Offering Summary

Address 409 SW 155th St, Burien WA 98166
Price $1,600,000
Total Units 8
Square Feet 5,972 Total Net Rentable
Built 1986
Price Per Unit $200,000
Price Per Net Sq.Ft. $267.92
Current GRM/CAP 15.2/4.1% (3% Vacancy)
Market GRM/CAP 12.5/5.4% ( 4% Vacancy)
Terms Cash Out
Lot Size 7,500 Sq.Ft.
Zoning RM-24

Hazle Maes Apartments

Paragon Real Estate Advisors is pleased to offer for sale The Hazle Maes Apartments. This charming and well-appointed 8-unit building is located right in the heart of downtown Burien and only blocks away from the quaint Olde Burien district.

The Hazle Maes Apartments offers an investor the opportunity to acquire a well-located, easy to manage apartment community with income upside and potential to add value. The buyer can take advantage of a strong, rising rental market while increasing rents to market levels and charging for utilities and will reap the rewards of immediate upside and long-term appreciation.

Investment Highlights:
> Excellent downtown location close to shopping and amenities
> Walk Score of 92 - a Walker’s Paradise
> Quick access to freeways and public transportation
> Mix of large 1BD and 2BD units with private balconies and fireplaces
> Territorial and mountain views from upper units
> Well maintained, easy to manage property with low historic vacancy
> Double paned windows, copper plumbing, TPO roof installed in 2015
> On-site coin-operated laundry and resident storage lockers
> 8 large carports and 4 open uncovered stalls
> Significant rental upside
> Value-add opportunity through renovation

Operating Information

PRICING
Price$1,600,000
Price Per Unit$200,000
Price Per Sq.Ft.$267.92
Down Payment$800,000 (50%)
Loan Amount$800,000 (50%)
Interest Rate4.50% Variable
Amortization30 Years
 
Curent CAP4.09%
Current GRM15.23
Market CAP5.35%
Market GRM12.47
 
CURRENT EXPENSES
Expenses/Unit$4,560
Expenses/Foot$6.11
% of GSI35.79%


MONTHLY SCHEDULED INCOMECURRENTMARKET
Monthly Scheduled Rent$8,625$10,160
Laundry $80$80
Utility Billback $0$400
Parking (4 open + 8 covered spaces)$0$0
Miscellaneous$50$50
Total Monthly Income$8,755$10,690
 
ANNUALIZED OPERATING DATACURRENTMARKET
Scheduled Gross Income$105,060$128,280
Less Vacancy$3,152 (3.00%)$5,131 (4.00%)
Effecttive Gross Income$101,908$123,149
Less Expenses$36,476$37,476
Net Operating Income$65,432$85,673
Annual Debt Service ($4,053/mo)$48,642$48,642
Cash flow Before Tax$16,790 (2.10%)$37,031 (4.63%)
Principal Reduction$12,906$12,906
Total Return Before Tax$29,696 (3.71%)$49,937 (6.24%)
 
EXPENSE AND RESERVESCURRENTMARKET
Real Estate Taxes (2019 Est))$14,000$15,000
Insurance (Proforma)$2,560$2,560
Utilities (Actual)$9,916$9,916
Maintenance & Repairs (Proforma)$6,000$6,000
Turnover (Proforma)$1,200$1,200
Adminstration/Misc. (Proforma)$800$800
Reserves (Proforma)$2,000$2,000
Total Operating Expenses$36,476$37,476

The subject property is excellently located right in the heart of downtown Burien and only steps away from the quaint and charming Olde Burien district. This central location is only a few blocks away from the Burien Town Square and offers residents convenient walkability to a wide variety of restaurants, bars, specialty retailers, and services in the surrounding neighborhood. A Walk Score of 92 deems the location a “Walker’s Paradise”, meaning that residents can accomplish most errands by foot. Residents who commute also benefit from close access to an efficient highway system including 509 and 518, which leads to I-5 and I-405, allowing for quick access to other cities and destinations in the region. Public transportation options are also easily accessible with several bus stops in the immediate area and the relatively new Burien Transit Center within easy walking distance, which offers a convenient park-and-ride and express service to Seattle and Bellevue.

Burien has been designated by the Puget Sound Regional Council as one of the 25 regional growth centers that will experience focused urban growth in the decades ahead. The city of Burien and its partners have invested over $200 million to create a new and vibrant place to live, work, shop, and play for the whole family with the completion of Phase 1 of the Burien Town Square. With two more phases recently completed, a four-story Merrill Gardens senior housing complex and a six-story market-rate apartment complex, the Hazle Maes Apartments are perfectly positioned to benefit from the positive growth taking place.

A Look Around the Property.

Monthly Scheduled Unit Income

UNIT TYPE SQFT CURRENT RENT RENT PER SQFT MARKET RENT RENT PER SQFT
1 1BD/1BTH 700 SqFt $1,100 $1.53 $1,195 $1.71
2 2BD/1BTH 900 SqFt $1,125 $1.25 $1,495 $1.66
3 2BD/1BTH 900 SqFt $1,200 $1.33 $1,495 $1.66
4 1BD/1BTH 700 SqFt $1,000 $1.43 $1,195 $1.71
5 1BD/1BTH 700 SqFt $1,075 $1.54 $1,195 $1.71
6 1BD/1BTH 700 SqFt $1,000 $1.43 $1,195 $1.71
7 1BD/1BTH 700 SqFt $1,000 $1.43 $1,195 $1.71
8 1BD/1BTH 700 SqFt $1,125 $1.61 $1,195 $1.71
8 Average/Totals 750 SqFt $8,625 $1.44 $10,160 $1.70

Puget Sound Region

The Seattle area, the nation’s 13th largest metropolitan area, is known for its strong business climate as well as its skilled workforce. Several factors contribute to the region’s thriving business community, from the prevailing entrepreneurial spirit to the education levels and skill sets of its work force. Innovative companies attract high-quality workers who typically possess a high level of education.

Seattle is the largest city in the four-county metropolitan area known as the Puget Sound region. The area’s other major metropolitan cities are Bellevue, Tacoma, Everett, and Bremerton. Surrounding these are growing cities that include Kirkland, Redmond, Kent, Renton, Bothell, and Issaquah.

According to Forbes, Seattle is one of the most popular cities in the country for the millennial generation (ages 20-34), with a growth rate of 20.3 percent since 2007. This is primarily due to the abundance of tech, engineering, and biotechnology employment opportunities in the region, which are highly sought after industries by millennials.