Page ! Offering Memorandum - The Lawrence & Hazen May 2016 1

Summary This dynamic Lawrence & Hazen site consists of two properties: A four-

unit Apartment Building and a charming single-family House on multifamily-

zoned land in Seattle’s Magnolia neighborhood and Seattle’s up-and-coming

Interbay Technology Corridor – the future home of travel giant, Expedia. A

handful of Seattle neighborhoods, Queen Anne Hill, Ballard, Fremont and

South Lake Union, are accessible within a few miles of this site. To learn more

about this rare investment and development opportunity, please contact us

at (206) 387-6789 or edwardk@ekreg.com or visit LawrenceAndHazen.com,

where you can schedule a tour or

request the Due Diligence Package,

complete with inspections & floor

plans. The tax parcels are:

Apartment Building: 2405 W

Crockett Street (Tax ID #

277160-4110)

House/Development Lot: 2015

Thorndyke Ave W (Tax ID #

277160-4100)

Property Overview The Apartment Building and House are located on the brow of an

affluent residential neighborhood at the SW corner of West Crocket St and

Thorndyke Ave W. The Apartment Building measures a total of 4,868 SF

including a 460 SF attached two-car garage, with an additional two off-street

parking spaces on a 6,925 SF lot. The adjacent House measures 1,020 SF

and includes one detached garage on an approximately 4,000 SF lot. Both

parcels are zoned LR2, allowing for future multifamily development.

Mid-century architects Lawrence & Hazen designed the handsome

Apartment Building, which

includes a gracious 1,682 SF unit

designed for the property’s proud

owners. The Apartment Building

includes much under-utilized

space which could be converted

into additional rentable areas.

TWIN IN-CITY INVESTMENTS WITH VIEWS A rare opportunity to obtain two lucrative, adjacent income properties with potential for increased value with additional investment and redevelopment, ideally

situated between the edge of downtown Seattle in the affluent Magnolia neighborhood and the burgeoning Interbay Technology Corridor. This offering

includes two valuable investments, both on LR2-zoned land: A 4,868-square-foot apartment building designed by acclaimed mid-century architects Lawrence

& Hazen on a nearly 7,000-square-foot lot, and the adjacent single family home, which features approximately 4,000 SF, suitable for a new multi-family

building, townhouses, or a grand view home. A height-restricting/view agreement favors the apartment building, protecting its unfettered views of the

downtown skyline and the Seattle Space Needle in the years to come.

Apartment Building & Adjacent House/Development Lot

THE LAWRENCE & HAZENOffering Memorandum: Deadline May 18, 2016

2 Parcels A & B

• 4-Plex + House

• $1.528M & $588K

• Lot SF: 6,925 & 4,000

• Zoning: LR2

• MLS: 931591 + 931593

Page ! Offering Memorandum - The Lawrence & Hazen May 2016 2

PARCEL A: 4-UNIT APARTMENT BUILDING

Designed, Sited, and Constructed for Long-Term Value As a testament to its livability, the Lawrence & Hazen site has been

inhabited by only four owner-residents since it was built in 1956.

Nestled in the beautiful Magnolia neighborhood, filled with single

family, owner-occupied residential homes, this apartment building

features the distinctive mid-century architecture celebrated by the

television series Mad Men.

Larger in size than other buildings in its class, the four units

average 955 SF each and include features such as: private entrances,

individual expansive decks or garden patios, renovated kitchens, wood-

burning fireplaces with vintage detailing, hardwood flooring, and

pristine views of the city

skyline and Puget Sound through enormous picture windows. Like the

adjacent house, the architectural detailing throughout is representative

of timeless mid-century modern character.

The elevated location at the end of a quiet residential street,

along with the protected views of downtown Seattle, reinforce and

magnify the lifestyle qualities, architectural integrity, and virtuous

condition of the Apartment Building, making the offering far more

desirable than typical Seattle income properties. As Seattle continues

to be developed, apartment buildings of such an intimate scale with

views and this level of design are increasingly rare.

OPERATING INFORMATION DETAILS ANNUALIZED DATA MARKET CURRENT

Total Units Year Built Gross SF Net Rentable SF Price Cost Per Unit Cost Per Rentable SF Rentable Parking Spaces Lot Size in SF

4 1956 4,868 4,421 $1.5M $500K $339

4 6,925

Gross Scheduled Income

Less Physical Vacancy (3%)

Gross Adjusted Income

Annual Expenses

Net Operating Income

Gross Rent Multiplier

Cap Rate

Rent Per Rentable SF/Month

$105,000

($2,236)

$105,993

$21,331

$84,662

14

5.64

$1.97

$74,520

($4,271)

$72,284

$21,331

$50,953

20

3.40

$1.40

Charles Albert Lawrence Jr.

Sample Floorplan

Page ! Offering Memorandum - The Lawrence & Hazen May 2016 3

STRONG INVESTMENTHigh Demand for In-City Seattle Rental Buildings

Current & Future Performance Smaller, high-quality apartment buildings

located near Seattle’s top job centers enjoy

exceptional demand and are likely to appreciate

faster than outlying properties. They command

prices in excess of $400K-$500K per unit and

$400/SF, trading at cap rates of 4.5% and lower,

with market times averaging three weeks.

For 26 years, the Apartment Building has

been owned by the same Seattle family who

purchased it to serve as both their family home

and a long-term investment. With market-rate

rents exceeding $2.50/SF, the building’s current

rents of about $1.90/SF are well below market

rates, creating an opportunity for an immediate

upside. Current rents, as well as a professional

leasing agent’s opinion of market rents, are

included below and can also be found in the rent

study of the Due Diligence Package.

Opportunities to Add Value

The Apartment Building includes substantial

non-revenue-generating square footage. The

potting/gardening room, utility/workshop room,

laundry room, storage lockers, internal stairway

and two-car garage could all generate additional

income as separate spaces in their current

configuration or be included in an expansion of

the existing studio unit (moving individual laundry

units into each space). Such an expansion would

increase net income and thereby create additional

equity in the property. The LR2 zoning of the

adjacent underdeveloped lot authorizes multiple

dwelling units, affording the purchaser/developer

the option of eventually owning/managing two

buildings in this superior setting. In a full

redevelopment scenario that includes both

parcels, access to the adjacent 4,000 SF lot could

be located above via West Crockett Street and

through the back of the Apartment Building lot.

Unit # Type Size Market Rent Current Rent

2405 2 BD/1 BTH 925 $1,800 $1,695

2407 2 BD/1 BTH 925 $1,800 $1,595

2409 2 BD+/1 BTH 1,682 $2,350 $2,200

2411 STUDIO 1 BTH 388 $1,200 $720

3,920 $7,150 $6,210

APARTMENT BUILDING

SALES

1201 OLYMPIC WAY W

1512 17TH AVE E

309 W REPUBLICAN

3441 23RD

AVE W

311 12TH AVE E

2501 YALE AVE E

414 48TH STREET

SUMMARY

Neighborhood

Sold Price

Units

SF

Sold Price/SF

Sale Date

$/Unit

Year Built

Lot Area

Queen Anne

$1.46M

3

4,630

$316

07/15/14

$488K

1916

6,420

Capitol Hill

$1.44M

3

3,455

$418

03/20/16

$482K

1906

4,280

Queen Anne

$1.3M

3

3,822

$340

07/31/15

$433K

1900

3,600

Magnolia

$1.22M

3

3,930

$310

12/29/15

$407K

1967

7,000

Capitol Hill

$1.92M

5

5,270

$364

04/15/16

$384K

1928

4,795

Eastlake

$1.07M

3

1,900

$566

10/15/15

$358K

1920

3,505

Woodland

$1.42M

4

2,880

$493

03/09/16

$355K

1953

4,210

-

$1.40M

3.4

3,698

$401

-

$337K

1927

4,830

Apartment Building

Features • 1,682 SF Owner’s Unit

• View Covenant

• Private entrances

• Large decks

Page ! Offering Memorandum - The Lawrence & Hazen May 2016 4

PARCEL B: HOUSE/LOT Existing House

Rowhouse Development

• 50’ wide lot w/56’ SE-facing frontage

• Units: 2-3

• Unit widths 17’-25’

• Potential unit sizes: 1,460-2,600 SF

• Potential unit valuation: $799K-$850K

• Photo courtesy Seattle Department of

Planning & Development’s

Development in Multifamily Sites

Mid-Century House Currently Crowns the Site This 1951 property boasts unrivaled views of

Seattle’s skyline and Puget Sound from its living

room, main bedroom and expansive front deck,

views that are protected by an agreement written

to benefit the adjacent apartment building. This

1,020 SF one-level house with detached one-car

garage is located at 2015 Thorndyke Ave W. with

two points of entry: By way of the staircase from

Thorndyke Avenue West below or from West

Crocket Street above, via a path along the

west side of the Apartment

Building.

Although ideal for an

owner-occupant, a rental

study by Windermere

Property Management

suggests that the

house, currently vacant,

will rent for $2,700/

month.

Benefits of Joint-Ownership

Although the Apartment Building and

House are offered for separate purchase, the

benefits of common ownership are significant.

First, the proximity of the properties affords both

economies of scale and ease of management by

a sole owner. Second, the view agreement that

effectively benefits both properties is controlled

by the Apartment Building owner alone. Third,

the potential redevelopment of Parcel B alone or

of Parcels A & B together would be facilitated

and enhanced by common ownership, including

the potential for gracious pedestrian and/or

automobile access to both properties from quiet

residential West Crockett Street above.

Multiple Development Paths The House that sits adjacent to the 4-unit

Apartment Building occupies an approximately

4,000 SF lot zoned LR2. According to building

department illustrations, the depth of

the lot ranges from 66’ on the

south side to about 91’ on the

north side and is 50’ wide

with 56’ of street frontage.

While current demand for

rental houses like the one

currently occupying the

property is exceptional, a

future owner might consider

redevelopment of the House

site in order to increase its value.

Such redevelopment might include row

houses or other multifamily building of up to 35’

in height, comprising a total of about 4,400 to

5,200 SF of interior SF (depending on whether or

not certain additional development standards are

met). At a value of $400/SF, such a building

would be worth about $2 million. Prospective

buyers should investigate the feasibility of all

future development to their own satisfaction.

Offers for Parcel A & Parcel B will be reviewed

on May 18, 2016

Page ! Offering Memorandum - The Lawrence & Hazen May 2016 5

Generate Cash Flow and Equity in a Coveted Location Minutes from some of Seattle’s most

respected companies, cultural amenities,

shopping, and outdoor recreational activities,

Lawrence & Hazen’s perch in the Magnolia

neighborhood makes it among Seattle’s most

convenient and desirable locations.

To the east, just 1.5 miles away, Seattle’s new

Interbay Technology Corridor will be the new

home to Expedia’s 4,500 employees in 2018.

To the north and northeast, the Ballard and

Fremont neighborhoods (about 3.7 miles away)

offer an array of popular restaurants, nightlife, and

farmer’s markets, while serving as the Seattle bases

of companies like Brooks, Google, and Tableau

Software.

To the east, South Lake Union (5 miles away)

is home to several major employers including

Amazon, which alone is projected to employ nearly

50,000 people, as well as the Allen Institute for

Cell Sciences and Zymogenetics and the Bill &

Melinda Gates Foundation, among others.

The convenience of this ideally-located

Lawrence & Hazen site fosters high valuations, low

vacancies, and a tenant pool of highly-

compensated professionals.

AT THE EDGE OF SEATTLE’S FUTURE

Area Amenities

• Interbay Technology Corridor

• South Lake Union District

• Amazon Headquarters

• Discovery Park

• Queen Anne Hill retail core

• Interlay Golf Course

• Elliott Bay Trail

• Smith Cove Park

• Holy Mountain Brewery

• Myrtle Edwards Park

NEARBY

Due Diligence Package • Inspection Reports

• Oil Tank Certificate • Rental Study

• Preliminary Title Report

• Property Photos • Unit & Building Floorplans

• Tank Certificate

Property Tours 1 pm - 3 pm • Wednesday, May 11, 2016

• Friday, May 13, 2016

Call for Offers • May 18, 2016 at 12 PM

Exclusive Listing Brokers Edward Krigsman & Bryan Ford Windermere Real Estate Co.

Edward: 206.387.6789 Bryan: 206.940.3972 edwardk@ekreg.com bryan@bryanford.net

“I’m pleased to announce that Seattle is

the new home to Expedia. This is a great day for the city

of Seattle.” - Mayor Ed Murray

Photo Source: geekwire.com

IMMEDIATELY AVAILABLE - INVESTMENT/DEVELOPMENT PARCELS You are receiving this publication

because we have identified you as an investor or

developer who may be interested in a unique

property assemblage located on the edge of

Seattle’s Magnolia neighborhood, steps from the

growing Interbay Technology Corridor.

The offering

consists of a stylish,

mid-century

modern, four-unit

apartment building

designed by

renowned architects

Lawrence & Hazen,

and features a

deluxe owner’s unit

and an

approximately

4,000 SF LR2-zoned

development site,

currently improved

with a desirable

rental house. These

coveted adjacent

properties are

located on a quiet

corner in a pristine neighborhood of affluent

homes and enjoy protected views of Seattle’s

skyline & Puget

Sound.

For More InformationContact Exclusive Listing Brokers:

Edward Krigsman 206.387.6789 or edwardk@ekreg.com

Bryan Ford 206.940.3972 or bryan@bryanford.net

Offers due: May 18, 2016

Edward Krigsman & Bryan Ford Windermere Real Estate Co. 5424 Sand Point Way NE Seattle WA 98105

LawrenceAndHazen.com