OFFERING MEMORANDUM - commercialmls.com · OFFERING MEMORANDUM ... the size and square footage of the ... Marina Biotech; OncoGenex Pharmaceuticals, which is focused on …

OFFERING MEMORANDUMa 10-unit apartment community located in Kenmore, Washington

Exclusively Listed by

Dan SwansonVice President 206.296.9610 [email protected]

Donna MarshallVice President, Investment Sales 425.422.0954 [email protected]

kiddermathews.com

NORTHSHORE APARTMENTS


OFFERING MEMORANDUM | 2

1. Investment Summary

• The Offering• Investment Highlights

2. Property Overview

• Property Summary• Photos• Floor Plans• The Location• Planned Transportation Improvements• Property Aerial• Amenities Aerial

3. Financial Summary

• Rent Roll• Income & Expenses• Pricing

4. Comparables

• Sales Comparables

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or

the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Disclaimer

Table of Contents

Table of Contents


The Offering

Investment Highlights

Investment Summary



Capstone Commercial and Kidder Mathews are proud to present for sale the 10-unit Northshore Apartments located in King County just steps from Lake Washington. The view property is centrally located near Seattle, Bellevue, and Snohomish County. The 1966 property underwent an extensive, $600,000 renovation in 2015, and the spacious units now feature designer high-gloss cabinetry, quartz countertops, new flooring, stainless steel kitchen appliances, and stacking washer / dryers. With professional management already in place, turnkey condo-quality finishes, 100% occupancy, and the likelihood of future appreciation, the Northshore Apartments offers a new purchaser ease of management and above typical market returns in a rare lake-view property.

The Offering

Investment Summary

PROPERTY OVERVIEW

Address6321 NE 181st StreetKenmore, WA 98028

Price $3,100,000

Down Payment 40%

Price per Unit $310,000

Price per SF $355.14

Number of Units 10

Average Unit Size 873

Net Rentable SF 8,729

Lot Size 0.51 Acres

Year Built 1966

Type of Ownership Fee Simple

APN 618170-0100

Zoning CB

BALLARD

WEST SEATTLE

MERCER ISLAND

BELLEVUE

BOTHELL

SEATTLE

QUEEN ANNE

PUGET SOUND LAKE

WASHINGTON

SHORELINE

BURIEN




Expansive Lake Washington views

Good unit mix of one-, two-, and three-bedroom units,

all with stacking washer / dryers

Current ownership invested in an extensive, $600,000

renovation in 2015

Gourmet kitchens: designer high-gloss cabinets, Pental

Quartz countertops, stainless steel appliances

Fully renovated bathrooms: new toilets and sinks,

custom floating cabinets

Decks and dining areas in each unit

New paint, fencing, landscaping, lighting and signage

Parking lot, roof, siding, and decks have all been

inspected and repaired as needed

17 parking spaces

1 storage locker per apartment

Low maintenance landscaping

Centrally located between I-5 and I-405, and along SR 522

Exceptional location near major employment centers

including aerospace, technology, and universities

Less than 1/4 mile to Burke Gilman Trail, connecting to

the University of Washington, Seattle, Woodinville and

Downtown Redmond

Less than a half mile from Kenmore Village, a 9.6-acre

property that is being developed into a downtown-type

area with a Town Green, fitness center, and retail or office

space

10 restaurants, 3 coffee shops, and 5 grocery stores

within 1/2 mile

4 miles to UW Bothell

Under 10 minute drive to Bastyr University, the nation’s

premier natural health sciences university

Less than a mile to the newly renovated public water

recreational boat launch – North Lake Washington’s

only launch

Building Highlights Location Highlights

Investment Summary


Property OverviewProperty Summary

Photos

Floor Plans

The Location

Planned Transportation Improvements

Property Aerial

Amenities Aerial



THE LOCATION

Located in the heart of Kenmore just steps from Lake Washington, the Northshore Apartments are centrally positioned near Seattle, Bellevue, and Snohomish County. The City of Kenmore, also called Kenmore by the Lake, boasts many prominent features including the nation’s largest seaplane-only commercial air facility at Kenmore Air Harbor, Bastyr University, and several waterside parks and marinas. Designated as a “Playful City USA” since 2010, Kenmore boasts 7.8 miles of shoreline along Sammamish River, Swamp Creek, and Lake Washington. The Northshore Apartments’ central location in Kenmore is within one mile of seven grocery stores, 25 restaurants, coffee shops, and bars, and three parks. Access to the 27-mile recreational Burke-Gilman Trail is under 10 minutes away by foot, as is Log Boom Park which features a modern playground, picnic tables, docks, and sweeping views of Lake Washington. Eight bus lines, all with stops within a half mile of the Northshore Apartments, take residents to the entertainment and employment centers of Shoreline, Renton, Woodinville, Kirkland, Bellevue, Redmond, and Seattle’s First Hill, Downtown, and University Districts.

The Northshore Apartments are comprised of two one-bedroom units, seven two-bedroom units – three of which are built in the townhouse style – and one three-bedroom unit. Each unit also features a deck, taking advantage of sweeping views of Lake Washington, and dining areas. The property was extensively renovated in 2015 to state-of-the art standards.

The kitchens were fully upgraded with designer high-gloss flat-panel cabinets, Pental Quartz countertops and backsplashes, and stainless steel appliances. Likewise, the bathrooms were completely upgraded with new toilets, custom floating cabinets, new sinks, and re-glazed bathtubs. The units were outfitted with fresh paint throughout, and all interior ground surfaces were redone with wood vinyl plank flooring, modern Eleganza tiling, or new carpeting. Each condo-quality, lake-view apartment features a new Electrolux stacking washer / dryer, new electric heaters, six-inch white floor trimming, new Levolor one-inch blinds, state-of-the-art light fixtures, brushed nickel modern finishes, a deck that has been recently sealed, and access to its own assigned storage locker on the basement level.

Recent exterior upgrades include new paint, fencing, landscaping, lighting, and signage. The property’s large parking lot has been recently repaired and power washed, the roof has been repaired and sealed, and the siding has been inspected and repaired as needed. The property has been further upgraded with a new common area electric panel and hot water tank. Total renovations totaled over $600,000 since August.

With professional management already in place, turnkey condo-quality finishes, 100% occupancy, and the likelihood of future appreciation, the Northshore Apartments offers a new purchaser ease of management and above typical market returns in a rare lake-view property.

Property Summary

Property Overview



Interior Photos

Property Overview



Interior Photos

Property Overview



Floor Plans

Property Overview

UNIT 4 UNIT 5

UNIT 1 UNIT 2 UNIT 3



Floor Plans

Property Overview

UNIT 9 UNIT 10

UNIT 6 UNIT 7 UNIT 8



The City of Bothell has already put in place their Downtown Revitalization plan by

strategically investing $150 million in public infrastructure improvements, including

two major roadway improvements on SR 522. These roadway changes created new

city-owned parcels which the city has begun to sell. Several of the parcels already

sold have been redeveloped with a focus on mixed-use retail. The outcome of the

city’s investment and work with private developers is a pedestrian-focused, mixed-

use downtown environment with new retail, housing, office, and entertainment

destinations. An excellent example of this revitalization is the McMenamin family’s

transformation of 85-year-old Anderson School into a five-acre campus for food,

drink, music, and movies. The change that has been happening in the City of Bothell

brings with it a tremendous opportunity for a property owner to benefit from these

infrastructure improvements.

Bothell/Kenmore Employment

Bothell and Kenmore are major employment centers for South Snohomish County

and Northeast King County. Bothell/Kenmore supports over 20,000 jobs comprised

of biotech, computers, engineering and telecommunications, with most businesses

located in the Canyon Park and North Creek business districts.

Biotechnology is the biggest industry in Bothell/Kenmore, with companies such as

Amgen; Alder Biopharmaceuticals, which develops antibody therapeutics; Blue Heron

Biotechnology, which has the patented GeneMaker® Technology for synthesizing any

DNA sequences; CMC Icos, which developed the erectile-dysfunction drug Cialis;

Elitech; Iverson Genetic Diagnostics; Marina Biotech; OncoGenex Pharmaceuticals,

which is focused on cancer treatment; and Seattle Genetics. In all, 20% of

Washington’s life sciences companies are located in Bothell/Kenmore.

Medical device manufacturers are also located in Bothell/Kenmore, including

Diagnostic Ultrasound; Lockheed Martin Aculight, which develops lasers, Philips

Medical Systems; and SonoSite.

Computer technology, data, and telecommunications are well represented, and

include companies such as AT&T, AVST, Kinesis, Leviton Voice & Data, Systems

Interface, T-Mobile, Panasonic Avionics Corporation, Parity Corporation, Teltone,

Vertafore, and most recently, Google.

Property Overview

Downtown Bothell Revitalization



Engineering firms, including electrical engineering, environmental engineering, and civil

engineering, are also located in Bothell/Kenmore. Examples include ECS Engineering,

Emulex, North Creek Analytical, Path Engineers, RH2 Engineering and SNC-Lavalin.

Bothell/Kenmore also has companies working on new or improved energy

technologies, including Neah Power Systems. The Seattle Times moved its main

production facility to the North Creek business district in Bothell/Kenmore in 2001, and

national magazine publisher Scotsman Guide Media also is headquartered in the city.

University of Washington - Bothell Campus

UW Bothell is one of three campuses that make up the University of Washington: the

150-year-old Seattle campus, and the Tacoma and Bothell campuses, both founded in

1990. UW Bothell offers many of the same educational qualities as its sister universities

— an urban campus setting; top-drawer faculty known for their teaching ability; a

rigorous, interdisciplinary curriculum; and high standards of social responsibility.

Located less than 5 miles from the Northshore Apartments, UW Bothell is the largest

branch campus in Washington State.

Undergraduates make up 89 percent of the 5,279 students with 93 percent of the

total enrollment attending full-time. There are over 650 faculty and staff members. UW

Bothell offers over 45 degrees for undergraduates and graduates, and in a little over

two decades, the school has awarded over 10,500 degrees.

Property Overview



LAKE

WASHINGTON

PUGET

SOUND

SHORELINE


Property Overview

MOUNTLAKE TERRACE

BOTHELL

KIRKLAND

WOODINVILLE

LAKE FOREST PARK

EDMONDS

NORTHGATE

GREENLAKE

BALLARD

KENMORE

FREMONT



Property Overview

Property Aerial

Bothell Way NE

68th Avenue N

E


62th Avenue N

E

Bothell Way NE

LAKE WASHINGTON

Burke Gilman Trail

Burke Gilman Trail

SAMMAMISH RIVER



Northshore Amenities Map

Property Overview

14

13

12

9

1011

8

7

6

5

4

10

11

1

3

2

16

10

17

27

26

25

22

2019

18

91

15

14

11

13

12

8

7

6

5

43

4

1

2

3

6

5

1

6

9

8

7

4

3

2

1

4

3

29

23

31

30

36

3432

33

28

24

21

5

235


2



EAT + DRINK

1. Pagliacci Pizza

2. Jack in the Box

3. Tai Ho Restaurant

4. Kidd Valley

5. Ichiban Teriyaki

6. Jet City Pizza

7. Acapulco Fresh Mexican Grill

8. Jay's Cafe

9. Uma Thai Cuisine

10. Fortune Inn

11. Lake Forest Bar & Grill

12. The Everest Kitchen

13. Kitto

14. Preservation Kitchen

15. Alexa's Cafe & Catering

16. Mazatlan Mexican Restaurant

17. Russell's

18. Grazie Ristorante Italiano

19. Crystal Creek Cafe

20. Gretchen's Place

21. Brier Pizza Kitchen

22. Ivar's Seafood Bar

23. Wendy's

24. Arby's

25. Outback Steakhouse

SHOPPING

1. Dollar Tree

2. Country Village Shops

3. Alderwood Mall

4. Northstrom Rack

5. Belly Scarf

6. Embroidery Northwest

7. Hawkins Embroidery

8. Fred Meyer Jewelers

9. Target

10. St. Vincent de Paul Society

11. Snapdoodle Toys

GROCERY

1. Safeway

2. Grocery Outlet

3. Costco

4. Fred Meyer

5. Yakima Fruit Market & Nursery

HEALTH & WELLNESS

1. LA Fitness

2. CrossFit Kenmore

3. Kenmore Fitness

4. Planet Fitness

5. 24 Hour Fitness

6. Nev Fitness

7. Orangetheory Fitness

PARKS

1. Northshore Summit Park

2. Rhododendron Park

3. Wallace Swamp Creek Park

4. Doug Allen Sportsfields

5. Horizon View Park

6. Blue Heron Park

7. Lyon Creek Waterfront

8. Grace Cole Nature Park

9. Brier Park

10. Hamlin Park

11. Terrace Creek Park

12. Brierwood Park

13. Southwest County Park

14. Log Boom Park

BUS ROUTES

Bus Route #234

Bus Route #372

Bus Route #244

Bus Route #342

Bus Route #312

EAT + DRINK

26. Viva Jalisco

27. Canyons Restaurant

28. Applebee's

29. Savage Moose Sports Pub

30. Cozy Inn Tavern

31. Taco Time

32. North Shore Pub

33. Tab's Bar & Grill

34. McDonald's

35. 192 Brewing Company

36. Starbucks

Northshore Amenities Map Key


Rent Roll

Income & Expenses

Pricing

Financial Summary



Rent Roll

SCHEDULED INCOME

UNIT # UNIT TYPE SQUARE FOOTAGE ACTUAL RENT RENT PER SQ. FT.

1 2 Bedroom / 1 Bath 876 $1,725 $1.97

2 3 Bedroom / 2 Bath Townhome 1287 $1,995 $1.55

3 1 Bedroom / 1 Bath Loft 663 $1,475 $2.22

4 2 Bedroom / 1 Bath 880 $1,700 $1.93

5 2 Bedroom / 1 Bath 874 $1,725 $1.97




9 2 Bedroom / 1 Bath 882 $1,725 $1.96

10 1 Bedroom / 1 Bath 713 $1,395 $1.96

TOTAL 8,729 $17,215

AVERAGE 873 $1.97

Financial Summary



Financial Summary

Utility-Bill-Back Current based on 95% of the utilities being billed back to the residents based on a RUBS system.

Non-Refundable/Late Fees. Based on owners’s 2016 budget.

Real Estate Taxes Based on 75% of the purchase price multiplied by the current millage rate.

Insurance Based on owner’s 2016 budget.

Utilities Based on owner’s 2016 budget.

Repairs and Maintenance Based on owner’s 2016 budget.

Professional Management Based on 5% of collected income.

Landscaping Based on $1,000 annually.

Capital Reserves $200 per unit is accumulated to pay for large capital expenditures amortized over years of operations.

Administrative Based on owner’s 2016 budget.

CURRENT INCOME

Total Scheduled Rent $206,580

Utility-Bill-Back $11,175

Non-Refundable/Misc. $3,456

Scheduled Potential Income $221,211

Vacancy (3.6%) $7,964

Real Estate Taxes $28,526

Insurance $4,013

Utilities $11,763

Repairs and Maintenance $4,050

Professional Management $10,662

Turnover $1,350

Landscaping $1,000

Administrative $1,470

Capital Reserves $2,000

Total Expenses $64,834

Expenses Per Unit $6,483

Expenses Per Square Foot 7.43

Net Operating Income $148,413

OTHER INCOME

Forfeited Deposits $300

Damage & Cleaning Fees $300

Non-Refundable Fees $1,500

Application Fees $456

Pet Fees $900

Total $3,456

Current Income & Expense Notes

FINANCING

Loan Amount* $1,860,000

Rate 3.500%

Amortization 30

Annual Debt Service ($100,227)

*The above financing terms were obtained in April 2016 and are based on a 5-year term, 30 years amortization. As loan information is time sensitive and subject to market fluctuations, we recommend that you verify quoted terms by contacting a preferred lender of your choice.



Financial Summary

ANNUALIZED OPERATING DATA

CURRENT RENTS

Gross Potential Income $221,211

Less Physical Vacancy 3.6% $7,964

Effective Gross Income $213,247

Less Expenses 30.40% ($64,834)

Net Operating Income $148,413

PRICING

Price $3,100,000

Down Payment* $1,240,000

Price Per Unit $310,000

Cost Per NRSF $355.14

Current GRM 14.0

Current Cap Rate 4.8%


Sales Comparables

Sales Comparables Map

Comparables



NORTHSHORE APARTMENTS6321 NE 181st Street, Kenmore

List Price $3,100,000

Price/Unit $310,000

Price/SF $355.14

Cap Rate 4.8%

GRM 14.0

Units 10

Year Built 1966

SUBJECT

Sales Comparables

WOODCREEK APARTMENTS18105 142nd Avenue NE, Woodinville

Date Sold 09/30/2015

Sale Price $4,750,000

Price/Unit $237,500

Price/SF $251.96

Cap Rate 4.6%

GRM 12.5

Units 20

Year Built 1986

2

SALISH21110 80th Place W, Edmonds



Price/Unit $233,333

Price/SF $345.68

Cap Rate 4.0%

GRM 15.4

Units 6

Year Built 1952

1

3

1

2

4


5



ANNA9447 166th Avenue NE, Redmond

Date Sold 01/27/2016Sale Price $4,430,000Price/Unit $246,111Price/SF $306.87Cap Rate 4.6%GRM 13.6Units 18Year Built 1963

3

Sales Comparables

CREEKSIDE PLACE11241 NE 68th Street, Kirkland



Price/Unit $252,857

Price/SF $345.03

Cap Rate 4.2%

GRM 14.6

Units 21

Year Built 1977

4

3

1

2

4


KIRKLAND SHORES205 5th Avenue S, Kirkland

Date Sold 02/26/2016Sale Price $2,250,000Price/Unit $375,000Price/SF $354.72Cap Rate 3.9%GRM 17.0Units 6Year Built 1976

55



Dan SwansonVice President 206.296.9610 [email protected]

Kidder Mathews601 Union Street, Suite 4720 Seattle, WA 98101

kiddermathews.com

Donna Marshall Vice President, Investment Sales 425.422.0954 [email protected]

Capstone Commercial22722 29th Drive SE, Suite 100 Bothell, WA 98021

capstonecommercialnw.com

Contact

Contact Information

OFFERING MEMORANDUM - commercialmls.com · OFFERING MEMORANDUM ... the size and square footage of the ... Marina Biotech; OncoGenex Pharmaceuticals, which is focused on …

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