Offering Memorandum · 2019. 4. 25. · 600 University Street Suite 2018 Seattle, WA 98101 1 P 206.623.8880 E InfoParagonREA.com ParagonREA.com Offering Memorandum DISCOVERY PARK

1600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com

Offering Memorandum

DISCOVERY PARK APARTMENTS

3108 W Jameson Street Seattle, WA

Exclusively offered by Paragon Real Estate Advisors


Offering Summary

Name Discovery Park Apts

Address 3108 W Jameson Street

Total Units 4

Built 1948

Square Feet 1,452 Total Net Rentable

Price $775,000

Price Per Unit $193,750

Price Per Foot $533

Terms Cash Out

Lot Size 4,000 Square Feet

Zoning NC1-40

Paragon Real Estate Advisors is pleased to exclusively offer for sale the

Discovery Park Apartments. This property is conveniently located in the

north Magnolia neighborhood within close proximity to Discovery Park and

the Interbay Golf Course. Residents also have easy access to Downtown

Seattle, Magnolia Village, Ballard/Queen Anne, Seattle Pacific University

and South Lake Union. This is an excellent opportunity to purchase well-

located duplexes that cash flow while securing NC-140 zoned land for future

development opportunity.


Investment Highlights

Built in 1948

Great Magnolia location

Easy access to Downtown via 15th Avenue W

Rent upside with development potential

Minutes from South Lake Union, Magnolia Village, Ballard and Queen Anne, Seattle Pacific University and South Lake Union just minutes away

Local retail and service establishments include QFC, Whole Foods Market, Pagliacci Pizza, and Red Mill Burgers

Walking distance to Discovery Park and the Ballard Locks

Magnolia is one of Seattle’s best rental neighborhoods


Neighborhood Map

INTERBAY

SEATTLE CBD

BALLARD

SOUTH LAKE UNION

FREMONT


ELLIOTT BAY

SODOCAPITOL HILL

WALLINGFORD

MAGNOLIA

QUEEN ANNE

WHOLE FOODS


Magnolia

Second largest neighborhood in Seattle by area

Ranked as the 9th best neighborhood in the city with an 8.1 out of 10 score according to Street Advisors

Home to Seattle’s largest park: the 534 acre Discovery park and it’s expansive beaches, 7 miles of walking trails, tide pools and nature habitat

Beautiful views of the Seattle Skyline and the Olympic mountains

Magnolia’s business district is home to many specialty stores and professional services, some of Seattle’s top restaurants, and industrial and marine services

West Point, the westerly most point in the city, is home to the oldest lighthouse in the area.

Fisherman’s Terminal, located right on Salmon Bay near the 15th Street Bridge offers you plentiful ways to experience the local fishing culture

Serviced by King County Metro bus lines 19 and 24

Bicycle friendly area with easy access to downtown via a 4 mile protected bike path that follows the water


Seattle Central Business District

Seattle is the number ten top fastest growing big U.S. cities

Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children’s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health

Seattle Icons: Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners

Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts

Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom’s, Boeing, Expeditors International, Payscale, DocuSign, Zulily

New Companies entering Seattle’s Market: Tableau, Facebook, Dropbox, Apple and Google

Amazon currently host’s 24,000 employees, and is projected to host an additional 47,000 more (total 71,000) by 2019


Employment

> Adobe

> Alaska Airlines

> Amazon

> Apple

> AT&T Wireless

> Boeing

> Costco

> Expedia, Inc.

> Expeditors International

> F5 Networks

> Facebook

> Fred Hutchinson

> Gates Foundation

> Getty Images

> Google

> Microsoft

> Nintendo

> Nordstrom

> Paccar

> RealNetworks

> REI

> Russell Investments

> SpaceX

> Starbucks

> Symetra Financial

> Tableau Software

> T-Mobile

> Twitter

> 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 firms 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.


Improvements

4 Studios at approximately 363 square feet

Attractive North Magnolia location with off-street parking

Building offers efficient units with rental upside

Private patios

Vinyl windows

Electric baseboard heating

All units have their own hot water heater

Zoned NC1-40

4,000 square foot lot


Unit Photos


Proforma Operating Summary

Units 4

Year built 1948

Rentable Area 1,452

Down Payment $193,750 25%

Price $775,000

Price Per Unit $193,750

Per Square Foot $534

Annualized Operating Expenses

Real Estate Taxes 2017 Actual $4,790

Insurance Pro Forma $1,000

Utilities Pro Forma $4,000

Maintenance Pro Forma $4,000

Total Expenses $13,790

Units

Type

Size

Pro Forma Rent

Avg Rent/SF

1 Studio 363 $1,200 $3.31

2 Studio 363 $1,200 $3.31

3 Studio 363 $1,200 $3.31

4 Studio 363 $1,200 $3.31

Totals 1,452 $4,800 $3.31

Scheduled Gross Income $57,600

Less Vacancy 3.00% $1,728

Gross Operating Income $55,872

Less Expenses $13,790

Net Operating Income $42,082

Annualized Operating Data


Sale Comparables

DISCOVERY PARK APARTMENTS 3108 Jameson St, Seattle, WA

Year Built 1948 Units 4 Sales Price $775,000 Price/Unit $193,750 Price/Foot $534 GRM/CAP N/A Sales Date TBD

1. 2655 22ND AVE W Seattle, WA

Year Built 1959 Units 3 Sales Price $1,190,000 Price/Unit $396,666 Price/Foot $285 GRM/CAP N/A Sales Date 8.29.2016

2. 2311 W RAYE ST Seattle, WA

Year Built 1960 Units 3 Sales Price $1,065,000 Price/Unit $355,000 Price/Foot $328 GRM/CAP 18.0/3.8% Sales Date 1.06.2017

4. 2304 W CROCKETT ST Seattle, WA

Year Built 1954 Units 4 Sales Price $1,130,000 Price/Unit $282,500 Price/Foot $338 GRM/CAP N/A Sales Date 8.29.2016

3. THORNDYKE APARTMENTS 2853 Thorndyke Ave W, Seatle, WA

Year Built 1901 Units 3 Sales Price $899,000 Price/Unit $299,666 Price/Foot $326 GRM/CAP 15.0/4.14% Sales Date 5.05.2017

5. 5411 32ND AVE NW Seattle, WA

Year Built 1962 Units 3 Sales Price $955,000 Price/Unit $318,333 Price/Foot $422 GRM/CAP 21.0/3.5% Sales Date 3.20.2017


Sales Comparables Map

Discovery Park Apartments 3108 Jameson St Seattle, WA

1. 2655 22nd Ave W Seattle, WA

2. 2311 W Raye St Seattle, WA

3. Thorndyke Apartments 2853 Thorndyke Ave W Seatle, WA

4. 2304 W Crockett St Seattle, WA

5. 5411 32nd Ave NW Seattle, WA


3

4

1

2

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Paragon Real Estate Advisors

ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi-family property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 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 profitability 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 20 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.

Documents

Offering Memorandum · 2019. 4. 25. · 600 University Street Suite 2018 Seattle, WA 98101 1 P 206.623.8880 E InfoParagonREA.com ParagonREA.com Offering Memorandum DISCOVERY PARK