Paragon. Beyond the Deal.

Transcription

1 NORTHGATE MANOR Paragon. Beyond the Deal. LOCATION: 818 NE 106th St, Seattle, WA TOTAL UNITS: 56 BUILT: 1978 SQUARE FEET: 33,910 Net Rentable PRICE: $9,900,000 COST PER UNIT: $176,786 COST PER FOOT: $ Net Rentable (606 Avg SqFt) AVG RENT/SQFT: $1.77 CURRENT GRM/CAP: 13.56/4.56% (3.5% Vacancy) MARKET GRM/CAP: 12.12/5.37% (3.5% Vacancy) EXPENSE PER UNIT: $4,523/Year TERMS: Cash Out HIGHLIGHTS: Transit-oriented location, highly walkable Northgate location, add value by to retrofiting with washer and dryers, tight rental market, spacious one-bedroom floorplans, intercom entry, abundant parking, two coin-op laundry rooms, all units have balconies or patios, vinyl windows throughout, excellent condition, copper plumbing, adjacent to Beaver Pond Natural Area on Thornton Creek

2 Northgate Manor offers spacious, well designed and well finished apartment s minutes from downtown, and a few blocks from the Northgate Link Light Rail Station currently under construction. LOCATION Northgate Manor is ideally located to transition into the future as traffic congestion becomes a significant driver of tenants housing choices. The Northgate Link Light Rail Station scheduled to open in 2021 and will provide 14 minute rides to downtown or even less to the U District Station or Capitol Hill. This line will connect seamlessly in the downtown bus tunnel all the way through to SeaTac. As congestion on Seattle roads worsens, this will be a huge positive for the property. A commute from Northgate to the CBD on the train will be quicker than a drive in from Ballard. This convenient location enjoys a Very Walkable 86 walkscore. The 984,000 square foot Northgate Mall is just two blocks away and many other restaurants, retailers, grocers, theatres, banks, offices, and clinics are nearby which are huge pluses for residents. The scenic Beaver Pond Natural Area on Thornton Creek is next door and offers walking trails, pleasant views, and a serene environment. TRANSIT Northgate Manor is a quick two minute bike ride from the Northgate Park and Ride and the future site of the Northgate Link Light Rail Station situated at NE 103rd Street and 1st Avenue NE. The Northgate Link is currently under construction. One of the light rail tunnels has already been completed south from Northgate to Roosevelt Station. The Northgate Station and expected to open for service in 2021 and will provide a 14 minute commute to downtown locations like Westlake Center and 3rd & Seneca. IMPROVEMENTS Northgate Manor consists of one four-story wood-frame building finished with a combination of brick veneer, stucco, and painted beveled cedar siding. This handsome building was built in 1978 and has been well maintained by the owner. All 56 units are one-bedroom, one-bath and provide a private balcony or patio with extra storage. The 14 top floor units have wood-burning fireplaces. The kitchens are completed with a range, refrigerator and dishwasher. Ample off-street parking offers one assigned space for each unit and some additional spaces are designated for visitors. The four-story building has two controlled entries and an intercom system for the tenant s safety and convenience. The rental market is strong, and Northgate Manor enjoys high occupancy. The property seems to be ideally suited and designed to retrofit with washer and dryers, which would allow for significant rent increases. The property appears to be plumbed with copper piping and the units are served with 100 Amp electric services. FINANCING It is proposed a Buyer obtain new financing at the best rate and terms available.

3 ADDITIONAL PHOTOS

4 ADDITIONAL PHOTOS

5 LOCAL MAP North Seattle Community College Northgate Link Light Rail Station Northgate Mall Northgate Manor FLOOR PLANS

6 AERIAL MAP University of Washington Northgate Manor Seattle CBD Queen Anne Green Lake North Seattle Community College Northgate Link Light Rail Station Northgate Mall

7 Paragon. Beyond the Deal. One Union Square 600 University Street Suite 2018 Seattle, WA T F OPERATING INFORMATION NORTHGATE MANOR 818 NE 106TH ST SEATTLE, WA Units 56 Year Built 1978 Rentable Area 33,910 Down Payment $3,200,000 32% Loan Amount $6,700,000 68% Interest Rate 3.80% Variable Amortization 30 Years Lot Size 45,303 Sq. Ft. Price $9,900,000 Per Unit $176,786 Per Sq. Ft. $ Current GRM Current CAP 4.56% Market GRM Market CAP 5.37% MONTHLY SCHEDULED INCOME # OF UNITS TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTHLY INCOME 56 1 BD/1 Bth $1,000 - $1,150 $59,975 $1,150 $64, Averages 606 $1.77 $1.90 Monthly Scheduled Rent $59,975 $64,400 Utility Reimbursement $0 $2,800 Laundry Income $600 $600 Other Income $280 $280 Total Monthly Income $60,855 $68,080 ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $730,260 $816,960 Less Vacancy 3.50% $25, % $28,594 Gross Operating Income $704,701 $788,366 Less Expenses $253,292 $256,639 Net Operating Income $451,409 $531,728 Annual Debt Service $31,219.14/mo $374,630 $374,630 Cash Flow Before Tax 2.40% $76, % $157,098 Principal Reduction $122,142 $122,142 Total Return before Tax 6.22% $198, % $279,240 ANNUALIZED OPERATING EXPENSES CURRENT MARKET Real Estate Taxes Insurance Utilities Professional Management 4% Proforma $66,016 $8,506 $46,241 $28,188 $66,016 $8,506 $46,241 $31,535 CURRENT OPERATIONS Expenses per Unit $4,523 Expenses Per Foot $7.47 Percent of Gross 34.69% On-Site Management Maintenance/Repairs Administration/Miscellaneous Replacements/Capital Reserves Proforma Proforma $38,799 $39,200 $9,542 $16,800 $38,799 $39,200 $9,542 $16,800 MARKET OPERATIONS Expenses per Unit $4,583 Expenses Per Foot $7.57 Percent of Gross 31.41% Total Expenses $253,292 $256,639 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 the information and bears all risk for any inaccuracies.

8 RENT AND SALE COMPARABLES SUBJECT PROPERTY # OF UNITS YEAR BUILT 1 BD/1BTH RENT SF & RENT/SF 2 BD/1BTH RENT SF & RENT/SF 2 BD/2BTH RENT SF & RENT/SF Northgate Manor 818 NE 106th St Seattle, WA $1,000 - $1, /$ $1.88 COMPARABLE PROPERTIES The Galleria Meridian Ave N $1, /$1.54 $1,470 1,000/$1.47 Luxe at Meridian Meridian Ave N $1,230 - $1, /$ $2.41 $1, /$ Unit 510 NE 98th St $1,150 - $1, /$1.21- $1.32 La Romarr NE 5th Ave $1, /$1.56 Riviera Northgate Pinehurst Way NE $1, /$1.31 Pinehurst Lane th Ave NE $1,595 1,000/$1.60 SALE COMPARABLES # OF UNITS YEAR PRICE PRICE PER UNIT PRICE PER SQFT GRM CAP CLOSING DATE Northgate Manor 818 NE 106th St Seattle, WA $9,900,000 $176,786 $ % TBD COMPARABLE PROPERTIES Duo th Ave NW 24 + Com 2014 $6,000,000 $240,000 $ % Park Place th Ave NE $2,930,000 $225,385 $ % View at Bitterlake Greenwood Ave N $9,585,000 $177,500 $ % on Greenwood Greenwood Ave N 54 + Com 2013 $11,770,000 $210,179 $ % Paragon. Beyond the Deal. One Union Square 600 University Street Suite 2018 Seattle, WA T F 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 the information and bears all risk for any inaccuracies.