NORTH PARK APARTMENTS

Transcription

1 NORTH PARK APARTMENTS N 104TH ST, SEATTLE, WA CONTACT INFORMATION: STEVE FISCHER PRINCIPAL BROKER fischer@westlakeassociates.com TYLER SMITH PRINCIPAL BROKER tylersmith@westlakeassociates.com JOE KINKOPF BROKER joek@westlakeassociates.com

2 OFFERING SUMMARY WESTLAKE ASSOCIATES IS PLEASED TO PRESENT THIS 22-UNIT OPPORTUNITY IN NORTH SEATTLE. THE EARLY CONSTRUCTION AND SMALL UNITS PROVIDES A GREAT DEAL FOR INVESTORS LOOKING FOR UNITS WITH A LOW PRICE PER UNIT. Price: $3,295,000 Price Per Unit: $149,773 Price Per NRSF: $ Cap Rate: 5.9% Market Cap Rate: 6.11 % : Building Size: 10,400 SF Lot Size: 15,374 SF Year Built: 1929 Year Renovated: 2017 Northgate is one of the largest neighborhoods in north Seattle. The area is comprised of a number of smaller communities, including Pinehurst, North College Park, and Maple Leaf. The main attraction to this area is the Northgate Mall, which is conveniently located off of Interstate-5, exit Northgate Way. The mall features major department stores, retail shops and restaurants. Beyond the shopping and eating convenience, a bus transit transfer station and commuter parking lot are adjacent to Interstate-5. Simon Property Group has recently announced preliminary plans for a redevelopment of the 55-acre property. On the coattails of this announcement, the Simon Property Group announced their collaboration with NHL Seattle to integrate the NHL practice facilities and community center into the transit oriented mixed-use center. In addition to proximity to the mall, the neighborhood will enjoy the arrival of light rail in ADDRESS N 104th St, Seattle, WA PROPERTY HIGHLIGHTS EXCELLENT RENTAL INCOME PER NRSF CONVENIENT PROXIMITY TO LOCAL TRANSIT ONE MILE AWAY FROM NORTHGATE TE MALL AND FUTURE LIGHT RAIL STATIONTION ON-SITE LAUNDRY FACILITIES CLOSE PROXIMITY TO NORTHGATE TE REDEVELOPMENT PLAN

3 PROPERTY DETAILS SALE PRICE $3,295,000 LOCATION INFORMATION Building Name North Park Apartments Street Address N 104th St City, State, Zip Seattle, WA County/Township King PROPERTY DETAILS Property Type Multifamily Property Subtype Low-Rise/Garden Zoning LR2 Lot Size 15,374 SF APN# BUILDING INFORMATION UTILITIES & AMENITIES Building Size 10,400 SF Year Built 1929 Gas / Propane Laundry Description PSE Coin

4 LOCATION MAPS North Park Apartments North Park Apartments

5 FINANCIAL OFFERING PROPERTY OVERVIEW Number of Units 22 Year Constructed 1929 Rentable SF 10,400 SF Lot Size 15,374 SF Zoning LR2 PRICE ANALYSIS Sale Price $3,295,000 Price per Unit $149,773 Price per NRSF $ Price per Land SF $ Current Cap 5.9% Current Pro Forma Cap 6.11% Pro Forma 9.8 FINANCING Loan Amount $2,306,500 Down Payment $988,500 Rate 4.75% % Down 30.0% Amortization 30 Term 5 Years Monthly Payment $12,031 Annual Payment $144,382 # OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF 10 Studio 350 $952 $2.72 $965 $ x $1,095 $2.19 $1,195 $ x $1,395 $2.15 $1,495 $2.30 Total AVG $24,460 $2.35 $25,790 $2.48 INCOME CURRENT PRO FORMA Scheduled Rent Income $293,520 $309,480 + Other Income $3,816 $3,816 + Utility Bill Back $18,600 $18,600 + Parking $2,400 $2,400 + Laundry $1,776 $1,776 Scheduled Gross Income $320,112 $336,072 - Vacancy & Cr Losses (5.00%) $16,006 $16,804 Gross Income $304,106 $319,268 EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT Real Estate Taxes (2018) $20,511 $932 $28,047 $1,274 Insurance $6,178 $280 $6,178 $280 Utilities W/S/G/E $39,734 $1,806 $39,734 $1,806 Professional Management $15,205 $691 $15,963 $725 On-Site / Payroll $4,800 $218 $4,800 $218 Maintenance $15,400 $700 $15,400 $700 Landscaping $2,400 $109 $2,400 $109 Reserves $5,500 $250 $5,500 $250 Total Operating Expenses $109,728 $4,987 $118,022 $5,364 Net Operating Income $194,378 $8, $201,246 $9,147 Less Annual Debt Service ($144,382) ($6,562) ($144,382) ($6,562) Cash Before Taxes $49,996 $2,272 $56,864 $2,584 Plus Principal Reduction $35, $1, $35, $1, Total Return Before Taxes $85, $3, $92, $4, The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment.

6 FINANCIAL SUMMARY INVESTMENT OVERVIEW CURRENT PRO FORMA Price $3,295,000 $3,295,000 Price per Unit $149,772 $149,772 CAP Rate 5.9% 6.11% Cash-on-Cash Return (yr 1) 5.06% 5.75% Total Return (yr 1) $85,587 $92,455 Debt Coverage Ratio OPERATING DATA CURRENT PRO FORMA Gross Scheduled Income $293,520 $309,480 Other Income $26,592 $26,592 Total Scheduled Income $320,112 $336,072 Vacancy Cost $16,006 $16,804 Gross Income $304,106 $319,268 Operating Expenses $109,728 $118,022 Net Operating Income $194,378 $201,246 Pre-Tax Cash Flow $49,996 $56,864 FINANCING DATA CURRENT PRO FORMA Down Payment $988,500 $988,500 Loan Amount $2,306,500 $2,306,500 Debt Service $144,382 $144,382 Debt Service Monthly $12,031 $12,031 Principal Reduction (yr 1) $35,591 $35,591

7 SALE COMPS SUBJECT PROPERTY TH 2 OAK TREE APARTMENTS N 104th St Seattle, WA NE 115th St Seattle, WA Midvale Ave N Seattle, WA SALE PRICE $3,295,000 UNITS 22 YEAR BUILT 1929 SALE DATE 08/16/2017 SALE PRICE $1,799,000 UNITS 9 YEAR BUILT 1966 SALE DATE 06/09/2017 SALE PRICE $1,710,000 UNITS 6 YEAR BUILT 1968 CAP RATE $149,773 $ % CAP RATE $199,888 $ % 13.5 CAP RATE $285,000 $ % PHINNEY MIDVALE 5 DORLYNN APARTMENTS Phinney Ave N Seattle, WA Midvale Ave N Seattle, WA Nesbit Ave N Seattle, WA SALE DATE 07/11/2017 SALE PRICE $775,000 UNITS 5 SALE DATE 02/29/2016 SALE PRICE $765,000 UNITS 6 SALE DATE 05/18/2018 SALE PRICE $1,585,000 UNITS 8 YEAR BUILT 1921 YEAR BUILT 1971 YEAR BUILT 1966 CAP RATE $155,000 $ % 18.2 CAP RATE $127,500 $ % 12 CAP RATE $198,125 $ % 12.7

8 SALE COMPS SUMMARY SUBJECT PROPERTY PRICE BLDG SF CAP # OF UNITS North Park Apartments N 104th St Seattle, WA $3,295,000 10,400 SF $ $149, % SALE COMPS PRICE BLDG SF CAP # OF UNITS SALE DATE th 2711 NE 115th St Seattle, WA Oak Tree Apartments Midvale Ave N Seattle, WA Phinney Phinney Ave N Seattle, WA Midvale Midvale Ave N Seattle, WA Dorlynn Apartments 8800 Nesbit Ave N Seattle, WA $1,799,000 7,650 SF $ $199, % /16/2017 $1,710,000 4,258 SF $ $285, % /09/2017 $775,000 2,500 SF $ $155, % /11/2017 $765,000 2,952 SF $ $127, % /29/2016 $1,585,000 4,408 SF $ $198, % /18/2018 PRICE BLDG SF Totals/Averages $1,326,800 4,354 SF $ $193, % CAP # OF UNITS SALE DATE

9 INTERIOR PHOTOS

10 NORTHGATE NEWS NORTHGATE DEVELOPMENT IN THE NEWS THE NEWS TRIBUNE New Seattle NHL team s practice facility to be located at Northgate On October 8, 2018, NHL Seattle announced plans to build a state-ofthe-art practice facility and front offices that we be home to a future NHL franchise as a part of the redevelopment plans of Northgate... CLICK HERE FOR FULL ARTICLE THE REGISTRY Simon Property Group s Preliminary Plans for Northgate Mall Approved at Early Design Guidance Meeting In mid-march 2018, developer Simon Property Group announced its preliminary plans to redevelop the 55- acre site around Northgate Mall, which opened in 1950 as the country s first regional shopping center. And on Monday, August 13th, a large-scale mixed-use development, the first stage of Simon Property Group s redevelopment of the Northgate Mall, was given the green light at an Early Design Guidance (EDG) meeting... CLICK HERE FOR FULL ARTICLE KING 5 NEWS Northgate Mall developers plan radical redesign Documents details plan to add a Central Park and at least one hotel in addition to 1,200 new housing units to the current site of the Northgate Mall... CLICK HERE FOR FULL ARTICLE THE SEATTLE TIMES An amazing opportunity for Seattle : NHL group touts Northgate practice facility as asset for area This facility is so significant, it will be nationally and internationally renowned for hosting tournaments. There is simply not another site like this CLICK HERE FOR FULL ARTICLE

11 NORTH SEATTLE NORTH SEATTLE NORTHGATE Northgate is one of the largest neighborhoods in north Seattle. The area is comprised of a number of smaller communities, including Pinehurst, North College Park, and Maple Leaf. The main attraction to this area is the Northgate Mall, which is conveniently located off of I-5, exit Northgate Way. The mall features major department stores, retail shops and restaurants. Beyond the shopping and eating convenience, a bus transit transfer station and commuter parking lot are adjacent to I-5. Although the mall is the neighborhood s largest pull, Northgate is home to the North Seattle Community College (NSCC), the south fork of the Thornton Creek watershed, and the Sheihk Idriss Mosque, known for its unique and distinctive architechture. Named for Northgate Mall, a shopping center built in 1950, the Northgate neighborhood is dense and decidedly suburban. The mall was the idea of Rex Allison, then-president of Bon Marche (now Macy s), and was deliberately sited north of the city for urban shoppers who would travel by car from the nearby highway. Among the first such malls in the nation, Northgate made national headlines in its early years of operation. NORTH SEATTLE The North Seattle area has experienced a surge of newer condo and townhome development. These, alongside the existing classic Craftsman bungalows and Northwest Modern homes, offer something for single professionals, couples, and growing families. This retail-fueled community is an easy commute to Seattle as well as to Snohomish County. It offers easy access to I-5, bus lines and a new Link lightrail extension is opening in 2021, with new infrastructure modifications to improve walkability and bike-friendliness. Roosevelt Way, the major thoroughfare, provides an array of shopping, coffeehouses, pubs and restaurants, along with many community-based events. The arterial road spans from the University District, connecting the University of Washington to the residential areas of neighborhoods like Ravenna, Lake City, Northgate, and Shoreline. The neighborhood lacks parks, but locals can walk a 4-mile route along Thornton Creek, which has benefited from watershed restoration efforts in recent years. The Northgate Community Center offers a fitness facility with a nominal drop-in fee. The center rents meeting and party rooms, and the center and the local branch of the Seattle Public Library offer children s programs. Northgate is home to several health clubs, and is just a few minutes by bike or car to sports options at Green Lake. NORTH SEATTLE COMMUNITY COLLEGE JACKSON PARK GOLF COURSE WESTLAKE ASSOCIATES, INC.

12 NORTHGATE LINK LIGHT RAIL

13 NORTHGATE LINK LIGHT RAIL Passengers began riding Link light rail trains between downtown Seattle and Sea-Tac Airport in 2009, and to Capitol Hill and the University of Washington in March A light rail extension south to Angle Lake is scheduled to open late Construction is also underway on the Northgate Link Extension, which will take light rail riders north to the U District, Roosevelt and Northgate neighborhoods by Northgate Link is a key part of the regional mass transit system approved by voters in The 4.3-mile line will provide a fast, reliable option for getting through one of the region s most congested areas. Most of Northgate Link is underground in twin-bored tunnels, with trains moving to the surface at a tunnel portal on the east side of Interstate 5 at about NE 94th Street. From the portal, trains will rise to an elevated guideway moving north alongside I-5 before crossing over First Avenue NE, south of NE 100th Street and connecting to the elevated Northgate Station spanning NE 103rd Street. Excavation at the Maple Leaf tunnel portal site was completed in Two tunnel boring machines (TBMs) were launched from the site that same year. One TBM completed its journey to the University of Washington Station in March The second tunnel is expected to be completed by late As tunneling progresses, construction crews are digging small safety cross-passages tht connect the northbound and southbound train tunnels. Soon crews will begin building the stations ad the elevated guideway connecting the tunnel portal to Northgate Station. For more information, you can visit the website: soundtransit.org/northlink.

14 BROKER BIO & CONTACT STEVE FISCHER Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA T C fischer@westlakeassociates.com TYLER SMITH Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA T C tylersmith@westlakeassociates.com JOE KINKOPF Broker 1200 Westlake Ave N, Suite 310 Seattle, WA T C joek@westlakeassociates.com PROFESSIONAL BACKGROUND A lifetime resident of the Seattle area, Steve graduated from the University of Washington with a degree in Economics. Beginning his real estate career as an analyst, his work ethic quickly transitioned from analyst to full time apartment broker. Since the inception of his brokerage career, Steve has successfully closed over $100 million in sales totaling over 100 transactions. To expand his skill set, Steve also manages a portfolio of 130 apartment units in the Seattle area. Steve excels at problem solving to complete his client s investment goals. His diverse background of brokerage and management provide a unique spectrum of knowledge. Drawing from this knowledge allows him to guide his clients not only through the sales process, but to also navigate the operational side of owning an apartment building. He truly is A Wealth of Experience. A firm believer of investing in real estate as a module to gain wealth, Steve has been actively investing in Seattle real estate since In 2012, he was unanimously voted a partner at Westlake Associates, Inc. Away from the office, Steve is a huge sports fan, enthusiast of the outdoors, enjoys cooking, an avid soccer player and a die-hard husky. PROFESSIONAL BACKGROUND For over 13 years, Tyler has specialized in the sale of middle market multi-family assets in the Puget Sound Region. Tyler s extensive experience includes the sale of various types of asset size and classifications. As an apartment owner himself, Tyler understands the importance of evaluating each client s needs individually and carefully. Since joining Westlake Associates, he has consistently been one of the firm s top performers and quickly rose to Partner. Tyler s consistent effort and drive have earned him Westlake Associates Top Producer award. Education Tyler earned a degree in economics from the University of Washington. Tyler worked in finance for a company headquartered in Irvine, CA before returning home to the Pacific Northwest. He joined Westlake Associates in 2004 and currently resides with his wife and two boys in Northeast Seattle. PROFESSIONAL BACKGROUND Joe specializes in the sale of multifamily properties in the Puget Sound. Upon graduation from the University of Washington, Joe began his career at Westlake. Growing up in North King County, Joe acquired a fascination with real estate after seeing the great change in his hometown as a result of urban growth. Joe enjoys looking at the numbers and analyzing different markets throughout the Puget Sound region to help his clients make the right investment decisions. Joe stresses the importance integrity and believes that dealing honestly with clients is the greatest priority in business.