Offering Summary

Address 1515 Bellevue Ave, Seattle WA 98122
Total Units 24
Built 1925
Square Feet 9,760 Rentable / 13,135 Gross
Price $5,500,000
Price Per Unit $229,167
Expenses Per Unit $5,091/Year
Price Per Foot $563 Net / $419 Gross
Current GRM/CAP 15.3/4.17%
Market GRM/CAP 14.4/4.43%
Zoning NC3P-65 (Upzoned under HALA
Terms Cash Out

Investment Highlights

Paragon Real Estate Advisors is proud to exclusively list for sale the twenty-four-unit Louis Arm’s Apartments located in the highly desirable Capitol Hill neighborhood of Seattle, Washington. With a “Walk Score” of 99 and a “Transit Score” of 100, the Louis Arms location is considered both a walker’s paradise and a rider’s paradise which means almost all daily activities can be done by foot and several popular locations can also be accessed by superior transit. The property is perfectly positioned on the most western portion of Capitol Hill in the Pike/Pine Corridor directly adjacent to the Downtown Seattle Central Business District which gives renters a perfect balance of a charming residential feel with the perks of being in the heart of the action. The Louis Arm’s Apartments offer investors a wide array of potential value add opportunities such as increasing the number of apartments within the existing structure and/or renovating units to achieve higher market rents.

Highlights
> Two blocks from Downtown Seattle/Central Business District
> Future development potential with flexible zoning
> 1920’s classic brick building
> High levels of details and turn of the century charm
> One of the strongest and stable rental markets in Seattle
> Located in the Pike/Pine Urban Village
> Upside in renovating units
> Upside in raising below market rents
> Six blocks from the Capitol Hill Light Rail Station
> Potential to add units in basement common areas





Capitol Hill

Capitol Hill is situated on a hill just East of the city’s downtown central business district. This popular residential neighborhood is funky and fast-paced, with an endless number of cool blocks to explore. During the day, markets, boutiques, and salons are a big draw. Nightlife is hopping with clubs, bars, and music venues, and you’ll often find coffee shops that moonlight as cocktail lounges.

This desirable location contains some of Seattle’s wealthiest neighborhoods, including “Millionaire’s Row” along 14th Avenue E, a charming collection of single family residences on tree-lined streets, and the Harvard-Belmont Landmark District. It also has many distinguished apartment houses, including several designed by the distinguished builder Fred Anhalt.

The neighborhood figures prominently in nightlife and entertainment, with many bars hosting live music and with numerous avant-garde theaters. Most of the Hill’s major thoroughfares are dotted with coffeehouses, taverns and bars, and residences cover the gamut from modest motel-like studio apartment buildings to some of the city’s most historic mansions, with the two types sometimes shoulder-to-shoulder.
To the north is Capitol Hill’s largest and most popular public park. The 48 acre Volunteer Park is home to Seattle’s Asian Art museum, tennis courts, a conservatory, and a variety of city-wide events.

The demand for Capitol Hill apartments continues to rise as nearby Amazon.com continues its feverish hiring pace alongside other technology companies that are hiring as well as relocating to the South Lake Union area. This location is also home to longstanding health care providers including Swedish Medical Center, Group Health and Virginia Medical Center. Nearby Seattle University and Seattle Central College provide a consistent base to the apartment demand in the area.



Amenities Map

Aerial Map

Operating Information

PRICING
Price$5,500,000
Down Payment$2,750,000 (50%)
Loan Amount$2,750,000 (50%)
Interest Rate4.25%
Amortization30 Years
 
Price Per Unit$229,167
Price Per Sq.Ft.$563.52
 
Current GRM15.33
Current CAP4.17%
Market GRM14.37
Market CAP4.43%
 
CURRENT EXPENSES
Current Expenses/Unit$5,091
Expenses/Foot$12.52
% of GSI34.07%
MARKET EXPENSES
Expenses/Unit$5,320
Expenses/Foot$13.08
% of GSI33.35%


MONTHLY SCHEDULED INCOMECurrentMarket
Monthly Scheduled Rent$28,470$29,500
Laundry Income$245$275
Utility Income$705$1,560 ($65/unit)
Misc/Storage Income$470$570
Total Monthly Income$29,890$31,905
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$358,680$382,860
Less Vacancy$7,174 (2%)$11,486 (2%)
Gross Operating Income$351,506$371,374
Less Expenses$122,194$127,679
Net Operating Income$229,312$243,695
Annual Debt Service ($13,528/mo)$162,340$162,340
Cash flow Before Tax$66,972 (2.44%)$81,355 (2.96%)
Principal Reduction$46,361$46,361
Total Return Before Tax$113,333 (4.12%)$127,716 (4.64%)
 
ANNUALIZED OPERATING EXPENSES
Real Estate Taxes$39,310$44,000
Insurance $5,237$5,237
Utilities$28,784$28,784
Property Management$14,060$14,855
On-Site Management$11,520$11,520
Repairs & Maintenance$14,683$14,683
Landscaping$600$600
Advertising & Admin$2,000$2,000
Reserves$6,000$6,000
Total Operating Expenses$122,194$127,679

Monthly Scheduled Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
3 Studio 300 Sq.Ft. $1,085 $3,255 $1,100 $3,320
19 1BD/1BTH 400 Sq.Ft. $1,075 - $1,200 $21,815 $1,200 $22,800
1 Air B&B 400 Sq.Ft. $1,700 $3,400 $1,700 $3,400
24 Average/Totals 354 SqFt $2.92 $28,470 $3.02 $29,500

Property Photos

Sales Comparables

Louis Arms Apartments
1515 Bellevue Ave
Seattle, WA
Year Built 1925
Units 24
Sales Price $5,500,000
Price Per Unit $229,167
Price/Foot $564
GRM/CAP 15.3/4.17%
Sale Date TBD
Queen Anne Apartments
419 Queen Anne Ave N
Seattle, WA
Year Built 1912
Units 20
Sales Price $5,450,000
Price/Unit $272,500
Price/Foot $246
GRM/CAP 17.5/3.3%
Sales Date 1.17.2018
Atwood Apartments
104 Pine St
Seattle, WA
Year Built 1909
Units 55
Sale Price $14,900,000
Price/Unit $270,909
Price/Foot $498
GRM/CAP 21.9/3.7%
Sales Date 12.15.2017
Highland Condos
931 11th Ave E
Seattle, WA
Year Built 1924
Units 12
Sale Price $6,000,000
Price/Unit $500,000
Price/Foot $409
GRM/CAP 18.1/3.8%
Sales Date 8.9.2017
Glen Eden
921 1st Ave W
Seattle, WA
Year Built 1929
Units 36
Sale Price $11,500,00
Price Per Unit $319,444
Price Per Foot $454
GRM/CAP 16.5/3.5%
Sale Date 4.28.2017
Centerview
3016 1st Ave
Seattle, WA
Year Built 1910
Units 38
Sales Price $7,550,000
Price Per Unit $198,684
Price Per Foot $498
GRM/CAP 14.0/4.0%
Sale Date 3.2.2017

Sales Comparables MAP

Louis Arms Apartments
1515 Bellevue Ave
Seattle, WA
Queen Anne Apartments
419 Queen Anne Ave N
Seattle, WA
Atwood Apartments
104 Pine St
Seattle, WA
Highland Condos
931 11th Ave E
Seattle, WA
Glen Eden
921 1st Ave W
Seattle, WA
Centerview
3016 1st Ave
Seattle, WA

Why Choose Seattle - King County?

A HIGHLY-SKILLED WORKFORCE
The region’s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor’s degree or higher.

Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County.

ESTABLISHED INDUSTRY CLUSTERS
The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known

CUTTING-EDGE RESEARCH
The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known.