1600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Offering Memorandum
HILLSIDE APARTMENTS
602 N 42nd St Seattle, WA
Exclusively offered by Paragon Real Estate Advisors
2600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Offering Summary
Name Hillside Apartments
Address 602 N 42nd St, Seattle WA
Total Units 16
Built 1909
Square Feet 7,472 Total Net Rentable
Price $3,450,000
Price Per Unit $215,625
Price Per Foot $461.72
Current GRM/CAP 19.51/2.87%
Market GRM/CAP 12.77/5.14%
Expense Per Unit $4,309/Year
Terms Cash Out
Lot Size 12,500 Square Feet Per KCR
Zoning LR2, Non Urban Village
Paragon Real Estate Advisors is pleased to exclusively offer for sale The Hillside Apartments, a well located 16-unit apartment building with immediate rental upside. Situated in the very walkable and amenity rich Fremont neighborhood, the Hillside offers residents a nice residential feel with quick access to the tech employment centers of Fremont, South Lake Union and Downtown Seattle.
This is the first time the Hillside has been available to purchase in over 10 years. The property offers the buyer a rare opportunity to purchase an extremely well-located building with immediate rental upside and potential to add a unit in the basement.
Please contact listing brokers for more information and available times to tour the property.
HILLSIDE APARTMENTS
3600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Investment Highlights
Views of Downtown Seattle and Mt. Rainier and Cascade Mountains
Gently sloping Corner lot with large back yard for resident enjoyment
Off street parking for 8 cars
Large 12,500 Sq.Ft. LR2 lot
Ideal for a future townhome development
Very well maintained
Old world charm
Room for an additional unit in the basement
Partial copper plumbing upgrades
Individually metered gas heat and stoves
4600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Building Photos
5600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Parcel Information
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6600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Location
The Hillside Apartments are located at 602 N 42nd St in the Fremont neighborhood of Seattle. Residents have direct access to downtown Seattle and South Lake Union employment centers via Highway 99, and due west of the University of Washington.
Located just blocks from the Woodland Park Zoo, residents enjoy many recreational activities offered at Woodland Park and Green Lake Park including: soccer fields, tennis courts, summer concerts, boating, jogging, and relaxing in the sun.
This location is also a short walk or quick drive to some of the best entertainment venues, eateries, and services in the popular Ballard, Fremont, Phinney Ridge and Wallingford neighborhoods.
7600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Neighborhood Map of Employers
GREEN LAKE
PUGET SOUND
HILLSIDE APARTMENTS
LAKE UNION
MAGNOLIA
BALLARDFREMONT
QUEEN ANNE
SOUTH LAKE UNION
SEATTLE CBD
U DISTRICT
UNIVERSITY OF WASHINGTON
EASTLAKE
8600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Fremont Ave N Amenities
HILLSIDE APARTMENTS
FREM
ON
T AVE NAU
ROR
A AVE N
9600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
ELLIOTT BAY
Map of Key Employers
THE HILLSIDE APARTMENTS
10600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Employment
> Adobe
> Alaska Airlines
> Amazon
> Apple
> AT&T Wireless
> Boeing
> Costco
> Expedia, Inc.
> Expeditors International
> F5 Networks
> Fred Hutchinson
> Gates Foundation
> Getty Images
> Microsoft
> Nintendo
> Nordstrom
> Paccar
> RealNetworks
> REI
> Russell Investments
> SpaceX
> Starbucks
> Symetra Financial
> Tableau Software
> T-Mobile
> 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.
11600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Operating Summary
Units 16
Year built 1909
Rentable Area 7,472
Down Payment $1,800,000
Loan Amount $1,650,000
Interest Rate 4.50%
Amortization 30
Lot 12,500 LR2, Non UV
Price $3,450,000
Price Per Unit $215,625
Per Square Foot $461.72
Current GRM 19.51
Current CAP 3.08%
Market GRM 12.62
Market CAP 5.54%
Current DCR 1.06
Units
Type
Size
Current Rent
Monthly Income
Market Rent
Monthly Income
16 Studio 467 $625 - $1,295 $14,360 $1,295 $20,720
16 Avg S.F. 467 $1.92 $2.77
Total Monthly Income
Monthly Scheduled Rent $14,360 $20,720
Parking (8 open) $0 $50/mo $450
MTM Fee $135 $0
Storage Income $160 $135
Laundry Income Proforma $0 $160
Utility Billback Income $80 $60/mo $960
Misc Proforma $0 $80
Pet Rent $0 $35/mo (1/2 units)
$280
Total Monthly Income $14,735 $22,785
Scheduled Gross Income $176,820 $273,420
Less Vacancy 1.00% $1,768 4.00% $10,937
Gross Operating Income $175,052 $262,483
Less Expenses $68,942 $71,480
Net Operating Income $106,110 $191,003
Annual Debt Service ($8,360) $100,324 $100,324
Cash Flow Before Tax 0.32% $5,786 5.04% $90,680
Principal Reduction $26,618 $26,618
Total Return Before Tax 1.80% $32,404 6.52% $117,298
Annualized Operating Expenses Current Market
RE Taxes 2018 Proforma $25,062 $27,600
Insurance 2017 $4,600 $4,600
Utilities 2017 $15,147 $15,147
Repairs/Maint/Turnover
2017 $10,934 $10,934
Landscaping 2017 $1,658 $1,658
On-Site Mgmt Proforma ($35/unit $6,720 $6,720
Admin/Misc 2017 $821 $821
Reserves Proforma $4,000 $4,000
Total Expenses $68,942 $71,480
Annualized Operating Data Current Market
Current Operations
Expenses/Unit Expenses/Foot Percent of EGI
$4,309$9.2339.38%
Market Operations
Expenses/Unit Expenses/Foot Percent of EGI
$4,468 $9.5727.23%
12600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Sale Comparables
SUBJECT - HILLSIDE APARTMENTS 602 N 42nd St, Seattle WA
Year Built 1909 Units 16 Sales Price $3,450,000 Price/Unit $215,625 Price/Foot $462 GRM/CAP 19.51/3.08% Sales Date TBD
1. OSWEGO PLACE 6538 Oswego Pl NE, Seattle WA
Year Built 1950 Units 11 Sales Price $2,360,000 Price/Unit $214,546 Price/Foot $511 GRM/CAP 16.0/4.0% Sales Date 4.20.2018
2. BUGGE 6402 Phinney Ave N, Seattle
Year Built 1930 Units 15 Sales Price $4,100,000 Price/Unit $273,333 Price/Foot $435 GRM/CAP 20.0/2.9% Sales Date 3.30.2018
4. WESTERNER 4200 Fremont Ave N, Seattle WA
Year Built 1962 Units 8 Sales Price $2,080,000 Price/Unit $260,000 Price/Foot $580 GRM/CAP 15.0/4.7% Sales Date 11.21.2017
3. STRANDT APARTMENTS 4416 Linden Ave N, Seattle WA
Year Built 1912 Units 7 Sales Price $2,025,000 Price/Unit $289,286 Price/Foot $413 GRM/CAP 18.5/3.4% Sales Date 3.12.2018
5. NESTUN 4313 Fremont Ave N, Seattle WA
Year Built 1967 Units 7 Sales Price $2,825,000 Price/Unit $403,571 Price/Foot $463 GRM/CAP 15.5/4.7% Sales Date 10.12.2017
13600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
Sales Comparables Map
Hillside Apartments 602 N 42nd St Seattle, WA
1. Oswego Place 6537 Oswego Pl NE Seattle, WA
2. Bugge 6402 Phinney Ave N Seattle, WA
3. Strandt Apartments 4416 Linden Ave N Seattle, WA
4. Westerner 4200 Fremont Ave N Seattle, WA
5. Nestun 4313 Fremont Ave N Seattle, WA
3
1
4
2
HILLSIDE APARTMENTS5
14600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com
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 $3.4 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 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 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.