UNIVERSITY ARMS

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SEATTLE

Casey ZejdlikP: 206.566.6599C: 206.280.1871casey@pilotnw.com

Jason KonoP: 206.566.6595C: 206.920.0187jason@pilotnw.com

Jim NicholsP: 206.659.6155C: 206.999.5691nichols@incityinc.com

EXCLUSIVELY LISTED BY

Investment Overview

Location

Financials

Comparables

Offer Guidelines

TABLE of CONTENTS

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. © Pilot Ventures LLC.

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Investment Overview

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A core Wallingford asset with city and lake views

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$312,277PROFORMA NOI

At A Glance Price $ 5,950,000 Units 21 (potential to add a Studio unit)Price Per Unit $ 283,333

Rentable SF 13,509 (potential to add 375 rentable SF)

Price Per SF $ 440

Current Cap Rate 3.89 %

Cap Rate on Cost 5.20 %

Current GRM 15.8

GRM on Cost 14.1

Year Built 1957

Parcel Number 420690-0845

Land SF 12,000

Zoning LR2

Construction Type Wood frame w/ brick veneer

Plumbing Galvanized

Parking 14 off-street spaces

Hot Water Gas central hot water heater(s) (2013 & 2016)

Heating Boiler (2006)

Roof Type PVC (upper) & Torchdown (lower)

Roof Year New in 2008

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Interior Photos

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Interior Photos

Location

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UNIVER SIT Y ARMS APARTMENTS201 NE 40th Street, Seattle, WA 98105

Nestled in Seattle’s quaint Wallingford neighborhood, the University Arms Apartments provide the comfort of small community living with convenient access to the amenities needed to maintain a happy and healthy lifestyle.

Homes in the University Arms have been updated with new cabinets, granite countertops, fresh carpets, and modern fixtures. Residents love their private balconies with sweeping views of Lake Union and Downtown Seattle. An on-site laundry room provides convenient access for all residents to enjoy. This value-add investment opportunity has rental upside and the potential to add a Studio unit.

The University Arms Apartments could not have a better location. Portage Bay, Gas Works Park, and Wallingford playfield are all within walking distance. A bit farther are Fremont and the University District, both featuring wonderful shops, tasty restaurants, and endless entertainment options.

All major business centers are easily accessible from the building due to its prime accessibility to I-5 and SR 520. Major employers in both Downtown Bellevue and Seattle, such as Google, Microsoft, Facebook, Amazon, Tableau, Adobe, and Nordstrom, are only a 15-minute drive from the University Arms Apartments, which features ample parking for all residents to take advantage of.

seattle

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WALKSCORE.COM

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DR

INK 1 Tilth

2 RockCreek

3 Art of the Table

4 Cantinetta

5 SWeL

6 Le Petit Cochon

7 Fremont Brewing Company

8 Ivar’s Salmon House

9 Sushi Kappo Tamura

10 Shawn O’Donnell’s

11 Pacific Inn Pub

12 Murphy’s Pub

13 Kate’s Pub

14 Paseo

15 Tutta Bella Pizzeria

16 Westward

17 Eastlake Bar & Grill

18 Milstead & Co. Coffee

19 Caffe Vita

20 The Bounty Coffee

21 Fuel Coffee

22 A Muddy Cup

1 Google

2 Adobe

3 Tableau Software

4 Allen Institute

1 Marketime Foods

2 Fremont Sunday Market

3 PCC Community Market

4 evo Seattle

5 Brooks

6 QFC

7 Wallingford Center

8 Durn Good Grocery

9 Dunn Lumber

10 Trader Joe’s

1 Cornerstone Fitness

2 Anytime Fitness

3 Studio 45

4 FUELhouse

5 Fusion Fitness

6 Kirchoff Fitness

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LAKE UNION

WALLINGFORD | Seattle, WA | 98105

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seattle

Regi

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Seattle is a bustling metropolis, ranked by the U.S. Census in the “Top 4 for Growth” for five consecutive years.

Since 2010, our population has increased 18.7%, bringing an additional 114,412 people to America’s beloved Emerald City.

It’s no stretch to appreciate how the lush, green foliage and shimmering waters led a few to Seattle.Unparalleled beauty and access to the outdoors have helped attract some of the best companies in the country. To the east and west, the city is bordered by Lake Washington and the Puget Sound. Out further, snowcapped mountain ranges can be seen in every direction.

Home to a diverse and robust community, Seattle is the cultural and business center of the Pacific Northwest. The thriving tech sector has pushed up the wages, software engineers averaging $132,000/year, as well as the cost of rent.

Employment and population growth rates are strong and stable, supported by the variety of commerce and an ongoing demand for skilled workers.

Seattle was ranked the second-best city for STEM workers by NerdWallet. The University of Washington, a highly ranked school with a variety of nationally recognized programs, prepares top-tier students for roles at companies, such as Amazon, the Fred Hutchinson Cancer Research Center, Facebook, and the Allen Institute.

Buzzing with new infrastructure, jobs and residents, Seattle’s evergrowing metropolis is considered home to many major employers who drive growth and fuel our economic climate including:

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LARGESTIN THE PACIFIC NORTHWEST

SEATTLE RANKED # 1 FOR GROWTH THIS DECADE 3.8 MILLION PEOPLE IN SEATTLE’S URBAN CORE

THAT’S OVER HALF THE TOTALPOPULATION OF WA STATE

18.7 %SEATTLE HAS GROWN

SINCE 2010

Financials

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UNIT Type Approx NRSF Current Rent Current /SF Market Rent Market /SF

101 1 Bd / 1 Bth 650 $ 1,450 $ 2.23 $ 1,575 $ 2.42

102 1 Bd / 1 Bth 650 $ 1,390 $ 2.14 $ 1,575 $ 2.42

103 1 Bd / 1 Bth 650 $ 1,485 $ 2.28 $ 1,575 $ 2.42

104 1 Bd / 1 Bth 650 $ 1,390 $ 2.14 $ 1,575 $ 2.42

105 1 Bd / 1 Bth 650 $ 1,370 $ 2.11 $ 1,575 $ 2.42

106 1 Bd / 1 Bth 650 $ 1,444 $ 2.22 $ 1,575 $ 2.42

107 1 Bd / 1 Bth 650 $ 1,495 $ 2.30 $ 1,575 $ 2.42

108 1 Bd / 1 Bth 650 $ 1,450 $ 2.23 $ 1,575 $ 2.42

201 3 Bd / 1.5 Bth 1,000 $ 2,450 $ 2.45 $ 2,800 $ 2.80

202 1 Bd / 1 Bth 650 $ 1,478 $ 2.27 $ 1,595 $ 2.45

203 1 Bd / 1 Bth 650 $ 1,385 $ 2.13 $ 1,595 $ 2.45

204 1 Bd / 1 Bth 650 $ 1,500 $ 2.31 $ 1,595 $ 2.45

205 1 Bd / 1 Bth 650 $ 1,485 $ 2.28 $ 1,615 $ 2.48

206 1 Bd / 1 Bth 650 $ 1,515 $ 2.33 $ 1,615 $ 2.48

301 1 Bd / 1 Bth 650 $ 1,460 $ 2.25 $ 1,575 $ 2.42

302 1 Bd / 1 Bth 650 $ 1,500 $ 2.31 $ 1,625 $ 2.50

303 1 Bd / 1 Bth 650 $ 1,513 $ 2.33 $ 1,625 $ 2.50

304 1 Bd / 1 Bth 650 $ 1,515 $ 2.33 $ 1,625 $ 2.50

A 1 Bd / 1 Bth 650 $ 1,385 $ 2.13 $ 1,465 $ 2.25

B 1 Bd / 1 Bth 650 $ 1,360 $ 2.09 $ 1,465 $ 2.25

C 1 Bd / 1 Bth 650 $ 1,360 $ 2.09 $ 1,465 $ 2.25

NEW UNIT Studio 375 $ 0 $ 0.00 $ 1,315 $ 3.51

$ 31,380 $2.13 $ 35,575 $ 2.49

• 201 has in-unit laundry and large rooftop deck with city views

• 205, 206, & 301-304 have city views

• New Studio per Christopher Day is 375 SF to be built in existing laundry

and storage area

• Estimated budget for buildout of Studio unit is $60,000

Rent Roll

* Square footages are estimated, Buyer to verify.

** Buyer to verify addition of unit and cost.

CURRENT PRO FORMA

Gross Potential Rent $ 376,560 $ 426,900

Vacancy $ (15,062) 4.00 % $ (17,076) 4.00 %

NET RENTAL INCOME $ 361,498 $ 409,824

OTHER INCOME

Laundry Income $ 900 $ 3,780

Utility Billback $ 9,000 $ 19,800

Parking Income $ 11,100 $ 12,600

Misc Income $ 3,360 $ 2,160

Total Other Income $ 24,360 $ 38,340

EFFECTIVE GROSS INCOME $ 385,858 $ 448,164

EXPENSES

Property Taxes $ 44,928 $ 52,160

Insurance $ 3,306 $ 6,050

Utilities $ 31,026 $ 31,950

Maintenance /Repairs $ 25,206 $ 16,500

Advertising $ 573 $ 550

Resident Manager $ 0 $ 4,400

Professional Management $ 18,887 $ 17,927

Administrative /Misc $ 2,877 $ 2,750

Payroll $ 23,734 $ 0

Landscaping $ 4,097 $ 3,600

Total Expenses $ 154,634 $ 7,364 / Unit $ 135,887 $ 6,177 / Unit

NET OPERATING INCOME $ 231,224 $ 312,277

Loan Payments $ (188,708) $ (188,708)

Pre-Tax Cash Flow $ 42,516 1.49 % $ 123,569 4.34 %

Principal Reduction $ 49,922 $ 49,922

TOTAL PRE-TAX RETURN $ 92,437 3.24 % $ 173,491 6.09 %

Financial Analysis

• 14 off-street parking spaces

at $75 each

• Based off of $3,100,000 in

loan proceeds at 4.51%

fixed for 7 years

• Market expenses are based

off of 22 units

Comparables

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Sales ComparablesPROPERTY ADDRESS Building Name Units Price Sale Date Price/Unit Price/NRSF Cap Rate GIM

201 NE 40th St University Arms 21 $ 5,950,000 TBD $ 283,333 $ 440 3.84 % 15.8

1 1222 Taylor Ave N Townview 9 $ 2,995,000 Under Contract $ 332,778 $ 434 4.6 % 14.3

2 219 Harvard Ave E Melmar 28 $ 9,375,000 11/ 2 8 /18 $ 334,821 $ 533 4.9 % 14.0

3 512 5th Ave W* Standard QA 20 $ 7,252,676 7/ 31/18 $ 362,634 $ 567 4.3 % 17.6

4 408 N 61st St Marcia Apartments 8 $ 2,224,000 7/10/18 $ 278,000 $ 432 4.1 % 16.9

5 4427 5th Ave NE Allview Apartments 12 $ 3,800,000 4 / 26 /18 $ 316,667 $ 424 4.0 % 16.9

6 5217 University Way NE The Pacific 34 $ 6,850,000 4 / 2 0/18 $ 201,471 $ 477 3.7 % -

AVERAGES $ 304,395 $ 478 4.3 % 15.9

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TOWNVIEW

• 1959 construction• Clean but slightly dated• Galvanized plumbing• Hardwood floors

MELMAR

• 1962 construction• W/D in 2-bed units• Updated common areas• 23 units renovated

STANDARD QA

• 1957 construction• 10 units fully renovated• Future development play• Two 3-bed units

MARCIA APARTMENTS

• 1957 construction• Updated plumbing & windows• Some interior updates

ALLVIEW APARTMENTS

• 1959 construction• 10 units fully renovated• Development potential

6 THE PACIFIC

• 1958 construction• Buyer intends to rehab• Deferred maintenance• Studios & 1-bed

*Indicates Pilot Ventures Sale

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TOWNVIEW

1222 Taylor Ave N

MELMAR

219 Harvard Ave E

STANDARD QA

512 5th Ave W

MARCIA APARTMENTS

408 N 61st St

ALLVIEW APARTMENTS

4427 5th Ave NE

THE PACIFIC

5217 University Way NE

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LAKEWASHINGTON

ELLIOTT BAY

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GREENLAKE

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PROPERTY ADDRESS Building Name Unit Type Unit SF Rent Rent /SF

1 3230 Eastlake Ave E Eastlake Gardens 1 bd / 1 bth 780 $ 1,695 $ 2.17

2 4427 5th Ave NE Allview Apartments 1 bd / 1 bth 665 $ 1,695 $ 2.55

3 3905 4th Ave NE Condo Rental 1 bd / 1 bth 600 $ 1,699 $ 2.83

4 3419 Wallingford Ave N Cameo 1 bd / 1 bth 615 $ 1,600 $ 2.60

5 4405 Corliss Ave N Lisa Carol 1 bd / 1 bth 650 $ 2,150 $ 3.31

6 3426 Wallingford Ave N Wallingford Apartments 1 bd / 1 bth 505 $ 1,550 $ 3.07

AVERAGES 636 $ 1,732 $ 2.76

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EASTLAKE GARDENS

• Nicely updated• In-unit laundry• City views

ALLVIEW APARTMENTS

• Fully renovated• In-unit laundry• Utilities $70/$110

CONDO RENTAL

• Great views• In-unit laundry• Secured parking

CAMEO

• Off-street parking• Average condition• On-site laundry

LISA CAROL

• Fully renovated• In-unit laundry• High quality finishes

6 WALLINGFORD APARTMENTS

• Updated cabinets• Granite in top floor units • In-unit laundry

Rent Comparables

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EASTLAKE GARDENS

3230 Eastlake Ave E

ALLVIEW APARTMENTS

4427 5th Ave NE

CONDO RENTAL

3905 4th Ave NE

CAMEO

3419 Wallingford Ave N

LISA CAROL

4405 Corliss Ave N

WALLINGFORD APARTMENTS

3426 Wallingford Ave N

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GREENLAKE

Offer Guidelines

Pilot Ventures is pleased to announce

All questions and inquiries regarding tours and this opportunity should be addressed to the Pilot Ventures representatives listed herein. Pilot Ventures’ team will be available to assist prospective investors with questions upon their review of the offering. Investors will receive advanced notification of the bid deadline via email. Offers should include, at a minimum, the following:

• The purchase price, contingencies and closing date;

• The amount of earnest money deposit;

• The source of capital for down payment;

• A detailed timeline for the transaction;

• A brief overview of the Buyer’s qualifications.

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Built upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono.

Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do.

At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results.

Together, we don’t just build equity— we build relationships.

BrokerageWhether you’re buying or selling, our experienced team of brokers will ensure you receive the best possible representation.

ManagementManaging property can be an overwhelming experience— in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI.

Investments Our firm’s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment.

Consulting Investing smartly is the easiest way to achieve long-term goals—collaborate with industry professionals who apply systematic market research and financial analysis to produce feasible solutions for all types of real estate projects.

Brokerage / Management / Investments / Consulting

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