MAGNOLIA 4-PLEX...SALE PRICE $1,250,000 LOCATION INFORMATION Building Name Magnolia 4-plex Street Address 3306 W Government Way City, State, Zip Seattle, WA 98199 County/Township King

MAGNOLIA 4-PLEX3306 W GOVERNMENT WAY, SEATTLE, WA 98199 CONTACT INFORMATION:

TTYLER SMITHYLER SMITHPRINCIPAL BROKER

[email protected]

STEVE FISCHERSTEVE FISCHERPRINCIPAL BROKER

[email protected]

http://properties.westlakeassociates.com/289337-sale


Price: $1,250,000

Price Per Unit: $312,500

Price Per NRSF: $437.68

Cap Rate: 3.91%

Market Cap Rate: 5.07 %

GRM: 18.57

Building Size: 2,856 SF

Lot Size: 5,714 SF

Year Built: 1955

WESTLAKE ASSOCIATES IS PLEASED TO PRESENT A

WELL-LOCATED 4-PLEX IN MAGNOLIA FOR SALE.

PARTIALLY RENOVATED UNITS WITH UPSIDE IN RENTS.

This meticulously maintained 4-plex is located in the desirable Magnolianeighborhood of Seattle close to beautiful Discovery Park. The property iscomposed of two - 1 bed / 1 bath + den units and two - 2 bed / 1 bath units. Uponturnover, the units have been upgraded to modernize finishes and improvefunction/appearance while maintaining mid-century charm. The building hassignificant system updates including new plumbing, new metal roof and doublepane vinyl windows in all but 4 windows.

With all the heavy lifting complete on the building systems, an investor is in aunique value add opportunity to further upgrade the cosmetic finishes on theinterior of the unit and capture significant rental upside. The demand for housingin the Magnolia / Queen Anne area makes this property a safe investment for bothshort and long term strategies.

3306 W Government Way, Seattle, WA 98199

ADDRESSADDRESS

PROPERTPROPERTY HIGHLIGHTSY HIGHLIGHTSNEW METNEW METAL ROOFAL ROOF

NEW PLNEW PLUMBINGUMBING

VINYL WVINYL WINDOINDOWSWS

LLOCAOCATED TWTED TWO BLO BLOCKS FROM DISCOCKS FROM DISCOOVERY PVERY PARKARK

EASY PUBLIC TRANSPORTEASY PUBLIC TRANSPORTAATION TTION TO DOO DOWWNTNTOOWWNN

PPARTIALLARTIALLY RENOY RENOVVAATED UNITS WTED UNITS WITH UPSIDE IN RENTSITH UPSIDE IN RENTS

CCONVENIENT LONVENIENT LOCAOCATION FOR SEATION FOR SEATTTLE NIGHTLIFETLE NIGHTLIFE

OFFERING SUMMARY



SALE PRICESALE PRICE $1,250,$1,250,000000

LLOCAOCATION INFORMATION INFORMATIONTION

Building Name Magnolia 4-plex

Street Address 3306 W Government Way

City, State, Zip Seattle, WA 98199

County/Township King

Market Seattle

Submarket Magnolia

BUILDING INFORMABUILDING INFORMATIONTION

Building Size 2,856 SF

Number Of Floors 2

Average Floor Size 714 SF

Year Built 1955

Load Factor Yes

Exterior Walls Wood

PROPERTPROPERTY DETY DETAILSAILS

Property Type Multifamily

Property Subtype Low-Rise/Garden

Zoning LR3 RC

Lot Size 5,714 SF

APN# 423540-0195

Submarket Magnolia

PROPERTY DETAILS

Number of Units 4

Year Constructed 1955

Rentable SF 2,856 SF

Lot Size 5,174 SF

Zoning LR3-RC

Exterior Brick / Wood

Sale Price $1,250,000

Price per Unit $312,500

Price per NRSF $437.68

Price per Land SF $218.76

Current Cap 3.91%

Current GRM 18.57

Pro Forma Cap 5.07%

Pro Forma GRM 15.21

Loan Amount $937,500

Down Payment $312,500

Rate 4.500%

% Down 25.0%

Amortization 30

Term 5 Years

Monthly Payment $4,747

Annual Payment $56,972

PROPERTY OVERVIEW

PRICE ANALYSIS

FINANCING

# OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF

2 1/1 + Den 675 $1,140 $1.69 $1,500 $2.22

2 2/1 753 $1,550 $2.06 $1,775 $2.36Total | AVG $5,380 $1.88 $6,550 $2.29

CURRENT PROFORMA

Scheduled Rent Income $64,560 $78,000

+ Scheduled Gross Income $64,560 $78,000

+ Utility Bill Back $2,160 $3,600

+ Laundry Income $600 $600

Scheduled Gross Income $67,320$67,320 $82,200$82,200

- Vacancy & Cr Losses $3,366 $4,110

Gross Income $63,954 $78,090

CURRENT PER UNIT PROFORMA PER UNIT

RE Taxes $7,867 $1,966 $7,867 $1,966

Insurance $1,266 $316 $950 $237

Utilities W/S/G/E $3,888 $972 $3,888 $972

Maintanance/Repairs $2,000 $500 $2,000 $500

Total Operating Expenses $15,021 $3,755$3,755 $14,705 $3,$3,676766

Net Operating Income $48,933 $12,233$12,233 $63,385 $15,$15,846846

INCOME

EXPENSES

FINANCIAL OFFERING

The statements, figures & computations herein, while notguaranteed, are secured from sources we believe reliable. Investorsshould verify all numbers, computations, and assumptions beforecommitting to an investment.

INVESTINVESTMENT OMENT OVERVIEWVERVIEW CURRENTCURRENT PRO FORMAPRO FORMA

Price $1,250,000 $1,250,000Price per Unit $312,500 $312,500CAP Rate 3.91% 5.07%GRM 14.74 15.21Cash-on-Cash Return (yr 1) -2.57% 1.6%Total Return (yr 1) $7,077 $20,137Debt Coverage Ratio 0.86 0.85

OPERAOPERATING DTING DAATTAA CURRENTCURRENT PRO FORMAPRO FORMA

Gross Scheduled Income $64,560 $78,000Other Income $2,760 $4,200Total Scheduled Income $67,320 $82,200Vacancy Cost $3,366 $4,110Gross Income $63,954 $78,090Operating Expenses $15,021 $14,705Net Operating Income $48,933 $63,385Pre-Tax Cash Flow -$8,039 $5,014

FINANCING DFINANCING DAATTAA CURRENTCURRENT PRO FORMAPRO FORMA

Down Payment $312,500 $312,500Loan Amount $937,500 $937,500Debt Service $57,002 $57,002Debt Service Monthly $4,750 $4,750Principal Reduction (yr 1) $14,815 $14,815

FINANCIAL SUMMARY

TThe statemenhe statements, figurts, figures & computations heres & computations herein, while not guaranein, while not guaranteed, arteed, are secure secured fred fromomsoursources we believe rces we believe reliable. Ieliable. Innvestors should verify all numbers, computations, andvestors should verify all numbers, computations, andassumptions beforassumptions before committing to an ine committing to an investmenvestment.t.

BEDROOM/BATH

SIZE RENT PSF MARKETRENT

MARKET RENTPSF

1 x 1 + Den 675 $1,195 $1.77 $1,500 $2.22

1 x 1 + Den 675 $1,090 $1.61 $1,500 $2.22

2 x 1 753 $1,600 $2.12 $1,750 $2.32

2 x 1 753 $1,495 $1.99 $1,750 $2.32

44 2,2,856856 $5,380$5,380 $1.88$1.88 $6,500$6,500 $2.27$2.27

714714 $1,345$1,345 $1.88$1.88 $1,$1,625625 $2.28$2.28

RENT ROLL

Magnolia 4-plex

LOCATION MAPS

INTERIOR PHOTOS

INTERIOR PHOTOS

PRICE/UNITPRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM

$312,500 $437.68 3.91% 18.57

SUBJECT PROPERTY

3306 W GovernmentWay Seattle, WA 98199

SALE PRICE $1,250,000

UNITS 4

YEAR BUILT 1955


$346,250 $452.61 4.82% 16

3816 13TH AVE W

3816 13th Ave WSeattle, WA 98119

SALE DATE


UNITS 4

YEAR BUILT 1955

1


$193,750 $533.75 5.43% 13

3108 W JAMESON

3108 W JamesonSeattle, WA 98199

SALE DATE 08/10/2017

SALE PRICE $775,000

UNITS 4

YEAR BUILT 1948

2


$198,750 $447.64 2% 27

2807 22ND AVE W

2807 22nd Ave WSeattle, WA 98199

SALE DATE 11/13/2017

SALE PRICE $795,000

UNITS 4

YEAR BUILT 1955

3


$337,500 $395.20 4% 15

2667 10TH AVE W

2667 10th Ave WSeattle, WA 98119

SALE DATE


UNITS 4

YEAR BUILT 1917

4

SALE COMPS

WESTLAKE ASSOCIATES, INC

LOCATION

MAGNOLIASTATELY, ELEGANT HOMES on a bluff, manicured lawns, and magnificent views of the sound and mountains are usually the first images brought to mind by mentioning the Seattle neighborhood of Magnolia. But smaller, more modest homes and numerous apartments are as much part of the neighborhood as its bluff homes. It’s residents all have one thing in common, they love the peace and quiet that comes with living in one of the western-most spots in the city.

Traffic whizzes along the Magnolia Boulevard, affording drivers little more than a glimpse of the breathtaking vista; to get a real eyeful you need to stop by Discovery Park. Discovery Park is a favorite of many Seattleites. Miles of dense woods, sandy dunes and

rocky beaches offer a break from the city. The parks department maintains the property in a relatively wild state, for the optimum nature experience. The 534-acre landscape supports four habitats: forest, meadows, saltwater and freshwater.

As Seattle’s largest park, Discovery attracts people for many different reasons. The eight miles of wooded trails offer an opportunity to view a myriad of wildlife, from raccoons to sea lions. The Discovery Park Interpretive Center offers free nature walks on Saturday for those who desire a more structured visit.

The park is home to the West Point Lighthouse, which is maintained by the

U.S. Coast Guard as well as Fort Lawton, a World War II military base. The Army abandoned the Fort in 1970 and the land was declared surplus.

Native Americans also received part of Fort Lawton as part of a treaty dating back to 1865. The 19 acres they received went to establish the United Indians of All Tribes cultural and education center. The facility is called the Daybreak Star Arts Center and sits on the north bluff of the park.

A member of the U.S. Coastal Survey named Magnolia Bluff by accident because he though the Madrona trees, with their distinctive red bark, were Magnolias, and the name stuck.

1.

2.

3.

4.

5.

Office Space Leased in King County

5.48 millionsquare feet



834,299square feet

828,609square feet

Office and Industrial Space Occupied in the

Puget Sound region




889,033square feet

828,609square feet

Revenue

$135.99billion

$85.32billion

$26.06billion

$37.2billion

$27.64billion

Statewide Employees

40,000employees

44,442employees

2,000employees

6,800employees

1,000employees

LARGEST TENANTS IN KING GOUNTY

THE PUGET SOUND, in recent years, has transformed itself into a world class regional market and a formidable economic engine. Its natural beauty from the mountains to the Puget Sound attracts a highly educated, entrepreneurial population from all areas of the country and the world. The Region boasts diverse industries such as manufacturing, biotech, high tech and international trade-- all of which create a strong, well-diversified regional economy. With everything from natural beauty and world-class attractions to major sports teams, a thriving arts and culture scene, world-class research Hospitals and temperate climate: The Puget Sound contains all the elements to be the perfect location to live, work, play and prosper.

QUALITY OF LIFE

The region is known for its quality of life, arts, and outdoor lifestyle which helps attract an educated workforce. Numerous camping, hiking, winter sports, and recreational activities are located a short drive from the city. Seattle’s main attractions include Pike Place Market, the Space Needle, and Seattle Center, home of the 1962 World’s Fair. Seattle is home to a number of professional sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle Mariners, and the Seattle Sounders FC soccer team.

STRONG ECONOMIC GROWTH

The strength of this economy is its unparalleled durability. The Puget Sound region has weathered many economic storms, from the boom and bust cycles of Boeing to the Dot Com crisis. However, the region was relatively immune to the downturn after 9/11 and the financial crisis in 2008, compared to the rest of the country. This resilience has not gone unnoticed; it has attracted an immense amount of investment dollars from corporations, institutions, and individuals both local and worldwide.

This economic resilience is fundamentally based on the simple fact that this region has high demand (it is a great place to live, work, and play), limited supply (geographic constraints) and well-diversified, high–growth employers.

Seattle is the heart of the Region. It is ranked as the fastest growing city in the country last year and has been ranked in the top five for the last three years. Though the effects of this unrivaled demand are impressive, it is exponentially so with the increase of high-wage job growth.

Seattle’s recent growth is truly impressive: population growth that’s twice the national average, a diverse economy with a young, educated workforce, abundant capital, and top rankings for livability and outdoor activities. Seattle also benefits from having 12% of its workforce in STEM occupations, twice the U.S. average.

MOST RAPIDLY APPRECIATING HOME

PRICES IN THE U.S. IN 2017(ZILLOW)

PUGET SOUND OVERVIEW

increase in population seen in the last 40 years. Looking forward, we expect population will peak by year-end 2017 at 65,140, and increases in 2018 and 2019 will likely not be as dramatic, at 40,341 and 34,939, respectively. From 2013 through 2017, the Seattle MD added more than 228,416 new jobs, averaging 45,683 per year, or 872 per week. The Seattle MD has experienced positive population growth for the past 30 years.

POPULATION GROWTH

Seattle’s population is growing at nearly double the rate of Silicon Valley, driven by strong job growth in fields like tech and healthcare, a relatively lower cost of living, no income tax, and lifestyle benefits of the Pacific Northwest. Between 2005 and 2015 top innovation jobs in Seattle grew by 2%, reaching 261,612. From those top jobs, we also saw increases in the following: 22% in Internet & Information; 4% in Medical Devices; and 3% in Specialized Innovation Services. In 2015, Seattle ranked second compared to other innovation regions, gaining 3,125 residents per month from in-migration.

From 2005 through 2015, the STEM talent pool for technology and innovation grew by more than 60%. Over 57% of Seattle’s adult residents have a Bachelor’s degree or higher, nearly twice the national average.Between 2015 and 2016 the number of Seattle’s master’s degree holders increased by 10% per capita and bachelor’s degree holders just over 8%. Population change by education attainment indicates how prepared a region is to meet the demand for the kind of high-skilled jobs needed in an innovation economy.

Prior to 2016, Seattle hadn’t experienced significant population increases since the early 1990s manufacturing boom. The population for the Seattle-Bellevue-Everett MD grew by 67,560 in 2016, a 3.23% increase over the previous year. This is the largest

FIRST IN POPULATION GROWTH AMONG THE 50 LARGES

U.S. CITIES

SEATTLE METRO POPULATION GROWTH & PROJECTIONS

Source: O’Connor Consulting Group


AVG.RENTCHANGE

AVERAGE INCOME$95,234

POPULATION3,439,809

MEDIAN AGE36.9

HOUSEHOLDS314,922

ANNUAL CONSUMERSPENDING

$19.5B

LARGEST MSA IN THE US

15th

DEMOGRAPHIC OVERVIEWSeattle-Tacoma-Bellevue MSA

MULTIFAMILY HISTORICAL VACANCY2010 - Q2 2017

Source: O’Connor Consulting Group

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STEVE FISCHERSTEVE FISCHER

PROFESSIONAL BACKGROUNDA lifetime resident of the Seattle area, Steve graduated from the University ofWashington with a degree in Economics. Beginning his real estate career as ananalyst, his work ethic quickly transitioned from analyst to full time apartmentbroker. Since the inception of his brokerage career, Steve has successfullyclosed over $100 million in sales totaling over 100 transactions. To expand hisskill set, Steve also manages a portfolio of 130 apartment units in the Seattlearea.

Steve excels at problem solving to complete his client’s investment goals. Hisdiverse background of brokerage and management provide a unique spectrumof knowledge. Drawing from this knowledge allows him to guide his clients notonly through the sales process, but to also navigate the operational side ofowning an apartment building. He truly is “A Wealth of Experience.”

A firm believer of investing in real estate as a module to gain wealth, Steve hasbeen actively investing in Seattle real estate since 2011. In 2012, he wasunanimously voted a partner at Westlake Associates, Inc. Away from the office,Steve is a huge sports fan, enthusiast of the outdoors, enjoys cooking, an avidsoccer player and a die-hard husky.

Principal Broker

1200 Westlake Ave N, Suite 310Seattle, WA 98109T 206.505.9435C [email protected]

TTYLER SMITHYLER SMITH

PROFESSIONAL BACKGROUNDFor over 13 years, Tyler has specialized in the sale of middle market multi-familyassets in the Puget Sound Region. Tyler’s extensive experience includes the saleof various types of asset size and classifications. As an apartment ownerhimself, Tyler understands the importance of evaluating each client’s needsindividually and carefully. Since joining Westlake Associates, he has consistentlybeen one of the firm’s top performers and quickly rose to Partner. Tyler’sconsistent effort and drive have earned him Westlake Associates Top Produceraward.

EducationTyler earned a degree in economics from the University of Washington. Tylerworked in finance for a company headquartered in Irvine, CA before returninghome to the Pacific Northwest. He joined Westlake Associates in 2004 andcurrently resides with his wife and two boys in Northeast Seattle.

Principal Broker

1200 Westlake Ave N, Suite 310Seattle, WA 98109T 206.505.9425C [email protected]

BROKER BIO & CONTACT

Since 1975 Westlake Associates, Inc. has been the premier provider ofcommercial real estate brokerage services in the Puget Sound region. Ourcommitment to assist our clients in creating and preserving their realestate investment wealth has led to the successful closing of billions ofdollars in investment property and a long history of repeat business andclient referrals.

Our firm has over twenty full-time real estate professionals with expertisein the multi-family sales market. With a majority of our partners owningand operating their own investment property, we offer clients a uniqueperspective from both an agent and owner point of view. Ourspecialization in representing Puget Sound apartment owners results inour clients receiving the most effective representation in the industry,where maximizing client returns is our highest priority.

Through effective teamwork, communication, and an unparalleledknowledge of the Puget Sound apartment market, our agents continue tolead the industry in successful closings and client satisfaction.

MEMBERMEMBER: C: Commerommercial Bcial Brrokokers Association (ers Association (CBACBA))

MEMBERMEMBER: N: Northorthwest Mwest Multiple Lultiple Listing Sisting Serervices (Nvices (NWWMLS)MLS)

MEMBERMEMBER: Loop N: Loop Net Net National Lational Listing Sisting Serervicesvices

MEMBERMEMBER: C: Costar Costar Commerommercial Rcial Real Eeal Estate Dstate Data and Nata and National Lational Listing Sisting Serervicevice

MEMBERMEMBER: C: Commerommercial Icial Innvestmenvestment Rt Real Eeal Estate Istate Institute (nstitute (CREI)CREI)

MEMBERMEMBER: W: Washington Sashington State Rtate Realtors Association (WSMAealtors Association (WSMA))

ABOUT WESTLAKE

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MAGNOLIA 4-PLEX...SALE PRICE $1,250,000 LOCATION INFORMATION Building Name Magnolia 4-plex Street Address 3306 W Government Way City, State, Zip Seattle, WA 98199 County/Township King