1439 & 1441 NW 52nd Street SEATTLE · 2020. 11. 19. · CORNERSTONE 1439 & 1441 NW 52nd St,...

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1439 & 1441 NW 52nd Street | SEATTLE

Casey ZejdlikP: 206.566.6599C: [email protected]

Jason KonoP: 206.566.6595C: [email protected]

Matt JohnstonP: 206.556.4419C: [email protected]

Justin KraftP: 206.566.6608C: [email protected]

EXCLUSIVELY LISTED BY

Investment Overview

Location

Financials

Comparables

Offer Guidelines

TABLE of CONTENTS

The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. © Pilot Ventures LLC.

INVESTMENT OVERVIEW

4 | CORNERSTONE

CORNERSTONE

1439 & 1441 NW 52nd St, Seattle, WA 98107Pr

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Cornerstone offers a unique investment opportunity in one of Seattle’s most durable and high demand neighborhoods. Cornerstone presents investors with the ability to purchase a master lease in a low maintenance 21-unit multifamily asset located at 1439 & 1441 NW 52nd Street in Ballard. Built in 1967 and 1968, Cornerstone consists of 21 one-bedroom units that average 484 square feet. This offering provides investors with favorable seller-financing for the life of the lease, allowing a new buyer to purchase the master lease with $440k down. Yielding slightly above a 13% cash-on-cash return in year one, Cornerstone is the ideal high-yield, low risk investment opportunity that will continue to perform consistently until lease expiration on June 30, 2032.

The Cornerstone Apartments has been well-maintained by the current owner-operator and has little to no deferred maintenance. The water main is new as of summer 2020, the asset has a torch down roof that was recoated in 2019, and building 1439 has been nearly entirely re-plumbed with PEX. The property also offers ample parking with one garage, six carports, and eight surface stalls. Both buildings are serviced by a central boiler that was replaced in 2005. The windows are double pane vinyl, and all units have electric baseboard heat. Due to the fact that Cornerstone has been updated throughout the years and offers very sound systems, a new investor can focus on cosmetic updates to unit interiors that will yield further upside and even greater cash flows than current financials yield.

Located near the Ballard Blocks, Amazon Fresh, Stoup Brewing, and all that Old Ballard has to offer, tenants of all walks of life will continue to be drawn to the location. There are countless grocery stores, bars, breweries, restaurants, and fitness centers within a one-mile radius of the property. Cornerstone provides great walkability, and is also situated just off of 15th Ave NW providing for a number of transportation options to residents. Cornerstone is a low-risk investment, in a superb location, situated to perform well for years to come.

PILOT VENTURES | 76 | CORNERSTONE

$158,691PROFORMA NOI

Price $ 1,100,000

Units 21

Rentable SF 10,156

Sale Type Transfer of Existing Master Lease

Lease Expiration June 30, 2032

Loan Seller Financing, 60% LTV

Loan Terms 4.50% P&I, 11.5 Year Amort., 11.5 Year Term

Estimated IRR 18.4 %

Estimated Equity Multiple 2.7x

Year Built 1967 / 1968

Parcel Number 276830-0935 & 276830-0940

Land SF 9,314

Zoning IG2 U-65

Construction Type Wood Framed

Plumbing 1439 Pex, 1441 Galvanized, New Water Main 2020

Electric 1439 - Owner Pays; 1441 Separately Metered

Parking 1 Garage, 6 Carport, 8 Surface

Laundry Common w/ Leased Machines (~4.5 Yrs Remaining)

Hot Water Central Boiler (2005)

Heating Electric Baseboard

Roof Type Torchdown (Recoated 2019)

Windows Double Pane Vinyl

Interior Photos LOCATION OVERVIEW

8 | CORNERSTONE8 | GATEWAY + KING

10 | CORNERSTONE

BALLARD

1439 & 1441 NW 52nd St, Seattle, WA 98107

Cornerstone is located in one of Seattle’s top neighborhoods, featuring boutique shopping, top-rated restaurants, coffee shops, high ranking schools, and a bustling nightlife. Ballard offers a unique combination of quiet leafy streets, high-density living, a historic old town center, as well as great outdoor spaces to escape to.

Neighborhood amenities include the Ballard Farmer’s Market, music venues, Golden Gardens Park, Ballard Locks, Nordic Museum, breweries, Fishermen’s Terminal, and Sunset Park.

Ballard is located northwest of Downtown Seattle, with the stunning Puget Sound (Salish Sea) and the Olympic mountains to the west and Salmon Bay to the south, where the fresh waters of Lake Washington meet the salty seawater at the Ballard Locks. Seattle’s Magnolia neighborhood sits on the other side of the locks, with North Beach / Crown Hill to the north, and Greenwood / Phinney Ridge to the east.

The neighborhood’s main thoroughfares running north to south are Seaview, 32nd, 24th, Leary, 15th, and 8th Avenues NW. East to west traffic is carried by NW Leary Way and NW 85th, 80th, 65th, and Market Street. The Ballard Bridge carries 15th Avenue over Salmon Bay to the Interbay neighborhood, and the Salmon Bay Bridge carries the BNSF Railway tracks across the bay, west of the Ballard Locks.

Ballard feels completely self-contained and has everything easily accessible without having to get in a car. Various bus lines are available, offering quick access to Downtown Seattle, Queen Anne, and Fremont. A top destination for locals and tourists alike, Ballard draws big crowds, especially on the weekends. Ballard offers the best of both worlds, quiet solitude mixed with busy city life and a variety of places to see and things to do.

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BALLARD | Seattle | 98107

WALKSCORE.COM

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INK 1 The Walrus & the Carpenter

2 Peddler Brewing Company

3 Asadero Ballard

4 Portage Bay Cafe

5 Lockspot Cafe

6 Red Mill Totem House

7 The Matador

8 Hot Cakes

9 King’s Hardware

10 Ballard Pizza Company

11 8 oz. Burger & Co.

12 Trader Joe’s

13 Pasta Bella

14 Stoup Brewing

15 The Barking Dog Alehouse

16 Ristorante Picolinos

17 Sunset Hill Green Market

18 Un Bien

19 Waterwheel Lounge

20 Grumpy D’s Coffee House

21 Reuben’s Brews

22 The Egg & Us

23 Galos Flame Grilled Chicken

24 Giddy Up Burgers

1 Salmon Bay Park

2 Loyal Heights Playfield

3 Gilman Playground

4 Ballard Commons Park

5 Seattle Public Library

6 Majestic Bay Theatre

7 Ballard Pool

8 Nordic Museum

1 Ballard Square

2 Prism

3 Patagonia Ballard

4 Fair Trade Winds

5 Clover Toys

6 C.C. Filson

7 Walgreens

8 Ross

9 Safeway

10 Goodwill Ballard

1 Olympic Athletic Club

2 CorePower Yoga

3 Ballard Health Club

4 Ballard Crossfit

5 Fighting Chance

6 Edge Personal Training

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DEMOGRAPHIC SUMMARY

1 MILE 3 MILES 5 MILES

2019 Population: 35,881 187,065 440,686

2024 Population: 39,395 200,483 477,272

Growth 2019-2024: 9.79 % 7.17 % 8.30 %

Average Age: 38.1 37.9 37.4

POPULATION

5 MILES


2019 HH Total: 18,639 87,288 215,445

Growth 2019-2024: 9.62 % 6.60 % 8.07 %

Median HH Income: $ 91,580 $ 99,724 $ 89,798

Average HH Size: 1.8 2 1.8

HOUSEHOLDS


Median Home Value: $ 628,146 $ 715,727 $ 675,922

Median Year Built: 1978 1959 1969

HOUSING

3 MILES

1 MILE

Ballard Farmer’s Market

Seattle’s first year-round farmer’s market, offering a variety of fresh produce from

Washington farmers every Sunday.

NEIGHBORHOOD ATTRACTIONS

Golden Gardens Park

Stunning views of the sound and the Olympic Mountains. During the summer, Golden Gardens

becomes a citywide beach hangout.

Ballard Locks

The Ballard Locks link the Puget Sound with Lake Union and Lake Washington. Visitors can see the underwater fish ladder and enjoy the

Carl S. English Jr. Botanical Garden.

Nordic Museum

Features a variety of educational exhibits and experiences that showcase Nordic and

Nordic-American cultural heritage.

Fishermen’s Terminal

Just off the Ballard Bridge, Fishermen’s Terminal is home to hundreds of fishing boats that spend

months out to sea off the coast of Alaska.

Sunset Hill Park

Perched at the top of a cliff that overlooks Shilshole Marina and the Olympic skyline. The

bay below is alive with sailboats daily.


Seattle is the decades’ fastest growing

major city and is regularly ranked in the top

10 best commercial real estate markets. Since

2010, Seattle’s population has increased 25%,

bringing an additional 152,440 residents to the

beloved Emerald City. Seattle is the cultural

and business center of the Pacific Northwest

and offers a diverse and robust community.

Seattle was ranked the number one city

for STEM jobs by NerdWallet in 2020. The

University of Washington, a highly ranked

school with a variety of nationally recognized

programs, prepares top-tier students

for roles at companies including the Fred

Hutchinson Cancer Research Center, the

Allen Institute and various cutting-edge

tech companies. Jobs in the in information,

communications and technology sector are

growing rapidly. Tech sector growth, led by

Amazon and Microsoft and buoyed by more

than 130 startups and mid-sized companies, will

drive long-term positive trends in the region.

It’s no stretch to imagine how the lush, green

foliage and shimmering waters draw people

to Seattle. Unparalleled beauty and access to

the outdoors have attracted some of the best

companies in the country. The city is bordered

by Lake Washington and the Puget Sound, and

snowcapped mountain ranges can be seen in every direction.

Employment and population growth rates are

strong and stable, supported by commerce

and an ongoing demand for skilled workers.

Companies expanding in the area include

Amazon, Google, Indeed, Lyft, Uber, Tableau

(acquired by Salesforce), Oracle, and Apple.

Apple recently announced that it will expand

its Seattle workforce by 2,000 employees by

2022, up from roughly 450 employees currently.

Apple has occupied space at Two Union Square

in downtown since 2015 and took over all of 333

Dexter’s offices in South Lake Union, offering

space for more than 4,000 employees. With the

highly anticipated relocation of Expedia and

the recent acquisition of Tableau by Salesforce,

Seattle continues to bring strong talent into the

core, fueling the absorption of multifamily units.

The broader market trends driven by strong

population growth and employment hubs are

driving the appetite of both local and out-of-state

investors eager to capitalize on opportunities in

the Puget Sound.

Buzzing with new infrastructure, jobs and residents,

Seattle’s ever-growing metropolis is considered

home to many major employers who drive growth

and fuel the area’s economic climate including:

53,0000 employees 4,500 employees

500 employees 235 employees320 employees

800 employees 525 employees700 employees

1,000 employees 800 employees1,000 employees

1,365 employees 1,186 employees1,250 employees

2,000 employees 2,000 employees2,000 employees

2,500 employees

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16 | CORNERSTONE

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Pike Place Market

Pike Place public market, overlooking the Elliot Bay

waterfront, first opened in 1907. Pike Place remains

Seattle’s most popular tourist desination and the 33rd

most visited tourist attraction in the world, with over

10 million visitors annually.

Northgate

Seattle’s Northgate neighborhood’s dense mixed-use

development is expected to be completed by 2021.

This transformative location, fueled in part by Seattle’s

new NHL team headquarters, training facility, and

community ice rinks, is adjacent to the new Link Light

Rail Northgate station.

West Seattle

Seattle’s eclectic West Seattle neighborhood is a quick

drive or water taxi ride from downtown. It is home to

an array of amenities including one of the city’s most

popular outdoor recreation areas, Alki Beach.

18 | CORNERSTONE

In total, Fortune 500 companies represent two-thirds of the U.S. GDP with $13.7 trillion in revenues, $1.1 trillion in profits, $22.6 trillion in market value, and employ 28.7 million people worldwide.

Washington state and the Puget Sound region are home to an array of Fortune 500 companies covering a variety of industries, including:

647,500 employees






Internet Services and Retailing

Technology

General Merchandisers

Food Services

Construction & Farm Machinery

Airlines

Transportation & Logistics

Forest & Paper Products

Industrial Machinery

Expedia’s new $900 million HQ on Seattle’s waterfront opened in fall 2019. The site will house 4,500 Seattle metropolitan area employees as the company shifts operations from their Eastside Bellevue location to Downtown Seattle. Approvals are in place to continue future expansion to 8,000 employees at the campus.

Expedia, which spun out of Microsoft in 1999, is one of the world’s largest online travel companies. The brand umbrella includes Expedia, Hotels.com, Egencia, and Expedia Partner Solutions.

Google’s continued expansion in Seattle and Kirkland brings the total office space leased and owned to over 2 million square feet. Google currently has 4,500 employees in the region and its real estate portfolio gives the tech giant room for more than 10,000 people. Google is one of more than 130 companies from around the globe that have set up engineering centers in the Seattle area.

Google is a multinational technology company specializing in internet related services and products.

Facebook’s leasing velocity makes room for 23,700 new employees in the Seattle area, according to the 150 square feet per employee industry standard. Facebook’s recently signed lease includes 325,000 square feet in Block 6 of Bellevue’s Spring District. Facebook currently employs 5,000 people across Downtown Seattle, Bellevue, and Redmond. The projected headcount will easily exceed Facebook’s Silicon Valley offices, at approximately 15,000.

Facebook allows people to stay connected and share and express what matters to them. Other products and services owned by Facebook include Instagram, WhatsApp, Oculus, and GrokStyle.

Apple’s expansion in Seattle at 333 Dexter includes two 12-story office towers totaling 635,000 square feet, with room to house 4,200 employees. Seattle has become Apple’s hub for developing artificial intelligence and machine learning technologies.

The company designs, manufactures, and markets mobile communication and media devices as well as personal computers, and sells a variety of related software, services, accessories, and third-party digital content and applications. Apple is the world’s largest technology company by revenue and became the first public U.S. company to be valued at over $1 trillion.

EXPANDING TECH COMPANIES IN SEATTLEWASHINGTON STATE IS HOME TO 11 COMPANIES ON THE

2019 FORTUNE 500 LIST


Jobs: Amazon has created more than 53,000 jobs in Seattle since 2010 and 11,393 new job postings as of January 2020, with 30% of those in AWS, Amazon’s flagship cloud business.

Multifamily Demand: Amazon’s job growth has impacted neighborhoods surrounding South Lake Union, Bellevue, and the greater Puget Sound region.

Evolving Skyline: Amazon’s growth, with 12 million square feet leased or owned, has shaped the skyline of Seattle and driven consistent demand in the multifamily sector. In addition, Amazon’s rapid expansion in Bellevue could reach 4.8 million square feet and power spectacular growth in the area’s suburbs.

AMAZON’S EMPLOYMENT TRENDS IN SEATTLE

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AMAZON’S SEATTLE GROWTH IMPACT

5.0 K8.5 K

11.0 K

16.0 K

21.0 K

27.5 K

38.0 K40.0 K

45.0 K

53.0 K

0.0 K

10.0 K

20.0 K

30.0 K

40.0 K

50.0 K

60.0 K

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


Two-acre open plaza that can hold up to 12,000 people

Pedestrian and cyclist-only bridge over SR 520 connecting the east and west campuses

Multi-use outdoor spaces, including running/walking trails, sports facilities, and green space

Microsoft store, retail shops, and restaurants

Car-free pedestrian zones and an underground smart parking facility

Link Light Rail stop (scheduled completion by 2023)

MICROSOFT’S GROWTH IMPACT

Microsoft is the world’s largest software company with their global headquarters located in Redmond.

In 2018, Microsoft broke ground on a multi-billion dollar renovation and development project at its

Redmond campus. Planned construction over the next 5-7 years includes 18 new buildings totaling 2.5

million square feet, and the renovation of a majority of the 80 existing buildings totaling 6.7 million

square feet. Microsoft is investing $150 million in transportation infrastrucure that will include a

pedestrian and cyclist bridge, connecting the east and west campuses. The renovation will add 8,000

employees to its 47,000 total in the Puget Sound region, with a vast majority at the Redmond Campus.

MULTI-BILLION DOLLAR RENOVATION & DEVELOPMENT

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sSouth Lake Union

South Lake Union is the heart of Seattle’s tech hub, home to Amazon’s headquarters and a variety of cutting-edge technology and biotech companies including Juno Therapeutics, Allen Institute and Fred Hutchison Cancer Research

Seattle’s CBD is home to major finance, legal, government and insurance companies with a total of 35 million of inventory and 874,000 square feet of positive absorption in the office sector

Bustling core packed with entertainment, restaurants and artsy attractions

Bellevue

The Eastside’s most sought after office submarket by tech companies including Amazon, Google and Facebook

Amazon has plans to add over 20,000 employees into this submarket by 2024

Downtown Bellevue has a current workforce of about 46,200 and is one of the top 100 most educated populations in the country

First Hill / Pill Hill

Home to major healthcare facilities including Harborview, Swedish, and Virginia Mason

Seattle University, the largest independent university in the Northwest, with over 7,500 students enrolled

Tourist destination that provides a plethora of dining, shopping and entertainment opportunities

Redmond

World-renowned as the region’s hub for technological innovations

Home to Microsoft’s, SpaceX, Oculus (Facebook’s virtual reality headset division), and Nintendo of America

Microsoft expansion plans allow for up to 8,000 additional employees at its Redmond campus by 2023

Kirkland

Kirkland benefits from a high proportion of tech tenants including Google, Tableau, and GoDaddy

The downtown waterfront has an unparallel blend of public parks and beaches, fine dining, art galleries, and a performing arts center

FINANCIALS

26 | CORNERSTONE

PUGETSOUND

BELLEVUE 20

MINUTES

MERCERISLAND

20 MINUTES

KIRKLAND 22

MINUTES

FACTORIA 22

MINUTES

LAKEWASHINGTON

NORTHGATE 12

MINUTES

SEATTLE 15

MINUTES

UNIVERSITYDISTRICT

10 MINUTES

WESTSEATTLE

16 MINUTES

INDUSTRIALDISTRICT

16 MINUTES

FREMONT 5

MINUTES

CONVENIENT LOCAL ACCESS

REDMOND 24

MINUTES

QUEENANNE

8 MINUTES

MAGNOLIA 8

MINUTES

CAPITOLHILL

12 MINUTES

SOUTHLAKE UNION

10 MINUTES


Financial Analysis

CURRENT PRO FORMA

Gross Potential Rent $ 308,952 $ 340,200

Vacancy $ (15,448) 5.00 % $ (17,010) 5.00 %

NET RENTAL INCOME $ 293,504 $ 323,190

OTHER INCOME

RUBS - $ 16,380

Parking - $ 4,200

Laundry - $ 3,780

Storage - $ 1,680

Total Other Income - $ 26,040

EFFECTIVE GROSS INCOME $ 293,504 $ 349,230

EXPENSES

Property Taxes $ 21,522 $ 22,168

Insurance $ 8,489 $ 8,400

Utilities: W/S/G/E $ 36,935 $ 38,043

Maintenance & Repairs $ 14,912 $ 15,750

Landscaping - $ 3,200

Resident Manager - $ 8,505

Property Management @ 6.00% - $ 20,954

Reserves - $ 4,200

Legal & Professional Fees $ 625 $ 1,050

Master Lease Contract $ 62,111 $ 64,595

Admin $ 3,389 $ 3,675

Total Expenses $ 147,983 $ 190,539

NET OPERATING INCOME $ 145,521 $ 158,691

Loan Payments $ (73,622) $ (73,622)

PRE-TAX CASHFLOW $ 71,900 13.2 % $ 85,069 15.6 %

• Unique master lease opportunity with 11.5 years remaining

• Seller financing available: • Down payment - $440,000 • 4.50% interest rate, principal & interest payments • 11.5 year amortization schedule

RENT ROLL

* Unit square footages are based off of Owner’s rent roll

UNIT Type Approx SF Current Rent Current / SF Market Rent Market / SF

1 1 Bd / 1 Bth 484 $ 1,300 $ 2.69 $ 1,350 $ 2.79

2 1 Bd / 1 Bth 484 $ 1,075 $ 2.22 $ 1,350 $ 2.79

3 1 Bd / 1 Bth 484 $ 1,025 $ 2.12 $ 1,350 $ 2.79

4 1 Bd / 1 Bth 484 $ 1,250 $ 2.58 $ 1,350 $ 2.79

5 1 Bd / 1 Bth 484 $ 1,025 $ 2.12 $ 1,350 $ 2.79

6 1 Bd / 1 Bth 484 $ 1,285 $ 2.65 $ 1,350 $ 2.79

7 1 Bd / 1 Bth 484 $ 1,200 $ 2.48 $ 1,350 $ 2.79

8 1 Bd / 1 Bth 484 $ 1,275 $ 2.63 $ 1,350 $ 2.79

9 1 Bd / 1 Bth 484 $ 1,300 $ 2.69 $ 1,350 $ 2.79

10 1 Bd / 1 Bth 484 $ 1,075 $ 2.22 $ 1,350 $ 2.79

11 1 Bd / 1 Bth 484 $ 1,300 $ 2.69 $ 1,350 $ 2.79

12 1 Bd / 1 Bth 484 $ 1,345 $ 2.78 $ 1,350 $ 2.79

13 1 Bd / 1 Bth 484 $ 1,345 $ 2.78 $ 1,350 $ 2.79

14 1 Bd / 1 Bth 484 $ 1,385 $ 2.86 $ 1,350 $ 2.79

15 1 Bd / 1 Bth 484 $ 1,300 $ 2.69 $ 1,350 $ 2.79

16 1 Bd / 1 Bth 484 $ 1,175 $ 2.43 $ 1,350 $ 2.79

17 1 Bd / 1 Bth 484 $ 1,015 $ 2.10 $ 1,350 $ 2.79

18 1 Bd / 1 Bth 484 $ 1,350 $ 2.79 $ 1,350 $ 2.79

19 1 Bd / 1 Bth 484 $ 1,345 $ 2.78 $ 1,350 $ 2.79

20 1 Bd / 1 Bth 484 $ 1,385 $ 2.86 $ 1,350 $ 2.79

21 1 Bd / 1 Bth 484 $ 985 $ 2.04 $ 1,350 $ 2.79

10,164 $ 25,740 $ 2.53 $ 28,350 $ 2.79

• Significant rental upside on existing month-to-month units

• Potential to increase revenue with Billboard and Garage income

• Unit 18 is currently being renovated

• Units 1, 9 and 11 are vacant

30 | CORNERSTONE PILOT VENTURES | 31

CORNERSTONE PROJECTIONS

Rents Notes

Rents Market Rents assume a minor turn budget of $5,000 per unit

Vacancy Vacancy rate of 5.00% is consistent with current submarket conditions

Other Income Notes

Utility Billback Market Utility Billback of $65 per unit is consistent with rent comparables

Laundry Market Laundry Income of $15 per unit is consistent with other buildings with common laundry

Pet Rent Pet Rent has not been factored in but would be an additional revenue stream to consider

Parking Income Market Parking Income factors in the Large Garage at $250 per month and the Carport at $100 per month

Misc Income Market Storage Income at $20 per unit for the 7 storage lockers in the tuck-under parking area

Expenses Notes

Insurance Market Insurance is estimated at $400 per unit per year

Utilities: W/S/G/E Market Utility Expenses have factored a 3.00% annual increase off current expenses

Maintenance & Repairs Market M&R estimated at $750 per unit per year

Landscaping Market Landscape costs estimated to be $800 per quarter

Resident Manager Market Res Mgr or Leasing costs estimated to be one full months rent across 30% unit turnover per year

Property Management Market Professional Mgmt fees estimated to be at 6.00% of EGI

Reserves Market Reserves of $200 per unit per year

Legal & Professional Fees Market Legal estimated at $50 per unit per year

Master Lease Contract The Master Lease Agreement runs through June 30, 2032 and has 4.00% Annual Increases

Administrative Market Administrative fees estimated at $175 per unit per year

INCOME & EXPENSE NOTES

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

INCOME

Gross Potential Rent $308,952 $340,200 $350,406 $360,918 $371,746 $382,898 $394,385 $406,217 $418,403 $430,955 $443,884 $228,600

Less Vacancy ($15,448) ($17,010) ($17,520) ($18,046) ($18,587) ($19,145) ($19,719) ($20,311) ($20,920) ($21,548) ($22,194) ($11,430)

Add Other Income - $26,040 $26,821 $27,626 $28,455 $29,308 $30,187 $31,093 $32,026 $32,987 $33,976 $17,498

Effective Gross Income $293,504 $349,230 $359,707 $370,498 $381,613 $393,061 $404,853 $416,999 $429,509 $442,394 $455,666 $234,668

EXPENSES

Property Taxes ($21,522) ($22,168) ($22,833) ($23,518) ($24,223) ($24,950) ($25,698) ($26,469) ($27,263) ($28,081) ($28,924) ($14,896)

Insurance ($8,489) ($8,400) ($8,652) ($8,912) ($9,179) ($9,454) ($9,738) ($10,030) ($10,331) ($10,641) ($10,960) ($5,644)

Utilities: W/S/G/E ($36,935) ($38,043) ($39,184) ($40,360) ($41,570) ($42,817) ($44,102) ($45,425) ($46,788) ($48,191) ($49,637) ($25,563)

Maintenance & Repairs ($14,912) ($15,750) ($16,223) ($16,709) ($17,210) ($17,727) ($18,259) ($18,806) ($19,371) ($19,952) ($20,550) ($10,583)

Landscaping - ($3,200) ($3,296) ($3,395) ($3,497) ($3,602) ($3,710) ($3,821) ($3,936) ($4,054) ($4,175) ($2,150)

Resident Manager - ($8,505) ($8,760) ($9,023) ($9,294) ($9,572) ($9,860) ($10,155) ($10,460) ($10,774) ($11,097) ($5,715)

Property Management @ 6.00% - ($20,954) ($21,582) ($22,230) ($22,897) ($23,584) ($24,291) ($25,020) ($25,771) ($26,544) ($27,340) ($14,080)

Reserves - ($4,200) ($4,326) ($4,456) ($4,589) ($4,727) ($4,869) ($5,015) ($5,165) ($5,320) ($5,480) ($2,822)

Legal & Professional Fees ($625) ($1,050) ($1,082) ($1,114) ($1,147) ($1,182) ($1,217) ($1,254) ($1,291) ($1,330) ($1,370) ($706)

Master Lease Contract ($62,111) ($64,595) ($67,179) ($69,866) ($72,661) ($75,567) ($78,590) ($81,734) ($85,003) ($88,403) ($91,939) ($47,808)

Admin ($3,389) ($3,675) ($3,785) ($3,899) ($4,016) ($4,136) ($4,260) ($4,388) ($4,520) ($4,655) ($4,795) ($2,469)

Total Expenses ($147,983) ($190,539) ($196,902) ($203,480) ($210,283) ($217,319) ($224,594) ($232,117) ($239,898) ($247,945) ($256,268) ($132,438)

Expense Weight 50.4% 54.6% 54.7% 54.9% 55.1% 55.3% 55.5% 55.7% 55.9% 56.0% 56.2% 56.4%

NET OPERATING INCOME $145,521 $158,691 $162,805 $167,018 $171,330 $175,743 $180,260 $184,881 $189,610 $194,449 $199,398 $102,230

Loan Payments ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($73,622) ($36,811)

PRE-TAX CASH FLOW $71,900 $85,069 $89,184 $93,396 $97,708 $102,121 $106,638 $111,260 $115,989 $120,827 $125,777 $65,420

Interior Photos COMPARABLES

32 | CORNERSTONE


Property Address Building Name Unit Type Unit SF Rent Rent /SF Distance RUBS Year Built

1 1426 NW 60th St 1426 NW 60th St 1 Bd / 1 Bth 600 $ 1,595 $ 2.66 0.6 $95.00 1966

2 6115 8th Ave NW 6115 8th Ave NW 1 Bd / 1 Bth 450 $ 1,395 $ 3.10 1.0 Owner Paid 1956

3 1525 NW 52nd St Katie on 52nd 1 Bd / 1 Bth 600 $ 1,495 $ 2.49 0.5 $75.00 1967

4 2407 NW 59th St Arlene's Apartments 1 Bd / 1 Bth 550 $ 1,495 $ 2.72 1.1 $75.00 1958

5 6110 24th Ave NW Olympic View 1 Bd / 1 Bth 588 $ 1,595 $ 2.71 1.3 Owner Paid 1968

AVERAGES 558 $ 1,515 $ 2.74

RENT COMPARABLES

1 2 3 4

1426 NW 60TH ST

1426 NW 60th St

6115 8TH AVE NW

6115 8th Ave NW

KATIE ON 52ND

1525 NW 52nd St

ARLENE’S APARTMENTS

2407 NW 59th St

OLYMPIC VIEW

6110 24th Ave NW

11

22

33

44

RENT COMPARABLES

11

22

33

44

BALLARD

5

55

55

OFFER GUIDELINES

36 | CORNERSTONE

Pilot Ventures is pleased to announce

All questions and inquiries regarding tours and this opportunity should be addressed to the Pilot Ventures representatives listed herein. Pilot Ventures’ team will be available to assist prospective investors with questions upon their review of the offering. Investors will receive advanced notification of the bid deadline via email. Offers should include, at a minimum, the following:

• The purchase price, contingencies and closing date;

• The amount of earnest money deposit;

• The source of capital for down payment;

• A detailed timeline for the transaction;

• A brief overview of the Buyer’s qualifications.


Built upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono.

Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do.

At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results.

Together, we don’t just build equity— we build relationships.

BrokerageWhether you’re buying or selling, our experienced team of brokers will ensure you receive the best possible representation.

SyndicationOur firm’s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment.

ManagementManaging properties can be an overwhelming experience— in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI.

pilotNW.com

Brokerage / Syndication / Management

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