QUEEN ANNE TRIPLEX - commercialmls.com

QUEEN ANNE TRIPLEX Offering Memorandum

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14th A

ve W

| SEATTLE

Matt JohnstonP: 206.556.4419C: [email protected]

Jason KonoP: 206.566.6595C: [email protected]

EXCLUSIVELY LISTED BY

Investment Overview

Location

Financials

Comparables

Offer Guidelines

TABLE of CONTENTS

The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. © Pilot Ventures LLC.

QUEEN ANNE TRIPLEX | 4

ELLIOTT BAYFUTURE

EXPEDIA HQ

Investment Overview


A value-add property in the heart of Queen Anne


Price $1,200,000

Units 3

Price Per Unit $ 400,000

Rentable SF 1,980

Price Per SF $ 606

Current Cap Rate 1.96 %

Market Cap Rate 4.22 %

Current GRM 35.7

Market GRM 18.9

Year Built 1900

Parcel Number 277160-1475

Land SF 4,200

Zoning LR2

Construction Type Wood Frame

Plumbing Copper

Parking 3 Off Street

Hot Water Individual Hot Water

Heating Forced Air

Roof Type TPO

Roof Year 2008

$50,669PROFORMA NOI

At A Glance

Unit 2


Interior Photos

Unit 3


Interior Photos

Location


QUEEN ANNE TRIPLE X2206 14th Ave W, Seattle, WA 98119

Located on the West slope of Queen Anne, the Queen Anne Triplex is nestled within a charming residential neighborhood on a quiet street, and offers spacious units with stunning views of Elliott Bay.

There are a plethora of thriving small businesses just minutes from home, and an abundance of parks and recreation including Interbay Golf Course, West Queen Anne Playfield, David Rodgers, Kerry and Lake Union Park that you can enjoy year-round.

Queen Anne is an upcoming, urban environment full of local restaurants featuring Canlis, The 5 Spot, Paragon, and many more. Stop on your way home from dinner and enjoy your favorite drink at one of the local pubs - Toulouse Petit, Peso’s, or T.S. McHugh’s. Indulge in your favorite cup of coffee on your way to work from The Wick, Storyville, or Byen Bakeri. Groceries from Whole Foods, Safeway, and Trader Joe’s are within just a few blocks.

The Queen Anne Triplex is a one of a kind investment opportunity, ideal for an owner-occupied buyer or traditional investor. The property offers significant rental upside and the potential for future development.

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QUEEN ANNE | Seattle, WA | 98119

QUEEN ANNE

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INK 1 Macrina Bakery & Cafe

2 Canlis

3 How To Cook A Wolf

4 Paragon

5 Mezcaleria Oaxaca

6 Betty

7 5 Spot

8 Via Tribunali

9 Windy City Pie

10 Citizen Six

11 Peso’s Kitchen & Lounge

12 Toulouse Petit

13 The Melting Pot

14 T.S. McHugh’s

15 Taylor Shellfish Oyster Bar

16 Solo Bar & Eatery

17 Savor...

18 Citizen

19 Art Marble 21

20 Buca di Beppo

21 re:public

22 Daniel’s Broiler

23 Crow Restaurant & Bar

24 Laredos Grill

1 Whole Foods Market

2 Ken’s Market

3 Safeway

4 Trader Joe’s

5 Metropolitan Market

6 QFC

1 Interbay Golf Center

2 Interbay Athletic Complex

3 David Rogers Park

4 West Queen Anne Playfield

5 Kerry Park

6 MOHAI

7 Lake Union Park

8 KeyArena

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1 Expedia Group

2 Big Fish Games

3 KCPQ

4 Facebook

5 Allen Institute

6 UW Medicine

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Seattle is a bustling metropolis, ranked by the U.S. Census in the “Top 4 for Growth” for five consecutive years.

Since 2010, our population has increased 18.7%, bringing an additional 114,412 people to America’s beloved Emerald City.

It’s no stretch to appreciate how the lush, green foliage and shimmering waters led a few to Seattle.Unparalleled beauty and access to the outdoors have helped attract some of the best companies in the country. To the east and west, the city is bordered by Lake Washington and the Puget Sound. Out further, snowcapped mountain ranges can be seen in every direction.

Home to a diverse and robust community, Seattle is the cultural and business center of the Pacific Northwest. The thriving tech sector has pushed up the wages, software engineers averaging $132,000/year, as well as the cost of rent.

Employment and population growth rates are strong and stable, supported by the variety of commerce and an ongoing demand for skilled workers.

Seattle was ranked the second-best city for STEM workers by NerdWallet. The University of Washington, a highly ranked school with a variety of nationally recognized programs, prepares top-tier students for roles at companies, such as Amazon, the Fred Hutchinson Cancer Research Center, Facebook, and the Allen Institute.

Buzzing with new infrastructure, jobs and residents, Seattle’s evergrowing metropolis is considered home to many major employers who drive growth and fuel our economic climate including:


Financials


UNIT Type Approx NRSF Current Rent Current /SF Market Rent Market /SF

1 1 Bd / 1 Bth 520 $ 750 $ 1.44 $ 1,450 $ 2.79

2 1 Bd / 1 Bth 520 $ 750 $ 1.44 $ 1,450 $ 2.79

3 2 Bd / 1 Bth 940 $ 1,300 $ 1.38 $ 2,375 $ 2.53

1,980 $ 2,800 $ 1.42 $ 5,275 $ 2.70

• Cosmetic updates needed

• Washer & dryer in upper unit 3

• Stunning views of Elliot Bay from unit 3

Rent Roll

*Market rents based on 18,000 per unit renovation budget **Unit square footages are estimated


CURRENT PRO FORMA

Gross Potential Rent $ 33,600 $ 63,300

Vacancy $ (1,008) 3.00 % $ (1,899) 3.00 %

NET RENTAL INCOME $ 32,592 $ 61,401

OTHER INCOME

Laundry Income $ 240 $ 240

Utility Billback $ 2,160 $ 2,160

Total Other Income $ 2,400 $ 2,400

EFFECTIVE GROSS INCOME $ 34,992 $ 63,801

EXPENSES

Property Taxes $ 6,339 $ 8,032

Insurance $ 1,200 $ 1,200

Utilities $ 2,700 $ 2,700

Maintenance & Repairs $ 1,200 $ 1,200

Total Expenses $ 11,439 $ 13,132

NET OPERATING INCOME $ 23,553 $ 50,669

Loan Payments $ (48,967) $ (48,967)

Pre-Tax Cash Flow $ (25,414) (5.64) % $ 1,702 0.38 %

Principal Reduction $ 10,810 $ 10,810

TOTAL PRE-TAX RETURN $ (14,604) (3.24) % $ 12,512 2.78 %

Financial Analysis

• Loan payment based on $749,650 loan

• Interest rate of 5.125%

• 30yearfixed

Comparables


PROPERTY ADDRESS Units Price Sale Date Price/Unit Price/NRSF Cap Rate Market Cap GIM

2206 14th Ave W 3 $ 1,200,000 TBD $ 400,000 $ 606 1.96 % 4.04% 35.7

1 2106 6th Ave W 3 $ 1,375,000 TBD $ 458,333 $ 460 3.26 % 3.71 % 22.0

2 1943 10th Ave W 3 $ 1,395,000 T B D $ 465,000 $ 443 3.40 % 4.05 % 20.5

3 3001 22nd Ave W 3 $ 1,300,000 11/ 5/18 $ 433,333 $ 394 4.23 % 5.29 % 17.6

4 2557 13th Ave W 3 $ 1,570,000 9/18 /18 $ 523,333 $ 441 4.71 % 4.72 % 16.9

5 3627 13th Ave W 3 $ 1,250,000 8 /17/18 $ 416,667 $ 417 3.40 % 3.96 % 20.7

6 12 Etruria St 3 $ 950,000 8 /1/18 $ 316,667 $ 541 4.68 % 4.79 % 16.5

AVERAGES $ 435,556 $ 449 3.95 % 4.42 % 19.0

Sales Comparables

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4 5

2106 6TH AVE W

• 1950 construction• Turn-key

1943 10TH AVE W

• 1968 construction• Value-add• 75k rehab budget

3001 22ND AVE W


2557 13TH AVE W


3627 13TH AVE W


6 12 ETRURIA ST


*Market cap rate determined by projected market rents, expenses, and renovation budget if needed


2106 6TH AVE W

1943 10TH AVE W

3001 22ND AVE W

2557 13TH AVE W

3627 13TH AVE W

12 ETRURIA ST

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ADDRESS Unit Type Unit SF Rent Rent /SF

1 2834 15th Ave W 1 Bd / 1 Bth 600 $ 1,525 $ 2.54

2 2244 13th Ave W 1 Bd / 1 Bth 560 $ 1,450 $ 2.59

3 2557 14th Ave W 1 Bd / 1 Bth 610 $ 1,575 $ 2.58

AVERAGES 590 $ 1,517 $ 2.57

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2834 15TH AVE W 2244 13TH AVE W 2557 14TH AVE W

818 W CROCKETT ST 750 CROCKETT ST 6 2015 13TH AVE W

Rent Comparables

4 818 W Crockett St 2 Bd / 1 Bth 850 $ 2,195 $ 2.58

5 750 Crockett St 2 Bd / 1 Bth 900 $ 2,300 $ 2.56

6 2015 13th Ave W 2 Bd / 1 Bth 825 $ 2,250 $ 2.73

AVERAGES 858 $ 2,248 $ 2.62

*Rent comparables above show achievable rents for Queen Anne Triplex after stabilizing the property


2834 15TH AVE W

2244 13TH AVE W

2557 14TH AVE W

818 W CROCKETT ST

750 CROCKETT ST

2015 13TH AVE W

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Offer Guidelines

Pilot Ventures is pleased to announce

All questions and inquiries regarding this opportunity should be addressed to the Pilot Ventures representatives listed herein. Pilot Ventures’ team will be available to assist prospective investors with questions upon their review of the offering. Investors will receive advanced notification of the bid deadline via email. Offers should include, at a minimum, the following:

• The purchase price, contingencies and closing date;

• The amount of earnest money deposit;

• The source of capital for down payment;

• A detailed timeline for the transaction;

• A brief overview of the Buyer’s qualifications.

UNIVERSITY ARMS | 25


Built upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono.

Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do.

At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results.

Together, we don’t just build equity— we build relationships.

BrokerageWhether you’re buying or selling, our experienced team of brokers will ensure you receive the best possible representation.

ManagementManaging property can be an overwhelming experience— in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI.

Investments Our firm’s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment.

Consulting Investing smartly is the easiest way to achieve long-term goals—collaborate with industry professionals who apply systematic market research and financial analysis to produce feasible solutions for all types of real estate projects.

Brokerage / Management / Investments / Consulting

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QUEEN ANNE TRIPLEX - commercialmls.com