15560 Westminster Way NorthShoreline, WA 98133
For Real-Time Property Information go to:PotalaPlace.BerkadiaREA.com
DAVID SORENSENAssociate [email protected]
KENNY DUDUNAKISSenior Managing [email protected]
| EXCLUSIVE OFFERING a Berkshire Hathaway and Leucadia National company
324 Units | Built: 2017 | Un riced Offering
JEFF STUART | Managing Director | 206.801.3069 | [email protected]
FINANCING
KENNY DUDUNAKISSenior Managing [email protected]
DAVID SORENSENAssociate [email protected]
INVESTMENT ADVISORS
324-Unit Mixed-Use Development Site
Less Than Three Miles from a Planned Light Rail Station
Easy Access to Retail and Mass Transportation
Submarket Vacancy Rate of 2%
10 Miles to Downtown Seattle
Seattle Rents Projected to Increase 7.2% in 2016
For Real-Time Property InformationScan QR Code or go to:PotalaPlace.BerkadiaREA.com
PROPERTY HIGHLIGHTS
Original CompletionPlanned for July 2017
Market Positioning 14
The Market 23
The Opportunity 5
The Asset 7
Financial Analysis 12
TABLE OF CONTENTS
IMAGES PROVIDED BY CARON ARCHITECTURE
Seattle - 2015 #1: City in U.S. to find a job – Wallet Hub 2015 #1: Fastest-growing big city in the U.S. – U.S. Census Bureau #1: Highest job growth for small businesses in the U.S. - Paychex #1: Nation’s most sustainable city – STAR communities #2: Best city for recent college graduates - nerdwallet.com #3: Highest median salary in the country – Forbes #4: Richest city in the U.S. – USA Today #5: Fastest growing city in the U.S. – Forbes #5: Best U.S. cities for tech startups – Entreprenuer.com
Urban Oasis Located in the Sought after NorthSeattle Neighborhood of Shoreline
Seattle is one fastest developing submarkets on the West Coast.Remarkably designed.Walk Score of 78 – “Very Walkable” Westside location.Surrounded by local amenities and less than one mile from I-5 and three miles from the future light rail stop.
Designed for Growing Millennial PopulationMillennials are moving to Seattle in droves and looking for apartments that fit their needs and tastes.Expansive community areas and well-designed floor plans, with clean modern finishes will be highly sought after by residents.
A Rapidly Growing Neighborhood in the Heart ofSeattle’s Growth Plans
Future Northgate and 130th light rail stops within three miles of the development site, 15 minute commute to Downtown Seattle.The close proximity to I-5, SR-99 and the future light rail station provides premier access to employment drivers throughout the region.
One of the Tightest Markets in the NationShoreline is currently experiencing 2.0% market vacancy per Dupre + ScottThe five year market vacancy is 2.69%Market rents in the North Seattle submarket have increased 32.8% since 2011
Well Positioned between King and SnohomishCounties Economic Growth
Leading technology, medical, marketing, and financial jobs nearby.Major employment hubs Seattle, Lynnwood, Bothell, and Everett all less than 20 miles from the development site.
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THE OPPORTUNITY
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In City building permit review
Administrative design review was conditionally approved
Caron anticipates to submit round of correction in August
Project is vested in without mitigation fee, saving Buyer approximately $1.5
million
Buyer needs to finalize land swap with the City and negotiate off-site
improvements
Anticipate project could be shovel ready in Fall 2016
Potala Place ShorelineDevelopment Opportunity
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The podium development site is located in the North Seattle submarket of Shoreline, with a population of almost 230,000
residents, while the greater Seattle MSA is home to over 3.5 million people. The convenient access to Interstate 5 and State Route
99 will create an easy commute to thousands of jobs across the Puget Sound Region. Multiple top 50 Fortune 500 companies,
strong rent-growth, low unemployment rates, and limited land in the greater Seattle area have helped make it one of the premier
investment locations in the country.
Shoreline currently displays an extremely low vacancy rate of 2.0%, while over the past five years, market rents have increased
32.8%. The development site is situated ten miles north of the Seattle central business district and is surrounded by strong job
growth, retail, and schools. The nearly two-acre development site could feature a potential unit mix including 55 studios, 65 open
one-bedrooms, 140 standard one-bedrooms, and 64 two-bedroom units. This unit mix would range from 500 - 1,040 square
feet, providing options for a wide variety of tenants.
The project will include two mid-rise residential towers above a single concrete podium. An internal podium level landscaped
courtyard creates an outdoor space for the residents allowing fresh air and privacy. Other amenities include a clubhouse, fitness
center, BBQ area, dog walk, and bicycle repair / parking. Sustainable design strategies are employed and considered throughout
the building from material selection to construction waste.
PROPERTY DESCRIPTION
Units: 324
Year Built: 2017
Parking: 297
Total SF: 231,385
Average Unit SF: 714±
Site Acreage: 1.87±
Parcel Number(s): 1826049453,
1826049081,
1826049454,
1826049452
Type of Buildings: Two Mid-Rise
Market Rent: $1,696
Rent / SF: $2.37
PROPERTY SUMMARY
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PARCEL AERIAL
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Major Employers WithinMinutes from Potala Place Shoreline
Potala Place Shoreline is conveniently located near the intersection of Westminster Way North and North 155th Street,
approximately ten miles from downtown Seattle. The property is situated within the city of Shoreline's Aurora Square
Community Renewal Area. Interstate 5 is less than two miles from Potala Place Shoreline, providing easy access to
shopping, dining, and employment centers throughout the Seattle metro area.
Neighborhood shopping conveniences include: Central Market Shoreline and WinCo Foods.
Major shopping centers include:
Aurora Square, a 38,030 square foot shopping center, is located next door to the property. Marshalls, Sears, Pier 1
Imports, and Central Market Shoreline are some of the notable tenants.
Northgate Mall, located less than four miles from the property, is a one million-square-foot retail destination with
over 130 stores. Anchors include: JC Penney, Macy's and Nordstrom.
Alderwood Mall, located less than eight miles from the property, with over 1.3 million square feet is anchored by
Macy's, Nordstrom, Sears, and JC Penny.
Other nearby are shopping centers include: University Village (H&M, Anthropologie, J. Crew, and Starbucks), Pacific
Place (Barnes & Noble, Barneys New York, and Tiffany & Co.), and Westlake Center (Macy's and Nordstrom).
LOCATION DESCRIPTION
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POINTS OF INTEREST AERIAL
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15560 WESTMINSTER WAY NORTH
SHORELINE, WA 98133
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Unit Mix & Rent Schedule Unit Total Market Monthly Annual Units Type SF SF Rent Mkt. Rent Mkt. Rent Rent/SF 55 Studio 500 27,500 $1,305 $71,775 $861,300 $2.61 65 Open 1 Bed 605 39,325 $1,515 $98,475 $1,181,700 $2.50 140 1 Bed/1 Bath 700 98,000 $1,705 $238,700 $2,864,400 $2.44 64 2 Bed/2 Bath 1,040 66,560 $2,195 $140,480 $1,685,760 $2.11 324 714 231,385 $1,696 $549,430 $6,593,160 $2.37
BerkadiaIncome Pro FormaScheduled Market Rent $6,593,160 Less: Vacancy 5.00% ($329,658) Less: Non-Rev/Bad Debt/Adjust 0.25% ($16,483)Net Rental Income $6,247,019
Plus: Commercial Income $37,995 Less: Commercial Vacancy ($3,800) Plus: Parking Income $248,805 Plus: RUBS Income $291,600 Plus: Other Income $194,400Total Operating Income (EGI) $7,016,020
Expenses Per Unit Administrative $201 $65,000 Advertising & Promotion $176 $57,000 Payroll $1,326 $429,500 Repairs & Maintenance/Turnover $401 $130,000 Management Fee 2.50% $541 $175,400 Utilities $1,201 $389,000 Contracted Services $309 $100,000 Real Estate Taxes $2,984 $966,654 Insurance $201 $65,000 Replacement Reserve $200 $16,000Total Expenses $2,393,554
Per Unit: $7,388 Per SF: $10.34
Net Operating Income $4,622,465
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.
© 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
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FINANCIAL ANALYSIS
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INCOME ASSUMPTIONS
Scheduled Market Rent: Pro Forma Scheduled Market Rent is based on analysis of trends in the North Seattle / Shoreline rental markets, the rents received at comparable properties, and data from apartment research firm Dupre + Scott.
Shorelineo Assets 2010 and newer in Shoreline have received, on average, $1.82 per square
foot and $1,422 in total monthly rents.
o Market rents increased 12.80% over the past 24 months.
Vacancy: Pro Forma Vacancy is underwritten at 5.00% of Gross Potential Rent, per industry standard. The overall Vacancy for the Shoreline market is roughly 2.0%, per data from apartment research firm Dupre + Scott.
Concessions: Pro Forma Concessions are underwritten at 0% of GPR to reflect the operations at the property post-stabilization. The vast majority of comparable properties in the Shoreline / North Seattle market have not recently offered Concessions nor are they currently offering Concessions.
Non-Revenue / Bad Debt / Adjustments: Pro Forma Non-Revenue / Bad Debt / Adjustments are underwritten at 0.25% of GPR.
Commercial Income: Pro Forma Commercial Income and CAM is underwritten at $15 per square foot per year and assumes that there will be 2,533 square feet of retail space. This model assumes 10% Vacancy although the actual Vacancy is likely to be lower in this location. Also, 6 of the 297 parking spaces will be dedicated to the retail tenants.
Parking Income: Pro Forma Parking Income is underwritten at $808 per unit or $67 per month and this number is based upon Berkadia research. This model assumes the 291 residential spaces will be rented at $75 per month at a utilization rate of 95%.
RUBS Income: Pro Forma RUBS is underwritten at $900 per unit or $75 per month and this number is based upon Berkadia research.
Other Income: Pro Forma Other Income is underwritten at $600 ($50 / month) per unit. Notable items are likely to include storage revenue, month-to-month premiums and pet rent.
EXPENSE ASSUMPTIONS
Expense: Pro Forma Expenses are based on Berkadia research and data from apartment research firm Dupre + Scott.
Property Taxes: Pro Forma Property Taxes are underwritten at $2,952 per unit. This is based on an estimated post-stabilization assessed value of 85% of $90,720,000 ($280,000 per unit) and the current millage rate of 11.70.
Replacement Reserves: The Pro Forma Replacement Reserve is underwritten at $200 to reflect the vintage and quality of the property.
IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspxAll Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.
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COMPARABLE SALE PROPERTIES
714Avg SF:Unpriced OfferingPrice:
324Units:
Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133
– Subject
4.40%Cap Rate:03/16Closed:
870Avg SF:$282.77Price / SF:
$246,084Price / Unit:$94,250,000Sold For:
2014Built:383Units:
Tivalli15707 Ash WayLynnwood, WA 98087
4.70%Cap Rate:12/15Closed:
734Avg SF:$472.98Price / SF:
$347,297Price / Unit:$38,550,000Sold For:
2014Built:111Units:
Vue3261 SW Avalon WaySeattle, WA 98126
4.80%Cap Rate:10/15Closed:
757Avg SF:$410.11Price / SF:
$310,345Price / Unit:$63,000,000Sold For:
2014Built:203Units:
Six Oaks18333 Bothell Way NEBothell, WA 98011
4.00%Cap Rate:12/14Closed:
518Avg SF:$577.60Price / SF:
$299,107Price / Unit:$33,500,000Sold For:
2014Built:112Units:
Square One1020 NE 63rd StreetSeattle, WA 98106
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COMPARABLE SALE PROPERTIES - GRAPHS
350
306,250
262,500
218,750
175
131,250
87,500
43,750
0
Tiva
lli |
$24
6,08
4
Squa
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$29
9,10
7
Six
Oak
s |
$310
,345
Vue
| $
347,
297
600.00
525.00
450.00
375.00
300.00
225.00
150.00
75.00
0.00
Tiva
lli |
$28
2.77
Six
Oak
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$410
.11
Vue
| $
472.
98
Squa
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$57
7.60
A erage300,708
A erage435.87
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COMPARABLE SALE PROPERTIES - GRAPHS
6.00
5.25
4.50
3.75
3.00
2.25
1.50
0.75
0.00
Squa
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4.0
0
Tiva
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4.4
0
Vue
| 4
.70
Six
Oak
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4.80
A erage4.48
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Subject: Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133
Square One1020 NE 63rd StreetSeattle, WA 98106
4.
Six Oaks18333 Bothell Way NEBothell, WA 98011
3.
Vue3261 SW Avalon WaySeattle, WA 98126
2.
Tivalli15707 Ash WayLynnwood, WA 98087
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COMPARABLE SALE PROPERTIES MAP
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COMPARABLE RENTAL PROPERTIES
$2.37Avg Rent / SF:$1,696Avg Rent:
714Avg SF:324Units:
Potala Place Shoreline 15560 Westminster Way North Shoreline, WA 98133
– Subject
95%Occupancy:$2.38Avg Rent / SF:
$1,650Avg Rent:692Avg SF:
2009Built:163Units:
507 Northgate507 NE Northgate Way Seattle, WA 98125
95%Occupancy:$1.91Avg Rent / SF:
$1,567Avg Rent:821Avg SF:
2013Built:319Units:
Array14027 Lake City Way NE Seattle, WA 98125
96%Occupancy:$2.59Avg Rent / SF:
$1,574Avg Rent:607Avg SF:
2013Built:273Units:
Leilani on Greenwood10215 Greenwood Avenue North Seattle, WA 98133
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COMPARABLE RENTAL PROPERTIES
94%Occupancy:$2.04Avg Rent / SF:
$1,538Avg Rent:755Avg SF:
2001Built:238Units:
Solara12736 Lake City Way NE Seattle, WA 98125
$2.17Avg Rent / SF:$1,773Avg Rent:
819Avg SF:2009Built:387Units:
Thornton Place301 NE 103rd Street Seattle, WA 98125
97%Occupancy:$1.77Avg Rent / SF:
$1,498Avg Rent:846Avg SF:
2008Built:289Units:
Echo Lake1150 North 192nd Street Shoreline, WA 98133
97%Occupancy:$1.99Avg Rent / SF:
$1,489Avg Rent:750Avg SF:
2012Built:149Units:
The Artiste20221 Aurora Avenue North Shoreline, WA 98133
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COMPARABLE RENTAL PROPERTIES - GRAPHS
1,600
1,400
1,200
1,000
800
600
400
200
0
Echo
Lak
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$1,1
25
The
Art
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| $
1,18
1
507
Nor
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$1,
217
Sola
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$1,
291
Arr
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$1,
295
Leila
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reen
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$1,3
05
Pota
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Sho
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$1,4
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Thor
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Pla
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$1,
435
1,800
1,575
1,350
1,125
900
675
450
225
0
Echo
Lak
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$1,3
53
Sola
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$1,
427
The
Art
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| $
1,47
9
Arr
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$1,
516
Leila
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woo
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$1,5
58
Thor
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Pla
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$1,
683
507
Nor
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$1,
688
Pota
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Sho
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$1,7
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A erage1,291
A erage1,541
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COMPARABLE RENTAL PROPERTIES - GRAPHS
2,400
2,100
1,800
1,500
1,200
900
600
300
0
Echo
Lak
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$1,6
48
The
Art
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| $
1,80
0
Sola
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$1,
841
Arr
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$1,
993
Thor
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Pla
ce |
$2,
138
Pota
la P
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Sho
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$2,1
95
507
Nor
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$2,
345
Leila
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$2,3
70
A erage1,946
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Subject: Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133
The Artiste20221 Aurora Avenue NorthShoreline, WA 98133
7.
Echo Lake1150 North 192nd StreetShoreline, WA 98133
6.
Thornton Place301 NE 103rd StreetSeattle, WA 98125
5.
Solara12736 Lake City Way NESeattle, WA 98125
4.
Leilani on Greenwood10215 Greenwood Avenue NorthSeattle, WA 98133
3.
Array14027 Lake City Way NESeattle, WA 98125
2.
507 Northgate507 NE Northgate WaySeattle, WA 98125
1.
COMPARABLE RENTAL PROPERTIES MAP
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Primarily a residential enclave, the city of Shoreline is located in northwest King County along the banks of the Puget Sound, approximately ten miles north of Downtown Seattle. Shoreline is renowned for its beauty, abundance of parks, excellence school system, and its convenient location a short drive north of numerous employment hubs in Seattle, Bellevue, and Redmond. With over 56,000 residents, the multi-faceted full-service city of Shoreline is an important part of the dynamic Seattle-Tacoma-Bellevue Metropolitan Statistical Area (MSA), the most-populated metro area in Washington and the 15th-largest MSA in the United States.
Shoreline Ranked Among
the “Top 100 Best
Places to Live”
(MONEY MAGAZINE)
Shoreline was Named One
of the “Top 15 Must Live
Neighborhoods in the
Seattle Region”
(SEATTLE MET MAGAZINE)
Washington Ranked No. 8
“Best States for Business”
(FORBES)
The Puget Sound Region Will
Grow by an Additional 1.7
Million People, Increasing
to Five Million by 2040.
(PUGET SOUND REGIONAL COUNCIL)
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With little available land left for development, Shoreline’s population has grown at a modest pace. From 1990 to 2016, the population of Shoreline increased 8.3%, growing to an estimated 56,438 residents.
The city’s population is projected to reach 59,230 people by 2021, equating to a 1.0% average annual increase.
According to the Puget Sound Regional Council (PSRC), by 2040, the Seattle metro area is projected to be home to nearly five million residents.
As of March 2016, the monthly average unemployment rate in Shoreline was 4.8%. Annual unemployment is expected to fall to 4.4% by year-end 2016.
Over the year ended in March 2016, the Seattle metro area noted employment growth of 3.3%, equating to the addition of more than 51,700 non-farm jobs.
According to Moody’s, Greater Seattle will see job growth advance 2.4% by the end of 2016, followed by a 1.9% gain in 2017. These increases would result in the net addition of over 83,800 jobs over the two year period.
Thanks to the proliferation of well-paying high-tech jobs throughout the Puget Sound region, the city of Shoreline has witnessed healthy increases in personal income.
From 2000 to 2016, the median household income in the city of Shoreline rose from $51,658 to an estimated $66,375, equating to an increase of nearly 30%.
The city’s median household income is projected to surpass $71,200 by 2021, up 7.3% from 2016.
9.1%
4.4%
(120,000)
(80,000)
(40,000)
-
40,000
80,000
0%
4%
8%
12%
CITY UNEMPLOYMENT RATE MSA JOBS LOST / ADDED*PROJECTED
ANNUAL UNEMPLOYMENT RATESSHORELINE, WA
POPULATION TRENDSHORELINE, WA
MEDIAN HOUSEHOLD INCOMESHORELINE, WA
POPULATION UNEMPLOYMENT INCOME
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Shoreline is part of the Bothell / Woodinville apartment submarket. The average vacancy rate in the Bothell submarket was 4.6% at the close of the first quarter 2016, a modest 20 basis points higher than the rate one year prior.
Vacancy is projected to tick up slightly amid a rash of new apartments being delivered through the reminder of the year, but with no new deliveries scheduled past 2016, vacancy is projected to trend back down in 2017.
Amid robust job creation in the technology sector and low average vacancy, average rent in the Bothell submarket increased a healthy 8.3% year-over-year to $1,611 in the first quarter of 2016.
Average rent is projected to continue to increase, rising to $1,640 by year-end 2016.
AVERAGE APARTMENT RENTBOTHELL / WOODINVILLE SUBMARKET
AVERAGE APARTMENT VACANCY RATEBOTHELL / WOODINVILLE SUBMARKET
VACANCY RENT
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Shoreline’s employment base and convenient access to other major employment hubs have generated consistent demand for apartments in the area.
Major industry clusters in Shoreline include: the educational and health services industry, business and professional services industry, wholesale trade, and finance and insurance industry. Shoreline is primarily a white collar city with nearly three quarters of residents working in white collar professions.
The Boeing Company 81,900
Microsoft Corporation 56,000
University of Washington 30,200
Amazon.com 24,700
Providence Health & Services 19,500
Wal-Mart Stores Inc. 19,300
Fred Meyer Stores 15,400
King County Government 13,400
Starbucks 10,500
Nordstrom Inc. 9,300
Seattle EDC, 2015
University of Washington 55,767
Bellevue College 18,919
Pierce College 16,916
Edmonds Community College 11,711
Green River Community College 10,584
Everett Community College 10,148
Highline Community College 9,693
Seattle Central Community College 9,436
Olympic College 8,062
Tacoma Community College 8,010
Puget Sound Business Journal, 2015 Book of Lists
SEATTLE MSA
LARGEST EMPLOYERS
SEATTLE MSA
LARGEST COLLEGES & UNIVERSITIESWith an enrollment of more than 9,280 students, the Shoreline School District, employs over 1,000 faculty and staff. Known for its academic excellence, the school district features 15 schools, serving the communities of Shoreline and Lake Forest Park.
Additionally, Shoreline Community College offers more than one hundred excellent academic, professional / technical and workforce training programs to meet the lifelong learning needs of its residents.
With a combined total enrollment of nearly 55,800 at its Seattle, Bothell, and Tacoma campuses as of fall 2015, the University of Washington (UW) is ranked among the top 50 institutions in the country by U.S. News & World Report.
EDUCATION
ECONOMY / EMPLOYMENT
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Web retailer Amazon.com is building its new headquarters in South Lake Union. Upon completion, the company will occupy a total of three million square feet of space at its new headquarters. Although Amazon has not confirmed an employee count, the project is designed to house 10,000 employees. Once completed, the addition office space will bring Amazons total foot print across the Seattle metro to more than 8 million square feet.
AMAZON HEADQUARTERS
Vertical construction work is well underway on the 44-story, 760,000 square foot hotel and office tower, located at 811 Fifth Ave. in downtown Seattle. The 660-foot, $400 million, angular glass and steel mixed-use building will feature approximately 530,000 square feet of class “A” office space and a 184-room luxury hotel on floors two through 15. The tower will be the fifth-tallest building in downtown Seattle when completed in April 2017.
THE MARK
The proposed “S” project, located on a seven acre site south of downtown Seattle, is aiming to turn the plot of land into an urban campus. The proposed plans include seven buildings, with 1.2 million square feet of office space and street-level retail. The development cost is estimated to top $750 million, and bring 5,000 to 6,000 workers to the area.
“S” PROJECT
DEVELOPMENT / CONSTRUCTION
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Shoreline residents enjoy convenient access to key transportation routes that link to Greater Seattle and beyond, by way of Interstate 5 which bisects the city.
Shoreline is located within 25 miles of the Seattle-Tacoma International Airport (SEA), commonly referred to as “Sea-Tac”. The airport served more than 42.3 million passengers in 2015, a 12% increase over the year prior, making it an integral transportation hub for the region and the 13th-busiest airport in the United States.
Shoreline is served by Metro Transit, Community Transit, and Sound Transit. Metro Transit provides service in King County and Community Transit provides service to Snohomish County. Sound Transit provides regional bus service to Seattle, Mountlake Terrace, Lynnwood, and Everett via I-5.
The Port of Tacoma facilitates international trade for local businesses and serves as a major economic hub for the region, especially with countries in the Pacific Rim.
TRANSPORTATION
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TOTAL POPULATION
TOTAL HOUSEHOLDS
MEDIAN INCOME
AVERAGE INCOME
2010 55,879
2016* 56,438
2021* 59,230
Growth Rate (2016 – 2021) 4.9%
2010 21,486
2016* 22,819
2021* 23,985
Growth Rate (2016 – 2021) 5.1%
2010 $60,589
2016* $66,375
2021* $71,239
Growth Rate (2016 – 2021) 7.3%
2010 $54,160
2016* $84,131
2021* $89,374
Growth Rate (2016 – 2021) 6.2%
MEDIAN AGE
MEDIAN HOME PRICE
RENT VS. OWN
2010 43.0
2016* 43.4
2021* 43.9
March - 2015 $379,680
March - 2016 $427,900
Growth Rate Y-o-Y 12.7%
Average Mortgage Payment* $2,198
Average Rent $1,611
Difference $587
* 30-yr fixed; 20% down; 4.15% interest rate; 1.25% property taxes
Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Forbes; Moody’s; Wikipedia; Axiometrics; City of Shoreline; King County;; The Economic Development Council of Seattle and King County; Seattle Times; ECONorthwest; State of Washington; Shoreline Public Schools; Northwest MLS; Puget Sound Business Journal; Puget Sound Regional Council; Washington Realtor Association.
DEMOGRAPHICS
* Projected
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Caron is a full-service architecture firm that provides simple, elegant designs for a wide variety of national and international clients. Since 2002, our experience in design and land-use planning allows us to offer streamlined project delivery resulting in unique and marketable design solutions. From up-front marketing feasibility studies all the way through design and construction administration, we strive to be our clients’ greatest advocate and prove that we are trusted project partners. Simply put, our employees are our greatest asset. We value diversity and rely on the strength of our passionate, talented staff and their diverse cultural backgrounds, to bring a fresh perspective to each of our projects. This breadth of experience, combined with our transparent and collaborative approach, ensures our clients receive the best possible service and design solutions. At Caron, our commitment to clients is never to just meet expectations but to exceed them. Services Pre-Development / Master Planning Architecture Interior Design Space Planning
Sectors Mixed-Use / Multifamily Education Student Housing Residential Retail Office Hotel & Resort
Synergy Construction, Inc. was founded on the basic principle of “Quality with Integrity,” which remains the daily focus. Founded in 1990, Synergy has built thousands of housing units and countless commercial structures throughout Washington and Oregon.
Synergy has built an industry-leading reputation by successfully taking on the most technically complex projects and the tightest urban project sites. Synergy’s expert management staff is experienced with all types of construction, from high-rise to low-rise, medical, as well as industrial. Known for quality workmanship, strong management and team communication, the Synergy team makes the construction process a pleasant and consistent experience for all — on time and on budget.
Again, the whole corporate foundation is built on integrity. That core value ensures that every member of the team is working for the benefit of the project and the client. This is the result of treating people fairly and doing what is right, always. Utilizing the best modern industry practices and unique team centered processes, Synergy consistently delivers maximum value to their clients.
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JEFF STUARTManaging [email protected]
DAVID SORENSENAssociate [email protected]
KENNY DUDUNAKISSenior Managing [email protected]
DISCLAIMER & CONFIDENTIALITY AGREEMENT
The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is
not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors.
In accepting this, the recipient agrees to keep all material contained herein confidential.
This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in
the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for
a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors and seller have not made any investigation of the actual property, the
tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential
environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this
information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors and Seller have not conducted any
investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information
provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future
performance of the property.
Berkadia Real Estate Advisors and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial
aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their
tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.
All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the
health of some individuals. Berkadia Real Estate Advisors recommends, if prospective buyers have questions or concerns regarding this issue, that
prospective buyers conduct further inspections by a qualified professional.
The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole
and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have
executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.
For more information on these and other Berkadia Real Estate Advisors exclusive listings, please call or visit our website at www.BerkadiaREA.com
Berkadia Real Estate Advisors is the nation's largest real estate firm focused exclusively on the sale of multifamily properties. All information contained herein is from sources deemed to be reliable; however, it is notguaranteed. Printed in the USA. All rights reserved.
Copyright 2016 © by Berkadia Real Estate Advisors, Inc.
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