Offering Memorandum · 600 University Street Suite 2018 Seattle, WA 98101 1 P 206.623.8880 E InfoParagonREA.com ParagonREA.com Offering Memorandum NORTH SEATTLE FOURPLEX 13731 32nd

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

Offering Memorandum

NORTH SEATTLE FOURPLEX

13731 32nd Ave NE Seattle, WA

Exclusively offered by Paragon Real Estate Advisors


Offering Summary

Name North Seattle Fourplex

Address 13731 32nd Ave NE, Seattle, WA 98125

Total Units 4

Built 1968

Square Feet 3,100 Total Net Rentable

Price $895,000

Price Per Unit $223,750

Price Per Foot $288.71

Current GRM/CAP 21.4/2.8% (3% Vacancy)

Market GRM/CAP 13.5/5.5% (3% Vacancy)

Expense Per Unit $3,878 /Year

Terms Cash Out

Lot Size 5,600 Square Feet

Zoning MR

Paragon Real Estate Advisors is pleased to offer for sale the North Seattle Fourplex. Well located right in the heart of Lake City the North Seattle Fourplex offers a new investor the opportunity to own a well-maintained asset approximately 15 minutes to Seattle’s Central Business District and the University of Washington.

The future owner can choose to take advantage of the strong Seattle rental market by increasing rents to market levels, start billing back utilities or renovate and update the interiors of units to add extra value. Additionally, the property sits on a 5,600 square foot lot with MR (mid-rise) zoning which gives a new investor the option to potentially redevelop the property in the future.



Investment Highlights

Value-add opportunity with below market rents

Large one and two-bedroom units

Units averaging 775 square feet in size

Great future re-development potential with MR (mid-rise) zoning

Large common laundry room

5 open parking spaces

Walk Score of 77 - Very Walkable

Ten bus routes within a mile provides constant access to the University of Washington and the Seattle Central Business District

40% rent growth over the last 5-years

First time on the market in over 40 years


Neighborhood Map


UNIVERSITY OF WASHINGTON

SEATTLE CBD

GREEN LAKE

QUEEN ANNE

PUGET SOUND

BALLARD

NORTHGATE MALL

JACKSON PARK GOLF COURSE


Lake City Snapshot

Population 33,660

Median household income $90,935

Single Married

57% 44%

Owner Occupied Renters

54% 46%

Walk Score Transit Score Bike Score

77 - Very Walkable 55 - Good Transit 64 - Bikeable

Median 1 Bd/1 Bth Rent $1,316

Median 2Bd/1 Bth Rent $1,656

TOP JOB SECTORS: *

Management: 12.2% Business 6.2% Computer: 9.3% Engineering 6.2% Administrative: 9.7% Sales: 17.2%

Service: 12.3% Healthcare: 2.7% Engineering 4.4% Science 3.6% Social Services: 1.7%

*https://www.apartments.com/lake-city-seattle-wa/?bb=hspy6kyvuQpl97xkB#guide


Neighborhood Amenities

1 Heaven Sent Fried Chicken2 Briley’s BBQ and Grill3 Fred Meyer4 Northgate Shopping Mall5 Little Brook Park6 Wells Fargo Bank7 Shorecrest High School8 Virgil Flaim Park9 Jackson Park Golf Course10 Elliott Bay Brewery11 Dick’s Drive-In12 Safeway13 Saint Matthew School14 Tubs Gourmet Sub Sandwiches15 Meadowbrook Playfield16 Nathan Hale High School17 Caroline Tavern18 Twin Ponds Park19 Park Shoreline20 Target21 Northwest Hospital Medical Center22 Saffron Grill23 North Seattle College24 Starbucks25 McDonald’s26 Hamlin Park

21

20

19

26

10

2

4

3

11

5

8

9

12

7

13

16

23

14

15

Food/DrinkShopping/ServicesParks/Schools

1

6

17

22

18

24

25



Sound Transit Link Light Rail

The Northgate Link Extension will connect the Northgate, Roosevelt and U District neighborhoods to downtown Seattle and the airport The elevated Northgate Station will be located east of 1st Ave NE, spanning NE 103rd Street. Station entrances will be on the Northgate Mall property north of NE 103rd Street and near the Northgate Transit Center south of NE 103rd Street. Construction is currently underway and this station is slated to open in 2021.

The Sound Transit Lynnwood Link Extension Light Rail Project will give riders a fast, frequent and reliable connection through some of the worst traffic congestion in Washington State. This extension builds four new light rail stations from Northgate to Lynnwood along the Interstate-5 corridor, two of which will be located in Shoreline, one at 148th Street and the other at 185th Street. These stations will provide access to the Northgate Mall, bus transfers at the transit center, adjacent park-and-ride facilities, North Seattle Community College and nearby homes and businesses.

Sound Transit anticipates the project starting construction in 2018 and opening for service in 2023 with daily projections estimating between 63,000 and 74,000 riders each weekday by the year 2035. With trains arriving every 4 to 5 minutes riders can expect a 16 minute commute from the station at 145th and downtown Seattle. These transit times will save approximately 14 - 16 min during peak morning commute times.


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 firms 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.


ELLIOTT BAY

Map of Key Employers


Improvements

Built in 1968

Large units averaging 775 square feet

2 - 1Bd/1Bth units and 2 - 2Bd/1Bth units

Electric baseboard heating

Double-pane vinyl windows

Individual hot water tanks

Attractive vinyl siding

Fireplaces in the two-bedroom units


Building Photos


Operating Summary

Units 4

Year built 1968

Rentable Area 3,100 Sq.Ft.

Down Payment $223,750 25%

Loan Amount $671,250 75%

Interest Rate 4.10%

Amortization 30 Years

Price $895,000

Price Per Unit $223,750

Per Square Foot $288.71

Current GRM 21.37

Current CAP 2.81%

Market GRM 13.46

Market CAP 5.47%

Units

Type

Size

Current Rent

Monthly Income

Market Rent

Monthly Income

2 1Bd/1Bth 600 $800 - $850 $1,650 $1,200 $2,400

2 2Bd/1Bth 950 $900 $1,800 $1,400 $2,800

4 Avg S.F. 775 $1.11 $1.68

Total Monthly Income

Monthly Scheduled Rent $3,450 $5,200

Laundry Income $40 $40

Parking Income $0 $0

Utility Income $0 $75/unit $300

Total Monthly Income $3,490 $5,540

Scheduled Gross Income $41,880 $66,480

Less Vacancy 3.0% ($1,256) 3.0% ($1,994)

Gross Operating Income $40,624 $64,486

Less Expenses $15,512 $15,512

Net Operating Income $25,112 $48,974

Annual Debt Service ($3,243) $38,922 $38,922

Cash Flow Before Tax -6.17% ($13,810) 4.49% $10,052

Principal Reduction $11,617 $11,617

Total Return Before Tax -0.98% ($2,193) 9.68% $21,669

Annualized Operating Expenses Current MarketReal Estate Taxes 2017 Actual $6,166 $6,166

Insurance 2016 Actual $852 $852

Utilities 2016 Actual $5,094 $5,094

Maintenance & Repairs Proforma $3,000 $3,000

Turnover Proforma $400 $400

Total Expenses $15,512 $15,512

Annualized Operating Data Current Market

Current Operations

Expenses/Unit Expenses/Foot Percent of EGI

$3,878 $5.0037.04%

Market Operations

Expenses/Unit Expenses/Foot Percent of EGI

$3,878 $5.0023.33%

Current Market


Paragon Real Estate Advisors

ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi-family property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 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 profitability 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 20 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

Offering Memorandum · 600 University Street Suite 2018 Seattle, WA 98101 1 P 206.623.8880 E InfoParagonREA.com ParagonREA.com Offering Memorandum NORTH SEATTLE FOURPLEX 13731 32nd