Offering Memorandum $3,500,000 - Foundation · Offering Memorandum $3,500,000 Investments...

4300 NE 55th St. Seattle, WA 98105

www.tfgre.com

Offering Memorandum $3,500,000

Investments Highlights

• Rare Sandpoint Location• 1,650sf Penthouse• Quality Throughout• One Block from Interurban

Trail• Wood Burning Fireplaces• Washer & Dryers in Units• Garage Parking• Upside in Rents • Close to Children’s Hospital

For More Information Please Contact:

Robert Wright206.619.3274206.224.1213

[email protected]

For More Information Please Contact

Robert [email protected]

2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com

The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any 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 may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other 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 to determine to your satisfaction the suitability of the property for your needs.

Contents

Investment Overview

Submarket Information

Financial Summary

Puget Sound Regional Information

The Rhoda Jane

NE

55th

Str

eet

43rd Ave NE

The Rhoda Jane

Sand Point Way NE

Investment Overview

The Foundation Group is pleased to exclusively offer the Rhoda Jane for sale. The Rhoda Jane was built by Elma Boyle, the owner’s mother, in hon-or of her own mother. In the 70’s and 80’s Elma was one of the top pro-ducers at Capretto and Clark, Seattle’s premier powerhouse commercial real estate firm. When she retired in the late 80’s Elma hired renowned Swedish home builder Magne Hagen and designed the Rhoda Jane as her home, taking care and pride in every aspect of its construction. The Penthouse unit, where Elma lived – and often entertained her good friend Katheryn Hepburn whenever the star would come to town – is filled with all sorts of little extras, among them a shoe closet as big as an office and a control panel for the operation of a generator during power outages.

Including the 1,650sf penthouse, there are eight units total, 3 1-bedroom units and 4 2-bedroom/2 bath units, all with wood burning fireplaces and full size washers and dryers. There is a designer masonry wall and wrought iron security gate encircling the property, and an underground garage for convenience of parking. You are within blocks of the Metro-politan Market, Children’s Hospital and the Interurban Trail, earning the Rhoda Jane a “Bike Score” of 94 on the walkscore.com scale.

SECTION 1 :: INVESTMENT OVERVIEW

Quick Facts


THE RHODA JANE

Price $3,500,000

Units 8

Rentable Sq.Ft. 8,180

Price Per Sq.Ft. $427.87

Price Per Unit $437,500

Current Cap 2.83%

Market Cap 4.92%

Current GRM 24.12

Market GRM 15.14

Year Built 1989

Costruction Type Wood Frame

Laundry In Units

Zoning LR1

Land Sq Ft 6,774sf

Parking Garages

*Please be discreet when viewing as tenants do not know the building is for sale.

Interior Photos


Sandpoint

Seldom does a property come available in Sandpoint, conveniently situated between Laurelhurst and the University Village Shopping Center, within walking distance of either. And just to the north on Sandpoint Way lies famed Magnusson Park, better known in days gone by as the Sandpoint Naval Air Station, renamed after “Maggie,” Senator Warren G. Magnusson when they closed it down and turned it into a park.

It’s a Biker’s Paradise, according to walkscore.com, being mere blocks from the Interurban Trail and the U-District rezone where there soon will be 20 and 30 story buildings. Businesses in the area speak volumes. In addition to the chain stores such as QFC, Metropolitan Market, and Bartell’s, the locale is dotted with quaint shops and businesses, such as City People’s Mercantile, a hardware/home décor store, University Wines, Sandpoint Grill, Jak’s Grill, Varlamos Pizzeria, and Zoka Coffee Roasters, and on and on.

Children’s Hospital is only blocks away. Also, a firehouse is nearby. Good for lower insurance rates.

Six-figure salaried couples with children live an upscale lifestyle in the area, highly educated professionals working in finance, medical, and high-tech fields. Your tenants will consist mostly of corporate climbers, some single, some married, with up-and-coming incomes and higher-than-average living costs. The median household income of Sandpoint is $81,866. By statistics from “findwell.com” the area makeup consists of 73% homeowners and 27% renters. And to the east of Sandpoint Way lies Laurelhurst. Developed largely in the 1920’s, Laurelhurst abounds with delightful turn-of-the-century archi-tecture and expansive waterfront homes.

SECTION 2 :: SUBMARKET INFORMATION

UNIVERSITY OF WASHINGTON

MAGNUS0N PARK

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Seattle Area Stats

12

3

1

2

3

1

2

58 75

SECTION 2 :: SUBMARKET INFORMATION

4

5

RETAIL1 University Village

2 Safeway

3 QFC

HEALTHCARE1 Seattle Childrens Hospital

2 UW Medicine Sand Point

3 UW Medical Center

RECREATION1 Burke Museum of Natural

History and Culture

2 Woodland Park Zoo

3 Warren G. Magnuson Park

4 Green Lake Park

5 Gas Works Park

SCHOOLS1 University of Washington

2 Wedgewood Elementary

School

3 Roosevelt High School

4 Greenwood Elementary

School1

4

2

3

3

THE RHODA JANE

SECTION 3 :: FINANCIAL SUMMARY

Unit Unit Type Approx Sq Ft

Current Rent

Current / Sq Ft

Market Rent

Market / Sqft

1 1bd/1ba 670 $1,125 $1.68 $1,550 $2.31

2 1bd/1ba 670 $1,325 $1.98 $1,550 $2.31

3 2bd/2ba 1,130 $1,595 $1.41 $2,525 $2.23

4 2bd/2ba 1,130 $1,710 $1.51 $2,525 $2.23

5 1bd/1ba 670 $1,550 $2.31 $1,550 $2.31

6 2bd/2ba 1,130 $1,575 $1.39 $2,525 $2.23

7 2bd/2ba 1,130 $1,200 $1.06 $2,525 $2.23

8 2bd/2ba 1,650 $2,010 $1.22 $3,000 $1.82

Gross Rental 8,180 $12,090 $1.48 $17,750 $2.17

Utility (8 x $65) $0 $520

Pk (8 X $125) $0 $1,000

Total Monthly Income $12,090 $19,270

Annual (x12) $145,080 $231,240

Current Market

Gross Scheduled Income $145,080 $231,240

Vacancy @ 3% $4,352 $6,937

Effective Gross Income $140,728 $224,303

Expenses

Property Taxes $18,849 $22,940

Insurance $3,873 $2,807

Utilities $6,316 $7,580

On-Site $0 $4,320

Maintenence/Repairs $9,687 $9,687

Legal/Act $650 $650

Cable $1,752 $1,752

ADT Sec $450 $450

Reserves $0 $2,000

Total Expenses $41,577 $52,186

Net Operating Income $99,151 $172,117

Income and Expenses


The Julie Anne 4747 Sand Point Way NE1

Rent Comparables

Unit Type Approx Sq Ft Current Rent Current /

Sq Ft

1 Bed / 1 Bath 585 $1,350-1,570 $2.31-2.68

2 Bed / 1 Bath 730 $1,800 $2.47

2 Bed / 2 Bath 841-950 $1,850-2,080 $2.30-2.16

Hawthorne Manor4054 NE 55th 2


Sq Ft

Studio 473 $1,195 $2.53

1 Bed / 1 Bath 735 $1,395 $1.90

2 Bed / 2 Bath 966 $2,095 $2.17


Rent Comparables

The Sandridge6200 Sand Point Way NE3


Sq Ft

1 Bed / 1 Bath 650-900 $1,500-1,900 $2.30-2.11

2 Bed / 2 Bath 1,000 $2,200 $2.20


Sq Ft

1 Bed / 1 Bath 600 $1,600 $2.67

2 Bed / 1 Bath 818 $1,900-$2,000 $2.32-$2.54

4Hawthorne Place5231 40th Ave NE


Rent Comparables

THE RHODA JANE

THE JULIE ANNE

HAWTHORNE MANOR

THE SANDRIDGE

1

2

3

*4

HAWTHORNE PLACE


Sales Comparables

1

Property Address Building Name Units Price Sale Date Price / Sq ft Cap Rate GRM

5231 40th Ave NE Hawthorne Place 7 $2,850,000 7/31/2017 $517.24 4.20 17.7

3418 NE 65th Raleigh Court 31 $8,100,000 6/14/2017 $339.68 3.73 11.11

10317 Midvale N Oak Tree Village 10 $1,710,000 6/9/2017 $401.60 5.00 14.15

514 NE 112th 112th 11 $3,750,000 6/12/2017 $392.22 4.69 14.95

Averages $412.69 4.32 14.48

2

3

4

112th514 NE 112th

1

Raleigh Court3418 NE 65th

Oak Tree Village10317 Midvale N

Hawthorne Place5231 40th Ave NE

2 3 4


Sales Comparables

112TH

4

2

3

RALEIGH COURT

OAK TREE VILLAGE

THE RHODA JANE

*1

HAWTHORNE PL

SECTION 4 :: PUGET SOUND REGION

Seattle / Puget Sound

Metropolitan Seattle is a center of innovation, competition, and entrepreneurship. It is a vibrant metropolis that is continually attracting new people and new businesses. The Seattle area is the nation’s 15th largest metropolitan region, and is known for its strong business climate as well as its skilled workforce and top tier educational system. The University of Washington is among the top higher learning institutions in the nation, ranked 11th globally by US News and World Report. Seattle University is a well-known Jesuit university situated on 48 acres in Seattle’s First Hill, and has one of the finest law schools in the country. Bastyr Uni-versity is located in Kenmore, and is one of the world’s leading academic centers for the advancement of knowledge in the natural health sciences. A 36-year pioneer in natural medicine, Bastyr continues to be in the forefront of developing the model for 21st century medicine. It has a sister campus in San Diego, the only accredited naturopathic medical institution in California.

Greater Seattle has the distinction of being the birthplace of creative innovation, from aerospace to cancer research. While the Boeing Company is an important world leader in aviation and space technology, it is no longer the backbone of Puget Sound’s economy. There are over 800 aerospace firms that call Seattle home. Also on the leading edge of world technology are businesses like Microsoft, Amazon, Virginia Mason, Fred Hutch, Weyerhaeuser, the Bill and Melinda Gates Foundation, Google, REI, Expedia…the list goes on and on.

The Seattle Metro area excels not only in business and technology, but also in bio-technology, with such firms as Seattle Genetics, Juno Therapeutics, Nano String Technologies, and Adaptive Biotechnologies, to name a few. Just last year Juno shelled out $80 million in cold cash to buy a German cell therapy company. And they are all hiring! But perhaps more importantly, Seattle is also a leader when it comes to quality of life. How many other places are there in the world where you can get off work early on a Friday, hop in the elevator on the 40th floor and be snapping into your skis forty-five minutes later? Or shouldering your back pack at the start of a deep woods trail. Or sky diving. Or sailing. Golf. Again the list goes on. According to Forbes Magazine, Seattle is one of the most popular cities in the country for the millennial generation (ages 20 -34), with a growth rate of 20.3% during the past ten years, primarily due to the abundance of tech, engineering, and biotechnology firms, both existing and start-up.

The temperate climate of Puget Sound lets residents and visitors enjoy the out-of-doors year round. The average temperature in the summer months is 75 degrees, while in winter the thermometer only dips to freezing for an average of 15 days. Another thing – the fact that it continually rains in Seattle is not a fact. It’s a myth, perpetrated perhaps by those who want to frighten away tourists and out-of-towners. In reality it rarely rains heavily at all. The total average rainfall is a mere 35 inches, less than New York City and Miami. And often when it does rain it’s only a mist, with the sun shining at the same time.

Seattle is also a wonderful center for sports, both professional and amateur, with the Seahawks, Sounders, and Mariners leading the way. Not too far behind are the thoroughbreds of Emerald Downs. On the amateur side, it’s not uncommon to drive home from work and find that you’re sharing the road with cyclists, both commuters and recreationalists.

The region consists of approximately 4 million residents in the combined regions of King, Snohomish, Pierce, and Kitsap counties. In the last ten years alone Puget Sound has added nearly 400,000 jobs to the economy, with the trend expected to continue over the next ten years. In 2016 alone, 61,300 payroll jobs were added.

The Foundation Group is a premier Seattle commercial real estate com-pany providing a broad range of services including property management, investing, brokerage and consulting. Not all commercial real estate com-panies are the same. The Foundation Group believes it is important to intimately know the individual goals of our clients and to provide individ-ual commercial real estate investing plans to achieve them.

The Foundation Group holds the prestigious AMO designation for prop-erty management companies, granted by the Institute of Real Estate Management. A firm must demonstrate the highest standards of pro-fessionalism, financial performance and ethics to earn this coveted designation held by only 500 firms in the United States and Canada.We are result and goal-oriented for our clients. Talk with us today and learn first-hand why The Foundation Group is one of the best Seattle com-mercial real estate companies.

Acquisition & DispositionFrom buyer and tenant representation to owner and landlord rep-resentation, The Foundation Group’s Seattle commercial real estate brokerage team engages with every client in a goal-oriented manner . The Foundation Group works as a team to customize a marketing approach and strategy that’s best suited to achieve the client’s goals.The result is premier Seattle commercial real estate brokerage services with a difference.

Consulting ServicesThe Foundation Group provides Seattle commercial real estate consulting and advisory services for investors. We apply systematic market research and financial analysis to product feasibility solutions for all types of real estate projects.

Investment Partnerships1The Foundation Group has more than three decades of experience form-ing successful partnerships for Seattle commercial real estate investing. Our financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing proper-ties without needlessly worrying about their day-to-day operations. The Foundation Group offers a full compliment of Seattle commercial real state investing services, including consulting, brokerage, development and propriety management.

Consulting2The Foundation Group provides consulting and advisory services for investors. We apply systematic market research and financial analysis to produce feasible solutions for all types of commercial real estate investing projects.

For More Information Please Contact

Robert [email protected]

2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com

Offering Memorandum $3,500,000 - Foundation · Offering Memorandum $3,500,000 Investments...

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