THE PARKSIDE A P A R T M E N T S
MAGNOLIA FREMONT QUEEN ANNE SOUTH LAKE UNION CAPITOL HILL SEATTLE CBD ELLIOTT BAY SODO PORT OF SEATTLE THE PARKSIDE A P A R T M E N T S BEACON HILL
OFFERING Paragon Real Estate Advisors is pleased to offer for sale The Parkside Apartments. This charming 22-unit building is centrally located only minutes from Downtown Seattle in the dynamic and emerging Beacon Hill neighborhood and offers tremendous potential for a savvy investor looking to add-value and invest in a blossoming part of the city. The buyer can take advantage of a strong, rising rental market while increasing rents to market levels and charging for utilities and will reap the rewards of immediate upside and long-term appreciation. Additionally, the building is an excellent candidate for further money-making renovations and can leverage the views and quality of location to greater increase financial performance. NAME The Parkside Apartments ADDRESS 1815 13th Ave S, Seattle WA 98144 TOTAL UNITS 21 + 1 NC BUILT 1911 SQUARE FEET 12,800 Total Net Rentable PRICE $4,600,000 PRICE PER UNIT $209,091 PRICE PER FOOT $359.38 CURRENT GRM/CAP 15.5/4.1% MARKET GRM/CAP 13.1/4.8% THE PARKSIDE A P A R T M E N T S LOT SIZE ZONING 7,200 Square Feet LR3 This information 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 all information and bears all risk for inaccuracies.
INVESTMENT HIGHLIGHTS Excellent North Beacon Hill location only minutes to downtown Seattle Value-add opportunity and below market rents Quick access to freeways, the Beacon Hill Light Rail Station and other public transportation options Double-paned vinyl windows, mostly copper plumbing, vinyl siding Same owner for almost 20 years On-site coin-operated laundry and resident storage Managers office with a shower and toilet Some updated units with stone counter tops, new cabinets, vinyl plank flooring and stainless steel appliances Recently updated common areas include new paint, carpet and lighting Security camera system THE PARKSIDE A P A R T M E N T S
BEACON HILL Walking distance to the International District, the once sleepy neighborhood of Beacon Hill has seen a boom over the past ten years with great new restaurants, fun nightlife, a new library, and hundreds of new houses and modern townhomes. New eateries include the popular Bar Del Corso, Victrola Coffee, Oak, Tippe & Drague, and El Quetzal. North Beacon Hill also recently welcomed its own brewery, Perihelion Brewery, which opened last year and has been a popular neighborhood gathering spot. Beacon Hill offers some of the best transportation in the city with multiple bus routes within a few blocks, a Sound Transit Light Rail station within walking distance, and bike lanes running the length of Beacon Avenue. Both I-5 and I-90 are immediately accessible and Downtown Seattle is only two miles away. Other accessible points of interest include Jefferson Park & Golf Course (1.5 Miles), Century Link and Safeco Fields (2 Miles), the International District (2 miles), Seattle University (2 ½ miles), and Seattle Central College (3 miles).
TRANSPORTATION Beacon Hill station is part of Sound Transit s Central Link line, which runs from Seattle Tacoma International Airport through the Rainier Valley and Downtown Seattle to the University of Washington. It is the eighth northbound station from Angle Lake station and ninth southbound station from University of Washington station, and is situated between Mount Baker and SODO stations. Central Link trains serve Beacon Hill twenty hours a day on weekdays and Saturdays, from 5:00 am to 1:00 am, and eighteen hours on Sundays, from 6:00 am to 12:00 am; during regular weekday service, trains operate roughly every six to ten minutes during rush hour and midday operation, with longer headways of fifteen minutes in the early morning and twenty minutes at night. During weekends, Central Link trains arrive at the station every ten minutes during midday hours and every fifteen minutes during mornings and evenings. The station is approximately 24 minutes from SeaTac/Airport station and fifteen minutes from Westlake station in Downtown Seattle. Beacon Hill station is also served by three bus routes operated by King County Metro that use bus stops adjacent to the station: Route 36, an electric trolleybus route, runs along Beacon Avenue from Othello station to the International District and Downtown; Route 60 runs between West Seattle, Georgetown, Beacon Hill, First Hill and Capitol Hill; and Route 107, which terminates at the station and travels southeasterly to Georgetown, Rainier Beach station, Skyway and Renton.
WHY CHOOSE SEATTLE - KING COUNTY? A HIGHLY-SKILLED WORKFORCE The region s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor s degree or higher. Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County. ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known CUTTING-EDGE RESEARCH Top-ranked research institutions, including the worldrenowned University of Washington, contribute to a highcaliber talent pipeline and encourage record levels of research & development spending from the private, nonprofit and public sectors. The region has always fostered the next generation of business, from early-stage startups to high-growth companies with long-term success. *Data Sources: Washington State Employment Security Department, 2015; Washington State Department of Revenue, 2015; Washington Military Alliance; Washington Aerospace Economic Impacts 2016 Update; US International Trade Administration, 2014.
POPULATION, EDUCATION, INCOME King County contains estimated 872,411 households. This number is forecast to increase to more than 912,000 by the year 2021. The county currently has 18 cities with populations greater than 20,000. Seattle is one of the most educated cities in the United States. Over 57 percent of Seattle s adult residents have a Bachelor s degree or higher, nearly twice the national average. An educated city means an educated workforce a solid backbone for the innovative, knowledge-based industries that drive Seattle s economy. King County also boasts high educational attainment, with 47 percent of residents over 25 having received a Bachelor s degree or higher. Roughly 28 percent of King County residents are in professional business/managerial positions. As a result, median household income in King County is well above the U.S. average. Cost of living is generally higher than the U.S. average, but it is in line with other metropolitan areas with similar income levels.
MAJOR EMPLOYERS - CENTRAL BUSINESS DISTRICT
MAJOR EMPLOYERS - SOUTH LAKE UNION
IMPROVEMENTS Built in 1911 The Parkside Apartments is an attractive property with classic architectural elements that is well positioned on a sloping corner lot offering territorial views of the city skyline and bay to the west. The buildings are wood-framed construction, feature low-maintenance vinyl siding and flat torch-down type roofs that have been maintained and partially replaced over the past ten years. The property offers its residents the convenience of two common laundry rooms and private tenant storage. An on-site manager s or leasing office is found in the basement of one building and is equipped with a shower and toilet for convenience. Building mechanical systems include electric baseboard heating in the units, individual electric meters, breaker panels, and plumbing supply lines that have mostly been updated to copper over time as units have been worked on and updated. The top floor units have beautiful views of the bay, city skyline, SODO and surrounding territory. Some units have been renovated with stone or quartz counter tops, new cabinets, hardwood laminate flooring, and tile work in the bathrooms. The remaining original units have laminate counter tops and vinyl flooring in kitchens, laminate tub surrounds and vinyl flooring in the bathrooms and generally finishes and fixtures that are considered more typically apartment grade. The top floor units also feature fireplaces. The building common areas have recently been updated with new paint, new carpet and improved lighting. The building sits on a corner lot zoned LR3 within the Beacon Hill Urban Village offering future redevelopment potential and highly flexible zoning with no parking requirements under current code. THE PARKSIDE A P A R T M E N T S
BUILDING PHOTOS
BUILDING PHOTOS
BUILDING PHOTOS
Unit Breakdown APPROXIMATE CURRENT CURRENT MARKET MARKET UNIT TYPE UNIT SIZE RENT RENT/SQ.FT. RENT RENT/SQ.FT. A4 Studio 650 Sq.Ft. $1,025 $1.58 $1,150 $1.77 A5 1 Bd/1 Bth 700 Sq.Ft. $1,125 $1.61 $1,350 $1.93 A6 1 Bd/1 Bth 625 Sq.Ft. $1,125 $1.80 $1,350 $2.16 A7 1 Bd/1 Bth 600 Sq.Ft. $1,125 $1.88 $1,350 $2.25 A8 2 Bd/1 Bth 800 Sq.Ft. $1,300 $1.63 $1,695 $2.12 A9 2 Bd/1 Bth 800 Sq.Ft. $1,650 $2.06 $1,965 $2.46 B1 1 Bd/1 Bth 500 Sq.Ft. $1,150 $2.30 $1,250 $2.50 B2 1 Bd/1 Bth 500 Sq.Ft. $1,050 $2.10 $1,250 $2.50 B3 1 Bd/1 Bth 500 Sq.Ft. $1,150 $2.30 $1,250 $2.50 B4 2 Bd/1 Bth 800 Sq.Ft. $1,650 $2.06 $1,695 $2.12 B5 2 Bd/1 Bth 800 Sq.Ft. $1,650 $2.06 $1,695 $2.12 B6 Studio 600 Sq.Ft. $1,100 $1.83 $1,150 $1.92 B8 1 Bd/1 Bth 500 Sq.Ft. $1,100 $2.20 $1,250 $2.50 B9 Studio 375 Sq.Ft. $850 $2.27 $950 $2.53 C1 Studio 500 Sq.Ft. $750 $1.50 $1,195 $2.39 C2 1 Bd/1 Bth 500 Sq.Ft. $1,095 $2.19 $1,250 $2.50 C3 1 Bd/1 Bth 500 Sq.Ft. $1,050 $2.10 $1,250 $2.50 C4 Studio 500 Sq.Ft. $900 $1.80 $1,195 $2.39 C5 Studio 500 Sq.Ft. $750 $1.50 $1,195 $2.39 C6 1 Bd/1 Bth 500 Sq.Ft. $975 $1.95 $1,250 $2.50 C7 1 Bd/1 Bth 550 Sq.Ft. $975 $1.77 $1,250 $2.27 C8 Studio 500 Sq.Ft. $850 $1.70 $1,195 $2.39 C9 Office NA NA NA NA Totals/Avg 582 Sq.Ft. $24,395 $1.91 $28,860 $2.25
Income and Expenses Units 21+ 1 NC Price $4,600,000 Year Built 1911 Per Unit $209,091 Rentable Area 12,800 Per Sq. Ft. $359.38 Down Pmt $1,840,000 Current GRM 15.48 Loan Amount $2,760,000 Current CAP 4.07% Interest Rate 4.75% Market GRM 13.11 Amortization 30 years Market CAP 4.82% ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $297,228 $350,808 Less Vacancy 2.0% $5,945 4.0% $14,032 Gross Operating Income $291,283 $336,776 Less Expenses $103,837 $115,039 Net Operating Income $187,446 $221,737 Annual Debt Service ($14,397/mo) $172,770 $172,770 Cash Flow Before Tax 0.80% $14,677 2.66% $48,967 Principal Reduction $42,589 $42,589 Total Return Before Tax 3.11% $57,266 4.98% $91,556 UNIT CURRENT MARKET UNITS TYPE SIZE RENT RENT 1 Studio (Sm) 375 $850 $950 4 Studio (Med) 500 $1,050 - $1,150 $1,195 2 Studio (Lg) 600-650 $1,100 $1,150 8 1 Bd/1 Bth (Sm) 500-550 $975 - $1,050 $1,250 3 1 Bd/1 Bth (Lg) 600-700 $1,125 $1,350 4 2 Bd/1 Bth 800 $1,300 - $1,650 $1,695 22 Total/Avg 582 $1.91 $2.25 MONTHLY INCOME CURRENT MARKET Monthly Potential Rent $24,395 $28,860 Laundry Income $264 $264 Utility Bill Back $000 $1,320 Miscellaneous Income $110 $110 Gross Potential Income $24,769 $29,234 ANNUALIZED OPERATING EXPENSES CURRENT MARKET Real Estate Taxes 2018 $21,073 $30,000 Insurance Proforma $6,600 $6,600 Utilities Proforma $33,000 $33,000 Property Management Proforma 5% $14,564 $16,839 Maint and Repairs Proforma $17,600 $17,600 Turnover Proforma $3,300 $3,300 Administration Proforma $2,200 $2,200 Reserves Proforma $5,500 $5,500 Total Expenses $103,837 $115,039 CURRENT OPERATIONS Expense/Unit $4,720 Expense/Foot $8.11 Percent of EGI 35.65% MARKET OPERATIONS Expense/Unit $5,229 Expense/Foot $8.99 Percent of EGI 34.16%
SALES COMPARABLES The Parkside Apartments 1815 13th Ave S Seattle, WA 98144 Year Built 1911 Units 21 + 1NC Sales Price $4,600,000 Price/Unit $209,091 Price/Foot $359.38 Current GRM/CAP 15.5/4.1% Market GRM/CAP 13.1/4.8% 2 1 Year Built 1968 Units 6 Sales Price $1,900,000 Price/Unit $316,667 Price/Foot $133.20 GRM/CAP 17.6/4.4% Mei Fong Apts 1307 14th Ave S Seattle, WA 98144 Sales Date 6.1.2018 Year Built 3 1986 Units 13 Sales Price $3,750,000 Price/Unit $288,461 Price/Foot $364.96 GRM/CAP 15.4/4.8% Falconvue Apts 1308 12th Ave S Seattle, WA 98144 Sales Date 10.26.2017 2 Year Built 1964 Units 19 Sales Price $4,950,000 Price/Unit $260,526 Price/Foot $369.68 GRM/CAP 14.7/5.0% Sylvan Court 1905 E Fir St Seattle, WA 98122 Fresco 3939 15th Ave S Seattle, WA 98108 Sales Date 3.15.2018 4 Year Built 1959 Units 20 Sales Price $4,800,000 Price/Unit $240,000 Price/Foot $428.57 GRM/CAP 12.1/5.4% Sales Date 5.23.2017 3 1 THE PARKSIDE A P A R T M E N T S 6 4 5 Year Built 5 1954 Units 17 Sales Price $3,469,000 Price/Unit $204,058 Price/Foot $457.95 GRM/CAP 13.7/5.2% Beacon Flats 1401 S Holgate St Seattle, WA 98144 Sales Date 2.27.2017 6 Year Built 1965 Units 14 Sales Price $2,875,000 Price/Unit $205,357 Price/Foot $358.93 GRM/CAP 13.1/4.9% Charlemagne Apts 1300 14th Ave S Seattle, WA 98144 Sales Date 2.10.2017
600 University St, Suite 2018 Seattle Washington 98101 206 623-8880 / info@paragonrea.com www.paragonrea.com This information 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 all information and bears all risk for inaccuracies.