Offering Memorandum EASTLAKE DEVELOPMENT SITE Eastlake Ave E Seattle, WA. Exclusively offered by Paragon Real Estate Advisors

Transcription

1 Offering Memorandum EASTLAKE DEVELOPMENT SITE Eastlake Ave E Exclusively offered by Paragon Real Estate Advisors 600 University Street Suite

2 Offering Summary EASTLAKE DEV SITE Name Eastlake Development Site Address Eastlake Ave E, Seattle WA Price Parcel Numbers Total Lot Size Zoned Existing Improvements Development Potential Terms UNPRICED / 6,820 Land Sq.Ft / 9,680 Land Sq.Ft. 16,500 Sq.Ft. NC3P-40 Commercial Mixed-Use Buildings 75+ Units (Proposed HALA) Cash Out 600 University Street Suite

3 Investment Highlights A+ Eastlake location - Close to everything 75 + unit development site primed for condos or apartments Views of downtown Seattle and Lake Union Corner lot Walking distance to restaurants, shops, cafés, pubs, service businesses and more 73% of households in this neighborhood are renters Walk Score of 77 - very walkable High visibility location with high daily traffic counts Plentiful neighborhood amenities include retail and restaurants Centrally located near the CBD, University of Washington, Seattle Pacific University, Seattle University, Amazon and Light Rail Neighborhood parks include Fairview Park, Roanoke Park, Rogers Playground and Roanoke Street Mini Park On a major bus line 600 University Street Suite

4 Neighborhood Map SEATTLE CBD PUGET SOUND CAPITOL HILL MADISON PARK AMAZON CAMPUS SOUTH LAKE UNION EASTLAKE DEV SITE UNIVERSITY OF WASHINGTON FREMONT WALLINGFORD UNIVERSITY DISTRICT 600 University Street Suite

5 Eastlake Eastlake is one of Seattle s most iconic neighborhoods, boasting the famous flotilla of boat houses on the lake, surrounded by an eclectic mix of historical townhomes, modern condominiums and colorful apartment buildings. It is a neighborhood with a rich and distinctive history and feel. Starting as little more than a floating shantytown for migrant workers has transformed over time into a diverse and electric neighborhood. While once considered floating shanties, these residences are still small, but vary from modest to opulent. It s perfectly positioned at the center of Seattle s urban and cultural hub UW, South Lake Union, Downtown and Capitol Hill, giving residents and visitors alike a unique and active springboard towards accessing work and play within the city. Its minutes away from Amazon s 30,000+ employee campus in South Lake Union, and adjacent to many tech and biotech companies that make up a large part of the city s employment infrastructure, such as Adaptive Biotechnologies and Immune Design Corporation. Local coffee shops, boutiques and other businesses also thrive alongside large chains. Eastlake is an attractive neighborhood and conveniently located to major thoroughfares and public transportation that make accessing the city at large easy. Many of the major bus routes connect to the U District and Downtown, opening up an enormous range of options for employment, education and entertainment for residents and visitors alike. 600 University Street Suite

6 Eastlake Snapshot Population 7,628 Male Female 53% 47% Median household income $81,808 Married Single Owner Occupied Renters 21% 79% 27% 73% Median 1 Bd/1 Bth Rent $1,664 Median 2Bd/1 Bth Rent $2,062 TOP JOB SECTORS: * Management: 12.7% Educational: 9.9% Administrative: 9.7% Sales: 8.8% Entertainment 8.6% Business 7.9% Food Service: 5.8% Computer: 5.4% Healthcare: 4.7% Engineering 4.4% Science 3.7% Legal : 3.4% Social Services: 3.0% Personal Care 2.8% Transportation 2.0% * University Street Suite

7 Seattle Central Business District Seattle is ranked 10th in the US as one of the fastest growing cities Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health Seattle Icons: Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom s, Boeing, Expeditors International, Payscale, DocuSign, Zulily New Companies entering Seattle s Market: Tableau, Facebook, Dropbox, Apple and Google Amazon currently host s 24,000 employees, and is projected to host an additional 47,000 more (total 71,000) by 2019 Amazon Projected to have over 10 million square feet of office space by University Street Suite

8 Neighborhood Amenities Food/Drink Shopping/Services Parks/Schools 1 Eastlake Bar and Grill 2 Le Fournil Bakery 3 Sushi Kappo Tamura 4 Lake Union Sea Ray 5 Gas Works Park 6 Seattle Marina 7 Fairview Park 8 Mammoth 9 Roanoke Park 10 Pomodoro Ristorante Italiano 11 Starbucks 12 Pagliacci Pizza 13 Seattle Prepatory School 14 Montlake Playfield 15 University of Washington 16 Serafina 17 Grand Central Bakery 18 Interlake Park 19 Volunteer Park 20 Patrick s Fly Shop 21 Saint Mark s Cathedral 22 Montlake Bicycle Shop 23 Monts Market 24 UW Medical Center 25 Montlake Boulevard Market 26 UW Light Rail Station EASTLAKE DEV SITE University Street Suite

9 Sound Transit Link Light Rail In November 1996, voters in King, Pierce, and Snohomish Counties approved increases in sales taxes and vehicle excise taxes to pay for a $3.9 billion transit package that included $1.7 billion for a light rail system, including Central Link and Tacoma Link. Central Link is a light rail line running between the University of Washington, downtown Seattle, the SoDo district, Seattle s Rainier Valley, Tukwila, the Seattle Tacoma International Airport in SeaTac and Angle Lake. The initial 13.9-mile segment of the line was opened on July 18, The line has since been expanded twice and spans miles as of September 26, Northgate Link extension will connect the University District to Northgate. Northgate Link will travel in two tunnels from University of Washington station, the northern terminus of the University Link Extension, through underground stations at U District and Roosevelt towards Northgate, emerging on the east side of Interstate 5 and continuing on an elevated guideway to Northgate station. The extension was approved in 2008 and began construction in This line is expected to open for service in The East Link Extension is a planned Sound Transit Link Light Rail line, spanning about 14 miles from Downtown Seattle eastward to the city of Redmond. Construction of East Link began in 2016, and the line is scheduled to open for service to Overlake in 2023.An extension to downtown Redmond will open in An estimated 50,000 passengers will use East Link every day by 2030.[2]an enormous range of options for employment, education and entertainment for residents and visitors alike. The Lynnwood Link extension is a planned Link light rail extension traveling north from Northgate to Lynnwood. The 8.5-mile light rail extension includes stations in Lynnwood, Mountlake Terrace, and Shoreline along Interstate 5. Lynnwood Link extension is scheduled to begin construction in 2018 and open for service in Ridership is expected to be 63,000 to 74,000 daily in University Street Suite

10 Employment Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston. > > Adobe > > Alaska Airlines > > Amazon > > Apple > > AT&T Wireless > > Boeing > > Costco > > Expedia, Inc. > > Expeditors International > > F5 Networks > > Facebook > > Fred Hutchinson > > Gates Foundation > > Getty Images > > Google > > Microsoft > > Nintendo > > Nordstrom > > Paccar > > RealNetworks > > REI > > Russell Investments > > SpaceX > > Starbucks > > Symetra Financial > > Tableau Software > > T-Mobile > > Twitter > > Uber > > University of Washington > > Virginia Mason > > Weyerhaeuser > > Zillow > > Zulilly 600 University Street Suite

11 Map of Key Employers EASTLAKE DEV SITE ELLIOTT BAY 600 University Street Suite

12 Employment Outlook The Seattle metro area is currently characterized by positive job growth, with a 2.9% gain in employment, which represents an increase of 43,000 new jobs. Downtown Seattle ranks 12th among the 231 major employment markets in the U.S. for job density, and that ranking is expected to rise. In February 2015, the unemployment rate in Seattle, hit the ideal rate of 4.4%. Economists consider anything under 5% full employment. Employment at software publishers is up 4 percent from a year ago, edging out a 3.4 percent gain at hospitals. A main beneficiary is the retail sector, with year-over-year job growth of 5 percent. In nearby South Lake Union, Amazon s new 3.3 million square foot headquarters is currently under construction. The project is estimated to bring an additional 23,000 Amazon employees to the area, bringing Amazon s total employment near 50,000. Amazon is expected to occupy a total of 10 million square feet of office space by Other top area employers include F5 Networks, Zulily and the Bill and Melinda Gates Foundation which are all centrally located in the CBD. 600 University Street Suite

13 Financial Analysis 3101 Eastlake Avenue E Rent (+NNN) Lease Term EClip $850 N/A Eastlake Massage $1,800 N/A Blue Ribbon $1, Apt 3105 $ Apt 3015A $1, Apt 3015B $1,445 N/A Apt 3015C $1, Apt 3015D Vacant N/A 3103 S Vacant N/A Total Monthly Rent Annual Scheduled Rent $8,845 $106, Eastlake Avenue E Rent (+NNN) Lease Term Eastlake 3107 A $3, * 3107 C $925 N/A Psychic A $850 N/A 3111 C $1,050 N/A 3111 D $500 N/A 3115 A $1,360 N/A 3115 C $650 N/A 3115 D $ Total Monthly Rent + NNN/Utilities Annual Scheduled Rent $10,185 $122,220 Combined Gross Rents: 3101 Eastlake Ave E: $106, Eastlake Ave E: $122,220 Total Gross Rents: $228,360 * 6 month notice to vacate 600 University Street Suite

14 Development Potential Development Analysis provided by Jeff Walls University Street Suite

15 Development Potential 600 University Street Suite

16 Site Photo 600 University Street Suite

17 Site Photo 600 University Street Suite

18 Sale Comparables Property Lot Size Sales Price Price/Lot Sq.Ft. Sales Date Eastlake Development Site Eastlake Ave E 16,500 Unpriced TBD TBD Boylston Ave 7,200 $4,775,000 $ University Way 7,440 $5,200,000 $ th Ave NE 4,120 $1,850,000 $ EASTLAKE DEV SITE E Pike St 9,000 $6,171,244 $ E Olive Way 14,418 $7,600,000 $ Broadway Ave E Broadway 12,800 $6,350,000 $ ,120 $26,684,000 $ Sale Pending University Street Suite

19 Rent Comparables Property Stories Units Year Built Average Size Average Rent Average Rent/Sq.Ft. 1. A.W. Larson Building 3206 Harvard Ave E $1,881 $ East Howe Steps 1823 Eastlake Ave E $2,001 $ Eastlake Flats 2820 Eastlake Ave E $1,047 $ Gatsby th Ave E $2,998 $ Mark on 8th 285 8th Ave $2,323 $ Studio th Ave NE $1,125 $ The Courtyard th Ave NE $1,150 $ University Street Suite

20 Rent Comparables Map 6 1. A.W. Larson Building 3206 Harvard Ave E 2. East Howe Steps 1823 Eastlake Ave E EASTLAKE DEV SITE Eastlake Flats 2820 Eastlake Ave E 2 4. Gatsby th Ave E 4 5. Mark on 8th 285 8th Ave 6. Studio th Ave NE 7. The Courtyard th Ave NE University Street Suite

21 Paragon Real Estate Advisors ABOUT PARAGON Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multifamily property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with. At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 20 years experience in the industry. Paragon s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships. The information found in this offering memorandum has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 600 University Street Suite