apartment building & adjacent house/development lot the
TRANSCRIPT
Page ! Offering Memorandum - The Lawrence & Hazen May 2016 1
Summary This dynamic Lawrence & Hazen site consists of two properties: A four-
unit Apartment Building and a charming single-family House on multifamily-
zoned land in Seattle’s Magnolia neighborhood and Seattle’s up-and-coming
Interbay Technology Corridor – the future home of travel giant, Expedia. A
handful of Seattle neighborhoods, Queen Anne Hill, Ballard, Fremont and
South Lake Union, are accessible within a few miles of this site. To learn more
about this rare investment and development opportunity, please contact us
at (206) 387-6789 or [email protected] or visit LawrenceAndHazen.com,
where you can schedule a tour or
request the Due Diligence Package,
complete with inspections & floor
plans. The tax parcels are:
Apartment Building: 2405 W
Crockett Street (Tax ID #
277160-4110)
House/Development Lot: 2015
Thorndyke Ave W (Tax ID #
277160-4100)
Property Overview The Apartment Building and House are located on the brow of an
affluent residential neighborhood at the SW corner of West Crocket St and
Thorndyke Ave W. The Apartment Building measures a total of 4,868 SF
including a 460 SF attached two-car garage, with an additional two off-street
parking spaces on a 6,925 SF lot. The adjacent House measures 1,020 SF
and includes one detached garage on an approximately 4,000 SF lot. Both
parcels are zoned LR2, allowing for future multifamily development.
Mid-century architects Lawrence & Hazen designed the handsome
Apartment Building, which
includes a gracious 1,682 SF unit
designed for the property’s proud
owners. The Apartment Building
includes much under-utilized
space which could be converted
into additional rentable areas.
TWIN IN-CITY INVESTMENTS WITH VIEWS A rare opportunity to obtain two lucrative, adjacent income properties with potential for increased value with additional investment and redevelopment, ideally
situated between the edge of downtown Seattle in the affluent Magnolia neighborhood and the burgeoning Interbay Technology Corridor. This offering
includes two valuable investments, both on LR2-zoned land: A 4,868-square-foot apartment building designed by acclaimed mid-century architects Lawrence
& Hazen on a nearly 7,000-square-foot lot, and the adjacent single family home, which features approximately 4,000 SF, suitable for a new multi-family
building, townhouses, or a grand view home. A height-restricting/view agreement favors the apartment building, protecting its unfettered views of the
downtown skyline and the Seattle Space Needle in the years to come.
Apartment Building & Adjacent House/Development Lot
THE LAWRENCE & HAZENOffering Memorandum: Deadline May 18, 2016
2 Parcels A & B
• 4-Plex + House
• $1.528M & $588K
• Lot SF: 6,925 & 4,000
• Zoning: LR2
• MLS: 931591 + 931593
Page ! Offering Memorandum - The Lawrence & Hazen May 2016 2
PARCEL A: 4-UNIT APARTMENT BUILDING
Designed, Sited, and Constructed for Long-Term Value As a testament to its livability, the Lawrence & Hazen site has been
inhabited by only four owner-residents since it was built in 1956.
Nestled in the beautiful Magnolia neighborhood, filled with single
family, owner-occupied residential homes, this apartment building
features the distinctive mid-century architecture celebrated by the
television series Mad Men.
Larger in size than other buildings in its class, the four units
average 955 SF each and include features such as: private entrances,
individual expansive decks or garden patios, renovated kitchens, wood-
burning fireplaces with vintage detailing, hardwood flooring, and
pristine views of the city
skyline and Puget Sound through enormous picture windows. Like the
adjacent house, the architectural detailing throughout is representative
of timeless mid-century modern character.
The elevated location at the end of a quiet residential street,
along with the protected views of downtown Seattle, reinforce and
magnify the lifestyle qualities, architectural integrity, and virtuous
condition of the Apartment Building, making the offering far more
desirable than typical Seattle income properties. As Seattle continues
to be developed, apartment buildings of such an intimate scale with
views and this level of design are increasingly rare.
OPERATING INFORMATION DETAILS ANNUALIZED DATA MARKET CURRENT
Total Units Year Built Gross SF Net Rentable SF Price Cost Per Unit Cost Per Rentable SF Rentable Parking Spaces Lot Size in SF
4 1956 4,868 4,421 $1.5M $500K $339
4 6,925
Gross Scheduled Income
Less Physical Vacancy (3%)
Gross Adjusted Income
Annual Expenses
Net Operating Income
Gross Rent Multiplier
Cap Rate
Rent Per Rentable SF/Month
$105,000
($2,236)
$105,993
$21,331
$84,662
14
5.64
$1.97
$74,520
($4,271)
$72,284
$21,331
$50,953
20
3.40
$1.40
Charles Albert Lawrence Jr.
Sample Floorplan
Page ! Offering Memorandum - The Lawrence & Hazen May 2016 3
STRONG INVESTMENTHigh Demand for In-City Seattle Rental Buildings
Current & Future Performance Smaller, high-quality apartment buildings
located near Seattle’s top job centers enjoy
exceptional demand and are likely to appreciate
faster than outlying properties. They command
prices in excess of $400K-$500K per unit and
$400/SF, trading at cap rates of 4.5% and lower,
with market times averaging three weeks.
For 26 years, the Apartment Building has
been owned by the same Seattle family who
purchased it to serve as both their family home
and a long-term investment. With market-rate
rents exceeding $2.50/SF, the building’s current
rents of about $1.90/SF are well below market
rates, creating an opportunity for an immediate
upside. Current rents, as well as a professional
leasing agent’s opinion of market rents, are
included below and can also be found in the rent
study of the Due Diligence Package.
Opportunities to Add Value
The Apartment Building includes substantial
non-revenue-generating square footage. The
potting/gardening room, utility/workshop room,
laundry room, storage lockers, internal stairway
and two-car garage could all generate additional
income as separate spaces in their current
configuration or be included in an expansion of
the existing studio unit (moving individual laundry
units into each space). Such an expansion would
increase net income and thereby create additional
equity in the property. The LR2 zoning of the
adjacent underdeveloped lot authorizes multiple
dwelling units, affording the purchaser/developer
the option of eventually owning/managing two
buildings in this superior setting. In a full
redevelopment scenario that includes both
parcels, access to the adjacent 4,000 SF lot could
be located above via West Crockett Street and
through the back of the Apartment Building lot.
Unit # Type Size Market Rent Current Rent
2405 2 BD/1 BTH 925 $1,800 $1,695
2407 2 BD/1 BTH 925 $1,800 $1,595
2409 2 BD+/1 BTH 1,682 $2,350 $2,200
2411 STUDIO 1 BTH 388 $1,200 $720
3,920 $7,150 $6,210
APARTMENT BUILDING
SALES
1201 OLYMPIC WAY W
1512 17TH AVE E
309 W REPUBLICAN
3441 23RD
AVE W
311 12TH AVE E
2501 YALE AVE E
414 48TH STREET
SUMMARY
Neighborhood
Sold Price
Units
SF
Sold Price/SF
Sale Date
$/Unit
Year Built
Lot Area
Queen Anne
$1.46M
3
4,630
$316
07/15/14
$488K
1916
6,420
Capitol Hill
$1.44M
3
3,455
$418
03/20/16
$482K
1906
4,280
Queen Anne
$1.3M
3
3,822
$340
07/31/15
$433K
1900
3,600
Magnolia
$1.22M
3
3,930
$310
12/29/15
$407K
1967
7,000
Capitol Hill
$1.92M
5
5,270
$364
04/15/16
$384K
1928
4,795
Eastlake
$1.07M
3
1,900
$566
10/15/15
$358K
1920
3,505
Woodland
$1.42M
4
2,880
$493
03/09/16
$355K
1953
4,210
-
$1.40M
3.4
3,698
$401
-
$337K
1927
4,830
Apartment Building
Features • 1,682 SF Owner’s Unit
• View Covenant
• Private entrances
• Large decks
Page ! Offering Memorandum - The Lawrence & Hazen May 2016 4
PARCEL B: HOUSE/LOT Existing House
Rowhouse Development
• 50’ wide lot w/56’ SE-facing frontage
• Units: 2-3
• Unit widths 17’-25’
• Potential unit sizes: 1,460-2,600 SF
• Potential unit valuation: $799K-$850K
• Photo courtesy Seattle Department of
Planning & Development’s
Development in Multifamily Sites
Mid-Century House Currently Crowns the Site This 1951 property boasts unrivaled views of
Seattle’s skyline and Puget Sound from its living
room, main bedroom and expansive front deck,
views that are protected by an agreement written
to benefit the adjacent apartment building. This
1,020 SF one-level house with detached one-car
garage is located at 2015 Thorndyke Ave W. with
two points of entry: By way of the staircase from
Thorndyke Avenue West below or from West
Crocket Street above, via a path along the
west side of the Apartment
Building.
Although ideal for an
owner-occupant, a rental
study by Windermere
Property Management
suggests that the
house, currently vacant,
will rent for $2,700/
month.
Benefits of Joint-Ownership
Although the Apartment Building and
House are offered for separate purchase, the
benefits of common ownership are significant.
First, the proximity of the properties affords both
economies of scale and ease of management by
a sole owner. Second, the view agreement that
effectively benefits both properties is controlled
by the Apartment Building owner alone. Third,
the potential redevelopment of Parcel B alone or
of Parcels A & B together would be facilitated
and enhanced by common ownership, including
the potential for gracious pedestrian and/or
automobile access to both properties from quiet
residential West Crockett Street above.
Multiple Development Paths The House that sits adjacent to the 4-unit
Apartment Building occupies an approximately
4,000 SF lot zoned LR2. According to building
department illustrations, the depth of
the lot ranges from 66’ on the
south side to about 91’ on the
north side and is 50’ wide
with 56’ of street frontage.
While current demand for
rental houses like the one
currently occupying the
property is exceptional, a
future owner might consider
redevelopment of the House
site in order to increase its value.
Such redevelopment might include row
houses or other multifamily building of up to 35’
in height, comprising a total of about 4,400 to
5,200 SF of interior SF (depending on whether or
not certain additional development standards are
met). At a value of $400/SF, such a building
would be worth about $2 million. Prospective
buyers should investigate the feasibility of all
future development to their own satisfaction.
Offers for Parcel A & Parcel B will be reviewed
on May 18, 2016
Page ! Offering Memorandum - The Lawrence & Hazen May 2016 5
Generate Cash Flow and Equity in a Coveted Location Minutes from some of Seattle’s most
respected companies, cultural amenities,
shopping, and outdoor recreational activities,
Lawrence & Hazen’s perch in the Magnolia
neighborhood makes it among Seattle’s most
convenient and desirable locations.
To the east, just 1.5 miles away, Seattle’s new
Interbay Technology Corridor will be the new
home to Expedia’s 4,500 employees in 2018.
To the north and northeast, the Ballard and
Fremont neighborhoods (about 3.7 miles away)
offer an array of popular restaurants, nightlife, and
farmer’s markets, while serving as the Seattle bases
of companies like Brooks, Google, and Tableau
Software.
To the east, South Lake Union (5 miles away)
is home to several major employers including
Amazon, which alone is projected to employ nearly
50,000 people, as well as the Allen Institute for
Cell Sciences and Zymogenetics and the Bill &
Melinda Gates Foundation, among others.
The convenience of this ideally-located
Lawrence & Hazen site fosters high valuations, low
vacancies, and a tenant pool of highly-
compensated professionals.
AT THE EDGE OF SEATTLE’S FUTURE
Area Amenities
• Interbay Technology Corridor
• South Lake Union District
• Amazon Headquarters
• Discovery Park
• Queen Anne Hill retail core
• Interlay Golf Course
• Elliott Bay Trail
• Smith Cove Park
• Holy Mountain Brewery
• Myrtle Edwards Park
NEARBY
Due Diligence Package • Inspection Reports
• Oil Tank Certificate • Rental Study
• Preliminary Title Report
• Property Photos • Unit & Building Floorplans
• Tank Certificate
Property Tours 1 pm - 3 pm • Wednesday, May 11, 2016
• Friday, May 13, 2016
Call for Offers • May 18, 2016 at 12 PM
Exclusive Listing Brokers Edward Krigsman & Bryan Ford Windermere Real Estate Co.
Edward: 206.387.6789 Bryan: 206.940.3972 [email protected] [email protected]
“I’m pleased to announce that Seattle is
the new home to Expedia. This is a great day for the city
of Seattle.” - Mayor Ed Murray
Photo Source: geekwire.com
IMMEDIATELY AVAILABLE - INVESTMENT/DEVELOPMENT PARCELS You are receiving this publication
because we have identified you as an investor or
developer who may be interested in a unique
property assemblage located on the edge of
Seattle’s Magnolia neighborhood, steps from the
growing Interbay Technology Corridor.
The offering
consists of a stylish,
mid-century
modern, four-unit
apartment building
designed by
renowned architects
Lawrence & Hazen,
and features a
deluxe owner’s unit
and an
approximately
4,000 SF LR2-zoned
development site,
currently improved
with a desirable
rental house. These
coveted adjacent
properties are
located on a quiet
corner in a pristine neighborhood of affluent
homes and enjoy protected views of Seattle’s
skyline & Puget
Sound.
For More InformationContact Exclusive Listing Brokers:
Edward Krigsman 206.387.6789 or [email protected]
Bryan Ford 206.940.3972 or [email protected]
Offers due: May 18, 2016
Edward Krigsman & Bryan Ford Windermere Real Estate Co. 5424 Sand Point Way NE Seattle WA 98105
LawrenceAndHazen.com