Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 730 N 85th St, Seattle WA 98103
Total Units 19
Built 2016 Renovated
Square Feet 14,670 Net Rentable / 17,011 Gross
Price $6,195,000
Cost Per Unit $326,053
Expenses Per Unit $6,074/Year
Cost Per Foot $422.29 Net Rentable / $364.17 Gross
Current GRM/CAP 13.6/4.9% (4% Vacancy)
Market GRM/CAP 13.6/4.9% (3% Vacancy)
Zoning LR3
Terms Cash Out

Investment Highlights

Paragon Real Estate Advisors is pleased to offer for sale the Terra Apartments. Situated in the Greenwood neighborhood just north of the Seattle CBD The Terra Apartments are four blocks from the heart of the Greenwood Business District.

This is a popular neighborhood due to its close proximately to Green Lake Park, North Seattle College, and Woodland Park Zoo. Green Lake Park features a newly reconstructed 2.8 mile path, a variety of recreational facilities that include basketball, tennis, baseball, soccer, boating, picnics and swimming. Greenwood’s own park is just two blocks to the north of Terra Apartments. This area is a prime location with convenient and easy access to I-5 and Highway 99 both leading to all major employment centers in Seattle.

Highlights
> New bathrooms with cabinetry and fixtures
> Newly installed washer and dryer in each unit
> New laminate flooring and carpeting
> Updated lobby and common hallways
> Open and covered parking for 23 cars
> Newly installed double pane vinyl windows
> New exterior paint
> New roof
> New kitchens with full stainless steel appliance package, cabinets and fixtures
> Updated mechanical including plumbing and elevator systems



Location Highlights

Greenwood is a diverse neighborhood that straddles the northern edges of Ballard and Green Lake, extending north to the edge of Seattle, its boundary with Shoreline. Like so many parts of Seattle, Greenwood started out as its own city, but later saw the advantages of annexing to Seattle.

The neighborhood starts around 70th in the south and ends at Seattle’s northern border, 145th street. While Greenwood Avenue is its mainline, it extends east to Highway 99 and west to about 5th. These are vague borders, as other neighborhoods jut about in the area, including Ballard to the southwest and west and Phinney ridge to the southeast and east. Greenwood and 85th is the main commercial center for the neighborhood, housing a number of restaurants and food stores that exemplify the area’s diverse population.

The neighborhood is down-to-earth, an even mix of single-family homes, apartment buildings from various eras and townhomes. Since 1993 the neighborhood has hosted the “Greenwood Classic Car Show” on the last Saturday in June. Another event is the “Greenwood Seafair Parade”, held on the fourth Wednesday in July. Both events draw tens of thousands of visitors to the neighborhood annually.

Operating Information

PRICING
Price$6,195,000
Down Payment$1,858,500 (30%)
Loan Amount$4,336,500 (70%)
Interest Rate3.70% Variable
Amortization30 Years
 
Price Per Unit$326,053
Price Per Net Sq.Ft.$422.29
 
Current GRM14.11
Current CAP4.94%
Market GRM13.61
Market CAP4.94%
 
CURRENT EXPENSES
Current Expenses/Unit$6,074
Expenses/Foot$7.87
% of GSI26.28%
MARKET EXPENSES
Expenses/Unit$7,140
Expenses/Foot$9.25
% of GSI29.80%


MONTHLY SCHEDULED INCOMECurrentMarket
Monthly Scheduled Rent$33,125$33,930
Utility Recovery$1,518$1,560
Parking$1,255$1,450
Other Rent Income (Pet, Storage)$530$830
Miscellaneous Income$167$167
Total Monthly Income$36,595$37,937
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$439,140$455,244
Less Vacancy$17,566 (4%)$13,657 (3%)
Gross Operating Income$421,574$441,587
Less Expenses$115,406$135,663
Net Operating Income$306,169$305,923
Annual Debt Service ($19,960/mo)$239,522$239,522
Cash flow Before Tax$66,647 (3.59%)$66,401 (3.57%)
Principal Reduction$80,426$80,426
Total Return Before Tax$147,073 (7.91%)$146,828 (7.90%)
 
ANNUALIZED OPERATING EXPENSES
Real Estate Taxes (Actual)$30,143$49,560
Insurance (Actual)$5,567$5,567
Utilities (12 Mo/Actual)$24,009$24,009
Property Management (Market 4%)$16,863$17,663
On-Site Payroll (Proforma)$9,120$9,120
Maint & Repairs (Actual)$12,955$12,995
Landscaping (Actual)$1,992$1,992
Administration (Actual)$2,523$2,523
Reserves (Proforma)$4,750$4,750
Turnover (Actual)$4,445$4,445
Elevator (Actual)$3,039$3,039
Total Operating Expenses$115,406$135,663

Monthly Scheduled Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
12 1BD/1BTH 600-700 Sq.Ft. $1,525-$1,650 $19,190 $1,650 $19,800
3 2BD/1BTH 826 Sq.Ft. $1,995-$2,095 $6,090 $2,095 $6,285
1 3BD/2BTH 1,700 Sq.Ft. $3,695 $3,695 $3,695 $3,695
3 4BD/3.5BTH 2,900 Sq.Ft. $4,150 $4,150 $4,150 $4,150
19 Average/Totals 863 SqFt $2.26 $33,125 $2.31 $33,930

Property Photos

Floor Plans

Sales Comparables

Subject Property
730 NW 85th St
Seattle, WA 98103
Year Built 1971
Units 19
Sales Price $6,195,000
Price Per Unit $326,053
Price/Foot $411.63
GRM/CAP 14.6/4.9%
The Edge Apartments
2515 Thorndyke Ave W
Seattle, WA 98199
Year Built 1959
Units 13
Sales Price $4,350,000
Price/Unit $362,500
Price/Foot $453.98
GRM/CAP 14.1/5.1%
Sales Date 7.17.2017
Jakarta
615 NW 85th St
Seattle, WA 98117
Year Built 1967
Units 9
Sale Price $3,150,000
Price/Unit $350,000
Price/Foot $413.44
GRM/CAP 16.7/4.1%
Sales Date 6.28.2017
Evanston 11 Unit
4238 Evanston Ave N
Seattle, WA 98103
Year Built 1959
Units 11
Sales Price $4,170,000
Price Per Unit $379,090
Price/Foot $530.20
GRM/CAP 16.2/4.6%
Sales Date 6.27.2017
Park View
6016 14th Ave NW
Seattle, WA 98107
Year Built 1968
Units 8
Sales Price $3,075,000
Price/Unit $2384,375
Price/Foot $403.33
GRM/CAP 15.7/4.5%
Sales Date 6.14.2017
11 Unit
514 NE 112th St
Seattle, WA 98125
Year Built 1975
Units 11
Sale Price $3,750,000
Price/Unit $340,909
Price/Foot $392.22
GRM/CAP 15.4/4.5%
Sales Date 6.12.2017

Sales Comparables MAP

Subject Property
730 NW 85th St
Seattle, WA 98103
The Edge Apartments
2515 Thorndyke Ave W
Seattle, WA 98199
Jakarta
615 NW 85th St
Seattle, WA 98117
Evanston 11 Unit
4238 Evanston Ave N
Seattle, WA 98103
Park View
6016 14th Ave NW
Seattle, WA 98107
11 Unit
514 NE 112th St
Seattle, WA 98125