Offering Summary

Address 1422 E Union Street, Seattle WA 98122
Total Units 22 (1 NC Unit)
Built 1928
Square Feet 13,390 Total Net Rentable
Price $6,500,000
Price Per Unit $295,455
Expenses Per Unit 5,968/Year
Price Per Foot $485
Current GRM/CAP 16.4/3.9% (3% Vacancy)
Market GRM/CAP 15.5/4.1% (3% Vacancy)
Zoning LR3-12th Avenue Urban Village
Terms Cash Out

Investment Highlights

Paragon Real Estate Advisors is proud to exclusively list for sale for the first time in over thirty years the twenty-two-unit Arville Apartments located in the highly desirable Capitol Hill neighborhood of Seattle, Washington. With a “Walk Score” 98, the property is perfectly positioned on the Southwest slope of Capitol Hill directly adjacent to Downtown Seattle Central Business District which gives renters a perfect balance of a charming residential feel with the perks of being in the heart of the action.

The Arville Apartments offer investors a wide array of potential value add opportunities such as raising below market rents, increasing the numbers of apartments within the existing structure and/or building an additional separate structure on the western portion of the lot where the garages are located.

Highlights
> Incredibly well preserved original era charm
> Located in one of the strongest and stable rental markets
> Four blocks from the Cal Anderson Light Rail Station
> Walk Score 98 out of 100-- “Walkers Paradise”
> Upside in raising below market rents
> Wood frame 1920’s classic brick building in heart of Capitol Hill (engineer letter on file)
> Classic Capitol Hill construction with high levels of details in laid tile and oak hardware floors
> Potential to convert parking garages into habitable units under certain conditions (buyer to verify)




Capitol Hill

Capitol Hill is situated on a hill just East of the city’s downtown central business district. This popular residential neighborhood is funky and fast-paced, with an endless number of cool blocks to explore. During the day, markets, boutiques, and salons are a big draw. Nightlife is hopping with clubs, bars, and music venues, and you’ll often find coffee shops that moonlight as cocktail lounges.

This desirable location contains some of Seattle’s wealthiest neighborhoods, including “Millionaire’s Row” along 14th Avenue E, a charming collection of single family residences on tree-lined streets, and the Harvard-Belmont Landmark District. It also has many distinguished apartment houses, including several designed by the distinguished builder Fred Anhalt, of which the subject is modeled after.

The neighborhood figures prominently in nightlife and entertainment, with many bars hosting live music and with numerous avant garde theaters. Most of the Hill’s major thoroughfares are dotted with coffeehouses, taverns and bars, and residences cover the gamut from modest motellike studio apartment buildings to some of the city’s most historic mansions, with the two types sometimes shoulder-to-shoulder.
To the north is Capitol Hill’s largest and most popular public park. The 48 acre Volunteer Park is home to Seattle’s Asian Art museum, tennis courts, a conservatory, and a variety of city-wide events.

The demand for Capitol Hill apartments continues to rise as nearby Amazon.com continues its feverish hiring pace alongside other technology companies that are hiring as well as relocating to the South Lake Union area. This location is also home to longstanding health care providers including Swedish Medical Center, Group Health and Virginia Medical Center. Nearby Seattle University and Seattle Central College provide a consistent base to the apartment demand in the area.



Amenities Map

Aerial Map

Operating Information

PRICING
Price$6,500,000
Down Payment$3,200,000 (49%)
Loan Amount$3,300,000 (51%)
Interest Rate4.00%
Amortization30 Years
 
Price Per Unit$295,455
Price Per Sq.Ft.$485.44
 
Current GRM16.36
Current CAP3.91%
Market GRM15.53
Market CAP4.05%
 
CURRENT EXPENSES
Current Expenses/Unit$5,968
Expenses/Foot$9.81
% of GSI33.05%
MARKET EXPENSES
Expenses/Unit$6,496
Expenses/Foot$10.67
% of GSI34.14%


MONTHLY SCHEDULED INCOMECurrentMarket
Monthly Scheduled Rent$31,830$33,145
Laundry Income$267$267
Parking/Storage (7 Garage spots)$895$1,350
Miscellaneous Income$118$118
Utility Bill Back$0$1,979
Total Monthly Income$33,110$34,880
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$397,320$418,560
Less Vacancy$11,920 (3%)$12,557 (3%)
Gross Operating Income$385,400$406,003
Less Expenses$131,296$142,917
Net Operating Income$254,104$263,086
Annual Debt Service ($15,755/mo)$189,056$189,056
Cash flow Before Tax$65,048 (2.03%)$74,030 (2.31%)
Principal Reduction$58,114$58,114
Total Return Before Tax$123,162 (3.85%)$132,144 (4.13%)
 
ANNUALIZED OPERATING EXPENSES
Real Estate Taxes$40,379$52,000
Insurance $5,794$5,794
Utilities$26,672$26,672
Property Management$15,416$15,416
On-Site Management$10,560$10,560
Repairs & Maintenance$19,241$19,241
Turnover$4,418$4,418
Landscaping$390$390
Advertising & Admin$2,926$2,926
Reserves$5,500$5,500
Total Operating Expenses$131,296$142,917

Monthly Scheduled Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
11 Studio 475-500 Sq.Ft. $1,195 - $1,395 $14,265 $1,250 - $1,395 $14,705
11 1BD/1BTH 650-725 Sq.Ft. $1,475 - $1,795 $17,565 $1,550 - $1,795 $18,440
22 Average/Totals 609 SqFt $2.38 $31,830 $2.38 $33,145

Property Photos

Basement Floor Plan

First Floor

Second Floor

Third Floor

Sales Comparables

Arville Apartments
1422 E Union St
Seattle, WA 98122
Year Built 1928
Units 22 (1 NC)
Sales Price $6,500,000
Price Per Unit $295,455
Price/Foot $485
GRM/CAP 16.4/3.9%
Sale Date TBD
Harriet Manor
1304 E Harrison St
Bellevue, WA 98102
Year Built 1960
Units 9
Sales Price $3,659,000
Price/Unit $406,556
Price/Foot $588
GRM/CAP 17.3/4.3%
Sales Date 1.12.2018
Normandy Arms
420 13th Ave E
Seattle, WA 98102
Year Built 1930
Units 16
Sale Price $4,600,000
Price/Unit $287,500
Price/Foot $516
GRM/CAP 16.3/3.8%
Sales Date 9.29.2017
Stella Apartments
165 17th Ave
Seattle, WA 98122
Year Built 1970
Units 20
Sales Price $6,850,000
Price Per Unit $432,500
Price/Foot $463
GRM/CAP 14.7/4.5%
Sales Date 9.8.2017
8 Unit Apartment
1300 E Mercer St
Seattle, WA 98102
Year Built 1926
Units 8
Sales Price $4,525,000
Price/Unit $565,625
Price/Foot $841
GRM/CAP 31.6/1.9%
Sales Date 9.8.2017
Highland Condos
931 11th Ave E
Seattle, WA 98102
Year Built 1924
Units 12
Sale Price $6,000,000
Price/Unit $500,000
Price/Foot $409
GRM/CAP 18.1/3.8%
Sales Date 8.9.2017
Glen Eden
921 1st Ave W
Seattle, WA 98119
Year Built 1929
Units 36
Sale Price $11,500,00
Price Per Unit $319,444
Price Per Foot $454
GRM/CAP 16.5/3.5%
Sale Date 4.28.2017
Centerview
3016 1st Ave
Seattle, WA 98121
Year Built 1910
Units 38
Sales Price $7,550,000
Price Per Unit $198,684
Price Per Foot $498
GRM/CAP 14.0/4.0%
Sale Date 3.2.2017
Whitworth
1619 E John St
Seattle, WA 98112
Year Built 1927
Units 54
Sale Price $18,230,000
Price Per Unit $337,593
Price Per Foot $452
GRM/CAP 15.3/4.2%
Sale Date 7.22.2016

Sales Comparables MAP

Arville Apartments
1422 E Union St
Seattle, WA 98122
Harriet Manor
1304 E Harrison St
Bellevue, WA 98102
Normandy Arms
420 13th Ave E
Seattle, WA 98102
Stella Apartments
165 17th Ave
Seattle, WA 98122
8 Unit Apartment
1300 E Mercer St
Seattle, WA 98102
Highland Condos
931 11th Ave E
Seattle, WA 98102
Glen Eden
921 1st Ave W
Seattle, WA 98119
Centerview
3016 1st Ave
Seattle, WA 98121
Whitworth
1619 E John St
Seattle, WA 98112

Seattle, King County

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.