The area’s other major metropolitan cities include Bellevue, Tacoma, Everett, and Bremerton. Surrounding these are growing cities that include Kirkland, Redmond, Kent, Renton, Bothell, and Issaquah.

Climate

The temperate climate lets residents and visitors enjoy the outdoors year-round. High temperatures in July average just 75 degrees, while low temperature drop below freezing an average of only 15 days per year. The rainfall keeps the region’s vegetation a lush green, however, it rarely rains heavily and the total average rainfall is 35 inches, less than New York City or Miami.

Outdoor Activities, Culture, Sports

The Seattle area’s natural beauty and mild climate encourage year-round activities such as hiking in the Olympic or Cascade Mountains, kayaking on Lake Union, or cycling on any of the many rails-to-trails paths.

Art and culture are also driving forces in the region. There are 34 museums, 30 performing arts centers, and—at last count—at least 29 professional theatre companies.

Professional sports teams include major league football and baseball as well as soccer and hockey. The region’s professional football club, The Seattle Sounders FC, won the MLS Cup in 2016. In addition, there is thoroughbred racing, minor league baseball, and the University of Washington Huskies to cheer on.

Demographics

The region consists of approximately 3,944,507 (2015, U.S. Census Bureau) residents in King, Snohomish, Pierce, and Kitsap counties. The current figure represents a 6.6 percent increase over the 2010 Census. Positive population growth in the region is expected to continue through

the end of the forecast period. The Puget Sound Regional Council is estimating the area’s population to be 4,513,589 in 2030, an 14.4 percent increase.

The Seattle-Tacoma-Bellevue metropolitan area (MSA) is clearly the economic engine of Washington State. The MSA ranks 13th among 362 markets nationwide in terms of effective buying income (EBI or after-tax, discretionary spending power). The median household EBI in the Greater Seattle Area is 20 percent higher than the national median.

Approximately 56 percent of the population is in the prime workforce age of 25-64. Residents are among the most highly educated in the nation, with more than 35 percent having at least a bachelor’s degree and one-third of those holding a graduate or professional degree.

Long-term forecasts call for the Greater Seattle area to resume its historic strong growth patterns. The Puget Sound Regional Council expects the area to add approximately 855,000 new jobs by 2040.


Education

Washington State is home to six public four-year colleges and universities, 34 public community and technical colleges, and more than 300 private colleges, universities, career, and vocational schools.

The University of Washington continues to gain increased national recognition. According to the America’s Best Colleges, U.S. News & World Report in 2016, the UW was ranked 54 among all national universities, tied with Ohio State University-Columbus. The U.S. News 2016 graduate school rankings show many of the UW’s graduate programs among the best in the nation. The medical school ranked first among all schools in the country for primary care and the School of Nursing also retained its top ranking for the 30th year. Overall the UW School of Medicine ranked twelfth among research medical schools and first among public medical schools. The graduate program in computer science ranked sixth and the college of education graduate program was ninth.

Seattle University is a Jesuit university situated on 48 acres in Seattle’s First Hill and Capitol Hill neighborhoods. The school was founded in 1891 and is the largest independent university in the Pacific Northwest. The university has a total enrollment of 7,400 students of which 63 percent are undergraduates. Seattle University employs 1,400 faculty and staff. The U.S. News 2014 rankings place Seattle University eighth among the top universities in the West that offer a full range of masters and undergraduate programs.

Transportation

King County has a well-developed transportation system which provides links to all parts of the country and world. Seattle’s port is closer to the main trading partners in Asia than any other major U.S. port and the region’s distribution networks move goods efficiently inland.

The region’s multi-modal transportation system includes two transcontinental railroads, nationwide trucking capacity, three interstate highways, a ferry system, a world-class port, and an international airport.

The Burlington Northern Santa Fe (BNSF) and Unions Pacific Southern Pacific (UPSP) railroad serve the greater Seattle area. Both railroads have

spur lines that span the area, making it possible to deliver almost any type of load. Outside of Puget Sound and across the state, there are over 4,000 miles of operable track.

Truck transportation in Washington is made possible by over 3,700 interstate trucking companies, including common carrier and contract companies. The State ranks among the top 10 states in general freight tonnage carried by trucks intrastate. The competition results in favorable negotiated freight rates.

All regional communities are accessible from Seattle over an efficient, well-planned freeway system. The average commute between Seattle and outlying cities and suburbs is 23 minutes (non-peak) and 45 minutes (peak). The region’s highway network is anchored by three main highways:

U.S. Interstate 5 which runs north-to-south from Vancouver, British Columbia to San Diego, California

Interstate 90 which runs west-to-east connecting Seattle with New York

Interstate 405 (Washington) is a 30-mile stretch of freeway that bypasses Seattle east of Lake Washington. I-405 runs from Lynnwood in the north to

Tukwila in the south.


Over 23 million passengers annually ride the Washington State Department of Transportation’s Ferry System, the largest in the country and the third largest in the world. This system transports over 10 million vehicles a year, more than any ferry system in the world. The fleet has 20 auto-passenger ferries and two passenger-only ferries. The DOT operates 20 terminals and operates on nine routes.

The Port of Seattle has world-class facilities and relative proximity to Asia; the port is the fastest route for cargo to and from America’s heartland. The transit time from port cities in Asia to Seattle is eight days, which is 30 hours less than through Southern California ports. The Seattle-Tacoma-Everett port region is the third largest container complex in the country, smaller only than New York / New Jersey and Los Angeles / Long Beach. It is the 8th largest US port in 2014 in terms of TEU’s and cargo activity supports more than 48,000 jobs. The region’s ports serve not only the Pacific Northwest, but also the Midwest, East Coast, and Canada. 2014 marked a strong recovery is the region’s port activity. Seattle-Tacoma grew 8.6 percent in terms of cargo volume from 2013. Marine cargo operations also generated $138.1 billion in total economic activity. That accounts for about one-third of Washington state’s gross domestic product. The figure includes revenue generated by port-related businesses as well as wages paid to people holding direct jobs.

In 2016, 45.7 million passenger and 366,000 metric tons of air cargo passed though Sea-Tac airport. Passenger levels increased eight percent from 2015 and the volume ranked the airport as the 9th busiest in the U.S. Because of the state’s strategic geographic location, Sea-Tac is one to two

hours of flying time closer to Pacific Asia than Southern California airports. In addition, trans-polar routing enables Sea-Tac to rival East Coast cities like New York in flight times to European capitals.

Economy

While the greater Seattle economy includes a broad range of companies, local business and civic leaders have identified key innovative, knowledge-based industries that drive our economy and are critical to the region’s current and future prosperity.

Aerospace Clean Technology Information Technology

Interactive Media Life Sciences

Aerospace

The Puget Sound region has a proud history and a strong future as a leader in the aerospace industry. In 2013, aerospace supported more than 136,100 jobs (over 8,000 engineers) in the region and includes over 650 companies, making the area the largest commercial aviation center in the country.

The largest employer is Boeing Commercial Airplanes which is headquartered in Renton about 15 minutes south of Downtown Seattle. The region is home to final assembly operations for the 737, 747, 767, 777, and 787 aircraft. In March, 2016 Boeing had 80,000 employees in the Puget Sound region.


Clean Technology

Analysts predict a boom in clean technologies amid an oncoming energy crunch. The alternative-energy industry’s revenues are projected to quadruple to $226 billion by 2019, according to a report by Clean Edge, a Portland-based market-research firm.

There are more than 400 clean technology companies located in region employing more than 21,000 people. There is a 64 percent greater concentration of clean technology, or “green,” jobs in the Seattle area than the U.S. average.

Statewide, the clean technology industry accounted for more than 62,000 jobs in the sectors of energy efficiency, renewable energy, reducing pollution and pollution cleanup. The sectors of wind, solar, biomass, wave / tidal and geothermal energy currently employ more than 17,000. Washington State has long supported clean technology and has the largest coordinated hydro-electric system in the world, providing 73 percent of the state’s electrical power.

The Washington Clean Technology Alliance (WCTA) was established in 2007 to take full advantage of the opportunities presented by this emerging sector and to ensure Washington’s continued leadership.

Information Technology

Many of the most well-known names in the software and information technology industry are located in the Great Seattle area. The established companies include Microsoft, Amazon, Nintendo, T-Mobile, RealNetworks, Expedia, and several others.

The strong base of businesses has created the largest employment cluster in the region, supporting nearly 110,000 jobs. The Greater Seattle area has several world-leading strengths in the IT sector. The State of Washington is the largest employer of software publishing workers in the US. Washington ranks first in the country in the creation of new software companies.

Top Puget Sound Area Companies

Amazon.com

AT&T Wireless

Alaska Airlines

Berlex Laboratories

Boeing

Children’s Hospital

Costco

Expedia, Inc.

Group Health Cooperative

Macy’s

Microsoft

MultiCare Health System

Nintendo

Nordstrom

Paccar, Inc.

Providence Health Care

REI

Safeco

Safeway

Starbucks

Swedish Health Services

Symetra Financial

T-Mobile

The Kroger Company

University of Washington

Virginia Mason Medical Center

Weyerhaeuser


Microsoft is the second largest employer in the state of Washington. In addition to the nearly 42,940 employees in the region, the company historically has had an estimated 3.4 implied employment multiplier. As a result, the company currently also supports nearly 98,000 indirect jobs in the area. Microsoft has also greatly impacted the region through next generation companies. Since Microsoft’s founding, over 250 companies have been spun off through investment and development or from former Microsoft employees.

Amazon continued its strong employment growth, adding over 12,000 employees worldwide last year, an expansion of more than 42 percent. The company doesn’t release detailed employment information for the region; however, recent local leasing activity indicates many of the new and planned hires will be based in the Seattle area.

Amazon leased approximately 460,000 square feet at the 1918 Eighth office tower in Downtown Seattle. This lease is in addition to the 1.7 million-square-foot headquarters in South Lake Union which is apparently

already near capacity. They are currently under construction on the first of four city blocks totaling approximately three million square feet. Tech companies require approximately 250 square feet per employee. Therefore they plan to house an additional 10,000 employees upon completion of this Amazon campus. In addition, Amazon opened a 1,000,000-square-foot distribution center in Kent and DuPont.

The rich and deep pool of talent has led other industry leading IT companies such as Google to establish the area as an important location for growth. In the Greater Seattle area, Google has a complex of new buildings in Kirkland and offices in the Fremont neighborhood of Seattle. A local manager has indicated that at least 100 positions will be added to the 700 employees already working in the two locations. The local engineers are working on the high priority projects such as the Chrome browser and operation systems and Google Talk.

Interactive Media

The Puget Sound is an undisputed global leader in Interactive Media development. Starting with Cyan’s PC games of the nineties, Myst and Riven, to Valve’s Half Life and Portal, and Bungie’s Halo trilogy, the history of the area is strong. With Microsoft, Nintendo, and RealNetworks in the region, along with over 150 noteworthy game-technology companies, the Greater Seattle area can claim to be of the top three game-development centers in the world.

Industry leaders such as Warner Bros. Interactive, Gas Powered Games, NCSoft, and Sony Online Entertainment have offices here. Over the last few years, an industry task force gathered and collaborated with public and private sector leaders to develop the Washington Interactive Media Program—the first of its kind in the nation. The program is designed to promote, nurture, and grow the video game industry in the area.

AMAZON CAMPUS


Life Sciences

The life science industry in Greater Seattle includes, but is not limited to, biotechnology companies, medical device companies, research institutions, and global health organizations. The industry employs approximately 22,000 individuals. The strongest industry association is the Washington Biotechnology and Biomedical Association (WBBA) to which over 500 local companies belong. The growth of this sector in Washington State is reflected in the fact that the WBBA added 70 new members in 2010. The overall industry is estimated to generate nearly $7 billion in annual revenues.

In 2005, Washington State created the Life Sciences Discovery Fund to support the life science industry as a $350 million commitment to research over a 10-year period.

With a current endowment of $37 billion, the Bill and Melinda Gates Foundation is also a major supporter of the area’s life science companies. Recent funding helped the University of Washington move the Departments of Genome Sciences and Bioengineering into a new, shared facility and helped establish a Department of Global Health.

The Foundation opened its new campus at 500 5th Avenue N in June 2011. The 12-acre Gates campus reinforces the area’s comeback, while adding a more buttoned-down sensibility. A pair of curved office buildings, a reception pavilion, and a 1,000 car parking structure anchor three corners of the site and may be joined by a third office building in the future. Construction costs for this 640,000-square-foot complex totaled $500 million, housing 1,116 employees.

The South Lake Union biotechnology area, near both the Foundation and the University, houses The Fred Hutchinson Cancer Research Center, the Institute for Systems Biology, the Pacific Northwest National Laboratory (Seattle office), Amgen’s Helix Campus on Elliot Bay, the Allen Institute for Brain Science, the Pacific Northwest Research Institute, the Infectious Disease Research Institute, PATH, the Seattle Biomedical Research Institute, and the Benaroya Research Institute at Virginia Mason.

The distinct healthcare industry which includes hospitals, healthcare products and services, training, and research, accounts for 96,000 jobs in Seattle and annual revenue of $10 billion. Collaboration among professionals in healthcare, life sciences and information technology has led to advances in bioinformatics and health informatics.

Tyler StanekKidder MathewsAssociate Vice [email protected]

Arielle DormanKidder MathewsAssociate Vice [email protected]

Dirk StegemanKidder MathewsAssociate Vice [email protected]

kiddermathews.com

Documents

Aladdin Townhomes - images2.loopnet.comimages2.loopnet.com/d2/zn3nzFDfSWh7zKyA2WAkTrh3VsqyXVHdu… · Aladdin Townhomes are located in close proximity to major retailers, distribution