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VICTORIAN MANOR 707 SOUTH I STREET| TACOMA, WA 98405
Capital Markets | Investment PropertiesOFFERING MEMORANDUM
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AFFILIATED BUSINESS DISCLOSURE
CBRE, Inc. operates within a global family of companies with
many subsidiaries and/or related entities (each an “Affiliate”)
engaging in a broad range of commercial real estatebusinesses
including, but not limited to, brokerage services, property and
facilities management, valuation, investment fund management and
development. At times differentAffiliates may represent various
clients with competing interests in the same transaction. For
example, this Memorandum may be received by our Affiliates,
including CBRE Investors,Inc. or Trammell Crow Company. Those, or
other, Affiliates may express an interest in the property described
in this Memorandum (the “Property”) may submit an offer to purchase
theProperty and may be the successful bidder for the Property. You
hereby acknowledge that possibility and agree that neither CBRE,
Inc. nor any involved Affiliate will have anyobligation to disclose
to you the involvement of any Affiliate in the sale or purchase of
the Property. In all instances, however, CBRE, Inc. will act in the
best interest of the client(s) itrepresents in the transaction
described in this Memorandum and will not act in concert with or
otherwise conduct its business in a way that benefits any Affiliate
to the detriment of anyother offeror or prospective offeror, but
rather will conduct its business in a manner consistent with the
law and any fiduciary duties owed to the client(s) it represents in
the transactiondescribed in this Memorandum.
CONFIDENTIALITY AGREEMENT
This is a confidential Memorandum intended solely for your
limited use and benefit in determining whether you desire to
express further interest in the acquisition of the Property.
ThisMemorandum contains selected information pertaining to the
Property and does not purport to be a representation of the state
of affairs of the Property or the owner of the Property(the
“Owner”), to be all-inclusive or to contain all or part of the
information which prospective investors may require to evaluate a
purchase of real property. All financial projectionsand information
are provided for general reference purposes only and are based on
assumptions relating to the general economy, market conditions,
competition and other factorsbeyond the control of the Owner and
CBRE, Inc. Therefore, all projections, assumptions and other
information provided and made herein are subject to material
variation. All referencesto acreages, square footages, and other
measurements are approximations. Additional information and an
opportunity to inspect the Property will be made available to
interested andqualified prospective purchasers. In this Memorandum,
certain documents, including leases and other materials, are
described in summary form. These summaries do not purport to
becomplete nor necessarily accurate descriptions of the full
agreements referenced. Interested parties are expected to review
all such summaries and other documents of whatever
natureindependently and not rely on the contents of this Memorandum
in any manner. Neither the Owner or CBRE, Inc, nor any of their
respective directors, officers, Affiliates orrepresentatives make
any representation or warranty, expressed or implied, as to the
accuracy or completeness of this Memorandum or any of its contents,
and no legal commitment orobligation shall arise by reason of your
receipt of this Memorandum or use of its contents; and you are to
rely solely on your investigations and inspections of the Property
in evaluatinga possible purchase of the real property. The Owner
expressly reserved the right, at its sole discretion, to reject any
or all expressions of interest or offers to purchase the
Property,and/or to terminate discussions with any entity at any
time with or without notice which may arise as a result of review
of this Memorandum. The Owner shall have no legalcommitment or
obligation to any entity reviewing this Memorandum or making an
offer to purchase the Property unless and until written
agreement(s) for the purchase of the Propertyhave been fully
executed, delivered and approved by the Owner and any conditions to
the Owner’s obligations therein have been satisfied or waived. By
receipt of this Memorandum,you agree that this Memorandum and its
contents are of a confidential nature, that you will hold and treat
it in the strictest confidence and that you will not disclose this
Memorandumor any of its contents to any other entity without the
prior written authorization of the Owner or CBRE, Inc. You also
agree that you will not use this Memorandum or any of its
contentsin any manner detrimental to the interest of the Owner or
CBRE, Inc. If after reviewing this Memorandum, you have no further
interest in purchasing the Property, kindly return thisMemorandum
to CBRE, Inc.
DISCLAIMER
© 2017 CBRE, Inc. The information contained in this document has
been obtained from sources believed reliable. While CBRE, Inc. does
not doubt its accuracy, CBRE, Inc. has notverified it and makes no
guarantee, warranty or representation about it. It is your
responsibility to independently confirm its accuracy and
completeness. Any projections, opinions,assumptions or estimates
used are for example only and do not represent the current or
future performance of the property. The value of this transaction
to you depends on tax andother factors which should be evaluated by
your tax, financial and legal advisors. You and your advisors
should conduct a careful, independent investigation of the property
todetermine to your satisfaction the suitability of the property
for your needs.
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TABLE OF CONTENTS01 EXECUTIVE SUMMARY & ASSET OVERVIEW
02 FINANCIAL OVERVIEW
03 MARKET OVERVIEW
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EXECUTIVE SUMMARY & ASSET OVERVIEW
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5 | VICTORIAN MANOR
CBRE is pleased to exclusively offer for sale the VictorianManor
Apartments, a turnkey apartment building locatednear North Tacoma.
The building consists of one (1) studioand eleven (11) 1-bedroom
units. The building hasundergone an extensive renovation in the
past couple yearsand has sprawling views of Tacoma and Mt. Rainier.
Theproperty has been well maintained and offers a stable, lowrisk
investment as the building was taken down to the studs.The
following was updated: roof, plumbing, electrical,flooring,
appliances, countertops, carpet, paint, bathrooms,windows, hot
water tanks, hardieplank siding, insulation,exterior staircases,
fire-sprinkler system, laundry units,secure entry, and gated
fence.
EXECUTIVE SUMMARY
• Renovated in 2015/2016• Low maintenance turnkey property with
secure access • Walk Score: 92• Very low turnover • Five (5) off
street parking spaces• Great views of Downtown Tacoma, Commencement
Bay,
Mount Rainier and Port of Tacoma• 10 foot ceilings
The Victorian Manor offers investors the opportunity topurchase
a unique, turnkey apartment with strong cashflow. The current
management team has been pushingrents in the market; the average
1-bedroom at the propertyis leasing for $850 per month, with the
most recent 1-bedroom vacancy filled at $950 per month. This is
partiallydue to recent renovations; in addition to higher
thanaverage ceilings, the Victorian Manor has undergone aseries of
internal improvements, including matching blackappliances and
double-pane windows, that have increasedthe profile of the
property. The current in-place CAP Rate is6.43%, with opportunity
to bring to 7.05% Year-1 CAP byincreasing rents.
INVESTMENT HIGHLIGHTS
THE OPPORTUNITY
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6 | VICTORIAN MANOR
707S I Street
Tacoma, WA
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7 | VICTORIAN MANOR
The third-largest city in Washington State with a populationof
207,948 according to 2015 data, Tacoma serves as thebusiness center
of the South Sound region. The city liesroughly 32 miles southwest
of Seattle, 31 miles northeastof the state capital, Olympia, and 58
miles northwest ofMount Rainier National Park. Tacoma’s economy
benefitsfrom the strong military presence in the region; Joint
BaseLewis-McChord, the Washington National Guard’s
StateHeadquarters at Camp Murray and Madigan (Army)Hospital are all
approximately one hour from the citycenter. Additionally, Chambers
Bay Golf Course, whichhosted the 2015 U.S. Open, is just a
20-minute drive fromthe city.
Trade remains an important facet of the businesscommunity in
Tacoma. In 2014, The Ports of Seattle andTacoma announced an
agreement to jointly market andoperate the marine terminals of both
ports as a singleentity: the Northwest Seaport Alliance commenced
with avote in August 2015. The Alliance handled more than
3.5million containers in 2015, an overall increase of 4%.Tacoma is
also home to a thriving arts culture, includingthe Museum of Glass,
the Broadway Center for thePerforming Arts, and the Tacoma Art
Museum, named byUSA Today as one of the “Top 10 great places to see
art insmaller cities.”
TACOMA
*Information source: US Census Bureauhttps://www.census.gov/
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8 | VICTORIAN MANOR
PROPERTY PROFILE
PROPERTY ADDRESS 707 S I StreetTacoma, WA 98405
PRICE $1,375,000
PRICE PER UNIT $114,583
PRICE PER SF $239
CURRENT/PROFORMA CAP RATE 6.43% I 7.05%
NUMBER OF UNITS 12
OCCUPANCY 100%
NUMBER OF BUILDINGS 1
NUMBER OF STORIES 3
YEAR BUILT 1954/2015
LOT SIZE 6,500 SF
RENTABLE SQUARE FEET 5,640 SF
ASSESSOR’S PARCEL NUMBER 2007170040
CONSTRUCTION STYLE Wood Frame
PARKING Street and 5 off street parking spaces
UNIT MIX –PROFORMA
UNITS SIZE (SF) MONTHLY RENT
Studio 1 338 $900
1 BD / 1BA (Small) 4 383 $925
1 BD / 1BA (Medium) 5 450 $975
1 BD / 1BA (Large) 2 515 $1,025
TOTAL / AVG 12 5,640 SF $11,525
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9 | VICTORIAN MANOR
FLOOR PLANS
BASEMENT PLAN874 SF
FIRST FLOOR PLAN1,911 SF
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10 | VICTORIAN MANOR
FLOOR PLANS
SECOND FLOOR PLAN1,855 SF
THIRD FLOOR PLAN1,603 SF
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11 | VICTORIAN MANOR
SOUTHEAST DECK VIEWS OF TACOMA & MT. RAINIER
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12 | VICTORIAN MANOR
1 BR / 1 BA INTERIOR
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13 | VICTORIAN MANOR
BUILDING INTERIOR
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FINANCIAL OVERVIEW
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15 | VICTORIAN MANOR
CURRENT/ PROFORMA RENT ROLL
ACTUAL PRO FORMA
Unit Number Type Unit Monthly Rent Unit Annual Rent Unit Monthly
Rent Unit Annual Rent
101 Studio $800 $9,600 $900 $10,800
102 1x1 $850 $10,200 $975 $11,700
103 1x1 $950 $11,400 $1,025 $12,300
104 1x1 $800 $9,600 $1,025 $12,300
201 1x1 $825 $9,900 $925 $11,100
202 1x1 $900 $10,800 $975 $11,700
203 1x1 $850 $10,200 $975 $11,700
204 1x1 $950 $11,400 $975 $11,700
301 1x1 $800 $9,600 $925 $11,100
302 1x1 $825 $9,900 $975 $11,700
303 1x1 $800 $9,600 $925 $11,100
304 1x1 $825 $9,900 $925 $11,100
Totals/Averages $10,175 $122,100 $11,525 $138,300
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16 | VICTORIAN MANOR
INVESTMENT SUMMARY
ACTUAL PRO FORMA
REVENUE $ Per Year% of GrossRevenue $ Per Unit $ Per Year
% of GrossRevenue $ Per Unit
Gross Potential/Tenant Rent $122,100 92% $10,175 $138,300 93%
$11,525 Other Rental Revenue $1,875 1% $156 $2,000 1% $167
Laundry & Vending $1,875 $2,000 Total Rental Revenue
$123,975 94% $10,331 $140,300 94% $11,692
Utilities Fee $7,200 $7,200 Other Revenue $1,200 $1,500
Total Non-Rental Revenue $8,400 6% $700 $8,700 6% $725 Total
Gross Revenue $132,375 100% $11,031 $149,000 100% $12,417 Total
Vacancy/Collection Loss ($6,619) -5% ($552) ($7,450) -5%
($621)Vacancy/Collection Loss (% of Total Gross Revenue)
($6,618.75) 5% ($7,450) 5%
Effective Gross Revenue $125,756 95% $10,480 $141,550 95%
$11,796
OPERATING EXPENSES
Maintenance ($9,600) -7% ($800) ($9,600) -6% ($800)Repairs
($6,600) ($6,600)Other ($3,000) ($3,000)
Utilities ($10,200) -8% ($850) ($12,000) -8% ($1,000)Trash
Removal ($4,000) ($4,000)Water and Sewer ($8,000) ($8,000)
Management ($6,105) -5% ($509) ($6,915) -5% ($576)Professional
Management Fees ($6,105) ($6,915) -5%
Legal, Finance & Insurance ($3,192) -2% ($266) ($3,192) -2%
($266)Property Insurance ($3,192) ($456) ($3,192)
Real Estate Taxes ($8,203) -6% ($684) ($13,000) -9%
($1,083)Annual Taxes ($8,203) ($13,000)
Total Operating Expense ($37,300) -28% ($3,108) ($44,707) -30%
($3,726)
NET OPERATING INCOME $88,456 67% $7,371 $96,843 65% $8,070
Capital Reserves ($2,400) -2% ($200) ($2,400) -2% ($200)Cash
Flow Before Debt $86,056 65% $7,171 $94,443 63% $7,870
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MARKET OVERVIEW
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18 | VICTORIAN MANOR
SALE COMPARABLES
VICTORIAN MANOR SHASTA 1922 N PROSPECT UNION AVENUE PAULINE
707 S I StreetTacoma, WA 98405
1545 S Fawcett AvenueTacoma, WA 98402
1922 N Prospect StreetTacoma, WA 98406
3602 S 15th StreetTacoma, WA 98405
1301 S 5th StreetTacoma, WA 98405
# OF UNITS 12 10 11 8 8
YEAR BUILT 1954 1926 1966 1967 1959
SALE PRICE $1,375,000 $1,320,000 $1,500,000 $1,252,000
$780,000
PRICE PER UNIT $114,583 $132,000 $136,364 $113,818 $97,500
PRICE PER SF $239 $248 $126 $130 $138
CAP RATE 6.40% 5.0% 3.9% 3.8% 5.0%
SALE DATE TBD Pending February 28, 2017 September 19, 2016
December 1, 2016
COMMENTS: Renovated 2015-2016 Renovated 2013 Unrenovated
Unrenovated Original, Unrenovated, needs new roof
1 2 3 4
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19 | VICTORIAN MANOR
3
4
1
707S I Street
Tacoma, WA
2
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20 | VICTORIAN MANOR
RENT COMPARABLES
1 2 3 4
VICTORIAN MANOR 7 PINES GRANADA SHASTA SUMMERTREE
707 S I StreetTacoma, WA 98405
2910 North 7th StreetTacoma, WA 98406
1224 South Yakima Tacoma, WA 98405
1545 Fawcett Avenue Tacoma, WA 98402
1801 South 15th StreetTacoma, WA 98405
YEAR BUILT 1954/2015 1963 1924 1926 1964
# OF UNITS 12 33 32 10 68
UNIT AVERAGES | STUDIO / 1 BATH
AVERAGE RENT $900 $950 $950 $949
UNIT AVERAGES | 1 BED / 1 BATH
AVERAGE RENT $950 $1,050 $1,100 $1,049 $1,050
*Rent comparables chosen because all are being renovated and
have achieved specified studio and 1x1 rental rates. Each building
has similar size units, property amenities and renovation
level.
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21 | VICTORIAN MANOR
707S I Street
Tacoma, WA
1
2
3
4
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22 | VICTORIAN MANOR
DEMOGRAPHICS
PROPERTY NAME
ONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUSPO
PULA
TIO
N
2016 Estimated Population 23,727 88,102 240,542
2021 Projected Population 24,855 92,178 251,985
2010 Census Population 22,649 83,721 229,371
2000 Census Population 21,351 83,315 222,836
Growth 2010-2016 0.75% 0.82% 0.76%
Growth 2016-2021 0.93% 0.91% 0.93%
2016 Estimated Median Age 35.6 36.0 36.7
HO
USE
HO
LDS
2016 Estimated Households 11,440 36,453 95,236
2021 Projected Households 12,060 38,187 99,601
2010 Census Households 10,804 34,588 91,117
2000 Census Households 10,013 33,673 88,009
Growth 2010-2016 0.92% 0.84% 0.71%
Growth 2016-2021 1.06% 0.93% 0.90%
2016 Est. Average Household Size 1.86 2.28 2.46
INC
OM
E
2016 Est. Median Household Income $35,202 $48,476 $53,216
2021 Prj. Median Household Income $35,276 $50,580 $56,630
2016 Est. Average Household Income $56,130 $64,678 $70,284
2016 Estimated Per Capita Income $27,910 $28,172 $28,515
HO
USI
NG
2016 Estimated Housing Units 13,358 40,780 104,440
2016 Estimated Occupied Units 11,440 36,453 95,237
2016 Estimated Vacant Units 1,918 4,327 9,204
2016 Est. Owner Occupied Units 2,863 17,485 51,259
2016 Est. Renter Occupied Units 8,577 18,968 43,978
2016 Est. Median Housing Value $276,182 $240,585 $252,528
2016 Est. Average Housing Value $358,418 $300,968 $310,723
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CBRE © 2017 All Rights Reserved. All information included in
this proposal pertaining to CBRE including but not limited to its
operations, employees, technology and clients are proprietary and
confidential, and are supplied with the understanding thatthey will
be held in confidence and not disclosed to third parties without
the prior written consent of CBRE. This letter/proposal is intended
solely as a preliminary expression of general intentions and is to
be used for discussion purposes only. The partiesintend that
neither shall have any contractual obligations to the other with
respect to the matters referred herein unless and until a
definitive agreement has been fully executed and delivered by the
parties. The parties agree that this letter/proposal is notintended
to create any agreement or obligation by either party to negotiate
a definitive lease/purchase and sale agreement and imposes no duty
whatsoever on either party to continue negotiations, including
without limitation any obligation to negotiatein good faith or in
any way other than at arm’s length. Prior to delivery of a
definitive executed agreement, and without any liability to the
other party, either party may (1) propose different terms from
those summarized herein, (2) enter into negotiationswith other
parties and/or (3) unilaterally terminate all negotiations with the
other party hereto.
This information has been obtained from sources believed
reliable. We have not verified it and make no guarantee, warranty
or representation about it. Any projections, opinions, assumptions
or estimates used are for example only and do not represent
thecurrent or future performance of the property. You and your
advisors should conduct a careful, independent investigation of the
property to determine to your satisfaction the suitability of the
property for your needs.
PREPARED BY
MITCHELL BELCHERFIRST VICE PRESIDENT
INVESTMENT PROPERTIES
MULTIFAMILY
+1 206 292 6033
[email protected]
STEVEN CHATTINFIRST VICE PRESIDENT
INVESTMENT PROPERTIES
MULTIFAMILY
+1 206 442 2707
[email protected]
Capita
lMarkets | In
vestmen
t Properties
JAY TIMPANIVICE PRESIDENT
INVESTMENT PROPERTIES
MULTIFAMILY
+1 206 292 6074
[email protected]
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