Offering Memorandum - Kirkland, WA · WEST BOSTON APARTMENTS 215 West Boston St. Seattle, WA Exclusively offered by . Paragon Real Estate Advisors. 600 University Street Suite 2018

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

Offering Memorandum

WEST BOSTON APARTMENTS

215 West Boston St Seattle, WA

Exclusively offered by Paragon Real Estate Advisors


Offering Summary

Name West Boston Apartments

Address 215 W Boston St, Seattle WA

Total Units 6

Built 1910

Square Feet 4,805 Total Net Rentable

Price $2,100,000

Price Per Unit $350,000

Price Per Foot $437.50

Current GRM/CAP 17.5/4.0% (3% Vacancy)

Market GRM/CAP 14.7/5.0% (3% Vacancy)

Expense Per Unit $5,264/Year

Terms Cash Out

Lot Size 5,400 Square Feet

Zoning SF 5000

Paragon Real Estate Advisors is pleased to exclusively offer for sale the West Boston Apartments. This pride of ownership 6-unit apartment building is located on top of Queen Anne Hill in a predominantly residential neighborhood. This highly sought after location is two blocks to Queen Anne Avenue including the Queen Anne Avenue Starbucks and a few short blocks to the McGraw Street Retail including the Macrina Bakery and Cafe. This convenient location offers easy access to Downtown, Ballard, Fremont and Magnolia. The West Boston Apartments offers an investor the opportunity to own a quality apartment building in an irreplaceable location.



Investment Highlights

6 spacious units

Built in 1910 with quality updates completed in recent years

Private entrances for each unit

Upper units have balconies

Ample on-site parking with 4 covered spaces and 2 uncovered spaces with the possibly of tandem parking

Hard to find large corner lot with single family zoning

Mature and attractive landscaping

Views of the Cascades, Olympics and Mount Baker

Common coin-operated laundry room

Served by Rapid Ride and other major bus routes via Queen Anne Avenue, 15th Ave West and Highway 99

Walk Score of 93 - this location is considered a Walkers Paradise

Rental upside


Neighborhood Map

SOUTH LAKE UNION

SEATTLE CBD

ELLIOTT BAY

BALLARD

QUEEN ANNE

FREMONT U DISTRICT


WALLINGFORD


Queen Anne

Conveniently located between major employment centers of Downtown Seattle, South Lake Union, Wallingford, Fremont and the Elliot Bay waterfront.

Less than 5-minute drive (non-rush hour) to Downtown Seattle, South Lake Union, Capitol Hill, Eastlake, Magnolia, Ballard, Fremont, Wallingford and the University District.

Home to 25 beautifully maintained city parks

Home to the private Seattle Pacific University on the north slope

One of Seattle’s hottest rental markets and prestigious residential neighborhoods to live

People from all over Seattle visit Queen Anne for its nightlife, restaurants and famous park attractions

Served by Rapid Ride and other major bus routes

Major Employers headquarter nearby include Amazon, Nordstrom, Expedia, Zillow, Tableau and Weyerhaeuser

Major companies opening offices nearby: Google, Facebook, Apple, Ebay, Dropbox, Twitter, Uber


Improvements

The current owners purchased the West Boston Apartments in 2002. The previous owners significantly upgraded the property during their ownership, and upon purchase, the current owners have further improved the building.

Three of the four two-bedroom units have been completely updated by a local licensed and bonded general contractor with high-end finishes. The upgrades to the kitchen and bathrooms include wood cabinetry, quartz countertops and attractive tile flooring. The appliances were replaced with stainless and beautiful walk in tiled showers were installed in the bathrooms.

All units have hardwood floors. Two of the updated units have finished hardwood floors which are stunning and enhance the charm of the units. The remaining four units have carpet over the unfinished hardwood floors. Unit 2, a one-bedroom unit has hardwood floor in the bedroom only.

The one-bedroom units are spacious, light filled and well appointed. One of the one-bedroom units has had the kitchen updated with new cabinetry and granite countertops.


Apartment Features

Two one-bedroom/one-bath units

Four two-bedroom/one-bath units, 3 of which are updated

Spacious and appealing floor plans

Large open living and dining areas

Stainless steel appliances and quartz countertops in updated units

Gas stoves in several units

Hardwood flooring

Abundant closet and storage spaces

Double pane vinyl windows

Charming bay windows in some units


Building Photos


Unit Photos


Unit Photos


Operating Summary

Units 6

Year built 1910

Rentable Area 4,805 Sq.Ft.

Down Payment $1,250,000 59%

Loan Amount $850,000 41%

Interest Rate 4.55%

Amortization 30 Years

Price $2,100,000

Price Per Unit $350,000

Per Square Foot $437.04

Current GRM 17.49

Current CAP 4.04%

Market GRM 14.67

Market CAP 5.00%

Units

Type

Avg Size

Current Rent

Monthly Income

Market Rent

Monthly Income

1 1Bd/1Bth 825 $1,525 $1,525 $1,550 $1,550

1 1Bd/1Bth 600 $1,150 $1,150 $1,350 $1,350

1 2Bd/1Bth * 850 $1,470 $1,470 $1,995 $1,995

1 2Bd/1Bth ** 850 $1,725 $1,725 $1,995 $1,995

1 2Bd/1Bth * 850 $1,850 $1,850 $1,995 $1,995

1 2Bd/1Bth ** 850 $1,775 $1,775 $1,995 $1,995

6 Avg S.F. 800 $1.98 $9,495 $2.26 $10,880

Total Monthly Income

Scheduled Gross Income $120,060 $143,160

Less Vacancy 3.0% $3,602 3.0% $4,295

Gross Operating Income $116,458 $138,865

Less Expenses $31,581 $33,687

Net Operating Income $84,877 $105,178

Annual Debt Service ($4,332/mo) $51,985 $51,985

Cash Flow Before Tax 2.63% $32,892 4.26% $53,193

Principal Reduction $13,591 $13,591

Total Return Before Tax 3.72% $46,483 5.34% $66,784

Annualized Operating Exp Current MarketReal Estate Taxes Actual 2016 $12,844 $14,950

Insurance Actual 2016 $2,266 $2,266

Utilities Actual $8,471 $8,471

Maint/Repairs Proforma $5,500 $5,500

Landscaping Proforma $500 $500

Miscellaneous Proforma $500 $500

Reserves Proforma $1,500 $1,500

Total Expenses $31,581 $33,687

Annualized Operating Data Current Market

Current Operations

Expenses/Unit Expenses/Foot Percent of EGI

$5,264$6.5726.30%

Market Operations

Expenses/Unit Expenses/Foot Percent of EGI

$5,615 $7.0123.53%

Monthly Scheduled Rent $9,495 $10,880

Laundry Income Actual $250 Actual $250

Utility Bill Back *** Actual $160 $40/person $400

Parking Income $0 $25/$50 $250

Miscellaneous Income Proforma $100 $150

Total Monthly Income $10,005 $11,930

West Boston Apartments 215 West Boston St Seattle, WA

* Rental rate is effective 5.1.2017 ** Rental rate is effective 6.1.2017 *** Utility bill back goes into effect 5.1.2017 / 6.1.2017


Sale Comparables

SUBJECT - WEST BOSTON APTS 215 W Boston St, Seattle WA

Year Built 1910 Units 6 Sales Price $2,100,000 Price/Unit $350,000 Price/Foot $437.04 GRM/CAP 17.5/4.0% Sales Date TBD

1. 6 UNIT 2107 5th Ave N, Seattle WA

Year Built 1923 Units 6 Sales Price $2,975,000 Price/Unit $495,833 Price/Foot $447.50 GRM/CAP 14.7/4.8% Sales Date 12.9.2016

2. THE COTTAGES 1713 Dexter Ave N, Seattle WA


4. HEATHER COURT 114 12th Ave E, Seattle WA


3. MCKEAN APARTMENTS 1404 10th Ave W, Seattle WA


5. FRANKLIN AVE APARTMENTS 2211 Franklin Ave E, Seattle WA



Sales Comparables Map

West Boston Apts 215 W Boston St Seattle, WA

1. 6 Unit 2107 5th Ave N Seattle, WA

2. The Cottages 1713 Dexter Ave N Seattle, WA

3. McKean Apts 1404 10th Ave W Seattle, WA

4. Heather Court 114 12th Ave E Seattle, WA

5. Franklin Ave Apts 2211 Franklin Ave E Seattle, WA

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4

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WEST BOSTON APARTMENTS 5


Property Units Age Unit Type Size Rent Rent/Sq.Ft. Comments

West Boston Apartments 215 W Boston StSeattle, WA

6 19101Bd/1Bth2Bd/1Bth

600 - 825825 - 880

$1,150 - $1,525$1,470 - $1,850

$1.85 - $1.92$1.78 - $2.10 Renovated units, parking included in rent

1. Muse911 1st Ave WSeattle, WA


600750

$1,400 - $1,415$1,750

$2.33 - $2.36$2.33

Renovated units, W/S/G and heat included in rent

2. Westmoreland2156 8th Ave WSeattle, WA

11 19Studio

1Bd/1Bth585650

$1,250$1,375 - $1,475

$2.14$2.12 - $2.27

W/S/G included in rent, ample street parking avaliable

3. Bostonian 2123 4th Ave NSeattle, WA


550 - 621916 - 975

$1,385 - $1,595$2,095 - $2,195

$2.52 - $2.57$2.25 - $2.29

Renovated units, views, W/S/G is an additional $40/person/month

4. Olympic View2101 7th Ave WSeattle, WA

22 1952 1Bd/1Bth 685 $1,595 $2.33Renovated units, W/S/G included in rent, open on-site parking

Rent Comparables


Rent Comparables Map

West Boston Apts 215 W Boston St Seattle, WA

1. Muse 911 1st Ave W Seattle, WA

2. Westmoreland 2156 8th Ave W Seattle, WA

3. Bostonian 2123 4th Ave N Seattle, WA

4. Olympic View 2101 7th Ave W Seattle, WA

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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 - Kirkland, WA · WEST BOSTON APARTMENTS 215 West Boston St. Seattle, WA Exclusively offered by . Paragon Real Estate Advisors. 600 University Street Suite 2018