RAINIER 6

RAINIER 6

MERCER ISLANDLAKE WASHINGTON

RAINIER VALLEY

RENTON

BEACON HILL

OTHELLO LIGHT RAIL STATION

RAINIER STATION

COLUMBIA CITY STATIONCOLUMBIA CITY

Paragon Real Estate Advisors is pleased to exclusively offer for sale the Rainier 6. This 6-unit apartment building is well located in South Seattle. The Rainier 6 is a solid 1960’s property that has recently been updated.

This property offers a buyer the opportunity to acquire a building in one of the best multi-family investment markets in the country, with the potential to produce excellent cash flow.

Exclusively offered by Paragon Real Estate Advisors

NAME Rainier 6

ADDRESS 6527 Rainier Ave S, Seattle, WA

TOTAL UNITS 6

BUILT 1967

SQUARE FEET 4,752 Total Net Rentable

PRICE $1,100,000

PRICE PER UNIT $183,333

PRICE PER FOOT $231.48

CURRENT GRM/CAP 13.3/5.1%

MARKET GRM/CAP 11.8/6.0%

TERMS Cash Out

LOT SIZE 5,072 Square Feet

ZONING LR3

O F F E R I N G

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

� Less than 1 mile from Sound Transit light rail station

� 15 minutes to Downtown Seattle

� Spacious 1 and 2 bedroom floorplans

� Over $100k in improvements

� New roof

� Market 6.0% CAP

� Potential to add bedrooms by reconfiguring living rooms

� The property is located in an Opportunity Zone

I N V E S T M E N T H I G H L I G H T S

1967 wood-framed construction

Three-story, wood-sided building

Desirable mix of 3 – 1 bedroom units and 3 – 2 bedroom units

Updated kitchens and bathrooms

New shower surrounds

New solid surface flooring

Windows replaced

Decks resurfaced

New roof

Common laundry

Potential to reconfigure living rooms to add bedrooms/den and convert 1 bedroom units to 2 bedroom unit and 2 bedroom units to 3 bedroom units

I M P R O V E M E N T S

M A J O R E M P L O Y E R S - C E N T R A L B U S I N E S S D I S T R I C T

M A J O R E M P L O Y E R S - S O U T H L A K E U N I O N

Columbia City has the highest Walk Score of any neighborhood south of downtown, including the ever-popular “Junction” in West Seattle. There’s a lot to do here, and it’s all concentrated in one area. The people here love to support the local businesses. Today, the thriving pedestrian business district along Rainier Avenue South is home to six bars, a grocery store, a number of restaurants, bakeries, coffee shops, assorted retail, an art gallery, fitness facilities, a fraternal clubhouse, a movie theater, and multiple live music venues.

With the neighborhoods mix of craftsman bungalows, market rate and low-income apartment buildings, and townhouse developments, this area is quickly becoming a popular neighborhood for those looking for an urban environment without the high prices of the downtown area. Community estimates have put the number of new homes in the planning pipeline as numbering at least 1,500. Many of these developments are in formerly vacant lots similar to the subject.

Train service at the neighborhood’s Link Light Rail station began in July 2009. The station is situated between the Othello and Mount Baker stations on the Central Link line, which runs from Seattle–Tacoma International Airport to Downtown Seattle and the University of Washington as part of the Link light rail system. The station consists of two at-grade side platforms between South Alaska Street and South Edmunds Street in the median of Martin Luther King Jr. Way South in the Columbia City neighborhood, part of Seattle’s Rainier Valley. Trains serve the station twenty hours a day on most days; the headway between trains is six minutes during peak periods, with less frequent service at other times. Columbia City station is also served by two King County Metro bus routes that connect it to Mount Baker, Renton and West Seattle.

C O L U M B I A C I T Y

U N I T P H O T O S

F L O O R P L A N S

BEDROOMBEDROOM

LIVING AREA PATIO

KIT

CH

EN

BA

TH

BATH

KIT

CH

ENBEDROOM

LIVING AREAPATIO

1 BD/1BTH 2 BD/1BTH

F L O O R P L A N S : P R O P O S E D A D D I T I O N A L B E D R O O M O R D E N *

BEDROOMBEDROOM

LIVING AREA

PATIO

KIT

CH

EN

BA

TH

BATH

KIT

CH

ENBEDROOMLIVING AREA

PATIO

1 BD/1BTH 2 BD/1BTH1 BD/1BTH 2 BD/1BTH

* B u y e r t o v e r i f y

BEDROOM

OR DEN

BEDROOM

OR DEN

Unit Breakdown

UNIT

TYPE

APPROXIMATE

UNIT SIZE

CURRENT

RENT

CURRENT

RENT/SQ.FT.

MARKET

RENT

MARKET

RENT/SQ.FT.

1 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,050 $1.75

2 2 Bd/1 Bth 1,000 Sq.Ft. $1,200 $1.20 $1,350 $1.35

3 2 Bd/1 Bth 1,000 Sq.Ft. $1,250 $1.04 $1,350 $1.75

4 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,350 $1.35

5 2 Bd/1 Bth 1,000 Sq.Ft. $1,200 $1.20 $1,350 $1.35

6 1 Bd/1 Bth 600 Sq.Ft. $1,020 $1.70 $1,050 $1.75

Totals 4,800 Sq.Ft. $6,710 $1.43 $7,200 $1.50

RAINIER 6

MONTHLY INCOME CURRENT MARKET

Gross Potential Rent $6,710 $7,200

Utility Bill Back $390

Laundry Income $120 $120

Other Income $60 $60

Gross Potential Income $6,890 $7,770

ANNUALIZED OPERATING DATA CURRENT MARKET

Scheduled Gross Income $82,680 $93,240

Less Vacancy 3.00% $2,480 3.00% $2,797

Gross Operating Income $80,200 $90,443

Less Expenses $23,968 $23,968

Net Operating Income $56,232 $66,475

Annual Debt Service ($3,676/mo) $44,113 $44,113

Cash Flow Before Tax 3.67% $12,119 6.78% $22,362

Principal Reduction $13,560 $13,560

Total Return Before Tax 7.78% $25,679 10.89% $35,922

Income and Expenses

ANNUALIZED OPERATING EXPENSES CURRENT MARKET

RE Taxes 2019 $6,986 $6,986

Insurance Proforma $250/Unit $1,500 $1,500

Utilities 2018 $8,384 $8,384

Maint/Repairs Proforma $800/Unit $4,800 $4,800

Admin/Legal Proforma $798 $798

Reserves Proforma $250/Unit $1,500 $1,500

Total Expenses $23,968 $23,968

UNITS

UNIT

TYPE

SIZE

CURRENT

RENT

MARKET

RENT

3 1 Bd/1 Bth 600 $1,020 $1,050

3 2 Bd/1 Bth 1,000 $1,200-$1,250 $1,350

6 Total/Avg 792 $1.43 $1.52

Units 6

Year Built 1967

Rentable Area 4,752

Down Pmt $330,000

Loan Amount $770,000

Interest Rate 4.00%

Amortization 30 years

Price $1,100,000

Per Unit $183,333

Per Sq. Ft. $231.48

Current GRM 13.30

Current CAP 5.11%

Market GRM 11.80

Market CAP 6.04%

Expense/Unit $3,995

Expense/Foot $5.04

Percent of EGI 28.99%

Expense/Unit $3,995

Expense/Foot $5.04

Percent of EGI 25.71%

CURRENT

OPERATIONS

MARKET

OPERATIONS

Pearl St Lofts 3940 S Pearl St Seattle, WA 98118

1 Year Built 1966 Units 12 Sales Price $3,100,000 Price/Unit $258,333 Price/Foot $244.87 GRM/CAP 21.3/2.6% Sales Date 09.18.2018

Upland View Apts 5716 Wilson Ave S Seattle, WA 98118

2 Year Built 1956 Units 11 Sales Price $2,800,000 Price/Unit $254,545 Price/Foot $341.71 GRM/CAP 16.0/4.1% Sales Date 09.17.2018

Walden St Apts 2701 S Walden St Seattle, WA 98144

3 Year Built 1966 Units 10 Sales Price $1,904,000 Price/Unit $190,400 Price/Foot $284.09 GRM/CAP Unknown Sales Date 08.24.2018

14th Ave Apts 1307 14th Ave S Seattle, WA 98144

4 Year Built 1968 Units 6 Sales Price $1,900,000 Price/Unit $316,667 Price/Foot $305.52 GRM/CAP 27.4/2.1% Sales Date 06.01.2018

1

3

4

2

S A L E S C O M P A R A B L E S

Wabash Ave Apts 8316 Wabash Ave S Seattle, WA 98118

5 Year Built 1957 Units 4 Sales Price $750,000 Price/Unit $187,000 Price/Foot $200.53 GRM/CAP Unknown Sales Date 05.25.2018

L O G OL O G O

5

Rainier 6 6527 Rainier Ave S Seattle, WA 98118Year Built 1967 Units 6 Sales Price $1,100,000 Price/Unit $183,333 Price/Foot $231.48 Current GRM/CAP 13.3/5.1% Market GRM/CAP 11.8/6.0%

RAINIER 6

2

Rainier 66527 Rainier Ave SSeattle, WA 98118

1967 - 6 Units

1 Bd/1 Bth2 Bd/1 Bth

6001,000

$1,020 $1,200-$1,250

$1.70$1.20 - 1.25

Myrtlewood Apts 7001 Rainier Ave S Seattle, WA 98118

1959 - 28 Units

1 Bd/1 Bth $1,250

Graham Place Apts 4601 S Graham Seattle, WA 98118

1968 - 60 Units

1 Bd/1 Bth 675 $1,375 $2.04

Cresent Apts5210 42nd Ave S Seattle, WA 98118

1963 - 37 Units

1 Bd/1 Bth 558 $1,205 $2.16

Wilson Ave Apts 5701 Wilson Ave SSeattle, WA 98118

1955 - 17 Units

1 Bd/1 Bth 650 $1,720 $2.65

Rainier 87310 Rainier Ave S Seattle, WA 98118

1960 - 8 Units

1 Bd/1 Bth $1,400

3

R E N T C O M P A R A B L E S

4

5

1

1

3 4

2

5

RAINIER 6

600 University St, Suite 2018

Seattle Washington 98101

206 623-8880 / info@ParagonREA.com

www.ParagonREA.com

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