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1600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Off ering Memorandum
PHINNEY PROFESSIONAL BUILDING
6814 Greenwood Ave NSeattle, WA
Exclusively offered by Paragon Real Estate Advisors
2600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Off ering Summary
Name Phinney Professional Building
Address 6814 Greenwood Ave N
Total Spaces 8
Built 1914/1996
Square Feet 2,801 Net Rentable
Price $1,595,000
Price Per Foot $569.44
Current GRM/CAP 29.54/2.05%
Market GRM/CAP 13.14/5.85% (3% Vacancy)
Expense Per Unit $2,458 /Year
Terms Cash Out
Lot Size 4,500 Square Feet
Zoning NC2P-40 (Greenwood-Phinney Urban Village)
Paragon Real Estate Advisors is pleased to exclusively offer for sale the Phinney Professional Building. The current building is operated as an offi ce/professional building consisting of 8 attorney offi ces and offers an excellent opportunity for an owner-user purchaser. Additionally, with the property featuring two kitchens and three bathrooms, a buyer has the option to convert the back portion of the property to residential living with 2 apartment units.
Situated in a very walkable and amenity rich neighborhood, the Phinney Professional Building offers the tenants vibrant business opportunities in a desirable residential neighborhood. The Phinney Professional building provides a rare opportunity to purchase a well-maintained commercial property in a location that is quickly becoming the most highly sought after neighborhood by retailers, restaurateurs, new home owners and apartment dwellers alike.
Please do not disturb the tenants and contact the listing broker for more information. Leases are currently month to month, but current tenants prefer to occupy through 12.31.2018.
3600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Investment Highlights
Perfect for Owner User
Highly desirable, pedestrian friendly neighborhood
Close walking distance to Starbucks and Red Mill Burgers
Located within Greenwood-Phinney Ridge Urban Village (NC2-P40 Zoning)
Features 8 offi ces, 2 kitchens and 3 bathrooms
Newly discovered destination location known for many unique stores, cafes , eateries, hip pubs
New fence with garden area
Updated heat pump, air conditioner and security system
Stress-free commute for destination customers
Close to Post Offi ce and near Greenwood library, creating heavy pedestrian traffi c
Excellent street frontage and visibility on Greenwood Ave N
Updated electrical and plumbing
3 parking stalls in back
4600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Neighborhood Map
U DISTRICT
GREENLAKE
BALLARD
QUEEN ANNE
SEATTLECBD
FREMONT
PHINNEY PROFESSIONAL BUILDING
5600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Location
The Phinney Professional Building is located at 6814 Greenwood Ave North in the PhinneyWood (Phinney Ridge/Greenwood)neighborhood of Seattle. This area offers in-city living thout the intensity and congestion of Downtown Seattle.
PhinneyWood is a close knit community of all ages with a strong neighborhood association that supports, engages and connects local establishments and residents through a variety of community programs, services and activities. PhinneyWood Monthly Art Walk, PhinneyWood One Day Garage sale, the Greenwood Car Show, Winter Beer Taste and the Winter Festival & Crafts Fair are a few of the well-known annual community events.
Phinney and Greenwood Avenues are fi lled with pedestrians strolling and enjoying the surroundings during both day and evening hours. The ‘Aves” offer an abundance of quaint coffee shops, eateries, bars with great pub food, a variety of locally owned retail shops, a full service neighborhood grocery store, a True Value neighborhood hardware store, library and a community theatre.
This location also offers easy access to Woodland Park Zoo and Green Lake Park where residents enjoy the many recreational activities offered by both popular parks. The Ballard and Fremont neighborhoods are also located within a short distance.
The PhinneyWood neighborhood allows for quick and direct access to downtown Seattle and South Lake Union employment centers via Highway 99 and Greenwood Ave North. The area also offers abundant public transportation options.
6600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Neighborhood Amenities - Greenwood & Phinney Ridge
1 Red Mill Burgers2 The Barking Dog Alehouse3 Kens Market4 Woodland Park Zoo5 Greenwood Hardware6 Flint Creek Cattle Co7 Ballard High School8 Cornuto Pizzeria9 Greenwood Library10 Hecho Cantina11 74th Street Ale House12 Greenwood Sip and Ship13 United States Post Offi ce14 Bishop Blanchet High School15 The Bathhouse Theater16 Nutty squirrel Gelato17 Beth’s Cafe18 Top Ten Toys19 Fred Meyer20 Dicks Drive In21 Quality Food Center22 Safeway23 Woodland Park24 West Woodland Elementary25 Starbucks26 Green Lake Park
21
22
19
23
252
4
16
7
9
12
13 14
1517
1
18
Food/DrinkShopping/ServicesParks/Schools
26
20
24
3
5
8
1011
6
PHINNEY PROFESSIONAL BUILDING
7600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Greenwood Snapshot
Population 16,394
Median household income $75,337
SingleMarried
57%44%
Owner OccupiedRenters
52%48%
Walk ScoreTransit ScoreBike Score
90 - Walker’s Paradise53 - Good Transit76 - Very Bikeable
Median 1 Bd/1 Bth Rent $2,053
Median 2Bd/1 Bth Rent $2,387
Seattle Commute TimesBus: 32 minutes via E LineCar: 14 minutes via I5
Bellevue Commute TimesBus: 59 minutes via E Line/550Car: 25 minutes via I5/WA 520
TOP JOB SECTORS: *
Management: 14.4% Business 7.4% Computer: 11.8%Engineering 4.7% Art & Entertainment 3.9%
Sales: 13.0%Service: 16.1%Healthcare: 2.1% Education 4.2%Social Services: 3.4%
8600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Employment
> Adobe
> Alaska Airlines
> Amazon
> Apple
> AT&T Wireless
> Boeing
> Costco
> Expedia, Inc.
> Expeditors International
> F5 Networks
> Fred Hutchinson
> Gates Foundation
> Getty Images
> Microsoft
> Nintendo
> Nordstrom
> Paccar
> RealNetworks
> REI
> Russell Investments
> SpaceX
> Starbucks
> Symetra Financial
> Tableau Software
> T-Mobile
> 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 fi rms 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.
9600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Major Employers - Central Business District
10600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Major Employers - South Lake Union
11600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Exterior Photos
12600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Exterior Photos
13600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Exterior Photos
14600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Interior Photos
15600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Interior Photos
16600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Operating Summary
Units 8
Year built 1914/1996
Rentable Area 2,801
Down Payment $800,000
Loan Amount $800,000
Interest Rate 5.00%
Amortization 30 Years
Price $1,595,000
Per Square Foot $569.44
Current GRM 29.54
Current CAP 2.05%
Market GRM 13.14
Market CAP 5.85%
Units Type SizeCurrentRent
Monthly Income
MarketRent
MonthlyIncome
8 Law Offices 2,801 $4,500 $4,500 $8,000 $8,000
0 Avg S.F. 350 $19 Gross $34 NNN
Total Monthly Income
Monthly Scheduled Rent $4,500 $8,000
Parking $0 $300
NNN Reimbursements $0 $1,817
Miscellaneous $0 $0
Total Monthly Income $4,500 $10,117
Scheduled Gross Income $54,000 $121,404
Less Vacancy 3.00% $1,620 3.00% $3,642
Gross Operating Income $52,380 $117,762
Less Expenses $19,666 $24,400
Net Operating Income $32,714 $93,362
Annual Debt Service ($4,294.57) $51,535 $51,535
Cash Flow Before Tax -2.35% ($18,821) 5.23% $41,827
Principal Reduction $11,803 $11,803
Total Return Before Tax -0.88% ($7,018) 6.70% $53,630
Annualized Operating Expenses Current Market
Real Estate Taxes Actual 2017 $7,666 $12,400
Insurance Proforma $3,000 $3,000
Utilities Proforma $3,600 $3,600
Maintenance & Repairs Proforma $2,400 $2,400
Administration Proforma $1,000 $1,000
Reserves Proforma $2,000 $2,000
Total Expenses $19,666 $24,400
Annualized Operating Data Current Market
Current Operations
Expenses/UnitExpenses/FootPercent of EGI
$2,458 $7.02 36.42%
Market Operations
Expenses/UnitExpenses/FootPercent of EGI
$3,050 $8.71 20.10%
17600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Sale Comparables
4. 5411 BALLARD AVE NWSeattle, WA
Year Built 1945Building Sq.Ft. 3,100Lot Sq.Ft. 4,650Sales Price $1,850,000Price/Bldg Foot $596.77Sales Date 4.16.2018
5. 1423 N 45TH STSeattle, WA
Year Built 1933Building Sq.Ft. 2,690Lot Sq.Ft. 3,800Sales Price $1,250,000Price/Bldg Foot $464.68Sales Date 6.24.2017
1. 8300 GREENWOOD AVE NSeattle, WA
Year Built 1951Building Sq.Ft. 3,947Lot Sq.Ft. 4,005Sales Price $2,275,000Price/Bldg Foot $576.00Sales Date 7.6.2018
SUB - PHINNEY PROFESSIONAL BUILDING6814 Greenwood Ave N, Seattle, WA
Year Built 1914/1996Building Sq.Ft. 2,801Lot Sq.Ft. 4,500Sales Price $1,595,000Price/Bldg Foot $569.44Sales Date TBD
2. 7405 - 7407 GREENWOOD AVE NSeattle, WA
Year Built 1912Building Sq.Ft. 4,677Lot Sq.Ft. 3,400Sales Price $2,200,000Price/Bldg Foot $470.39Sales Date 3.26.2018
3. 475 N 36TH STSeattle, WA
Year Built 1920Building Sq.Ft. 2,180Lot Sq.Ft. 2,640Sales Price $1,300,000Price/Bldg Foot $596.33Sales Date 9.26.2017
18600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Sales Comparables Map
Phinney Professional Building6814 Greenwood Ave NSeattle, WA
1. Greenwood & 83rd BuildingSeattle, WA
2. 7405 - 7407 Greenwood Ave NSeattle, WA
3. 475 N 36th StSeattle, WA
4. 5411 Ballard Ave NWSeattle, WA
5. 1423 N 45th StSeattle, WA
1
3
5
2
4
PHINNEY PROFESSIONAL BUILDING
19600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Paragon Real Estate Advisors
ABOUT PARAGONParagon Real Estate Advisors is the leading Seattle real estate investment fi rm 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 profi tability 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.