ballard 6-unit apartment building - home - kirkland, wa · pdf fileballard 6-unit apartment...

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Ballard 6-Unit Apartment Building 1911 NW 65th Street | Seattle, WA 98117

No. of Units 6

Price $1,980,000

Per Unit $330,000

Per NRSF $412.50

Current GRM 17.59

Current CAP 4.32%

Pro Forma GRM 14.91

Pro Forma Cap 5.00%

330 112th Ave NEBellevue, WA 98004

425-455-9976www.wallaceproperties.com





OFFERING SUMMARY

Wallace Properties is proud to exclusively offer for sale the Ballard 6 Unit Apartment Building. With a mix of one and two bedroom units, this well-maintained building presents a rare opportunity for an investor in the highly desirable Ballard neighborhood.

Investment Highlights:

• Exceptionally well maintained and managed property

• 1990 construction with secure parking garage and desirable unit mix

• Rent upside (see pro forma income) with building in as-is condition

• Additional rent upside if stack W/Ds are added to each 2-bedroom unit

• Desirable location in the heart of Ballard with a walk score of 90

Recent Capital Improvements:

• New roll-up metal garage door - 2016

• New hot water tanks replaced in all units - 2015

• New roof - 2014

• New exterior paint - 2013



BALLARD NEIGHBORHOOD

Ballard continues to be one of Seattle’s most popular neighborhoods for young professionals and families looking to live in a neighborhood with unique character and a strong feeling of community. Its residents enjoy an unparalleled selection of great restaurants and breweries, a scenic waterfront, and an enduring Scandinavian culture. Along with the City of Seattle, the Ballard community is growing rapidly, attracting current residents of the area along with transplants moving into the city. With its proximity to Downtown Seattle, and the many tech employers nearby such as Amazon, Expedia, Facebook, and Google, Ballard is one of Seattle’s strongest rental markets.

BALLARD

PHINNEY RIDGE

FREMONT

QUEEN ANNE

SUBJECT PROPERTY

MAGNOLIA



BARRE 3

QFC

MUD BAY

EL CAMION MIGHTY-O-DONUTS

BARTELLS

OLYMPIC ATHLETIC CLUB

TRACTOR TAVERN

OLAF’S

1

2

BALLARD COFFEE WORKS

3

BALLARD CROSSFIT

4

5

6

BALLARD HEALTH CLUB

11

8

BALLARD PUBLIC LIBRARY

9

10

12

STRAWBERRY MOON

SIP & SHIP

13

16

TOP BANANA PRODUCE MARKET

17

18

22

19

PORTAGE BAY CAFÉ

20

23

24

SAFEWAYMAJESTIC THEATRES

ORANGETHEORY FITNESS

14

15 21 THE MATADOR

JAVA BEAN7

RETAIL LOCATION MAP

BALLARDPUBLIC POOL

COPINE



LOCAL CORPORATIONS

SUBJECT PROPERTY








SOUND TRANSIT LIGHT RAIL PLAN

BALLARD TRANSIT







Demographics

1 Mile 3 Miles 5 Miles2017 Estimated Population 38,080 179,736 406,034

2022 Projected Population 41,296 195,165 440,546

2010 Census Population 31,864 159,420 349,766

2000 Census Population 28,824 147,905 318,626

Projected Annual Growth 2017 to 2022 1.7% 1.7% 1.7%

Historical Annual Growth 2000 to 2017 1.9% 1.3% 1.6%

2017 Median Age 36.3 36.5 35.6

2017 Estimated Households 19,080 84,689 201,352

2022 Projected Households 20,435 91,039 216,810

2010 Census Households 15,792 75,428 171,380

2000 Census Households 14,264 71,051 156,590

Projected Annual Growth 2017 to 2022 1.4% 1.5% 1.5%

Historical Annual Growth 2000 to 2017 2.0% 1.1% 1.7%

2017 Estimated Average Household Income $104,482 $115,888 $106,180

2017 Estimated Median Household Income $92,446 $98,059 $88,660

2017 Estimated Per Capita Income $52,442 $54,769 $52,979

2017 Estimated Elementary (Grade Level 0 to 8) 0.9% 0.9% 1.2%

2017 Estimated Some High School (Grade Level 9 to 11) 1.5% 1.7% 2.0%

2017 Estimated High School Graduate 8.3% 7.4% 8.4%

2017 Estimated Some College 13.3% 13.8% 15.1%

2017 Estimated Associates Degree Only 8.2% 6.8% 6.5%

2017 Estimated Bachelors Degree Only 42.1% 41.6% 38.9%

2017 Estimated Graduate Degree 25.7% 27.7% 27.9%

2017 Estimated Total Businesses 2,309 10,122 27,811

2017 Estimated Total Employees 14,908 67,457 244,471

2017 Estimated Employee Population per Business 6.5 6.7 8.8

2017 Estimated Residential Population per Business 16.5 17.8 14.6

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BUILDING INFORMATION

The Ballard 6-Unit Apartment Building consists of four 2-bedroom/1-bathroom units, two 1-bedroom/1-bathroom units, a common laundry room with a coin-operated washer and dryer, and a secured tuck-under garage with one stall for each dwelling unit. The large units are prime examples of early 1990’s construction, when apartment unit size averages hit their peak, making them very desirable with tenants looking to avoid the cramped spaces of older or newer buildings.

The current owners have maintained the property meticulously, and have performed a number of valuable capital improvement projects in the last few years. The exterior of the building received new paint in 2013, followed by the installation of a new composite-shingle pitched roof in 2014. Replacement of all hot water tanks in the building was carried out in 2015, and a new roll-up metal garage door was installed in 2016. The building’s floor plan and electrical service would accommodate stack washers and dryers in the 2-bedroom units, providing a value-add opportunity for the new owner to generate additional income beyond the Pro Forma figures stated on the financial summary page of this document.

The location of the building in the core of Ballard is excellent, and the property boasts a walk score of 90. Tenants who wish to leave their car parked in the secure garage have hundreds of businesses and services in walking distance to enjoy, and a three minute walk to 15th Ave NW provides express (RapidRide Line D) bus service to downtown Seattle. Additionally, Sound Transit’s long-term plans for light rail include a new line that will extend to Ballard, adding value to the property as its delivery date approaches.







PROPERTY PHOTOS







SAMPLE FLOOR PLAN

FLOOR PLAN







INCOME

Current Pro Forma

Units Unit Type Avg SF Avg Rent Avg Per SF Monthly Avg Rent Avg Per SF Monthly

4 2 Bed / 1 Bath 900 $1,595 $1.77 $6,380 $1,795 $1.99 $7,180

2 1 Bed / 1 Bath 600 $1,145 $1.91 $2,290 $1,395 $2.33 $2,790

6 4800 800 $1,445 $1.81 $8,670 $1,662 $2.08 $9,970

Income Source Avg Fee Qty Monthly Avg Fee Qty Monthly

Laundry $ - - $165 - - $165

Secure Garage Parking $50.00 1 $50 $50.00 6 $300

Pet $ - 0 $- $35.00 4 $140

Utility Reimbursement $82.50 6 $495 $81.67 6 $490

$710 $1,095

Gross Scheduled Income: $112,560 $132,780

EXPENSES

Current Pro Forma

Expenses Annual Per Unit Per NRSF Annual Per Unit Per NRSF

Property Tax $12,153 $2,025.56 $2.53 $16,502 $2,750 $3.44

Insurance $1,200 $200.00 $0.25 $1,350 $225.00 $0.28

Utilities $5,373 $895.51 $1.12 $5,507 $917.89 $1.15

Maintenance & Repairs $2,429 $405 $0.51 $3,600 $600.00 $0.75

Reserves (2016 pro forma) $2,400 $400.00 $0.50 $2,400 $400 $0.50

Turnover $- $- $- $525 $88 $0.11

$23,555 $3,925.90 $4.91 $29,885 $4,981 $6.23

TOTALS: $23,555 $3,925.90 $4.91 $29,885 $4,981 $6.23

OPERATING PROFIT

Current Pro Forma

Gross Scheduled Income $112,560 $132,780

Vacancy & Credit Loss $(3,377) 3.0% $(3,983) 3.0%

Total Expenses $(23,555) 21.6% $(29,885) 23.2%

Net Operating Income $85,628 $98,912

Debt Service $(58,298) $(58,298)

Loan Principle Reduction $18,456 $18,456

TOTALS: $45,785 4.82% $59,069 6.22%

RE

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PROPERTY FEATURES

Year Built 1990

Units 6

Gross SF 7,200

Net Rentable SF 4,800

Avg Unit SF 800

Lot SF / Zoning 4,685 / LR1

Structure Wood Frame

Siding / Roof Wood / Pitched Comp.

Heating Baseboard Electric

Laundry Common / Coin-Op

Parking Secure Garage (6 Stalls)

FINANCING

Loan Amount $1,030,000

Down Payment $950,000

Loan to Value 52.0%

Amortization Term 30 Years

Fixed Term 5 Years

Interest Rate 3.90%

Monthly paymentt $4,858.18

Annual Debt

Service

$58,298.16

Parking Secure Garage (6 Stalls)

INVESTMENT ANALYSIS SUMMARY

Sale Price $1,980,000

Price Per Unit $330,000

Price Per NRSF $412.50

Current Cap Rate 4.32%

Current GRM 17.59

Pro Forma Cap Rate 5.00%

Pro Forma GRM 14.91



Subject Property1911 NW 65th St., Seattle, WA

Year Built 1990

Units 6


Price/Unit $330,000

Price/Foot $412.50

Cap Rate/GRM 4.3% / 17.6

Pro Forma 5.0% / 14.9

Ballard Apt.2415 NW 85th St., Seattle 98117

Year Built 1955

Units 5

Sale Price $1,425,000.00

Price/Unit $285,000.00

Price/Foot $431.03


Sale Date 1.5.2017

63rd St Apts.1413 NW 63rd St., Seattle 98117

Year Built 1964

Units 12


Price/Unit $322,917

Price/Foot $422.27


Sale Date 1.29.2016

Palm Court Apts.2410 NW 57th St., Seattle 98107

Year Built 1957

Units 7

Sale Price $ 2,370,000

Price/Unit $338,571

Price/Foot $515.33


Sale Date 10.31.2016

Elin Apts.6104 14th Ave NW, Seattle 98107

Year Built 1963

Units 5


Price/Unit $305,000

Price/Foot $453.87


Sale Date 10.18.2016

Ballard 7-Unit1408 NW 57th Street Seattle 98107

Year Built 2002

Units 7


Price/Unit $285,714

Price/Foot $421.05


Sale Date 9.16.2016

SALES COMPS




Who We Are

Wallace Properties, Inc. was formed in 1977 by its Chairman and CEO, Robert C. Wallace. Over the next quarter century the Company has grown into a full service commercial real estate enterprise, providing the highest quality commercial property management, brokerage and investment services. As a result of its long standing professionalism and commitment to the community, Wallace Properties has earned its reputation as an institution of trust and integrity.

Wallace Properties enables owners, investors and tenants to achieve their commercial real estate goals by providing comprehensive services by some of the brightest, most experienced and successful professionals in the industry. Wallace Properties brokers and property managers truly understand the benefits and risks of owning and operating commercial real estate.

Wallace Properties’ unique position as an investment/development company, property management firm and real estate brokerage house enables investors to place capital into the sound investments that are professionally managed and expertly brokered, all under one roof. In addition, it provides brokerage and management clients financial and experiential resources not common to most firms.

Brokerage

The modern world of commercial real estate brokerage is more than just brokering information and more than merely a transactional business. It requires experience, competence, tenacity and integrity, The Brokerage Division sets itself apart by providing full-faceted representation of buyers, sellers, landlords and tenants. The Brokerage Division’s commitments to those principles results in long-standing relationships with a wide variety of clients, from individuals to public corporations.

OUR SPECIFIC AREAS OF EXPERTISE INCLUDE:

Retail Leasing, Sales & Tenant Representation

In addition to representing both buyers and sellers of retail properties, Wallace Properties provides leasing services for malls, strip centers, mixed use and stand alone properties, and represents tenants in both multiple and single locations.

Multi-Family Sales

Wallace Properties represents owners and investors purchasing and selling multi-family developments. Seasoned brokers combine knowledge of the local market, access to information, superior negotiating skills and impeccable attention to detail in moving the process forward to a successful outcome.

Office Leasing, Sales & Tenant Representation

Wallace Properties represents owners, investors and tenants in the sale and leasing of office properties throughout the State of Washington. Longevity in the commercial area and acquaintance with buyers, sellers, landlords and tenants afford access to opportunities, often before they are made public.

Land Sales

Wallace Properties has extensive experience in land and redevelopment sites. Wallace Properties has completed more than 50 transactions representing 1.5 million square feet of land in Downtown Bellevue alone.

Medical Properties

Wallace Properties represents medical professionals purchasing, leasing and developing medical office space in freestanding buildings, mixed use, commercial condominiums, retail and general office properties.



ballard 6-unit apartment building - home - kirkland, wa · pdf fileballard 6-unit apartment...

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