N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

SOUTH LAKE UNION

SEATTLE CBD

QUEEN ANNE

BEACON HILL

JUDKINS PARK

CAPITOL HILL MADRONA

SODO

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

MOUNT BAKER

Paragon Real Estate advisors is please to exclusively offer for sale the North Beacon Flats & Development Opportunity. This 12-unit multifamily asset is well positioned in the North Beacon Hill sub-market of Seattle, less than 1.5 miles from the Seattle CDB, one of the fastest growing job centers in America. The property presents multiple opportunities to add value, whether through improved management and repositioning or redevelopment.

The North Beacon Flats were constructed in 1962. The 8,060 sf wood-framed, marble-crete building consists of 12 residential apartments and a large basement including storage, which could potentially be converted into one or more additional units. The property is situated on a relatively flat, rectangular 12,000 sf lot (100’ x 120’) zoned low rise (LR3), featuring approximately 2,500 sf of excess land in the front. The high-density zoning allows for development up to 4 stories.

NAME North Beacon Flats and Development Opportunity

ADDRESS 1330 12th Ave S, Seattle WA 98144

TOTAL UNITS 12 + 1

BUILT 1962

SQUARE FEET 7,562 Total Net Rentable

PRICE $3,100,000

PRICE PER UNIT $258,333

PRICE PER SQFT $410

PROFORMA CAP 5.7%

LOT INFORMATION 12,000 Square Feet Zoned LR3

PRICE PER LOT SQFT $258

O F F E R I N G

This information 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 all information and bears all risk for inaccuracies.

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

� Excellent North Beacon Hill location

� Less than 1.5 miles to Seattle CBD

� Value add opportunity

� 12 large 1 BD/1 BTH apartments

� Potential to add one or more units in basement

� Large, rectangular 12,000 sf lot

� High-density LR3 zoning

� Located on bus line with direct service to Downtown

� Potential sweeping city and water views

� Located in designated Opportunity Zone

I N V E S T M E N T H I G H L I G H T S

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

Address 1330 12th Ave S, Seattle WA 98144

Parcel Number 766010-0115

Lot Size 12,000 Square Feet

Zoning LR3

Units 12 + 1

Built 1962

Net Rentable 7,562 Square Feet

Construction Wood Frame

Roof Flat Torch Down

Windows Single Pane Aluminum

Plumbing Galvanized

Heating Electric

Laundry Common

Parking 11 Open Spaces

This information 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 all information and bears all risk for inaccuracies.

Q U I C K F A C T S

Walking distance to the International District, the once sleepy neighborhood of Beacon Hill has seen a boom over the past ten years with great new restaurants, fun nightlife, a new library, and hundreds of new houses and modern townhomes.

New eateries include the popular Bar Del Corso, Victrola Coffee, Oak, Tippe & Drague, and El Quetzal. North Beacon Hill also recently welcomed its own brewery, Perihelion Brewery, which opened last year and has been a popular neighborhood gathering spot.

Beacon Hill offers some of the best transportation in the city with multiple bus routes within a few blocks, a Sound Transit Light Rail station within walking distance, and bike lanes running the length of Beacon Avenue. Both I-5 and I-90 are immediately accessible and Downtown Seattle is only two miles away.

Other accessible points of interest include Jefferson Park & Golf Course (1.5 Miles), Century Link and Safeco Fields (2 Miles), the International District (2 miles), Seattle University (2 ½ miles), and Seattle Central College (3 miles).

B E A C O N H I L L

Beacon Hill station is part of Sound Transit’s Central Link line, which runs from Seattle–Tacoma International Airport through the Rainier Valley and Downtown Seattle to the University of Washington. It is the eighth northbound station from Angle Lake station and ninth southbound station from University of Washington station, and is situated between Mount Baker and SODO stations. Central Link trains serve Beacon Hill twenty hours a day on weekdays and Saturdays, from 5:00 am to 1:00 am, and eighteen hours on Sundays, from 6:00 am to 12:00 am; during regular weekday service, trains operate roughly every six to ten minutes during rush hour and midday operation, with longer headways of fifteen minutes in the early morning and twenty minutes at night. During weekends, Central Link trains arrive at the station every ten minutes during midday hours and every fifteen minutes during mornings and evenings. The station is approximately 24 minutes from SeaTac/Airport station and fifteen minutes from Westlake station in Downtown Seattle.

Beacon Hill station is also served by three bus routes operated by King County Metro that use bus stops adjacent to the station: Route 36, an electric trolleybus route, runs along Beacon Avenue from Othello station to the International District and Downtown; Route 60 runs between West Seattle, Georgetown, Beacon Hill, First Hill and Capitol Hill; and Route 107, which terminates at the station and travels southeasterly to Georgetown, Rainier Beach station, Skyway and Renton.

T R A N S P O R T A T I O N

A HIGHLY-SKILLED WORKFORCE The region’s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor’s degree or higher.

Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County. ESTABLISHED INDUSTRY CLUSTERS The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known CUTTING-EDGE RESEARCH Top-ranked research institutions, including the world-renowned University of Washington, contribute to a high-caliber talent pipeline and encourage record levels of research & development spending from the private, non-profit and public sectors. The region has always fostered the next generation of business, from early-stage startups to high-growth companies with long-term success.

*Data Sources: Washington State Employment Security Department, 2015; Washington State Department of Revenue, 2015; Washington Military Alliance; Washington Aerospace Economic Impacts 2016 Update; US International Trade Administration, 2014.

W H Y C H O O S E S E A T T L E - K I N G C O U N T Y ?

M A J O R E M P L O Y E R S - C E N T R A L B U S I N E S S D I S T R I C T

M A J O R E M P L O Y E R S - S O U T H L A K E U N I O N

B U I L D I N G P H O T O S

F L O O R P L A N S

FIRST FLOOR SECOND FLOOR

F L O O R P L A N S

GROUND FLOOR

Potential Additional Unit Space

Unit Breakdown

UNIT

TYPE

APPROXIMATE

UNIT SIZE

CURRENT

RENT

CURRENT

RENT/SQ.FT.

MARKET

RENT

MARKET

RENT/SQ.FT.

1 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74

2 1 Bd/1 Bth 582 Sq.Ft. $810 $1.39 $1,595 $2.74

3 1 Bd/1 Bth 582 Sq.Ft. $1,210 $2.08 $1,595 $2.74

4 1 Bd/1 Bth 582 Sq.Ft. $810 $1.39 $1,595 $2.74

5 1 Bd/1 Bth 582 Sq.Ft. $910 $1.56 $1,595 $2.74

6 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74

7 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74

8 1 Bd/1 Bth 582 Sq.Ft. $835 $1.43 $1,595 $2.74

9 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74

10 1 Bd/1 Bth 582 Sq.Ft. $860 $1.48 $1,595 $2.74

11 1 Bd/1 Bth 582 Sq.Ft. $1,210 $2.08 $1,595 $2.74

12 1 Bd/1 Bth 582 Sq.Ft. $825 $1.42 $1,595 $2.74

*13 1 Bd/1 Bth 582 Sq.Ft. $1,595 $2.74

Totals/Avg 582 Sq.Ft. $10,225 $1.35 $20,735 $2.74

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

* Unit added in basement common area

MONTHLY INCOME CURRENT PROFORMA

Gross Potential Rent $10,225 $20,735

Utility Bill Back $685 $975

Laundry Income $120 $130

Other Income $120 $130

Gross Potential Income $11,150 $21,970

ANNUALIZED OPERATING DATA CURRENT PROFORMA

Scheduled Gross Income $133,800 $263,640

Less Vacancy 3.0% $4,014 3.0% $7,909

Gross Operating Income $129,786 $255,731

Less Expenses $55,305 $72,641

Net Operating Income $74,481 $183,089

Annual Debt Service ($11,100/mo) $133,199 $133,199

Cash Flow Before Tax -6.0% ($58,718) 5.1% $49,891

Principal Reduction $40,944 $40,944

Total Return Before Tax -1.8% ($17,774) 9.3% $90,835

Financial Summary

ANNUALIZED OPERATING EXPENSES CURRENT PROFORMA

Real Estate Taxes 2019 $16,504 $24,800

Insurance Estimated $4,550 $4,550

Utilities 2018 $11,223 $11,223

Professional Mgmt PF 6% $8,028 $15,818

Administration PF $100/unit $1,200 $1,300

Maintenance & Repairs PF $850/unit $10,200 $11,050

Contract Services PF $50/unit $600 $650

Reserves PF $250/unit $3,000 $3,250

Total Expenses $55,305 $72,641

UNITS

UNIT

TYPE

SIZE

CURRENT

RENT

PROFORMA

RENT

12 1 Bd/1 Bth 582 $750 - $1,150 $1,595

1* 1 Bd/1 Bth 582 $0 $1,595

13 Total/Avg 582 $1.35 $2.74

Units 12+1

Year Built 1962

Rentable Area 7,562

Down Pmt $975,000

Loan Amount $2,325,000

Interest Rate 4.00%

Term 7 Yr ARM

Amortization 30 Years

Price $3,100,000

Per Unit $253,846

Per Sq. Ft. $410

Per Lot Sq.Ft. $258

Current GRM 23.2

Current CAP 2.4%

Rehab Cost $200,000

Total Cost $3,300,000

Proforma GRM 12.5

Proforma CAP 5.5%

Expense/Unit $4,609

Expense/Foot $7.31

Percent of EGI 41%

Expense/Unit $5,588

Expense/Foot $9.61

Percent of EGI 28%

CURRENT

OPERATIONS

PROFORMA

OPERATIONS

* Potential unit added

11 Unit Apartment 201 30th Ave S Seattle, WA 98144

1 Year Built 1965 Units 11 Sales Price $2,665,000 Price/Unit $242,273 Price/Foot $279.35 GRM/CAP 17.8/3.0% Sales Date 1.7.2019

Upland View 5716 Wilson Ave S Seattle, WA 98118

2 Year Built 1956 Units 11 Sales Price $2,800,000 Price/Unit $254,545 Price/Foot $380.95 GRM/CAP 16.0/4.1% Sales Date 9.24.2018

Pearl Street Lofts 3940 S Pearl St Seattle, WA 98118

3 Year Built 1966 Units 12 Sales Price $3,100,000 Price/Unit $258,333 Price/Foot $311.50 GRM/CAP 21.3/2.6% Sales Date 9.18.2018

6 Unit Apartment 1307 14th Ave S Seattle, WA 98144

4 Year Built 1968 Units 6 Sales Price $1,900,000 Price/Unit $316,667 Price/Foot $305.52 GRM/CAP Unknown Sales Date 6.1.2018

1

3

4

2

S A L E S C O M P A R A B L E S

Union 32 3200 E Union St Seattle, WA 98122

5 Year Built 1971 Units 12 Sales Price $3,212,000 Price/Unit $267,667 Price/Foot $382.38 GRM/CAP 25.2/1.7% Sales Date 5.9.2018

5North Beacon Flats and Development Opportunity 1330 12th Ave S Seattle, WA 98144Year Built 1962 Units 12 Sales Price $3,100,000 Price/Unit $253,846 Price/Foot $410 Current GRM/CAP 23.7/2.4%

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

Address 1330 12th Ave S, Seattle WA 98144

Lot Size 12,000 Square Feet

Zoning LR3

Floor Area Ratio (FAR) 1.8

Height Limit 40 Ft

Density Limit No Limit

Set Backs

Front - 5 Ft Minimum, 7 Ft Average Rear - 10 Ft Minimum 15 Ft Minimum if no alley Sides - 5 Ft Minimum, 7 Ft Average

Parking Requirement 1 Per Unit

MHA Tax $13.25/Sq.Ft.

D E V E L O P M E N T P O T E N T I A L

N O R T H B E A C O N F L A T SA N D D E V E L O P M E N T O P P O R T U N I T Y

120’

100’

100’

120’

1716 19th Ave S Seattle, WA 98144

1 Parcel 754830-0813 Lot Size 5,000 Sq.Ft. Zoning LR2 Price $1,100,000 Price/Foot $220 Sales Date 3.20.2019

911 Hiawatha Pl S Seattle, WA 98144

2 Parcel 713230-0300 Lot Size 8,000 Sq.Ft. Zoning NC3-40 Price $1,800,000 Price/Foot $225 Sales Date 8.31.2018

1922 15th Ave S Seattle, WA 98144

3 Parcel 149830-1200 Lot Size 6,000 Sq.Ft. Zoning LR1 Price $1,525,000 Price/Foot $254 Sales Date 8.29.2018

1716 18th Ave S Seattle, WA 98144

4 Parcel 754830-0610 Lot Size 5,000 Sq.Ft. Zoning LR2 Price $1,300,000 Price/Foot $260 Sales Date 7.18.2018

1

3

4

2

L A N D C O M P A R A B L E S

North Beacon Flats and Development Opportunity 1330 12th Ave S Seattle, WA 98144Parcel 766010-0115 Lot Size 12,000 Sq.Ft. Zoning R-20 Price $3,100,000 Price/Foot $258 N O R T H B E A C O N F L A T S

A N D D E V E L O P M E N T O P P O R T U N I T Y

600 University St, Suite 2018

Seattle Washington 98101

206 623-8880 / info@ParagonREA.com

www.ParagonREA.com

This information 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 all information and bears all risk for inaccuracies.