MURRAY HILL APARTMENTSOffering Memorandum

1810

15TH Ave |

SEATTLE

MURRAY HILLApartments

EXCLUSIVELY LISTED BY

Casey ZejdlikP: 206.566.6599C: 206.280.1871casey@pilotnw.com

Jason KonoP: 206.566.6595C: 206.920.0187jason@pilotnw.com

Investment Overview

Property Location

Financials

Comparables

TABLE of CONTENTS

The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Investment Overview

CAPITOL HILL1920’s classic in the heart of Capitol Hill

MURRAY HILL | 5

SEATTLE, WA | 98122

1810 15th Ave.

Units have Hardwood Floors,

Vinyl Windows and Electric Baseboard Heating

Rents Significantly Below Market Rate

Potential to Add an Additional Unit

Classic Capitol Hill Construction with Gorgeous Details

Murray Hill Apartments are located in Seattle’s “capitol of cool”, this distinguished 1925 building is one of Capitol Hill’s classics surrounded by a charming neighborhood of early-20th century structures, sleek modern condos and a unique urban marketplace of its own.

Conveniently located near Kaiser Permanente’s Capitol Hill campus, Murray Hill is neighbor to a beautifully designed urban greenspace—in addition to the area’s beloved recreational hubs, Miller Playfield and Community Center, Cal Anderson Park and Volunteer Park.

Attracting high-income, 30-something singles, the median household age in Capitol Hill is 37 and median household income $59K. This prominent neighborhood provides owners (51%) and renters (49%) with a desirable place to live near downtown Seattle.

Renowned for its prolific cafes, coffeeshops, markets, boutiques, restaurants, dives, posh cocktail bars and music venues, this countercultural neighborhood reigns as Seattle’s year-round hot spot for arts, entertainment, nightlife and epic music scene!

Considered a “walkers’ paradise”, Capitol Hill provides easy accessibility to neighborhood markets, shopping, parks, education, culture, dining, nightlife and entertainment. Seattle area attractions can be easily accessed via the Capitol Hill LINK or other public transit. It’s also a “cyclists’ paradise” with mostly flat, bikeable lanes.

MURRAY HILL | 6

Property Location

97

79

81

KAISER PERMANENTE

CAMPUSSAFEWAY

BAKERY NOUVEAU

OUTER PLANET CRAFT

BREWING

CAPITOL HILL STATION

LINCOLN RESERVOIR

JIMMY HENDRIX STATUE

Transportation

NEIGHBORHOOD MAP

CAPITOL HILL

FARMERS MARKET

TRADER JOES

ANYTIME FITNESS

PEL MENISTOUTCENTRAL

CO-OP

MURRAY HILL | 8

Price $4,475,000

Units 15

Price Per Unit $298,333

Rentable SF 11,736 SF

Price Per SF $381

Current Cap Rate 3.27%

Market Cap Rate 5.33%

Current GRM 20.4

Market GRM 13.9

Year Built 1925

Year Renovated 2008 (Electric) , 2012 (Windows)

Parcel Number 808040-0135

Land SF 5,400 SF

Zoning LR3

Construction Type Masonry

Plumbing Galvanized, Copper & Pex

Hot Water 2 Gas Central Hot Water Heaters w/ One Storage Tank

Heating Electric Baseboard

Roof Torchdown

$238,314PRO-FORMA NOI

AT A GLANCE

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GALLERY

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Financials

Unit Type Approx. SF Current Rent Current SF Mkt. Rent Mkt. SF

A 1 Bd / 1 Bth 780 $1,100 $1.41 $1,600 $2.05

B 1 Bd / 1 Bth 780 $900 $1.15 $1,600 $2.05

C 1 Bd / 1 Bth 780 $1,575 $2.02 $1,600 $2.05

101 1 Bd / 1 Bth 780 $1,125 $1.44 $1,800 $2.31

102 1 Bd / 1 Bth 780 $1,400 $1.79 $1,800 $2.31

103 1 Bd / 1 Bth 780 $1,130 $1.45 $1,800 $2.31

104 1 Bd / 1 Bth 780 $1,275 $1.63 $1,800 $2.31

201 1 Bd / 1 Bth 780 $852 $1.09 $1,825 $2.34

202 1 Bd / 1 Bth 780 $935 $1.20 $1,825 $2.34

203 1 Bd / 1 Bth 780 $637 $0.82 $1,825 $2.34

204 1 Bd / 1 Bth 780 $1,575 $2.02 $1,825 $2.34

301 1 Bd / 1 Bth 780 $1,475 $1.89 $1,875 $2.40

302 1 Bd / 1 Bth 780 $1,875 $2.40 $1,875 $2.40

303 1 Bd / 1 Bth 780 $1,350 $1.73 $1,875 $2.40

304 1 Bd / 1 Bth 780 $1,120 $1.44 $1,875 $2.40

15 UNITS 11,700 $18,324 $1.56 $26,800 $2.29

RENT ROLL

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AVERAGE APARTMENT RENT IN SEATTLE METRO :

$1,694 /MO

37% INCREASE SINCE 2011

MURRAY HILL | 13

CURRENT PRO-FORMA

Gross Potential Rent $219,888 $321,600

Vacancy $6,597 3.00% $12,864 4.00%

Effective Gross Rent $213,291 $308,736

OTHER INCOME

Laundry Income $2,700 $2,700

Utility Billback $9,000 $12,600

Miscellaneous $0 $0

Total Other Income $11,700 $15,300

Effective Gross Income $224,991 $324,036

EXPENSES

Property Taxes - 2017 $33,535 $34,218

Insurance $4,646 $4,646

Utilities - Proforma $19,906 $19,906

Maintenance /Repairs - Pro-forma

$5,988 $6,000

Resident Manager $0 $0

Professional Management $10,013 4.69% $16,202 5.00%

Administrative /Misc $1,000 $1,000

Reserves $3,750 $3,750

TOTAL EXPENSES $78,838 $5,256 $85,722 $5,715

NET OPERATING INCOME $146,153 $238,314

• Potential to add an add’l unit and reconfigure UNIT C (currently used as office for owner’s business).

• Unit 302 is vacant. Market Rate of $1,875 is used in Rent Roll.

• Market rents are assuming a similar unit renovation as 302.

• Rent Roll as of November 2017.

FINANCIAL ANALYSIS

MURRAY HILL | 14

Comparables

PROPERTY ADDRESS Building Name Units Price Sale Date Price/Unit Price/SF Cap Rate

1) 931 11th Ave E Highland Condos 12 $6,000,000 8/9/2017 $500,000 $409 3.80%

2) 421 Summit Ave E Lombardy Court 18 $3,240,000 5/1/2017 $180,000 $236 2.20%

3) 1819 Bellevue Ave Bel-Vista 31 $6,275,000 11/30/2016 $202,419 $447 4.10%

4 ) 1404 10th Ave W McKean 8 $2,875,000 11/19/2016 $359,375 $532 3.90%

5 ) 1619 E John St Whitworth 54 $18,230,000 7/22/2016 $337,593 $452 4.20%

AVERAGES: $315,877 $415 3.64%

54

MCKEAN

Year Built:1928

WHITWORTH

Year Built:1927

1 2 3

HIGHLAND CONDOS

Year Built:1924

LOMBARDY COURT

Year Built:1929

BEL-VISTA

Year Built:1929

SALES COMPARABLES

MURRAY HILL | 16

SALES COMPARABLESLA

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PROPERTY ADDRESS Building Name Unit Type Avg. SF Current Rent Current SF

1) 1720 E Denny Way Roxborough Apartments 1 bd / 1 bth 615 $1,695 $2.76

2) 1821 17th Ave 17th Avenue Apartments 1 bd / 1 bth 640 $1,550 $2.42

3) 1818 E Madison St Lawrence Lofts 1 bd / 1 bth 659 $1,975 $3.00

4 ) 1631 16 th Ave Garden Court 1 bd / 1 bth 616 $1,790 $2.91

5 ) 1305 E Howell St Washington Irving 1 bd / 1 bth 805 $1,895 $2.35

6 ) 1500 16th Ave 1500 16th Avenue 1 bd / 1 bth 600 $1,900 $3.17

AVERAGE: $2.77

5 64

GARDEN COURT

Unit Type:1 Bd / 1 Bth

WASHINGTON IRVING

Unit Type:1 Bd / 1 Bth

1500 16th AVENUE

Unit Type:1 Bd / 1 Bth

1 2 3

ROXBOROUGH APARTMENTS

Unit Type:1 Bd / 1 Bth

17th AVENUE APARTMENTS

Unit Type:1 Bd / 1 Bth

LAWRENCE LOFTS

Unit Type:1 Bd / 1 Bth

RENT COMPARABLES

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Our ServicesBuilt upon trust and experience, Pilot Ventures was founded by principals Casey Zejdlik and Jason Kono.

Specializing in multifamily investments and property management services, our focus on long-term client success is at the core of everything we do.

At Pilot Ventures, our experienced team of industry professionals offer more than 50 years of creative investment expertise. We engage with every client in a goal-oriented manner to enhance their portfolio and maximize results.

Together, we don’t just build equity— we build relationships.

BrokerageWhether you’re buying or selling, our experienced team of brokers will ensure you receive the best possible representation.

ManagementManaging property can be an overwhelming experience—in working with Pilot Ventures, we help streamline processes and systems to maximize your cash flow and ROI.

Investments Our firm’s financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without worrying about the day-to-day operations. We provide a full-service approach to every stage of your multifamily real estate investment.

Consulting Investing smartly is the easiest way to achieve long-term goals—collaborate with industry professionals who apply systematic market research and financial analysis to produce feasible solutions for all types of real estate projects.

JUANITA TOWNHOMES | 20

Brokerage / Management / Investments / Consulting

pilotNW.com