Off ering Memorandum - LoopNet · grocery store, a True Value neighborhood hardware store, library and a community theatre. This location also offers easy access to Woodland Park

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

Off ering Memorandum

PHINNEY PROFESSIONAL BUILDING

6814 Greenwood Ave NSeattle, WA

Exclusively offered by Paragon Real Estate Advisors


Off ering Summary

Name Phinney Professional Building

Address 6814 Greenwood Ave N

Total Spaces 8

Built 1914/1996

Square Feet 2,801 Net Rentable

Price $1,595,000

Price Per Foot $569.44

Current GRM/CAP 29.54/2.05%

Market GRM/CAP 13.14/5.85% (3% Vacancy)

Expense Per Unit $2,458 /Year

Terms Cash Out

Lot Size 4,500 Square Feet

Zoning NC2P-40 (Greenwood-Phinney Urban Village)

Paragon Real Estate Advisors is pleased to exclusively offer for sale the Phinney Professional Building. The current building is operated as an offi ce/professional building consisting of 8 attorney offi ces and offers an excellent opportunity for an owner-user purchaser. Additionally, with the property featuring two kitchens and three bathrooms, a buyer has the option to convert the back portion of the property to residential living with 2 apartment units.

Situated in a very walkable and amenity rich neighborhood, the Phinney Professional Building offers the tenants vibrant business opportunities in a desirable residential neighborhood. The Phinney Professional building provides a rare opportunity to purchase a well-maintained commercial property in a location that is quickly becoming the most highly sought after neighborhood by retailers, restaurateurs, new home owners and apartment dwellers alike.

Please do not disturb the tenants and contact the listing broker for more information. Leases are currently month to month, but current tenants prefer to occupy through 12.31.2018.


Investment Highlights

Perfect for Owner User

Highly desirable, pedestrian friendly neighborhood

Close walking distance to Starbucks and Red Mill Burgers

Located within Greenwood-Phinney Ridge Urban Village (NC2-P40 Zoning)

Features 8 offi ces, 2 kitchens and 3 bathrooms

Newly discovered destination location known for many unique stores, cafes , eateries, hip pubs

New fence with garden area

Updated heat pump, air conditioner and security system

Stress-free commute for destination customers

Close to Post Offi ce and near Greenwood library, creating heavy pedestrian traffi c

Excellent street frontage and visibility on Greenwood Ave N

Updated electrical and plumbing

3 parking stalls in back


Neighborhood Map

U DISTRICT

GREENLAKE

BALLARD

QUEEN ANNE

SEATTLECBD

FREMONT



Location

The Phinney Professional Building is located at 6814 Greenwood Ave North in the PhinneyWood (Phinney Ridge/Greenwood)neighborhood of Seattle. This area offers in-city living thout the intensity and congestion of Downtown Seattle.

PhinneyWood is a close knit community of all ages with a strong neighborhood association that supports, engages and connects local establishments and residents through a variety of community programs, services and activities. PhinneyWood Monthly Art Walk, PhinneyWood One Day Garage sale, the Greenwood Car Show, Winter Beer Taste and the Winter Festival & Crafts Fair are a few of the well-known annual community events.

Phinney and Greenwood Avenues are fi lled with pedestrians strolling and enjoying the surroundings during both day and evening hours. The ‘Aves” offer an abundance of quaint coffee shops, eateries, bars with great pub food, a variety of locally owned retail shops, a full service neighborhood grocery store, a True Value neighborhood hardware store, library and a community theatre.

This location also offers easy access to Woodland Park Zoo and Green Lake Park where residents enjoy the many recreational activities offered by both popular parks. The Ballard and Fremont neighborhoods are also located within a short distance.

The PhinneyWood neighborhood allows for quick and direct access to downtown Seattle and South Lake Union employment centers via Highway 99 and Greenwood Ave North. The area also offers abundant public transportation options.


Neighborhood Amenities - Greenwood & Phinney Ridge

1 Red Mill Burgers2 The Barking Dog Alehouse3 Kens Market4 Woodland Park Zoo5 Greenwood Hardware6 Flint Creek Cattle Co7 Ballard High School8 Cornuto Pizzeria9 Greenwood Library10 Hecho Cantina11 74th Street Ale House12 Greenwood Sip and Ship13 United States Post Offi ce14 Bishop Blanchet High School15 The Bathhouse Theater16 Nutty squirrel Gelato17 Beth’s Cafe18 Top Ten Toys19 Fred Meyer20 Dicks Drive In21 Quality Food Center22 Safeway23 Woodland Park24 West Woodland Elementary25 Starbucks26 Green Lake Park

21

22

19

23

252

4

16

7

9

12

13 14

1517

1

18

Food/DrinkShopping/ServicesParks/Schools

26

20

24

3

5

8

1011

6



Greenwood Snapshot

Population 16,394

Median household income $75,337

SingleMarried

57%44%

Owner OccupiedRenters

52%48%

Walk ScoreTransit ScoreBike Score

90 - Walker’s Paradise53 - Good Transit76 - Very Bikeable

Median 1 Bd/1 Bth Rent $2,053

Median 2Bd/1 Bth Rent $2,387

Seattle Commute TimesBus: 32 minutes via E LineCar: 14 minutes via I5

Bellevue Commute TimesBus: 59 minutes via E Line/550Car: 25 minutes via I5/WA 520

TOP JOB SECTORS: *

Management: 14.4% Business 7.4% Computer: 11.8%Engineering 4.7% Art & Entertainment 3.9%

Sales: 13.0%Service: 16.1%Healthcare: 2.1% Education 4.2%Social Services: 3.4%


Employment

> Adobe

> Alaska Airlines

> Amazon

> Apple

> AT&T Wireless

> Boeing

> Costco

> Expedia, Inc.

> Expeditors International

> F5 Networks

> Facebook

> Fred Hutchinson

> Gates Foundation

> Getty Images

> Google

> Microsoft

> Nintendo

> Nordstrom

> Paccar

> RealNetworks

> REI

> Russell Investments

> SpaceX

> Starbucks

> Symetra Financial

> Tableau Software

> T-Mobile

> Twitter

> Uber

> University of Washington

> Virginia Mason

> Weyerhaeuser

> Zillow

> Zulilly

Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world’s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace fi rms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston.


Major Employers - Central Business District


Major Employers - South Lake Union


Exterior Photos


Exterior Photos


Exterior Photos


Interior Photos


Interior Photos


Operating Summary

Units 8

Year built 1914/1996

Rentable Area 2,801

Down Payment $800,000

Loan Amount $800,000

Interest Rate 5.00%

Amortization 30 Years

Price $1,595,000

Per Square Foot $569.44

Current GRM 29.54

Current CAP 2.05%

Market GRM 13.14

Market CAP 5.85%

Units Type SizeCurrentRent

Monthly Income

MarketRent

MonthlyIncome

8 Law Offices 2,801 $4,500 $4,500 $8,000 $8,000

0 Avg S.F. 350 $19 Gross $34 NNN

Total Monthly Income

Monthly Scheduled Rent $4,500 $8,000

Parking $0 $300

NNN Reimbursements $0 $1,817

Miscellaneous $0 $0

Total Monthly Income $4,500 $10,117

Scheduled Gross Income $54,000 $121,404

Less Vacancy 3.00% $1,620 3.00% $3,642

Gross Operating Income $52,380 $117,762

Less Expenses $19,666 $24,400

Net Operating Income $32,714 $93,362

Annual Debt Service ($4,294.57) $51,535 $51,535

Cash Flow Before Tax -2.35% ($18,821) 5.23% $41,827

Principal Reduction $11,803 $11,803

Total Return Before Tax -0.88% ($7,018) 6.70% $53,630

Annualized Operating Expenses Current Market

Real Estate Taxes Actual 2017 $7,666 $12,400

Insurance Proforma $3,000 $3,000

Utilities Proforma $3,600 $3,600

Maintenance & Repairs Proforma $2,400 $2,400

Administration Proforma $1,000 $1,000

Reserves Proforma $2,000 $2,000

Total Expenses $19,666 $24,400

Annualized Operating Data Current Market

Current Operations

Expenses/UnitExpenses/FootPercent of EGI

$2,458 $7.02 36.42%

Market Operations

Expenses/UnitExpenses/FootPercent of EGI

$3,050 $8.71 20.10%


Sale Comparables

4. 5411 BALLARD AVE NWSeattle, WA

Year Built 1945Building Sq.Ft. 3,100Lot Sq.Ft. 4,650Sales Price $1,850,000Price/Bldg Foot $596.77Sales Date 4.16.2018

5. 1423 N 45TH STSeattle, WA


1. 8300 GREENWOOD AVE NSeattle, WA


SUB - PHINNEY PROFESSIONAL BUILDING6814 Greenwood Ave N, Seattle, WA

Year Built 1914/1996Building Sq.Ft. 2,801Lot Sq.Ft. 4,500Sales Price $1,595,000Price/Bldg Foot $569.44Sales Date TBD

2. 7405 - 7407 GREENWOOD AVE NSeattle, WA


3. 475 N 36TH STSeattle, WA



Sales Comparables Map

Phinney Professional Building6814 Greenwood Ave NSeattle, WA

1. Greenwood & 83rd BuildingSeattle, WA

2. 7405 - 7407 Greenwood Ave NSeattle, WA

3. 475 N 36th StSeattle, WA

4. 5411 Ballard Ave NWSeattle, WA

5. 1423 N 45th StSeattle, WA

1

3

5

2

4



Paragon Real Estate Advisors

ABOUT PARAGONParagon Real Estate Advisors is the leading Seattle real estate investment fi rm for multi-family property sales in Washington State. We have accrued over $3.4 billion in sales and have closed over 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 profi tability 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 23 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

Off ering Memorandum - LoopNet · grocery store, a True Value neighborhood hardware store, library and a community theatre. This location also offers easy access to Woodland Park