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About
Rare 16-unit apartment building located in Rainer Valley, neighboring the ever growing and up and coming Seattle neighborhood of Columbia City. Situated in an ideal location for commuting with walking distance to the Light Rail (Sound Transit) and seconds from the 1-5 interchange. (Effective Year) Built in 1981, with current updates to all units, the building is solid brick, making it both timeless, and easy to maintain. Each unit has exterior entrances creating an environment of privacy even in an apartment building. The parking lot has space for up to seventeen cars. The property itself is two full parcels (lots) with room to expand. The basement of the building offers space for up to two more units, adding even more income for exceeding a 5% cap. The building is also fully occupied with a waiting list.
Time to Invest In a special report in the South China Morning Post in September, Seattle was the 4th most popular city for Chinese buyers in 2015, as measured by the number of property inquiries made to local real estate agents and developers via Juwai.com, according to Matthew Moore, president of the Americas forJuwai.com. “Los Angeles used to be top US city for Chinese buyers, and it was no contest, but this year Seattle has passed LA in four of the eight months so far. In February, March, April and July, Seattle was more popular than Los Angeles.” In a prominent collaboration, Tsinghua University has formed a joint venture with Gates Foundation and University of Washington for a research and innovation centre. “Seattle is like the ‘little sister’ of San Francisco because of the similarity in the tech industry growth,” agrees Skip Whitney, executive vice-president and head of China services for Kidder Mathews, a China-focused trans-Pacific real estate group in the US. He notes the arrival or expansion of giants such as Amazon, Expedia, Microsoft, Google and Facebook as examples of Bay companies moving into the area there because the cost of living is lower, “sometimes 50 per cent lower than San Francisco”. Dean Jones, president and CEO of Seattle-based Realogics Sotheby’s International Realty, believes there has been no particular catalyst to this influx. Seattle is the closest mainland port to China, and the arrival of direct air flights offers quicker, cheaper and more frequent flights compared with California, he says. “Our property market has been discovered as offering relative value compared with our popular neighbour to the north, Vancouver, where median home prices are easily twice the price, while homes in San Francisco and Los Angeles are also considerably more expensive,” Jones says. “Next, we benefit from a robust economy led by technology companies, which is driving traditional market fundamentals like population growth, job growth and income growth – so the region and especially the urban centres are experiencing a boom of development and the fastest growing median home prices and rents in the US. “So our market is viewed as globally undervalued and offering a high propensity for capital appreciation.” Washington State has no state income tax, unlike California, “which has the highest combined tax rate in the US,” Jones says. “We also offer many of the top-ranked public and private schools, including University of Washington, which is ranked 15th in the world. The region enjoys a comfortable [environment] with clean air and ... natural attractions.” Now that Seattle has been discovered, the market is playing catch up to its West Coast peer cities, which if they are a harbinger market, means prices could reasonably double, according to Jones. Tech workers continue to dominate the primary buyer demographic. By any measure, says Patrick ONeill, principal broker at Luxury Homes International, Seattle is still considered a bargain compared to its West Coast neighbours such as San Francisco and Vancouver, “and everyone loves a bargain”.
Read the full article at RSIR.com/blog
Columbia City
Rainier Valley
Rainier Valley & Columbia City The Rainier Valley district in Seattle is located east of Beacon Hill; west of Mount Baker, Seward Park, and Leschi; south of the Central District and First Hill; and north of Rainier Beach. It is among the most culturally and economically diverse neighborhoods in the Pacific Northwest. The neighborhood’s population is 34,241, with Asians making up the largest group (with Filipinos the largest within the Asian population of the Valley). However, there remains a large African American population, as well as those Americans of European descent. Neighboring Rainier Valley is the adorable neighborhood of Columbia City; Columbia City has the highest Walk Score of any neighborhood south of downtown, including the ever-popular “Junction” in West Seattle. Translation: there’s a lot to do here, and it’s all concentrated in one area. The people here love to support the local businesses. The point is: people get along harmoniously here in Columbia City. Local Employers Include: Boeing | Google | Starbucks | Expedia | Microsoft University of Washington | Amazon | REI | Nintendo Zillow | Providence Health & Services Demographics for Seattle: Population: 3,610,000 Average Household Income: $75,331 / $91,123 Average Age: 35-39 years Demographics for Columbia City: Population: 67,019 Average Household Income: $40,298 / $66,205 Average Age: 35-39 years Demographics for Rainier Valley: Population: 34,241 Average Household Income: $40,298 / $63,465 Average Age: 36-37 years 2016 Est. Renter Occupied Units: One-Mile Radius / Two Mile Radius / Three Mile Radius 4,002 13,569 52,664 2016 Est. Owner Occupied Units: One-Mile Radius / Two Mile Radius / Three Mile Radius 4,959 21,792 61,919 Rents in the Evergreen Apartment building vary by as much as 26% ranging from $800-$1100 per month and market rents are another 25% higher offering an investor a well-capitalized investment. The investor has room to increase cap over the next 12 months after ownership. 8 of the 16 units have tenants that are month to month or leases that end the year of 2016.
Apartment Deficit Seattle’s rent is currently growing faster than any other city in the U.S., this according to the Seattle Times as June 2015 vs. June 2016 rent comparisons revealed a staggering 9.7% increase. What’s more, “rents are soaring so fast that June’s 1.1 percent monthly price gain in the Seattle area beat out the growth that Chicago and Washington, D.C., have seen in an entire year.” “There are various reasons why apartment rents are soaring in the Puget Sound region,” Marc Stiles said in a recent interview with the Puget Sound Business Journal. “And an overlooked reason is that Seattle has a relatively high number of renters who could buy but are not necessarily looking to do so.” This statistic, as the article outlines, puts “Seattle fifth on a new Zillow list of markets with the highest share of renters who are qualified to buy.” And when these potential buyers choose to rent, it “increases competition for apartments,” which drives rents up, “hurting lower-income households the most.” So why are qualified potential homeowners choosing to rent? The Puget Sound Business Journal points to low inventory and increasing home prices, but looking to the booming “Silicon Forest” in Seattle also provides some insight. “The reality is that much of the demand for apartments in Seattle comes from newly transferred job seekers that prefer to rent for a few years before deciding to buy,” said Dean Jones, President & CEO of Realogics Sotheby’s International Realty. “They want to be comfortable in their new city and ensure the job is sustainable before making larger commitments. The result is that these downtown apartment towers where qualified homebuyers currently rent act as incubators for future condominium demand.”
Specs & Details 6600 RAINER AVENUE, SOUTH | SEATTLE WA, 98118 Offer Price: $2,588,800 APT# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
TERM 6-Month Month-to-Month Month-to-Month 12-Month 12-Month 12-Month Month-to-Month 12-Month 12-Month Month-to-Month 12-Month 12-Month Month-to-Month Month-to-Month 12-Month 12-Month
END DATE 12/1/16 12/1/16 5/1/17 4/1/1 7/1/16 9/1/17 3/1/17 7/1/17 4/1/17 2/1/17
SPECS 2 Bed/1 Bath/725SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 2 Bed/1 Bath/725SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 2 Bed/1 Bath/725SF 2 Bed/1 Bath/725SF 2 Bed/1 Bath/725SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 1 Bed/1 Bath/600SF 2 Bed/1 Bath/725SF
t Gross Scheduled Income: $186,960 Insurance Expenses: $3,600 Gross Rent Multiplier: 15% CAP Rate 5.48%
Gross Adjusted Income: $186,960 Total Monthly Income: $15,580 Water/Sewer/Garbage: $24,00 Total Expenses: $45,179 Possible CAP Rate 7%
Price Per Unit: $175,000 Current CAP Rate: 5.48% Number of Units: 16 Parking: 17 Spaces Number of Buildings: 1 Number of Stories: 2+ Basement
Price Per Square Foot: $236.51 County: King Occupancy: 100% Rentable Square Footage: 10,946 Lot size: 18,824SF / .44 acre Common Area: W/D
Year built: 1959, effective year built 1981, Renovated 2015/2016 Basement with Potential 2-Unit Build-Out (Approx. 2,000SF) Proforma: Room to Expand in Basement Construction: Wood with brick exterior Parcel number: 2724049160 –1105000361
RENT $1,200 $ 900 $900 $1,200 $900 $800 $1,000 $1,000 $1,000 $850 $900 $900 $950 $850 $850 * Another 10 units will go month-to-month within the next 3 months $1,200 * Rent is below market value
6600 RAINER AVENUE, SOUTH | SEATTLE WA, 98118 | OFFERED AT: $2,800,000
Contact Alex Thomas for your personal tour of Evergreen Apartments and learn more at EvergreenApartmentsSeattle.com
Alex Thomas
Alex.Thomas@RSIR.com | 425.422.8942
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Each office is Independently owned and operated.