lake city retail and land opportunity · market, a growing number of residents moving towards...

1600 University Street | Suite 2018 | Seattle, WA 98101P 206.623.8880 | E [email protected] | ParagonREA.com

Offering Memorandum

LAKE CITY RETAIL AND LAND OPPORTUNITY

14038 - 14040 Lake City Way NE Seattle, WA 98125

Exclusively offered by Paragon Real Estate Advisors


Offering Summary

Name Lake City Retail and Land Opportunity

Address 14038 - 14040 Lake City Way NE, Seattle WA 98125

Total Units 2

Built 1947

Square Feet 3,146 Total Net Rentable

Price $795,000

Current GRM/CAP 16.5/4.6% (5% Vacancy)

Market GRM/CAP 11.0/7.4% (5% Vacancy)

Expense Per Unit $3,094/Year

Terms Cash Out

Lot Size 13,193 Square Feet

Zoning NC3-40

Paragon Real Estate Advisors is proud to exclusively offer the Lake City Retail & Land Opportunity, a rare chance to purchase a property the heart of fast growing Lake City.

This property offers an investor immediate cash flow and upside while also a great land bank with the NC2-40 zoned 13,193 square foot lot. This outstanding location is just steps away from the many businesses, restaurants and shops on Lake City Way as well as convenient access to I-5 Downtown and South Lake Union.

LAKE CITY RETAIL AND LAND OP


Investment Highlights

Development opportunity

Lank bank - many new development projects nearby

High daily traffic count

Located on the bus line

15 minutes to Downtown and Southlake Union

Reposition opportunity for great cash flow

Rapidly growing area in the heart of Lake City

Close to future light rail station on 145th Street

Walking distance to many service and retail businesses

NC3-40 Zoning - 40 foot height limit

New apartments located across the street


Neighborhood Map

LAKE CITY RETAIL AND LAND OPP

UNIVERSITY OF WASHINGTON

SEATTLE CBD

GREEN LAKE

QUEEN ANNE

PUGET SOUND

BALLARD

NORTHGATE MALL

JACKSON PARK GOLF COURSE


Neighborhood Amenities

1 Heaven Sent Fried Chicken2 Briley’s BBQ and Grill3 Fred Meyer4 Northgate Shopping Mall5 Little Brook Park6 Wells Fargo Bank7 Shorecrest High School8 Virgil Flaim Park9 Jackson Park Golf Course10 Elliott Bay Brewery11 Dick’s Drive-In12 Safeway13 Saint Matthew School14 Tubs Gourmet Sub Sandwiches15 Meadowbrook Playfield16 Nathan Hale High School17 Caroline Tavern18 Twin Ponds Park19 Park Shoreline20 Target21 Northwest Hospital Medical Center22 Saffron Grill23 North Seattle College24 Starbucks25 McDonald’s26 Hamlin Park

21

20

19

26

10

2

4

3

11

5

8

9

12

7

13

16

23

14

15

Food/DrinkShopping/ServicesParks/Schools

1

6

17

22

LAKE CITY RETAIL AND LAND OPP

18

24

25


Improvements

The Lake City Commercial property is located at the very heart of the Lake City. This location is approximately 15 minutes to the Seattle’s Central Business District and the University of Washington. Bordered by Lake Washington to the east and I-5 to the west, Lake City has been designated as an Urban Village (Hub) by the City of Seattle. This designation encourages pedestrian friendly development, community transit and an increased density for both residents and businesses.

Lake City has over 500 businesses. Property owners in this area are sure to benefit from the tightening rental market, a growing number of residents moving towards neighborhoods with many retail amenities, services, and public transportation. This trend will grow as tolling occurs along Highway 520 and high rental rates push residents toward North Seattle.

The Lake City Commercial property was constructed in 1947 on an NC2-40 13,193 square foot lot. This property offers an investor the potential to stabilize the investment with market rate leases or redevelop the property to take advantage of the density of NC2-40 zoning.

The property is currently occupied by ACR Tire, a consignment shop and produces additional income from a billboard lease.


Lake City Snapshot

Population 33,660

Median household income $90,935

Single Married

57% 44%

Owner Occupied Renters

54% 46%

Walk Score Transit Score Bike Score

77 - Very Walkable 55 - Good Transit 64 - Bikeable

Median 1 Bd/1 Bth Rent $1,316

Median 2Bd/1 Bth Rent $1,656

TOP JOB SECTORS: *

Management: 12.2% Business 6.2% Computer: 9.3% Engineering 6.2% Administrative: 9.7% Sales: 17.2%

Service: 12.3% Healthcare: 2.7% Engineering 4.4% Science 3.6% Social Services: 1.7%

*https://www.apartments.com/lake-city-seattle-wa/?bb=hspy6kyvuQpl97xkB#guide


Lake City

Lake City is a northeastern Seattle neighborhood located between Interstate 5 and Lake Washington, and stretching from NE 85th Street to the Seattle City line at NE 145th Street. This neighborhood has been designated as an Urban Village (Hub) by the City of Seattle. This designation encourages pedestrian friendly development, community transit and an increased density for both residents and businesses.

Lake City has seen many iterations of itself, going from sleepy logging and farming community known to some as “Little Germany” to a seedy destination for many city dwellers during the prohibition era. After World War II ended, young families flocked here and the population exploded. Lake City residents now enjoy a bustling, forward-thinking community going to great efforts to improve the quality of life in the neighborhood. Lake City has over 500 businesses. Property owners in this area are sure to benefit from the tightening rental market, a growing number of residents moving towards neighborhoods with many retail amenities, services, and public transportation

In the Lake City neighborhood, 73.4% of the working population is employed in executive, management, and professional occupations. The second most important occupational group in this neighborhood is sales and service jobs, from major sales accounts, to working in fast food restaurants, with 15.4% of the residents employed. Other residents here are employed in manufacturing and laborer occupations (6.3%), and 4.9% in clerical, assistant, and tech support occupations.


Employment

> Adobe

> Alaska Airlines

> Amazon

> Apple

> AT&T Wireless

> Boeing

> Costco

> Expedia, Inc.

> Expeditors International

> F5 Networks

> Facebook

> Fred Hutchinson

> Gates Foundation

> Getty Images

> Google

> Microsoft

> Nintendo

> Nordstrom

> Paccar

> RealNetworks

> REI

> Russell Investments

> SpaceX

> Starbucks

> Symetra Financial

> Tableau Software

> T-Mobile

> Twitter

> Uber

> University of Washington

> Virginia Mason

> Weyerhaeuser

> Zillow

> Zulilly

Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world’s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston.


ELLIOTT BAY

Map of Key Employers


Parcel Map


Operating Summary

Units 2

Year built 1947

Rentable Area 3,146 Sq.Ft.

Down Payment $318,000 40%

Loan Amount $477,000 60%

Interest Rate 4.00%

Amortization 25 Years

Lot Size/Zoning 13,193 / NC3-40

Price $795,000

Price Per Unit $397,500

Per Building SF $252.70

Per Lot SF $60.26

Current GRM 16.47

Current CAP 4.60%

Market GRM 11.00

Market CAP 7.44%

Unit

Size

Current Rent

Market Rent

ACR Tire Company 2,674 $1,300 $2,000

Consignment Store 472 $1,000 $1,800

Storage Yard $1,000 $1,500

Commercial Sign 0 $223 $223

3,146 $8.77/Gross S.F. $14.49/Gross S.F.

Total Monthly Income

Monthly Scheduled Rent Mod Gross $3,523 $5,523

CAM Reimbursements $500 $500

Parking Income $0 $0

Miscellaneous Income $0 $0

Total Monthly Income $4,023 $6,023

Scheduled Gross Income $48,276 $72,276

Less Vacancy 5.0% $2,414 5.0% $3,614

Gross Operating Income $45,862 $68,662

Less Expenses $9,283 $9,534

Net Operating Income $36,579 $59,128

Annual Debt Service ($2,518) $30,213 $30,213

Cash Flow Before Tax 2.00% $6,366 9.09% $28,915

Principal Reduction $11,340 $11,340

Total Return Before Tax 5.57% $17,706 12.66% $40,255

Annualized Operating Expenses Current Market

Real Estate Taxes 2017 Actual $6,749 $7,000

Insurance 2017 $814 $814

Utilities 2017 $0 $0

Management 5% $1,720 $1,720

Total Expenses $9,283 $9,534

Annualized Operating Data Current Market

Current Operations

Expenses/Unit Expenses/Foot Percent of EGI

$4,642$2.9519.23%

Market Operations

Expenses/Unit Expenses/Foot Percent of EGI

$4,767 $3.0313.19%


Sale Comparables

1. DEVELOPMENT SITE 14315 Lake City WayNE, Seattle WA

Year Built 1948 Building Size 11,216 Lot Size/Zoning 27,084 / NC3-65 Sales Price $2,049,000 Price/Bldg SF $264.36 Price/Lot SF $75.65

Sales Date 9.19.2017

3. WEDGEWOOD MONTESSORI 11006 34th Ave NE, Seattle WA

Year Built 1949 Building Size 4,545 Lot Size/Zoning 15,480 / NC1-30 Sales Price $1,500,000 Price/Bldg SF $330.03 Price/Lot SF $96.90 Sales Date 9.21.2016

4. LAKE CITY RETAIL BUILDING 12335 Lake City Way NE, Seattle WA

Year Built 1946 Building Size 2,638 Lot Size/Zoning 2,900 / NC3P-65 Sales Price $595,000 Price/Bldg SF $225.55 Price/Lot SF $205.17 Sales Date 4.29.2016

2. LAKE CITY DEV SITE 12038 33rd Ave NE, Seattle WA

Year Built 1949 Building Size 1,420 Lot Size/Zoning 6,600 / LR2 Sales Price $826,500 Price/Bldg SF $582.04 Price/Lot SF $125.23 Sales Date 8.9.2017

5. DEVELOPMENT SITE 13524 Lake City Way NE

Year Built 1925 Building Size 6,720 Lot Size/Zoning 22,747 / C1-65 Sales Price $1,400,000 Price/Bldg SF $208.33 Price/Lot SF $61.55 Sales Date 3.18.2016

SUB - LAKE CITY RETAIL & LAND 14038-40 Lake City Way NE, Seattle WA

Year Built 1947 Building Size 3,146 Lot Size/Zoning 13,193 / NC3-40 Sales Price $795,000 Price/Bldg SF $252.70 Price/Lot SF $60.26 Sales Date TBD


Sales Comparables Map

Lake City Retail & Land Op 14038 - 14040 Lake City Way NE Seattle, WA

1. Development Site 14315 Lake City Way NE Seattle, WA

2. Lake City Dev Site 12038 33rd Ave NE Seattle, WA

3. Wedgewood Montessori 11006 34th Ave NE Seattle, WA

4. Lake City Retail Building 12335 Lake City Way NE Seattle, WA

5. Development Site 13524 Lake City Way NE Seattle, WA

3

42

1

5

LAKE CITY RETAIL AND LAND OP


Paragon Real Estate Advisors

ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi-family property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with. At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 20 years’ experience in the industry. Paragon’s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships.

The information found in this offering memorandum 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 the information and bears all risk for any inaccuracies.

lake city retail and land opportunity · market, a growing number of residents moving towards...

Documents