Offering Summary

Address 19280 11th Pl S, SeaTac, WA
Price $635,000
Total Units 5
Built 1961
Square Feet 3,360 Total Net Rentable
Expenses Per Unit $3,395/Year
Price Per Net SQFT $188.99
Current GRM/CAP 10.54/6.63% (2% Vacancy)
Market GRM/CAP 9.45/7.20% ( 5% Vacancy)
Terms Cash Out
Zoning LR1
Lot Size 10,000 Square Feet

Ameilia Apartments

Built in 1961, the Amelia Apartments is a well-constructed, low-maintenance building featuring classic mid-century architecture. The building is two-stories with a basement, features wood-framed construction with an exterior of thick horizontal wood and brick.

Building amenities include an on-site coin-operated laundry room and off-street parking with approximately 7+/- parking spaces. The laundry machines are currently leased through MacGray.

Investment Highlights:
> Easy to manage, low maintenance building
> Very low historic vacancy
> Upside in rental income
> On-site coin-operated laundry for residents
> Convenient off-street parking with approx. 7 spaces
> Value-add potential: basement space
> Easy access to Hwy 99, 509, I-5 and public transportation
> Unfinished basement: potential to add a unit or expand existing unit
> Dynamic/transitional neighborhood with new development all around
> Energy efficient upgrades include triple-paned windows, heavy storm doors, new insulation in ceilings


The building has a low sloped roof with a torch-down covering that has had a recent aluminum coating. The building is nicely positioned on a gently sloping corner lot that is approximately 10,000 square feet. The building is comprised of five one-bedroom units in total with two on the upper floor, two on the middle floor and one in the basement/ground level.

The upper-level units feature tall, cathedral ceilings that give the units an open, airy feel. The upper units also have wood-burning fireplaces that are piped out through the roof. Units feature mostly original or similar finishes and fixtures with some upgraded flooring and carpet and newer appliances in some units. All units have private balconies or patios that face towards the backyard area.

The building received significant energy and sound efficiency upgrades such as triple-paned Milgard windows, storm doors, and improved ceiling insulation. Building mechanical systems include individual hot-water tanks in the basement, seven electric meters, breaker panels in each unit, and water supply lines that are mostly galvanized with some copper in areas.

The building has a very large unfinished basement and storage room that is currently being used by the owner as storage. The combined area of these two rooms is approximately 790 square feet +/-. There is potential that a new owner could add this space to the adjacent unit to create a two-bedroom unit, or maybe a studio unit could be added within this space creating a sixth unit. Buyer to verify.




Operating Information

PRICING
Price$635,000
Price Per Unit$127,000
Price Per Sq.Ft.$188.99
Down Payment$190.500 (30%)
Loan Amount$444.500 (70%)
Interest Rate4.75% Variable
Amortization30 Years
 
Curent CAP6.63%
Current GRM10.54
Market CAP7.20%
Market GRM9.45
 
CURRENT EXPENSES
Expenses/Unit$3,395
Expenses/Foot$5.05
% of GSI28.17%


MONTHLY SCHEDULED INCOMECURRENTMARKET
Monthly Scheduled Rent$4,971$5,300
Laundry (Leased with MacGray)$30$30
Utility Billback ($50/Unit Avg)$0$250
Parking (5 stalls + 2 tandem spaces)$0$0
Miscellaneous$20$20
Total Monthly Income$5,021$5,600
 
ANNUALIZED OPERATING DATACURRENTMARKET
Scheduled Gross Income$60,252$67,200
Less Vacancy$1,205 (2.00%)$3,360 (5.00%)
Gross Operating Income$59,047$63,840
Less Expenses$16,973$18,097
Net Operating Income$42,074$45,743
Annual Debt Service ($2,319/mo)$27,825$27,825
Cash flow Before Tax$14,249 (7.48%)$17,918 (9.41%)
Principal Reduction$6,859$6,859
Total Return Before Tax$21,108 (11.08%)$24,777 (13.01%)
 
EXPENSE AND RESERVESCURRENTMARKET
Real Estate Taxes (2017 Actual)$4,876$6,000
Insurance (2016 Actual)$1,450$1,450
Utilities (2016 Estimated)$4,647$4,647
Maintenance & Repairs (Proforma)$3,750$3,750
Landscaping (Proforma)$500$500
Adminstration (Proforma)$500$500
Reserves (Proforma)$1,250$1,250
 
Total Operating Expenses$16,973$18,097

The City of SeaTac

The City of SeaTac has many factors contributing to its economic success and growth in recent years. For starters, the City is perfectly positioned just 14 miles south of Seattle in a transportation-centric community. Commuters often utilize the Light Rail, which has been in place since 2009 and delivers passengers to downtown Seattle in approximately 30 minutes. Coupled with ease of transportation and proximity to the SeaTac international Airport, SeaTac has blossomed into a business-friendly city currently home to over 900 business, nearly 80 of which are fortune 1000 companies.

Businesses in the City of SeaTac are located at the crossroads of regional transportation and the center of regional hospitality. SeaTac is readily accessible by I-5 and WA-509, SR-99 and I-405. SeaTac international airport is an economic driver, stimulating the economy with more than 171,796 jobs and servicing over 400,000 flights a year. SeaTac is also home to several other major employers such as; Alaska Airlines, Northwest Airlines, The Boeing Co., Horizon Air, Port of Seattle, United Airlines, HMS Host, Doubletree Hotel and US Postal Service.

A Look Around the Property.

Monthly Scheduled Unit Income

## OF UNIT TYPE SQFT CURRENT RENT MONTHLY INCOME MARKET RENT MONTHLY INCOME
1 1BD/1Bth 560 SqFt $700 $700 $900 $900
4 1BD/1Bth 700 SqFt $1,021 - $1,100 $4,271 $1,100 $4,400
5 Average/Totals 672 SqFt $1.48/SF $4,971 $1.58/SF $5,300

Puget Sound Region

The Seattle area, the nation’s 13th largest metropolitan area, is known for its strong business climate as well as its skilled workforce. Several factors contribute to the region’s thriving business community, from the prevailing entrepreneurial spirit to the education levels and skill sets of its work force. Innovative companies attract high-quality workers who typically possess a high level of education.

Seattle is the largest city in the four-county metropolitan area known as the Puget Sound region. The area’s other major metropolitan cities are Bellevue, Tacoma, Everett, and Bremerton. Surrounding these are growing cities that include Kirkland, Redmond, Kent, Renton, Bothell, and Issaquah.

According to Forbes, Seattle is one of the most popular cities in the country for the millennial generation (ages 20-34), with a growth rate of 20.3 percent since 2007. This is primarily due to the abundance of tech, engineering, and biotechnology employment opportunities in the region, which are highly sought after industries by millennials.