the mercer apartments...upper queen anne s queen anne avenue is bustling with coffee shops,...

FOR MORE INFORMATION:

IAN BROWN PRINCIPAL | BROKER

206.505.9414

ian@ westlakeassociates.com

THE MERCER APARTMENTS

A CLASSIC 41-UNIT APARTMENT BUILDING

105 MERCER STREET | SEATTLE, WA 98109

Price: $13,000,000

Price Per Unit: $317,073

Price Per NRSF: $525.40

Cap Rate: 3.49%

Market Cap Rate: 4.68 %

GRM: 18.09

Building Size: 24,743 SF

Lot Size: 12,514 SF

Year Built: 1929

WESTLAKE ASSOCIATES, INC. IS PLEASED TO PRESENT THE MERCER APARTMENTS FOR SALE.

Located on the 50-yard line of Seattle’s prestigious Queen Anne/Uptown neighborhood, this 41-unit classic courtyard brick gem provides investors with the rare opportunity to own a legacy building. Mercer Apartments has significant income upside and long-term redevelopment potential and is in the heart of the most economically robust sub-market of Seattle. Additionally, the Queen Anne/Uptown area is slated to benefit from the substantial redevelopment of Key Arena, scheduled to open in the summer of 2021, and the associated growth in the surrounding area.

The charming Mercer Apartments was built in 1929 and is comprised of 22 spacious one Bedroom and 19 large studio units with dressing rooms/dens. The Mercer has been tastefully updated with timeless improvements to the kitchens and baths that offer functionality while maintaining the character of the building. Classic brick buildings with hardwood floors, coved ceilings and abundant period charm like the subj ect property always enj oy excellent sustained rental performance. The Mercer Apartments is perfectly positioned to capitalize on the demand for updated apartments with old world charm and modern amenities.

Located in lower Queen Anne, the Mercer Apartments is within walking distance to some of Seattle’s strongest employment growth including Amazon, Apple, Google and other tech giants rapidly expanding in South Lake Union. Residents can run all daily errands and get to and from work without a car. The building is walking distance to many trendy restaurants, coffee shops and entertainment amenities, offering tenants an unmatched urban lifestyle. Several mass transit options are also within walking distance to the property including local buses, the Seattle Monorail with connection to the Sound Transit Link Light Rail, and the Street Car Station.

ADDRESSADDRESS

105 Mercer Street, Seattle, WA 98109

TROPHY BUILDING ON 50 YTROPHY BUILDING ON 50 YARD LINE LARD LINE LOCAOCATIONTION

CLCLASSIC BRICK VENEER WASSIC BRICK VENEER WITH SEITH SECURE CCURE COURTOURTYYARDARD

TIMELESS RENOTIMELESS RENOVVAATION OF CTION OF COMMON AREAS AND MOST OF THE UNITSOMMON AREAS AND MOST OF THE UNITS

CCOPPER PLOPPER PLUMBINGUMBING

BELBELOOW MARKW MARKET RENTSET RENTS

FIRE SPRINKFIRE SPRINKLER SYSTEMLER SYSTEM

STEPS FROM ICSTEPS FROM ICONIC SPONIC SPAACE NEEDLECE NEEDLE

MINUTES TMINUTES TO SEAO SEATTTLE CBD VIA MONORAILTLE CBD VIA MONORAIL

WWALK TALK TO SLO SLUU

SPSPAACIOUS UNITS WCIOUS UNITS WITH OLD WITH OLD WORLD CHARMORLD CHARM

POPOTENTIAL VTENTIAL VALALUEUE-ADD B-ADD BY ADDING BASEMENT UNITSY ADDING BASEMENT UNITS

GARAGARAGE PGE PARKARKINGING

IDEAL UNIT MIXIDEAL UNIT MIX

OFFERING SUMMARY

http://properties.westlakeassociates.com/526159-salehttp://properties.westlakeassociates.com/526159-sale

PHENOMENAL QUEEN ANNE/UPTOWN LOCATION

VALUE-ADD POTENTIAL

LEGACY ASSET

• Half block to new Seattle Center Sports Arena(formerly Key Arena, opening Summer 2021)

• On proposed new regional ST-3 light rail expansion• Steps to monorail station and the iconic Space Needle and Seattle Center• Walking distance to many trendy coffee shops, restaurants and retail• 1.5 miles to Seattle CBD• Situated across the street from the Metropolitan Market Uptown location

• Immediate income upside potential• Current rents at $2.32 per foot• SM-UP 85 (M1) Urban Village Zoning• Preliminary plans to add 2 units in storage area• Additional possibility to add units in parking garage• Potential to add bedrooms to studios• Buyer to verify feasibility of redevelopment potential

• Timeless renovation to most kitchens and bathrooms• Coved ceilings, arched doorways, crown moldings• Original wood millwork and doors• New common area carpet and paint throughout• All copper plumbing supply lines• New Boiler (2016)• Refinished oak hardwood floors in most units• New vintage lighting in common areas• Fire Sprinkler System

PROPERTY HIGHLIGHTS

Property Type

Property Subtype

Zoning

Land Area

APN#

Multifamily

Low-Rise

SM-UP 85 (M1)

12,514 SF

198820-0240

PROPERTY DETAILS SALE PRICE $13,000,000

Building Name

Street Address

City, State, Zip

County / Township

Market

Submarket

Mercer Apartments

105 Mercer Street

Seattle, WA 98109

King

Seattle

Lower Queen Anne

LOCATION INFORMATION

Total Building Size

Net Rentable Area

Number of Floors

Year Built

32,908 SF

24,743 SF

3

1929

ASSESSOR’S INFORMATION

Parking Type

Number of Spaces

Garage

8

PARKING & TRANSPORTATION

Central HVAC

Laundry Description

Plumbing Description

Central Heat

Common

Copper Supply

UTILITIES & AMENITIES

PROPER TY DETAILS

LAKE UNION

LAKE WASHINGTON

PUGET SOUND

MERCER APARTMENTS

DOWNTOWN SEATTLE

CAPITOL HILL

QUEEN ANNE

SOUTH LAKE UNION

DENNY PARK

OLYMPIC SCULPTURE PARK

ELLIOT BAY &CENTENNIAL PARK

BEACON HILL

BILL & MELINDAGATES FOUNDATION

MCCAW HALL

CORNISH PLAYHOUSE

SPACE NEEDLE

NORDSTROM HQ

ZILLOW GROUP

SEATTLE AQUARIUM

ZULILY

MUSEUM OF POP CULTURE

FRED HUTCH

PIKE PLACE MARKET

CENTURYLINK FIELD

GOOGLE CAMPUS

T-MOBILE PARK

AMAZON

AMAZON

F5 Networks, Inc.

EXPEDIAGROUP

KEY ARENATARGET

COMPLETION:JUNE 2021

COMPLETION: OCTOBER 20194,500 EMPLOYEES

Number of Units 41

Year Constructed 1929

Zoning SM-UP 85 (M1)

Rentable SF 24,743 SF

Lot Size 12,514 SF

SSale Pale Pricerice $13,$13,000,000,000000

Price per Unit $317,073

Price per NRSF $525.40

Price per Land SF $1,038.84

Current Cap 3.49%

Current GRM 18.3

Market Cap 4.68%

Market GRM 15.25

Loan Amount $6,500,000

Down Payment $6,500,000

Rate 3.70%

% Down 50.0%

Amortization 30

Term 5 Years

Monthly Payment $29,918

Annual Payment $359,021

PROPERTY OVERVIEW

PRICE ANALYSIS

FINANCING

# OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF

19 Studio 540 $950 - $1,450 $2.50 $1,450 $2.68

22 1 BD | 1 BA 670 $1,195 - $1,850 $2.23 $1,750 $2.61

Total | AVG $57,355 $2.32 $66,050 $2.67

CURRENT PRO FORMA

Scheduled Rent Income $686,400 $792,600

+ W/S/G + Laundry $24,000 $60,000

+ Parking/Basement $8,160 $26,400

Scheduled Gross Income $718,560$718,560 $879,000

- Vacancy & Credit Losses (4.00%) $28,742 $35,160

Gross Income $689,818 $843,840

CURRENT PER UNIT PRO FORMA PER UNIT

RE Taxes $84,477 $2,060 $98,000 $2,390

Property Insurance $11,095 $270 $11,095 $270

Professional / Onsite Management $40,000 $975 $35,000 $853

Utilities $58,859 $1,435 $58,859 $1,435

Repairs & Maintenance $30,000 $731 $20,000 $487

Reserves $12,000 $292 $12,000 $292

Total Operating Expenses $236,431$236,431 $5,7$5,76666 $234,$234,954954 $5,730$5,730

Net Operating Income $453,387$453,387 $11,$11,058058 $608,886 $14,850

Less Annual Debt Service ($359,021) ($8,756) ($359,021) ($8,756)

Cash Before Taxes $94,366 $2,301 $226,249 $5,518

Total Return Before Taxes $214,917.72 $5,241.90 $346,800.72 $8,458.55

Cash-on-Cash 1.45% 3.48%

INCOME

EXPENSES

FINANCIAL OFFERING

The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment.

UNIT TUNIT TYPEYPE CCOUNTOUNT % T% TOOTTALAL SIZE (SF)SIZE (SF) RENTRENT RENTRENT/SF/SF MARKMARKET RENTET RENT MARKMARKET RENTET RENT/SF/SF

Studio 3 7.3 508 $1,250 $2.46 $1,450 $2.85

Studio 6 14.6 525 $1,327 $2.53 $1,450 $2.76

Studio 3 7.3 539 $1,275 $2.37 $1,450 $2.69

Studio 5 12.2 551 $1,268 $2.30 $1,450 $2.63

Studio 2 4.9 578 $1,400 $2.42 $1,450 $2.51

1 BD | 1 BA 3 7.3 578 $1,488 $2.57 $1,750 $3.03

1 BD | 1 BA 6 14.6 593 $1,445 $2.44 $1,750 $2.95

1 BD | 1 BA 6 14.6 651 $1,447 $2.22 $1,750 $2.69

1 BD | 1 BA 6 14.6 707 $1,502 $2.12 $1,750 $2.48

1 BD | 1 BA 1 2.4 1,100 $1,850 $1.68 $1,750 $1.59

Totals/Averages 41 100% 24,742 $57,355 $2.32 $66,050 $2.67

UNIT MIX SUMMARY

POTENTIAL NEW UNITS IN STORAGE AREA

PRICE/UNITPRICE/UNIT PRICE/SFPRICE/SF CAP RACAP RATETE GRMGRM

$317,073 $525.40 3.49% 18.3

SUBJECT PROPERTY

105 Mercer StreetSeattle, WA 98109

SALE PRICE $13,000,000

UNITS 41

YEAR BUILT 1929


$429,411 $398.58 4.12% 17.1

524 5th Ave WSeattle, WA 98119

SALE DATE 09/14/2018


UNITS 17

YEAR BUILT 1966

1


$238,548 $529.77 -% -

419 QUEEN ANNE

419 Queen Anne A ve NSeattle, WA 98109



UNITS 31

YEAR BUILT 1912

2


$333,333 $509.92 2.83% 19.5

ROY STREET

100 Roy StSeattle, WA 98119



UNITS 66

YEAR BUILT 1948

3


$330,454 $328.01 3.5% 15.8

CASTLE COURT

822 Queen Anne Ave NSeattle, WA 98109



UNITS 22

YEAR BUILT 1915

4


$362,633 $590.51 4.3% -

THE STANDARD

512 5th Ave WSeattle, WA 98119



UNITS 20

YEAR BUILT 1957

5

SALE COMPS

SUBJESUBJECT PROPERTCT PROPERTYY PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CAPCAP GRMGRM # OF UNITS# OF UNITS

Mercer Apartments

105 Mercer Street

Seattle, WA 98109

$13,000,000 24,743 SF $525.40 $317,073 3.49% 18.3 41

SALE CSALE COMPSOMPS PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CAPCAP GRMGRM # OF UNITS# OF UNITS SALE DSALE DAATETE

524 5th Ave WSeattle, WA98119

$7,300,000 18,315 SF $398.58 $429,411 4.12% 17.1 17 09/14/2018

419 Queen Anne419 Queen Anne Ave NSeattle, WA 98109

$7,395,000 13,959 SF $529.77 $238,548 - - 31 05/01/2019

Roy Street100 Roy StSeattle, WA 98119

$22,000,000 43,144 SF $509.92 $333,333 2.83% 19.5 66 03/01/2018

Castle Court822 Queen Anne Ave NSeattle, WA 98109

$7,270,000 22,164 SF $328.01 $330,454 3.5% 15.8 22 03/30/2018

The Standard512 5th Ave WSeattle, WA 98119

$7,252,676 12,282 SF $590.51 $362,633 4.3% - 20 07/31/2018

PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CAPCAP GRMGRM

Totals/Averages $10,243,535 21,973 SF $471.36 $338,876 3.69% 17.47

1

2

3

4

5

SALE COMPS SUMMARY

BUILDING PHO TOS

INTERIOR PHOTOS

LAKE UNION

PUGET SOUND

105 Mercer Street

WESTLAKE ASSOCIATES, INC.

QUEEN ANNE HILLQUEEN ANNE HILL is an affluent neighborhood northwest of downtown Seattle. The neighborhood sits on the highest hill in the city, with a maximum elevation of 456 FT.

Queen Anne Hill has long been considered Seattle’s premier residential neighborhood due to its close proximity to Seattle’s CBD, easy access to public transportation and the ability to maintain a family-friendly neighborhood with strong community ties.

One of the most attractive views of the city, the Space Needle and Mount Rainier can be observed from Kerry Park, located on Highland Drive.

Upper Queen Anne’s Queen Anne Avenue is bustling with coffee shops, restaurants, boutiques, grocery stores and other service-oriented businesses.

Equally accessible is Lower Queen Anne; home to vibrant night life, numerous neighborhood restaurants and the 64-acre Seattle Center, site of the 1962 Seattle World’s fair. Today the Seattle Center is home to the Pacific Northwest Ballet, the Pacific Science Center, the Seattle Opera, the Seattle Children’s Theatre, the Space Needle, Paul Allen’s MoPOP Museum and the Chihuly Garden and Glass.

Click here for more about the Seattle Center

LOCATION

SOUTH LAKE UNIONALTHOUGH SOUTH LAKE UNION HAD HUMBLE BEGINNINGS, starting out as the city’s hub for logging, maritime industry and manufacturing, the South Lake Union neighborhood has transformed into a modern, diverse community. Today, businesses range from biotechnology and medical research centers to thriving shops and restaurants. There are various parks, open green spaces, water access, and efficient public transportation, including the Seattle Streetcar.

$2.84 billion in public and private funds have been invested into the revival of the neighborhood. Microsoft co-founder Paul Allen and his Vulcan Real Estate company have rapidly changed the deserted warehouse district into a thriving tech-hub. The addition of a trolley system, a park along the shore of Lake Union, and retail/apartment buildings have, in recent years, given South Lake Union a great vibe that people can’t get enough of. South Lake Union is home to some of the largest companies in Washington State. Major employers in the neighborhood include Amazon.com, University of Washington Medicine, Facebook, Fred Hutchinson Cancer Research Center, REI flagship store, Google, NBBJ, Pemco, and Seattle Cancer Care Alliance.

South Lake Union’s unbeatable location makes it an ideal place to live. The residential options are growing, as builders expand the selection of apartments and condominiums. A charming neighborhood characteristic, houseboats are a common sight in the area.

South Lake Union is experiencing an influx of new restaurants that add to its already vibrant culinary scene. World-class dining experiences and delicious happy hours abound. Stop at always-festive taqueria El Grito for tacos and mezcal cocktails or try German specialist Feierabend for crisp schnitzel and schwarzbier. Everything is made with care at Teinei, from handmade ramen noodles to fresh maki rolls. Saigon street food has been refined at Ba Bar, with unbeatable pho, vermicelli noodle bowls and rotisserie meats. And Caffe Torino covers all of our caffeine needs, including Italian specialties like Bicerin, a mix of coffee, cream, and hot chocolate.

Stroll through the South Lake Union Saturday Market, where local food vendors and craftspeople occupy more than 100 booths. To experience commerce, download and activate Amazon Go’s app, grab your supplies or takeout lunch, and walk out the door - the digital transaction is lightning-quick, no cashiers necessary. Feast your eyes on Verde & Co., a flower and plant boutique, and browse the Asian snacks, staples, seafood, and grab-and-go meals at Kai Market, a sleek offshoot of the city’s famed Uwajimaya grocer.

To learn about the history of Lake Union and the surrounding neighborhood, the Museum of History and Industry (MOHAI) hosts exhibits on innovative technology, local history and fashion. The Center for Wooden Boats offers sailing and paddling on dragon boats, and classes on carving your own wooden boat. You can rent kayaks and paddle boards and float through Lake Union.

SOUTH LAKE UNION

PUGET SOUNDSet in the beautiful Pacific Northwest, the greater Seattle area is a national center for manufacturing, technology, services, international trade and tourism.

MAJOR EMPLOYERS

Today some of the world’s most recognizable Fortune 500 companies call Seattle home: Microsoft, Starbucks, Amazon, Nordstrom, Costco and REI. Other major companies in the area include Boeing, T-Mobile. Expedia, F5 Networks and Nintendo of America.

According to the Puget Sound Business Journal, technology companies are leading the way in employment growth in the Seattle MSA. As the home of Microsoft and Amazon, Seattle accounts for over 20% of the nation’s software publishing employment. Microsoft is one of the top employers in the sate with over 42,000 employees. Their World Headquarters, located in Redmond is over 10 million square feet.

The Puget Sound has become a international leader in innovative industries with organizations such as the Fred Hutchinson Cancer Research Center, the University of Washington Medical Center and the Bill and Melinda Gates foundation. Healthcare employment is projected to continue to grow dramatically and Seattle has the 5th largest biotechnology Research and Development alliance between the University of Washington and the Fred Hutchinson Cancer Research Center.

The Puget Sound is one of the capitals of the aerospace industry anchored by Boeing, the world’s largest aerospace company, second-

largest maker of large commercial jets, and second largest global defense contractor. Boeing is one of the largest employers in the Puget Sound, employing approximately 80,000 in Washington.

Employment is expanding through the greater Seattle area. The Puget Sound region is projected to generate 1.2 million new jobs by 2040.

INTERNATIONAL TRADE

Seattle has remained one of the most resilient cities due to its diverse industries, making it more attractive for new companies to relocate and expand in the area. The Port of Seattle, which also operates the Seattle-Tacoma International Airport, is a major gateway to Asia and cruises to Alaska. The Port of Seattle ranks as the 6th business seaport in the US, playing a key role in bringing international trade, transportation and travel to the Pacific Northwest.

RECREATION

The region is known for its quality of life, arts, and outdoor lifestyle which helps attract an educated workforce. Numerous camping, hiking, winter sports, and recreational activities are located a short drive from the city. Seattle’s main attractions include Pike Place Market, the Space Needle, and Seattle Center, home of the 1962 World’s Fair. Seattle is home to a number of professional sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle Mariners, and the Seattle Sounders FC soccer team.

PUGET SOUND LARGEST EMPLOYERS

80,000Employees

JOINT BASE LEWIS-MCCHORD

56,000Employees

42,000Employees

25,000Employees

40,000Employees

20,000Employees

10,000Employees

15,000Employees

13,000Employees

20,000Employees

PUGET SOUND SUMMARY

Sound Transit is working on a project for a Ballard Link Extension that will provide fast, reliable light rail connections to dense residential and job centers throughout the region. In addition, a new downtown Seattle light rail tunnel will provide capacity for the entire regional system to operate efficiently. This light rail extension is a part of the regional ST3 package that voters approved funding for in November 2016.

2035 - Ballard to Downtown

• Adds 7.1 miles of light rail service from downtown Seattle to Ballard,including a new downtown Seattle rail-only tunnel.

• Includes 9 stations between International District/Chinatown and NWMarket Street in Ballard.

Design is expected to begin in 2023 and be completed in 2026. Construction and testing is expected to begin in 2027 and be completed in 2035.

Ballard Link Extensions Project Map & Summary

N

N

SOUND TRANSIT - BALLARD

Since 1975 Westlake Associates, Inc. has been the premier provider of commercial real estate brokerage services in the Puget Sound region.Our commitment to assist our clients in creating and preserving theirreal estate investment wealth has led to the successful closing ofbillions of dollars in investment property and a long history of repeat business and client referrals.

Our firm has thirty real estate professionals with expertise in themulti-family sales market. With a majority of our partners owning and operating their own investment property, we offer clients a unique perspective from both an agent and owner point of view. Our specialization in representing Puget Sound apartment owners resultsin our clients receiving the most effective representation in theindustry, where maximizing client returns is our highest priority.

Through effective teamwork, communication, and an unparalleled knowledge of the Puget Sound apartment market, our agentscontinue to lead the industry in successful closings and clientsatisfaction.

MEMBERMEMBER: C: Commerommercial Bcial Brrokokers Association (ers Association (CBACBA))

MEMBERMEMBER: N: Northorthwest Mwest Multiple Lultiple Listing Sisting Serervices (Nvices (NWWMLS)MLS)

MEMBERMEMBER: Loop N: Loop Net Net National Lational Listing Sisting Serervicesvices

MEMBERMEMBER: C: Costar Costar Commerommercial Rcial Real Eeal Estate Dstate Data and Nata and National Lational Listing Sisting Serervicevice

MEMBERMEMBER: C: Commerommercial Icial Innvestmenvestment Rt Real Eeal Estate Istate Institute (nstitute (CREI)CREI)

MEMBERMEMBER: W: Washington Sashington State Rtate Realtors Association (WSMAealtors Association (WSMA))

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the mercer apartments...upper queen anne s queen anne avenue is bustling with coffee shops,...

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