Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 3016 First Avenue
Total Units 38
Built 1910
Square Feet 13,864 Net Rentable
Price $7,350,000
Price Per Unit $193,421
Price Per NRSF $530
Current GRM/CAP 16.54/4.18% (3% Vacancy)
Market GRM/CAP 14.26/5.15% (3% Vacancy)

Operating Statement

PRICING
Price$7,350,000
Down Payment$2,940,000 (40%)
Loan Amount$4,410,000 (60%)
Interest Rate3.75% Fixed
Amortization30 Years
Price Per Unit$193,421
 
Price Per Sq.Ft.$530
Current GRM/CAP16.54/4.18%
Market GRM/CAP14.26/5.15%
 
Current Expenses
Expenses/Unit$4,325
Expenses/Foot$11.86
% of GSI36.99%
Market Expenses
Expenses/Unit$4,325
Expenses/Foot$11.86
% of GSI31.90%


CurrentMarket
Monthly Scheduled Rent$37,035$42,945
Scheduled Gross Rents$444,420$515,340
Vacancy & Concessions (3%)($13,333)($15,460)
Utility Billback$28,158$28,158
Non-Refundable Fees$2,400$2,400
Forfeits/Late/NSF$1,108$1,108
Laundry$6,648$6,648
Bike Storage$0$2,400
Pet Rent$1,022$1,022
Internet Subsidy$960$960
Total Collected Income$471,384$542,576
Less Expenses$164,369 $164,369
Net Operating Income$307,015$378,207
Annual Debt Service ($20,423.40/mo)$245,081$245,081
Cash flow Before Tax$61,934 (2.11%)$133,127 (4.53%)
Principal Reduction$81,090 $81,090
Total Return Before Tax$143,024 (4.86%)$214,217 (7.29%)
 
EXPENSE AND RESERVES
Real Estate Taxes (Proforma)$54,775$54,775
Insurance (Proforma)$8,000$8,000
Utilities (Actual)$33,365$33,365
Professional Management (Proforma)$18,855$18,855
On-Site Payroll (Proforma)$12,000$12,000
Landscaping (Proforma)$500$500
Maintenance & Repairs (Actual)$22,064$22,064
Supplies/Turnover (Proforma)$6,650$6,650
Advertising (Proforma)$500$500
Adminstration/Misc. (Actual)$1,959$1,959
Replacements/Reserves$5,700$5,700
 
Total Operating Expenses$164,369$164,369

Belltown. All Your Urban Living Needs.

Centrally located in Seattle’s downtown area, Belltown shares its northern border along Denny Way, its 5th Avenue eastern border with Denny Triangle, and its southeastern border along Lenora Street with Waterfront. The shoreline of Puget Sound’s wide-open Elliot Bay forms its western border.

Characterized by an abundance of restaurants, bars and retailers, and its spectacular waterfront perch, Belltown exemplifies urban living at its best. With its abundance of cafes, gastropubs and restaurants, Belltown is a foodie paradise. If you want to get a sense of the neighborhood, a taste of history and a sampling of the area’s eats and drinks, take a stroll with a Belltown Restaurant Tour.

William Nathaniel Bell made one of the first land claims in Seattle in the 1850’s. His settlement initiated the growth of the area, and Belltown was born. The Seattle city engineer, Reginald Thomson, led the charge to remove the offending hill. In a series of regrading and sluicing projects that began in 1897 and wrapped up in 1911, Belltown’s topography was flattened out.
The district developed slowly and became a semi-industrial neighborhood with an unsavory personality. In the 1970’s, rezoning permitted the construction of high-rise residences, and the artistic community converged to begin the cultural change and revitalize the neighborhood. Art galleries, studios and retailers followed to feed the Bohemian culture and plant the seeds of Belltown’s enduring ultra-hip charisma.

All your urban living needs can be met within the Belltown neighborhood, and this compact district is so walkable that you don’t even need a car. Even so, Belltown covers all transportation options. Several buses make frequent trips along most of the district’s streets and if you’re looking for a quick drive home after a late night, hail a Yellow Cab.

For cycling safety and enjoyment, bike lanes cross the city’s grid including the scenic route along the waterfront or a short trip through the neighborhood.

Seattle Employment

The Seattle metro area is currently characterized by positive job growth, with a 2.9% gain in employment, which represents an increase of 43,000 new jobs. Downtown Seattle ranks 12th among the 231 major employment markets in the U.S. for job density, and that ranking is expected to rise.

Some of the region’s largest employers are within minutes of the Centerview. In nearby South Lake Union, Amazon’s new 3.3 million square foot headquarters is currently under construction. The project is estimated to bring an additional 23,000 Amazon employees to the area, bringing Amazon’s total employment near 50,000. Amazon is expected to occupy a total of 10 million square feet of office space by 2019.

Other top area employers include F5 Networks, Zulily and the Bill and Melinda Gates Foundation which are all less than a mile away from Centerview, while other employers such as Expedia.com are in the process of locating their corporate headquarters in the immediate area. Bus stops are located along Denny Way and along First Avenue N providing convenient access to these and many other top employers.

Centerview Apartments

Situated perfectly between Seattle’s Lower Queen Anne and Belltown neighborhoods, this trendy building offers affordable apartments geared towards the person who loves the excitement and convenience of living downtown. Located on First Avenue and Denny Way, the building is next to many Seattle attractions including the Space Needle, Pacific Science Center, Key Arena, Olympic Sculpture Park, South Fountain Lawn and Myrtle Edwards Park. This area is a true Walker’s Paradise offering a Walk Score of 95 out of 100, meaning most residents can complete daily errands on foot.

Investment Highlights:

  • Beautiful exposed brick walls
  • Secured access entry
  • Building enjoys high-quality tenants and very low turnover.
  • Area has a Walkscore of 95 and is considered a “Walker’s Paradise”
  • Public parking is located a block away
  • Convenient Access to 1-5, Alaskan Way, Major Arterials & Public Transportation
  • Siesmic Retro Fit completed in 2015
  • New flat torch down roof installed in 2013
  • All new plumbing and windows
  • Tuck pointed in 2015
  • Units are individually metered for utilities
  • Units are heated with tenant paid electric baseboard heaters

Unit Mix & Rent Roll

UNIT TYPE SIZE CURRENT RENT RENT PER SQFT MARKET RENT RENT PER SQFT
1 1BD/1BTH 525 Sq.Ft. $925 $1.76 $1125 $2.14
2 1BD/1BTH 525 Sq.Ft. $1,125 $2.14 $1125 $2.24
101 2BD/1BTH 600 Sq.Ft. $1,095 $1.83 $1,295 $2.16
102 Studio 386 Sq.Ft. $1,050 $2.72 $1,050 $2.72
103 Studio 335 Sq.Ft. $1,025 $3.06 $1,075 $3.21
104 Studio 390 Sq.Ft. $1,275 $3.27 $1,275 $3.27
105 Studio 250 Sq.Ft. $850 $3.40 $875 $3.50
106 Studio 358 Sq.Ft. $1,050 $2.93 $1,050 $2.93
107 Studio 345 Sq.Ft. $860 $2.49 $1,200 $3.48
108 1BD/1BTH 525 Sq. Ft. $1,050 $2.00 $1,150 $2.19
109 1BD/1BTH 525 Sq.Ft. $975 $1.86 $1,150 $2.19
201 Studio 351 Sq.Ft. $1,050 $2.99 $1,050 $2.99
202 Studio 386 Sq.Ft. $850 $2.20 $1,075 $2.78
203 Studio 335 Sq.Ft. $1,050 $3.13 $1,095 $3.27
204 Studio 400 Sq.Ft. $1,095 $2.74 $1,300 $3.25
205 Studio 250 Sq.Ft. $775 $3.10 $875 $3.50
206 Studio 358 Sq.Ft. $845 $2.36 $1,100 $3.07
207 Studio 345 Sq.Ft. $875 $2.54 $1,250 $3.62
208 Studio 363 Sq.Ft. $875 $2.41 $1,100 $3.03
209 Studio 359 Sq.Ft. $1,025 $2.86 $1,125 $3.13
301 Studio 351 Sq.Ft. $870 $2.48 $1,100 $3.13
302 Studio 386 Sq.Ft. $995 $2.58 $1,095 $2.84
303 Studio 335 Sq.Ft. $925 $2.76 $1,125 $3.36
304 Studio 390 Sq.Ft. $1,295 $3.32 $1,295 $3.32
305 Studio 250 Sq.Ft $925 $3.70 $925 $3.70
306 Studio 358 Sq.Ft. $900 $2.51 $1,150 $3.21
307 Studio 345 Sq.Ft $850 $2.46 $1,300 $3.77
308 Studio 363 Sq.Ft. $845 $2.33 $1,150 $3.17
309 Studio 359 Sq.Ft. $1,095 $3.05 $1,095 $3.05
401 Studio 351 Sq.Ft. $850 $2.42 $1,125 $3.21
402 Studio 386 Sq.Ft. $900 $2.33 $1,125 $2.91
403 Studio 335 Sq.Ft. $1,050 $3.13 $1,175 $3.51
404 Studio 390 Sq.Ft. $925 $2.37 $1,320 $3.38
405 Studio 250 Sq.Ft. $840 $3.36 $925 $3.70
406 Studio 358 Sq.Ft $900 $2.51 $1,200 $3.35
407 Studio 345 Sq. Ft. $1,350 $3.91 $1,350 $3.91
408 Studio 363 Sq. Ft. $925 $2.55 $965 $2.66
409 Studio 359 Sq. Ft. $875 $2.44 $1,135 $3.16

Unit Totals

Type Units Average Size Current Rent Rent/Sq. Ft. Market Rent Rent/Sq. Ft.
Studio 33 250 - 500 $966 $1.93 - $3.85 $1,123 $2.25 - $4.49
1 BD/1 BTH 4 432 - 545 $1,019 $1.87 - $2.37 $1,150 $2.11 - $2.66
2 BD/1 BTH 1 600 $1,095 $1.83 $1,295 $2.16
Totals/Averages 38 365 Sq. Ft. $974 $2.67 $1,130 $3.10

A Look Inside

Built in 1910, the Centerview is a four-story building with 38 units. The building features a tuck-point design and has a reinforced concrete foundation, with a wood and masonry frame and exterior finish. The unit mix consists of 33 studio units ranging in size from 250 to 500 square feet, four one-bedroom units ranging from 432 to 545 square feet, and one two bedroom unit measuring 600 square feet.

For the past 24 months the property has been under constant renovation including a seismic retrofit that was completed in 2015. During this time, ownership did not increase rents. The average rents at this time are $974 per month providing a Buyer an excellent opportunity to increase rents immediately in this rapidly rising market.

During the renovations the entry and mail areas were re-configured and designed to display the charisma of buildings in the 1910 era. The first floor hallways have been renovated with new light fixtures, unit entry doors, as well as fresh paint and carpet. The main stairwell has been carpeted and the painted. The exterior doors have all been replaced and the common laundry room has been updated with new laundry equipment and folding tables.
Unit 101 can be readily transformed from a one-bedroom into a two-bedroom unit. Thirteen of the units have been renovated with new floor covers, cabinets, appliances, fixtures and paint. The new units have beautiful stained glass plaques above the door showing the unit number. The glass is laser etched and colored to match the building interior, a very nice art deco touch.

The windows have been recently replaced and the plumbing has been updated which included a new central hot water tank and the removal of the old boiler. The heating in each unit is provided by electric wall heaters. A small portion of the units have brick exposed behind the drywall, this inexpensive upgrade has yielded a significant premium over comparable units without this amenity.

Sales Comparables

Subject Property
3016 1st Ave
Seattle, WA 98121
Year Built 1910
Units 38
Sales Price $7,350,000
Price/Unit $193,421
Price/Foot $530
GRM/CAP Rate 16.5/4.2%
Sales Date TBD
Yates Apartments
2355 Eastlake Ave E.
Seattle, WA 98102
Year Built 1928
Units 26
Sales Price $4,900,000
Price/Unit $188,462
Price/Foot $420
GRM/CAP Rate 15.0/3.8%
Sales Date October 2015
Lancaster
704 E. Thomas St.
Seattle, WA 98102
Year Built 1924
Units 32
Sale Price $8,250,000
Price/Unit $257,813
Price/Foot $419
GRM/CAP Rate 17.3/3.6%
Sales Date September 2015
Claringle
1803 E. John St.
Seattle, WA 98112
Year Built 1910
Units 12
Sales Price $3,500,000
Price/Unit $291,667
Price/Foot $471
GRM/CAP Rate 18.8/3.2%
Sales Date September 2015
Wellington
535 16th Ave E.
Seattle, WA 98112
Year Built 1929
Units 25
Sales Price $8,100,000
Price/Unit $324,000
Price/Foot $526
GRM/CAP Rate 15.7/4.4%
Sales Date July 2015
Sophia
607 W. Galer St.
Seattle, WA 98119
Year Built 1927
Units 15
Sale Price $4,900,000
Price/Unit $326,667
Price/Foot $468
GRM/CAP Rate 14.4/4.7%
Sales Date June 2015
Ione Court
1604 E. Spring St.
Seattle, WA 98122
Year Built 1950
Units 10
Sales Price $2,425,000
Price/Unit $2,425,000
Price/Foot $382
GRM/CAP Rate 14.5/4.6%
Sales Date May 2015
Los Altos & Saxonia
303 W. Olympic Pl.
Seattle, WA 98119
Year Built 1927
Units 26
Sales Price $7,000,000
Price/Unit $269,231
Price/Foot $392
GRM/CAP Rate 21.1/2.5%
Sales Date February 2015

Sales Comparables MAP

Subject Property
3016 1st Ave
Seattle, WA 98121
Yates Apartments
2355 Eastlake Ave E.
Seattle, WA 98102
Lancaster
704 E. Thomas St.
Seattle, WA 98102
Claringle
1803 E. John St.
Seattle, WA 98112
Wellington
535 16th Ave E.
Seattle, WA 98112
Sophia
607 W. Galer St.
Seattle, WA 98119
Ione Court
1604 E. Spring St.
Seattle, WA 98122
Los Altos & Saxonia
303 W. Olympic Pl.
Seattle, WA 98119

Rental Comparables


Subject Property
3016 1st Ave
Year Built 1910
Units 38

 RentSq FtRent/Sq Ft
Studio$775 - $1350250 - 500$1.93 - $3.85
1BD/1BTH$925 - $1,125432 - 545$1.87 - $2.37
2BD/1BTH$1,095600$1.83

Cornelius Apartments Homes
306 Blanchard St.
Units 137
Year Built 1925

 RentSq FtRent/Sq Ft
Studio$1,440 - $1,602422 - 434$3.41 - $3.69

Davenport
420 Vine St.
Year Built 1915
Units 55

 RentSq FtRent/Sq Ft
Studio$1,295600$2.16

Stratford on 4th
2021 4th Ave
Units 55
Year Built 1915

 RentSq FtRent/Sq Ft
Studio$1,100385$2.86
1BD/1BTH$1,600680$2.35

Edwards on 5th
2613 - 2619 5th Ave
Year Built 1929
Units 30

 RentSq FtRent/Sq Ft
Studio$1,099 - $1,250$3.06 - $3.11359 - 402

2900 On First
2900 First Ave.
Year Built 1989
Units 135

 RentSq FtRent/Sq Ft
Studio$1,756 - $1,854450 - 510$2.83 - $3.42
1BD/1BTH$1,435-$2,000464-610$3.09-$3.27

The Cedars
2615 1st Ave
Year Built 1988
Units 60

 RentSq FtRent/Sq Ft
Studio$1,574440$3.57
1BD/1BTH$1,700615 - 654$2.60 - $2.76

Rental Comparables MAP

Subject Property
3016 1st Ave
Seattle, WA 98121
Cornelius Apartments Homes
306 Blanchard St.
Seattle, WA 98121
Davenport
420 Vine St.
Seattle, WA 98121
Stratford on 4th
2021 4th Ave
Seattle, WA 98121
Edwards on 5th
2613 - 2619 5th Ave
Seattle, WA 98121
2900 On First
2900 First Ave.
Seattle, WA 98121
The Cedars
2615 1st Ave
Seattle, WA 98121

Centerview Apartments

A trendy building offers affordable apartments geared towards the person who loves the excitement and convenience of living downtown.