Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 324 6th Ave S, Kirkland WA98033
Total Units 5
Built 1962
Square Feet 3,740 Total Net Rentable
Price $1,825,000
Price Per Unit $365,000
Expenses Per Unit 4,743/Year
Price Per Foot $487.97
Current GRM/CAP 25.6/2.6% (1% Vacancy)
Market GRM/CAP 16.8/4.5% (3% Vacancy)
Zoning PLA 6E
Terms Cash Out

Investment Highlights

Paragon Real Estate Advisors is pleased to offer for sale The Jewell Apartments. This charming 5 unit building has been in the family for many years with long term residents. Rents have historically been well below market for this area. There is 20% to 40% rental income upside depending on updates. Additionally, the property is on a 10,000 sq.ft. lot which seems to be underutilized for the existing building.

Highlights
> Excellent location near the waterfront
> Rare opportunity to buy a Kirkland apartment building
> Two blocks to Google’s Kirkland campus
> Close to Starbucks, Metropolitan Market and downtown Kirkland
> Located on the bus line (Routes 234, 235, 238 and 255)
> Architecturally appealing building
> Large, spacious two-bedroom units with washers and dryers
> Covered parking for 4 cars plus additional open parking in front
> Ideal for owner occupant or extended family




Location Highlights

Kirkland is an affluent Eastside neighborhood, with an excellent location on the shores of Lake Washington and close access to many top employers in the area. With its dynamic community, to go along with its commanding views and scenic vistas, this area has a lot to offer prospective buyers.

Downtown Kirkland and Marina Park are just to the South. This pedestrian-friendly area offers outstanding dining, entertainment, hotel, and shopping options.

To the East is Google’s new Kirkland campus which hosts over 1,000 employees. This is Google’s third largest engineering campus in the US which encompasses over 675,000 square feet of office space.
The Jewell Apartments are located at 324 6th Avenue South. This is an excellent location within two and half blocks from Kirkland’s waterfront parks to the west, and Google’s Campus to the east.

The apartments are nestled in a quiet residential neighborhood with a mix of owner occupied homes and small apartment complexes. This is a quiet street with limited drive by traffic which attracts longer term residents who want to live in a location that feels more like a home than another apartment. This location is within close proximity to all the amenities residences desire such as waterfront parks, the downtown entertainment district, and many coffee shops and restaurants.


Operating Information

PRICING
Price$1,825,000
Down Payment$912,500 (50%)
Loan Amount$912,500 (50%)
Interest Rate3.80% Variable
Amortization30 Years
 
Price Per Unit$365,000
Price Per Sq.Ft.$487.97
 
Current GRM25.56
Current CAP2.57%
Market GRM16.80
Market CAP4.47%
 
CURRENT EXPENSES
Current Expenses/Unit$4,743
Expenses/Foot$6.34
% of GSI33.21%
MARKET EXPENSES
Expenses/Unit$4,743
Expenses/Foot$6.34
% of GSI21.84%


MONTHLY SCHEDULED INCOMECurrentMarket
Monthly Scheduled Rent$5,950$5,950
Utility Bill Back ($100/mth)$0$500
Parking (4 covered parking spaces)$0$0
Miscellaneous Income$0$0
Total Monthly Income$5,950$9,050
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$71,400$108,600
Less Vacancy$714 (1%)$3,258 (3%)
Gross Operating Income$70,686$105,342
Less Expenses$23,715$23,715
Net Operating Income$46,971$81,627
Annual Debt Service ($4,252/mo)$51,022$51,022
Cash flow Before Tax($4,051) (-.44%)$30,605 (3.35%)
Principal Reduction$16,635$16,635
Total Return Before Tax$12,584 (1.38%)$47,240 (5.18%)
 
ANNUALIZED OPERATING EXPENSES
Real Estate Taxes (2017)$9,705$9,705
Insurance (Proforma)$1,710$1,710
Utilities (2017 Est.)$5,100$5,100
Maint & Repairs (Proforma)$4,500$4,500
Landscaping (Proforma)$600$600
Administration (Proforma)$600$600
Reserves (Proforma)$1,500$1,500
Total Operating Expenses$23,715$23,715

Monthly Scheduled Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
1 Studio - #5 400 Sq.Ft. $750 $750 $1,200 $1,200
1 2BD/1BTH - #1 835 Sq.Ft. $1,000 $1,000 $1,775 $1,775
1 2BD/1BTH - #2 835 Sq.Ft. $1,300 $1,300 $1,775 $1,775
1 2BD/1BTH - #3 835 Sq.Ft. $1,450 $1,450 $1,850 $1,850
1 2BD/1BTH - #4 835 Sq.Ft. $1,450 $1,450 $1,950 $1,950
5 Average/Totals 748 SqFt $1.59 $5,950 $2.29 $8,550

Property Photos

Floor Plans

Sales Comparables

Portage Bay Flats
3232 Fuhrman Ave E
Seattle, WA 98102
Year Built 1960
Units 5
Sales Price $2,500,000
Price Per Unit $500,000
Price/Foot $498
GRM/CAP 20.5/3.4%
Sale Date 9.12.2017
Shoreside
9900 SE Shoreland Dr
Bellevue, WA 98004
Year Built 1965
Units 6
Sales Price $2,600,000
Price/Unit $433,333
Price/Foot $396
GRM/CAP Unknown
Sales Date 9.1.2017
Tiki Apartments
1124-1148 Market St
Kirkland, WA 98033
Year Built 1962
Units 4
Sale Price $1,600,000
Price/Unit $320,000
Price/Foot $488
GRM/CAP 28.0/2.2%
Sales Date 8.10.2017
Laurey Ann Apartments
2529 Yale Ave E
Seattle, WA 98102
Year Built 1969
Units 6
Sales Price $2,600,000
Price Per Unit $433,333
Price/Foot $615
GRM/CAP 20.5/3.3%
Sales Date 6.14.2017
Sea Gull Apartments
430 Lake St S
Kirkland, WA 98033
Year Built 1963
Units 21
Sales Price $6,000,000
Price/Unit $285,714
Price/Foot $467
GRM/CAP Unknown
Sales Date 3.14.2017
Kirkland Shores
205 5th Ave S
Kirkland, WA 98033
Year Built 1976
Units 6
Sale Price $2,250,000
Price/Unit $375,000
Price/Foot $355
GRM/CAP 17.0/3.9%
Sales Date 2.26.2016

Sales Comparables MAP

Portage Bay Flats
3232 Fuhrman Ave E
Seattle, WA 98102
Shoreside
9900 SE Shoreland Dr
Bellevue, WA 98004
Tiki Apartments
1124-1148 Market St
Kirkland, WA 98033
Laurey Ann Apartments
2529 Yale Ave E
Seattle, WA 98102
Sea Gull Apartments
430 Lake St S
Kirkland, WA 98033
Kirkland Shores
205 5th Ave S
Kirkland, WA 98033