Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 3035 64th Ave SW, Seattle WA
Total Units 8
Built 1957
Square Feet 3,960 Net Rentable
Price $1,800,000
Price Per Unit $225,000
Price Per Sq.Ft. $454.55
Current GRM/CAP 16.2/4.0% (3% Vacancy)
Market GRM/CAP 12.7/5.2% (4% Vacancy)
Lot Size 4,922 Sq. Ft.
ZONING SF 5000

Surf Apartments

Paragon Real Estate Advisors is pleased to offer for sale The Surf Apartments. Well located along the shores of Alki, the Surf Apartments offers an investor the opportunity to acquire a well maintained, low-maintenance apartment community with vintage appeal in an incomparable beach-side setting.

The future owner can choose to take advantage of the strong Seattle rental market by increasing rents to market levels and beginning to charge for utilities and other features. Additionally, the new owner can renovate and update the property to create additional value and increase rent potential significantly.

Investment Highlights:

  • Highly desirable Alki Beach location in West Seattle
  • First time on the market in over 50 years!
  • Less than a block from the beach
  • Easily achieved income upside and potential to add value
  • Walking distance to eateries, shops, parks and more
  • Efficient 1BD units with built-in storage
  • Well maintained building with mid-century architecture
  • Vinyl windows, hardie fiber cement siding, new exterior paint
  • Updated electrical service, new water supply main-line
  • 3+ off-street parking stalls
  • Common laundry and tenant storage lockers

West Seattle

West Seattle is rapidly changing and is currently undergoing significant redevelopment from the Alaska Junction to the West Seattle Bridge. This is an excellent location providing immediate access to everything that makes West Seattle distinct and exciting while being only a short distance to Downtown Seattle and many other attractive city amenities.

Residents of this popular neighborhood enjoy being within walking distance of the recently renovated West Seattle Athletic Club, the West Seattle Golf Course, Trader Joe’s, the new Whole Foods, LA Fitness, Starbucks Coffee, Shack Coffee, Luna Park Café, and the shops, entertainment and amenities offered in the Alaska Junction.


Nearby public transportation options include the Rapid Ride C Line Station located across the street, and the Water Taxi, both offering expedited service to Seattle’s CBD.

This gateway location also provides residents with direct access to many spectacular outdoor and recreational amenities located along Alki Beach, including a 2.5-mile pedestrian trail, parks, kayaking, paddle boarding and West Seattle’s Water Taxi to downtown Seattle.

West Seattle’s unique amenities, slower-paced lifestyle, natural beauty, outdoor recreation and proximity to Seattle’s Central Business District make it a prime location to live, work and play.

Operating Statement

Pricing
Price$1,800,000
Down Payment$900,000 (50%)
Loan Amount$900,000 (50%)
Interest Rate4.00% New Loan
Amortization30 Years
Price Per Unit$225,000
Price Per Sq.Ft.$454.55
 
Current GRM/CAP16.23/4.00% (3% Vacancy)
Market GRM/CAP12.73/5.21% (4% Vacancy)
 
Current Expenses
Expenses/Unit$4,434
Expenses/Foot$8.96
% of GSI31.99%
Market Expenses
Expenses/Unit$5,251
Expenses/Foot$10.61
% of GSI29.71%


Monthly Scheduled IncomeCurrentMarket
Monthly Scheduled Rent$9,095$11,160
Utility Billback$0$400 ($50/unit)
Parking (3 open stalls)$0$75 ($25/stall)
Laundry Income$120$120
Other Income$25$25
Total Monthly Income$9,240$11,780
 
Annualized Operating DataCurrentMarket
Scheduled Gross Income$110,880$141,360
Less Vacancy$3,326 (3.0%)$5,654 (4.0%)
Gross Operating Income$107,554$135,706
Less Expenses$35,470$42,004
Net Operating Income$72,084$93,702
Annual Debt Service ($4,297/mo)$51,561$51,561
Cash flow Before Tax$20,523 (2.28%)$42,141 (4.68%)
Principal Reduction$15,849$15,849
Total Return Before Tax$36,372 (4.04%)$57,990 (6.44%)
 
Annualized Operating ExpensesCurrentMarket
Real Estate Taxes (2017)$13,510$16,500
Insurance (Quoted)$1,925$1,925
Utilities (2016 Actual)$7,711$7,711
Management ($50/unit/mo)$4,800$4,800
Maint & Repairs (2016/Proforma)$2,465$6,000
Turnover (Proforma)$1,200$1,200
Landscapting (Proforma)$1,068$1,068
Advertising & Admin (Proforma)$800$800
Reserves (Proforma)$2,000$2,000
Total Operating Expenses$35,470$42,004

A Look Around the Property.

Constructed in 1957, the Surf Apartments is classic example of a timeless midcentury apartment design. The building is a two-story, walk-up design featuring wood-framed construction with a durable exterior of brick and Hardie fiber cement board and a flat tar-and-gravel roof. The building has a low-maintenance exterior stairwell and walkway that leads to the unit entrances on the north side that faces inwards towards a protected and tranquil area with mature landscaping. This courtyard provides a peaceful lightly shaded patio area where residents can hear the beach and relax on a sunny day.

All units at the Surf are a one-bedroom/one-bathroom and feature an open and efficient floor plan given the relatively small size. The units feature built-in storage shelves and drawers allowing for a good use of the space and windows provide good lighting making the units feel spacious and airy. The property has attracted long-term tenants and has had very little turn-over during the current ownership. Unit finishes are simple and consistent with the age and have been well cared for and replaced or upgraded as needed.
Some updates to the property include double-paned vinyl windows, new Hardie siding on the south and west sides, new entry doors, low-voltage exterior lights, new electrical panels, new water main-line into the building from the street, new water supply lines in 2 of the units (1 and 8) and all hot water tanks within the last 5-10 years. The building also received a new roof in 2000, and had parts of the exterior painted in 2016. The building mechanical systems include individual electric meters, Square D panels, electric baseboard heating, individual hot water heaters and plumbing that is a mix of galvanized steel and some new copper/PEX. In the basement of the building there is a common coin-operated laundry facility and individual storage units for resident’s convenience as well as a shop space for the manager/owner to hold supplies. Off-street parking is available for residents with approximately three stalls located off the alley and ample on-street parking in the area.

Unit Totals

Unit Type Size Current Rent Monthly Income Market Rent Market Income
1 1BD/1BTH 495 Sq.Ft. $1,325 $1,325 $1,395 $1,395
2 1BD/1BTH 495 Sq.Ft. $675 $675 $1,395 $1,395
3 1BD/1BTH 495 Sq.Ft. $1,350 $1,350 $1,395 $1,395
4 1BD/1BTH 495 Sq.Ft. $1,375 $1,375 $1,395 $1,395
5 1BD/1BTH 495 Sq.Ft. $1,250 $1,250 $1,395 $1,395
6 1BD/1BTH 495 Sq.Ft. $820 $820 $1,395 $1,395
7 1BD/1BTH 495 Sq.Ft. $1,150 $1,150 $1,395 $1,395
8 1BD/1BTH 495 Sq.Ft. $1,150 $1,150 $1,395 $1,395
Totals/Averages 8 495 Sq.Ft. $2.30 $9,095 $2.28 $11,160

Surf Apartments

The Surf Apartments offers a new owner the opportunity to take advantage of the strong Seattle rental market by increasing rents to market levels and beginning to charge for utilities and other features. Additionally, a new owner can renovate and update the property to create additional value and increase rent potential significantly.