Offering Summary

Address 427 SW 154th St, Burien WA
Price $1,250,000
Total Units 6
Built 1976
Square Feet 4,832 Total Net Rentable
Price Per Unit $208,333
Price Per Net SQFT $258.69
Current GRM/CAP 12.66/5.78% (2% Vacancy)
Market GRM/CAP 11.26/6.14% ( 5% Vacancy)
Terms Cash Out
Zoning RM-24
Lot Size 7,500 SQFT

The Olive Branch Apartments

Paragon Real Estate Advisors is pleased to offer for sale The Olive Branch Apartments. This charming 6 unit building is located right in the heart of downtown Burien and only steps away from the quaint and charming Olde Burien district.

The Olive Branch Apartments offers an investor the opportunity to acquire a well-located, meticulously and lovingly cared for 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:
> Owned by same family for over 20 years
> All large 2Bd/1Bth units with private balconies and excellent floorplans
> Quick access to freeways and public transportation
> Excellent downtown location close to shopping and amenities
> Walk Score of 92! Walker’s Paradise!
> 9+ parking spaces (7 - large covered carports, 2 open uncovered stalls)
> Meticulously cared for, turn-key building with virtually zero vacancy



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 located a short walk away which offers a convenient park- and-ride and express service to Seattle and Bellevue.

The Burien transit center offers 504 parking spaces, electric vehicle charging stations, and ticket vending machines. Both King County Metro and Sound Transit provide services to this station.

Building Highlights:
> Units feature complete appliance packages including dishwashers
> Private balconies, view from upper units
> Individual hot-water tanks, individual electric meters, breaker panels
> Common coin-operated laundry, private resident storage lockers, and manager storage room
> Low maintenance design with double paned vinyl windows, electric baseboard heating, copper plumbing, and a pitched roof

Operating Information

PRICING
Price$1,250,000
Price Per Unit$208,333
Price Per Sq.Ft.$258.69
Down Payment$375,000 (30%)
Loan Amount$875,000 (70%)
Interest Rate4.04% Variable
Amortization30 Years
 
Curent CAP5.78%
Current GRM12.66
Market CAP6.14%
Market GRM11.26
 
CURRENT EXPENSES
Expenses/Unit$4,095
Expenses/Foot$5.08
% of GSI25.39%


MONTHLY SCHEDULED INCOMECURRENTMARKET
Monthly Scheduled Rent$7,950$8,550
Laundry (2016 Avg)$100$100
Storage (6 private storage units)$0$120 ($40/Unit/$50)
Utility Billback $150$450 ($75/Unit Avg)
Parking (2 open + 7 covered spaces)$0$0
Miscellaneous$30$30
Total Monthly Income$8,230$9,250
 
ANNUALIZED OPERATING DATACURRENTMARKET
Scheduled Gross Income$98,760$111,000
Less Vacancy$1,975 (2.00%)$5,550 (5.00%)
Effecttive Gross Income$96,785$105,450
Less Expenses$24,570$28,648
Net Operating Income$72,215$76,802
Annual Debt Service ($4,198/mo)$50,371$50,371
Cash flow Before Tax$21,844 (5.83%)$26,431 (7.05%)
Principal Reduction$15,302$15,302
Total Return Before Tax$37,146 (9.91%)$41,733 (11.13%)
 
EXPENSE AND RESERVESCURRENTMARKET
Real Estate Taxes (2017 Actual)$8,922$13,000
Insurance (Farmers Quote '17)$2,188$2,188
Utilities (2016 Actual)$5,660$5,660
Maintenance & Repairs (Proforma)$4,500$4,500
Turnover (Proforma)$900$900
Adminstration/Misc. (Proforma)$900$900
Reserves (Proforma)$1,500$1,500
 
Total Operating Expenses$24,570$28,648

Burien

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 Olive Branch Apartments
are perfectly positioned to benefit from the positive growth taking place.

A Look Around the Property.

Monthly Scheduled Unit Income

## OF UNIT TYPE SQFT CURRENT RENT MONTHLY INCOME MARKET RENT MONTHLY INCOME
1 2BD/1Bth 805 SqFt $1,300 $1,300 $1,425 $1,425
1 2BD/1Bth 805 SqFt $1,325 $1,325 $1,425 $1,425
1 2BD/1Bth 805 SqFt $1,350 $1,350 $1,425 $1,425
1 2BD/1Bth 805 SqFt $1,400 $1,400 $1,425 $1,425
1 2BD/1Bth 805 SqFt $1,350 $1,350 $1,425 $1,425
1 2BD/1Bth 805 SqFt $1,225 $1,225 $1,425 $1,425
6 Average/Totals 805 SqFt $1.65 $7,950 $1.77 $8,550

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.