OFFERING MEMORANDUM Milton Apartments€¦ · Milton Apartments OFFERING MEMORANDUM PRESENTED BY:...

KW COMMERCIAL1100 Dexter Avenue North,Suite 275Seattle, WA 98109

CHARLES BURNETTManaging [email protected]

Milton Apartments

OFFERING MEMORANDUM

PRESENTED BY:

1307 10TH AVE, MILTON, WA

OFFERING MEMORANDUM

www.kwcommercial.com 2

KW COMMERCIAL1100 Dexter Avenue North,Suite 275Seattle, WA 98109

CHARLES BURNETTManaging [email protected]

Confidentiality & Disclaimer

OFFERING MEMORANDUM

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Downtown Seattle in compliance with all applicable fairhousing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

PRESENTED BY:

1307 10TH AVE, MILTON, WA 98354


PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DETAILS

ADDITIONAL PHOTOS

ADDITIONAL PHOTOS

1PROPERTY INFORMATION

MILTON APARTMENTS

MILTON APARTMENTS

PROPOSAL FOR COMMERCIAL SERVICES

OFFERING MEMORANDUM

Executive Summary

MILTON APARTMENTS 1 | PROPERTY INFORMATION

PROPERTY OVERVIEW23-unit apartment complex located in the desirable community ofMilton. Property underwent a complete and immaculate remodel in2017 with new unit interiors, windows throughout, plumbing/mechanical systems and more. Fully occupied with quality tenants; asolid turn-key investment property; 6.5% Cap Rate with goodcashflow! Onsite coin-operated laundry facility, storage, and a spacefor an office. Sale includes 3 parcels (2.75 acres) with opportunity forfurther development. Near I-5, transit and amenities.

PROPERTY FEATURESOnsite Laundry and Storage

3 Lots included in sale

Potential for Additional Development

Completely Remodeled

Fully Occupied

SALE PRICE: $3,450,000

UNITS: 23

PRICE PER UNIT: $150,000

CAP RATE: 6.4%

GRM: 13.39

NOI: $220,673

LOT SIZE: 2.75 Acres

BUILDING SIZE: 19,749 SF

YEAR BUILT: 1951

RENOVATED: 2017

ZONING: RMD (Residential Moderate Density)

MARKET: Pierce County, WA

SUB MARKET: Milton, WA

CROSS STREETS: Nevada Street


Property Details



PROPERTY NAME: Milton Apartments

STREET ADDRESS: 1307 10th Avenue

CITY, STATE, ZIP: Milton, WA 98354

APN: 5985002370; 5985002380; 5985002400

LOT SIZE: 2.75 AC

BUILDING SIZE: 18,041

ZONING: RMD (Residential Moderate Density)

PARKING SPACES: 51

PARKING RATIO: 2.21

YEAR BUILT: 1951

NUMBER OF STORIES: 4

FOUNDATION: Poured Concrete

NUMBER OF UNITS: 23

ROOF: Composition


Additional Photos


LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATION

MILTON APARTMENTS

MILTON APARTMENTS


OFFERING MEMORANDUM

1307 10th Avenue

Regional Map

MILTON APARTMENTS 2 | LOCATION INFORMATION



Location Maps


Aerial Map



FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

RENT ROLL

UNIT MIX SUMMARY

SITE PLAN

FLOOR PLANS

3FINANCIAL ANALYSIS

MILTON APARTMENTS

MILTON APARTMENTS


OFFERING MEMORANDUM

INVESTMENT OVERVIEW

Price $3,450,000

Price per Unit $150,000

GRM 13.4

CAP Rate 6.4%

Cash-on-Cash Return (yr 1) 6.72 %

Total Return (yr 1) $106,765

Debt Coverage Ratio 1.46

OPERATING DATA

Gross Scheduled Income $257,580

Other Income $19,560

Total Scheduled Income $277,140

Vacancy Cost $8,314

Gross Income $268,825

Operating Expenses $48,152

Net Operating Income $220,673

Pre-Tax Cash Flow $69,500

FINANCING DATA

Down Payment $1,035,000

Loan Amount $2,415,000

Debt Service $151,173

Debt Service Monthly $12,597

Principal Reduction (yr 1) $37,264

Financial Summary

MILTON APARTMENTS 3 | FINANCIAL ANALYSIS


INCOME SUMMARY PER SF

Rent $258,600 $13.09

Utility Charge-Back $16,560 $0.84

Laundry income $3,000 $0.15

GROSS INCOME $278,160 $14.08

EXPENSE SUMMARY PER SF

Property Tax $16,472 $0.83

Insurance $5,000 $0.25

Misc Utiltity $6,100 $0.31

Sewer $8,642 $0.44

Garbage $11,938 $0.60

GROSS EXPENSES $48,152 $2.44

NET OPERATING INCOME $220,673 $11.17

Income & Expenses



Rent Roll


TENANTNAME

UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

LEASESTART

LEASEEND

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT/SF

SECURITYDEPOSIT

1 2 1 737 2/1/17 1/31/18 $975 $1.32 $500

2 1 1 419 2/1/17 1/31/18 $750 $1.79 $500

3 2 1 737 4/1/17 3/31/18 $975 $1.32 $975

4 2 1 737 3/2/17 2/28/18 $975 $1.32 $975

5 1 1 419 2/3/17 1/31/18 $790 $1.89 $1,580

6 2 1 737 2/5/17 1/31/18 $975 $1.32 $975

7 2 1 737 3/11/17 2/28/18 $975 $1.32 $975

8 1 1 419 3/12/17 2/28/18 $790 $1.89 $790

9 2 1 737 4/7/17 3/31/18 $975 $1.32 $975

10 2 1 742 3/8/17 2/28/18 $975 $1.31 $975

11 1 1 419 7/1/17 6/30/18 $790 $1.89 $835

12 2 1 651 2/1/17 1/31/18 $910 $1.40 $500

14 2 1 600 2/1/17 1/31/18 $850 $1.42 $1,000

15 2 1 600 9/1/17 8/31/18 $935 $1.56 $935

16 2 1 651 3/18/17 2/28/18 $975 $1.50 $975

17 2 1 645 3/1/17 2/28/18 $975 $1.51 $975

18 2 1 742 4/13/17 3/31/18 $975 $1.31 $975

19 2 1 742 3/17/17 2/28/18 $975 $1.31 $975

20 2 1 742 9/15/17 9/30/18 $1,025 $1.38 $1,025

21 2 1 742 2/1/27 1/31/18 $975 $1.31 $500


Rent Roll


TENANTNAME

UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

LEASESTART

LEASEEND

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT/SF

SECURITYDEPOSIT

22 2 1 742 3/11/17 2/28/18 $975 $1.31 $975

23 2 1 742 2/1/17 1/31/18 $975 $1.31 $500

24 2 1 742 9/1/17 8/31/18 $1,025 $1.38 $1,025

TOTALS/AVERAGES 15,181 $21,515 $1.42 $20,415


Unit Mix Summary


UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT

1 bed / 1 bath 4 17.4 419 $791 $1.89 $800 $1.91 $3,705

2 bed / 1 bath 2 8.7 600 $893 $1.49 $975 $1.63 $1,935

2 bed / 1 bath 1 4.3 645 $975 $1.51 $975 $1.51 $975

2 bed / 1 bath 2 8.7 651 $943 $1.45 $975 $1.50 $1,475

2 bed / 1 bath 6 26.1 737 $973 $1.32 $975 $1.32 $5,375

2 bed / 1 bath 8 34.8 742 $988 $1.33 $1,025 $1.38 $6,950

Totals / Averages 23 100% 15,181 $21,553 $1.42 $22,125 $1.46 $110,465


Site Plan



Lot Detail



DEMOGRAPHICS

4 | DEMOGRAPHICS

DEMOGRAPHICS MAP

4DEMOGRAPHICS

MILTON APARTMENTS

MILTON APARTMENTS


OFFERING MEMORANDUM


* Demographic data derived from 2010 US Census

Demographics Map

MILTON APARTMENTS 4 | DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

TOTAL POPULATION 7,093 47,525 155,982

MEDIAN AGE 39.1 38.0 36.9

MEDIAN AGE (MALE) 38.7 37.4 36.0

MEDIAN AGE (FEMALE) 39.4 38.2 37.6

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

TOTAL HOUSEHOLDS 3,032 18,584 61,486

# OF PERSONS PER HH 2.3 2.6 2.5

AVERAGE HH INCOME $71,844 $73,038 $70,324

AVERAGE HOUSE VALUE $367,588 $366,690 $326,868

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