1633 melrose avenue | seattle, washington · 1633 melrose avenue sherwood apartments. offering...

1633 MELROSE AVENUE | SEATTLE, WASHINGTON

CANDICE CHEVAILLIER, CCIMPrincipalD 206.773.2696C [email protected]

DON FLANIGANSenior Vice PresidentD 206.773.2690C [email protected]

PRESENTED BYLEE & ASSOCIATES NORTHWEST | MULTIFAMILY TEAM

OFFERING MEMORANDUM | 2

Lee & Associates (the “Agent”) has been engaged as the exclusive sales representative for the sale of the Sherwood Apartments (the ”Property”) by ‘Ownership’ (the “Seller”).

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date ofpreparation (August 2020) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

OFFERING MEMORANDUMSUMMARY | PROPERTY | MARKET | FINANCIALS | COMPARABLES | CONTACT

ROBERT MEUNIERVice PresidentD 206.773.2686C [email protected]

DANIEL LIMAssociateD 206.773.2692C [email protected]

1633 MELROSE AVENUE SHERWOOD APARTMENTS

Offering Summary

The Lee & Associates | Northwest Multifamily Team is pleased to present the Sherwood Apartments in the Capitol Hill neighborhood of Seattle, Washington.

The Sherwood is a truly unique value-add opportunity. The historic triangular building is a beautifully preserved property built in 1916. The Sherwood is a five-story, brick multifamily asset built on a 7,400-square foot site. The charming building has beautiful marble floors and walls throughout the lobby and hardwood floors in every unit. The single structure has 49 units, *buyer to verify number of units, including studios and one- and two- bedrooms ranging in size from approximately 405 square feet to 925 square feet. The Sherwood offers investors a rare opportunity to capitalize on a one-of-a-kind asset in the heart of Seattle.


SUMMARY | PROPERTY | MARKET | FINANCIALS | COMPARABLES | CONTACT

NUMBER OF UNITS 49 including 1 non-conforming*

PARCEL NUMBER 066000-2565

ZONING NC3P-75 (M)

LOT SIZE 7,400 square feet

YEAR BUILT 1916

CONSTRUCTION Masonry & Wood frame

UNIT MIX 28 Studios, 16 One Bedrooms, 5 Two Bedrooms



Property LocationLocated at the corner of Melrose Avenue and Olive Way, the asset is perfectly situated on the cusp of Capitol Hill, South Lake Union, and the downtown business district.

With a walk score of 99 and a Transit Score of 100, the Sherwood lends itself to a walkable community with easy access to light rail, bus stops, bike lanes, and even a Microsoft Connector stop.

In under 10 minutes, residents can walk to the heart of downtown, catch light rail, or to the South Lake Union tech corridor.





Aerials





Exterior


OFFERING MEMORANDUM | 6OFFERING MEMORANDUM | 6


InteriorUNIT INTERIORS




History



This distinctive triangular building was designed in 1916 by George W. Lawton, one of Seattle’s most prominent architects of the period. It was built for the Goodwin Real Estate company, a family-owned real estate financing company. First Hill and the western part of Capitol Hill were the city’s earliest dense apartment neighborhoods, beginning early in the 20th century. Its proximity to downtown, easy streetcar access and views made it appealing to developers and tenants of all types. The first two decades brought significant population growth in Seattle, but relatively little construction, partially due to economic factors relating to World War I. Thus, this building is somewhat unusual, being constructed in 1916 – the major construction boom began in the mid-1920s. This building is notable for both its size and its prominent corner sitting. George Willis Lawton evidently designed this building shortly after his partnership with Charles Saunders ended in 1915. Lawton began his career as a draftsman in Saunders’ office and became a partner in 1898. The firm was responsible for a very wide range of buildings, from utilitarian warehouse to fine residences and schools, in a variety of styles. Their works include the original Bon Marche store, the first fire department headquarters, Horace Mann School and Beacon Hill Elementary school. Lawton independently completed work on the Masonic Temple (now the Egyptian Theater), located not far from the Sherwood Apartments. One of Lawton’s final works before death was the Fourth and Pike Building, completed in 1928. - Copyright 2015, City of Seattle

VINTAGE DETAILS

SEATTLE DEPARTMENT OF NEIGHBORHOODS HISTORICAL OVERVIEW


Floor Plans


9

2ND FLOOR FLOORPLATE

UNIT 200 - STUDIO FLOOR PLAN

UNIT 207 - 1 BEDROOM FLOOR PLAN

UNIT 308- 2 BEDROOM FLOOR PLAN



Capitol Hill Neighborhood

10

LOCAL FAVORITES

Starbucks Reserve Roastery

Melrose Market

City Market

Harvard Market

Taylor Shellfish & Oyster Bar

Homegrown Takeout & Delivery

Cal Anderson Park

Seattle Central College

Virginia Mason

Swedish Hospital

Capitol Hill is a high density, residential neighborhood located just east of the downtown Seattle business district. Capitol Hill is known for its restaurants, coffee shops, nightlife and proximity to many of Washington’s major employers. The neighborhood is situated on a steep hill, bounded by Interstate-5 to the west, State Route 520 to the north, East Union Avenue and Madison Street to the south, and 23rd Avenue to the east. Capitol Hill is one of the most densely populated neighborhoods in the city, made up of mostly mid-rise buildings with hundreds of eclectic businesses, creating a vibrant, fast-paced community.




Neighborhood Amenities





Regional Employers

MAJOR EMPLOYERS IN SURROUNDING AREA





POPULATION (~)1 mile: 76,7153 mile: 267,5695 mile: 467,744

MEDIAN INCOME (~)1 mile $73,7403 mile $86,3045 mile $91,530

MarketHOUSING OVERVIEW


AVERAGE SALE PRICE

$695,729 YEAR-OVER-YEAR CHANGE+2.6%

63YEAR-OVER-YEAR CHANGE-14.9% supply decline

HOMES FOR SALE

$393 YEAR-OVER-YEAR CHANGE+1.3%

AVERAGE SALE PRICE PER SF


MEDIAN HOME VALUE$710,619$646/sf

AVERAGE MORTGAGE PAYMENT$2,932.28*20% down



Rent Analysis

COMPARABLE PROPERTY LOCATIONS



MAP TO BE ADDED


SUBJECT PROPERTY1633 Melrose Ave | Seattle, WA 98119

1

ZEPHYR APARTMENTS200 Belmont Ave ESeattle, WA 98102

2

HAWTHORNE APARTMENTS1618 Bellevue AveSeattle, WA 98122

3

AVA ON CAPITOL HILL1530 Belmont AveSeattle, WA 98122

5

AVANTI APARTMENTS1401 Boren AveSeattle, WA 98101

6

PIKE FLATS722 E Pike StSeattle, WA 98122

7

CHARBERN APTS1705 Belmont AveSeattle, WA 98122

4

8

JET ON BOYLSTON1820 Boylston AveSeattle, WA 98122

VESPER APARTMENTS1321 Minor AveSeattle, WA 98101

METRO BUILDING1700 Bellevue Ave, Seattle, WA 98122

9 10 11

EXCELSIOR APARTMENTS1535 Bellevue AveSeattle, WA 98122

MERITAGE CONDOS124 Bellevue Ave ESeattle, WA 98102


PROPERTY UNIT TYPE UNIT SF RENT RENT PER SF

Zephyr Apartments200 Belmont Ave E, Seattle, WA 98102 Studio 567 $1,989 $3.51

Hawthorne Apartments1618 Bellevue Ave, Seattle, WA 98122 Studio 531 $1,850 $3.48

AVA on Capitol Hill1530 Belmont Ave, Seattle, WA 98122 Studio 506 $1,832 $3.62

Hawthorne Apartments1618 Bellevue Ave, Seattle, WA 98122 Studio 523 $1,794 $3.43

Excelsior Apartments1535 Bellevue Ave, Seattle, WA 98122 Studio 533 $1,780 $3.34

SHERWOOD APARTMENTS - REHAB RENTS STUDIO 446 $1,750 $3.92

Avanti Apartments1401 Boren Ave, Seattle, WA 98101 Studio 650 $1,700 $2.62

SHERWOOD APARTMENTS - MARKET RENTS (AS-IS) STUDIO 446 $1,500 $3.36

Pike Flats722 E Pike St, Seattle, WA 98122 Efficiency 316 $1,449 $4.59

SHERWOOD APARTMENTS - IN-PLACE RENTS STUDIO 446 $1,300 $2.91

Rent Analysis

STUDIO




Rent Analysis

1 BEDROOM

16




Zephyr Apartments200 Belmont Ave E, Seattle, WA 98102 1x1 680 $2,413 $3.55

Meritage Condos124 Bellevue Ave E, Seattle, WA 98102 1x1 736 $2,395 $3.25

SHERWOOD APARTMENTS - REHAB RENTS 1X1 695 $2,325 $3.35

Avanti Apartments1401 Boren Ave, Seattle, WA 98101 1x1 700 $2,241 $3.20

AVA on Capitol Hill1530 Belmont Ave, Seattle, WA 98122 1x1 701 $2,215 $3.16

Excelsior Apartments1535 Bellevue Ave, Seattle, WA 98122 1x1 591 $2,196 $3.72

Charbern Apartments1705 Belmont Ave, Seattle, WA 98122 1x1 776 $2,098 $2.70

Hawthorne Apartments1618 Bellevue Ave, Seattle, WA 98122 1x1 663 $2,086 $3.14


Rent Analysis

1 BEDROOM

17




SHERWOOD APARTMENTS - MARKET RENT (AS-IS) 1X1 695 $2,075 $2.99

Jet on Boylston1820 Boylston Ave, Seattle, WA 98122 1x1 458 $1,929 $4.21

Vesper Apartments1321 Minor Ave, Seattle, WA 98101 1x1 675 $1,869 $2.77

Metro Building1700 Bellevue, Seattle, WA 98122 1x1 722 $1,800 $2.49

SHERWOOD APARTMENTS - IN-PLACE RENTS 1X1 695 $1,730 $2.49


Rent Analysis

2 BEDROOM

18




Excelsior Apartments1535 Bellevue Ave, Seattle, WA 98122 2x1 960 $3,237 $3.37

SHERWOOD APARTMENTS - REHAB RENTS 2X1 920 $3,000 $3.26

Zephyr Apartments200 Belmont Ave E, Seattle, WA 98102 2x1 834 $2,801 $3.36

SHERWOOD APARTMENTS - MARKET RENT (AS-IS) 2X1 920 $2,750 $2.99

Jet on Boylston1820 Boylston Ave, Seattle, WA 98122 2x1 653 $2,625 $4.02

Charbern Apartments1705 Belmont Ave, Seattle, WA 98122 2x1 925 $2,567 $2.78

SHERWOOD APARTMENTS - IN-PLACE RENTS 2X1 920 $2,420 $2.63

Vesper Apartments1321 Minor Ave, Seattle, WA 98101 2x1 775 $2,349 $3.03


Sale Comparables

LOCATIONS




SUBJECT PROPERTY1633 Melrose Ave | Seattle, WA 98119

1

THE MUSE1515 Bellevue AveSeattle, WA 98122

2

ROXBOROUGH1720 E Denny WaySeattle, WA 98122

3

STANFORDARMS2325 10th AveESeattle, WA 98102

4

SWANSONIA1017 E Harrison StSeattle, WA 98102

5

LA VANCHE956 10th AveESeattle, WA 98102


Sale Comparables

20



SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM UNITS CLOSE

1 The Muse1515 BellevueAveSeattle, WA98122

$6,500,000 9,760 SF $665.98 $270,833 4.2% 15.2 24 On Market

2 Roxborough1720 E DennyWaySeattle, WA98122

$17,373,500 18,041 SF $963.00 $327,801 - - 53 11/01/2019

3 Stanford Arms2325 10th AveESeattle, WA 98102

$6,399,998 13,704 SF $467.02 $199,999 4.0% 16.5 32 10/23/2019

4 Swansonia1017 E Harrison StSeattle, WA98102

$10,775,000 16,757 SF $643.01 $336,718 3.8% 17.8 32 09/25/2019

5 La Vanche956 10th AveESeattle, WA 98102

$6,850,000 11,285 SF $607.00 $342,500 4.0% 16 20 07/09/2019

TOTALS / AVERAGES $9,579,700 13,909 SF $688.74 $297,506 4.0% 16.38 32.2


Transaction Guidelines

Sherwood Apartments is being exclusively offered by Lee & Associates | Northwest Multifamily Team. As part of conducting this offering, the Multifamily Team is available to assist prospective investors with their review of the offering. The team will provide advanced notification to Investors of the bid deadline via email.

Offers should include, at a minimum, the following

• The purchase price and closing date

• The source of capital, including both equity and debt

• A schedule of current real estate owned

• The amount of earnest money deposit and release timeline

• A detailed schedule of due diligence timelines

• A description of the assumptions utilized for the offer

Please Note: The property is being sold "as is." Buyer shall accept responsibility to verify any and all due diligence materials and conduct any investigations prior to purchase.

Please direct questions regarding this offering and pricing guidance to the Multifamily Team at Lee & Associates Commercial Real Estate Services.

21

DON FLANIGANSenior Vice PresidentD 206.773.2690C [email protected]

CANDICE CHEVAILLIERPrincipalD 206.773.2694D [email protected]

ROBERT MEUNIERVice PresidentD 206.773.2686C [email protected]

DANIEL LIMAssociateD 206.773.2692C [email protected]



701 Pike Street, Suite 1025 | Seattle, WA 98101 | 206.624.2424 | lee-nw.com/multifamily

All materials and information received or derived from Lee & Associates Commercial Real Estate Services its directors, officers, agents,advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy,condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability,financial performance of the property, projected financial performance of the property for any party’s intended use or any and all othermatters.

Neither Lee & Associates Commercial Real Estate Services its directors, officers, agents, advisors, or affiliates makes any representation orwarranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materialsand information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s activeconduct of its own due diligence to determine these and other matters of significance to such party. Lee & Associates Commercial Real EstateServices will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUEDILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their owninspections and investigations including through appropriate third party independent professionals selected by such party. All financial datashould be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriateindependent professionals. Lee & Associates Commercial Real Estate Services makes no warranties and/or representations regarding theveracity, completeness, or relevance of any financial data or assumptions. Lee & Associates Commercial Real Estate Services does not serve as afinancial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including thatused for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents thatmay be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate anyapplicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determinerents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified publicaccountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding thecondition of the property and whether the property complies with applicable governmental requirements should be discussed by theparty with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services aremarketed by Lee & Associates Commercial Real Estate Services in compliance with all applicable fair housing and equal opportunity laws.

We obtained the information herein from sources we believe to be reliable. However, we have not verified its accuracy and make noguarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates forexample only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conductyour own investigation of the property and transaction.

1633 melrose avenue | seattle, washington · 1633 melrose avenue sherwood apartments. offering...

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