Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 2709 Lincoln Way, Lynnwood WA
Price $9,100,000
Total Units 73
Built 1983-84
Square Feet 77,290 Net Rentable
Price Per Unit $124,658
Price Per Net SQFT $117.74
Current GRM/CAP 10.99/4.63% (5% Vacancy)
Market GRM/CAP 8.86/6.63% (5% Vacancy)
Expenses Per Unit $5,000/Year
Lot Size 161,608 Square Feet

Twin Firs Apartments

Built in 1983 and 1984, the subject consists of six, two and three-story wood-framed structures finished with pitched asphalt-shingle roofing, beveled cedar siding, and double-pane aluminum-frame windows. The units are large one-bedroom/one-bath and two-bedroom/two-bath units measuring approximately 850 and 1,120 square feet respectively. Typical finishes include plywood cabinets, laminate counters, and wall to wall carpeting. Typical kitchen appliance packages include a range, refrigerator, dishwasher, and garbage disposal.

All units have hook-ups for a full-sized washer and dryer and individual water shut-offs perfect for metering water if desired by new ownership. Additionally, each unit has a deck or patio with a storage closet. When constructed, each unit had a fireplace with a tile surround. Current ownership decided to block the fireplaces with a metal panel and has capped the flue making the fireplace inoperable.

Investment Highlights:

  • First time on market!
  • Hook-ups for a full sized washer and dryer
  • Private decks or patios
  • Pitched asphalt-shingle roofs
  • Copper plumbing with water shut-offs in each unit, perfect for sub-metering.

Location Hightlights

The subject property is located near the intersection of the Mukilteo Speedway (Highway 525) and Evergreen Way in South Everett near Boeing’s largest airplane assembly plant. This location provides easy access to local retailers and transportation.

The South Snohomish county market is enjoying strong occupancy with limited new product coming to market. Rents continue to move up as local employers expand without a significant local supply of new housing to offset the increased demand. Nearby Everett is the county’s largest city and the area’s center for economic development.

Since its founding more than 100 years ago, the city has grown from a bustling mill town to a crucial deep-water port with a robust manufacturing and retail core, a state of the art naval station, and an expanding high-tech and aerospace industry.

The Boeing Company has over the last two years invested $1 billion in the just-completed 777x composite wing factory. Everett is clearly Boeing’s most successful wide-body production plant, and is poised to become the core of Boeing’s composite technology going into the future. Boeing projects the facility may require up to $4 Billion of new investment and once running, will employ thousands of workers.

Monthly Scheduled Unit Income

# OF UNIT UNIT TYPE SQFT CURRENT RENT CURRENT INCOME MARKET RENT MARKET INCOME
1 1BD/1BTH 780 SqFt $600 $600 $750 $750
15 1BD/1BTH 850 SqFt $650 - $900 $12,150 $995 $14,925
57 2BD/2BTH 1,120 SqFt $825 - $1,100 $55,775 $1,160 $66,120
Average/Totals 1,059 SqFt $0.89/SF $1.06/SF

Interior Photos

Operating Information

PRICING
Price$9,100,000
Down Payment$3,125,000 (34.34%)
Loan Amount$5,975,000 (65.66%)
Interest Rate3.875% Variable
Amortization30 Years
 
Price Per Unit$124,658
Price Per Sq.Ft.$117.74
 
Current CAP4.63%
Market CAP6.63%
Current GRM10.99
Market GRM8.86
 
Current Expenses
Expenses/Unit$5,000
Expenses/Foot$4.72
% of GSI44.09%
Market Expenses
Expenses/Unit$5,091
Expenses/Foot$4.81
% of GSI36.20%


Monthly Scheduled IncomeCurrentMarket
Monthly Scheduled Rent$68,525$81,795
Utility Bill Back$0$3,285
Other$475$475
Total Monthly Income$69,000$85,555
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$828,002$1,026,662
Less Vacancy$41,400 (5.00%)$51,333 (5.00%)
Gross Operating Income$786,602$975,329
Less Expenses$365,031$371,637
Net Operating Income$421,571$603,692
Annual Debt Service ($28,097/mo)$337,160$337,160
Cash flow Before Tax$84,411 (2.70%)$265,532 (8.53%)
Principal Reduction$107,525$107,525
Total Return Before Tax$191,936 (6.14%)$374,058 (11.97%)
 
EXPENSE AND RESERVES
Real Estate Taxes$82,224$82,224
Insurance $17,830$17,830
Utilities$82,793$82,793
Professional Management (3.5%)$27,531$34,137
On-Site Payroll$58,400$58,400
Maintenance/Repairs$54,750$54,750
Landscaping$10,585$10,585
Adminstration$6,246$6,246
Professional Fees$2,772$2,772
Replacements/Capital Reserves$21,900$21,900
 
Total Operating Expenses$365,031$371,637

Sales Comparables

Subject Property
2709 Lincoln Way
Lynnwood, WA
Year Built 1983-84
Units 73
Sale Price $9,100,100
Price/Unit $124,658
Price/Foot $117.74
Stinson
133 124th St SE
Everett, WA
Year Built 2000
Units 93
Sale Price $10,600,000
Price/Unit $113,978
Price/Foot $135.63
Sales Date 4.30.2015
Patricia
5901 186th Pl SW
Lynnwood, WA
Year Built 1968
Units 54
Sale Price $6,450,000
Price/Unit $119,444
Price/Foot $119.52
Sales Date 12.23.2015
Arterra
711 W Casino Rd
Everett, WA
Year Built 1981
Units 120
Sale Price $13,350,000
Price/Unit $111,250
Price/Foot $139.11
Sales Date 1.1.2016
Willshire Cove
19800 50th Ave W
Lynnwood, WA
Year Built 1968
Units 118
Sale Price $14,300,000
Price/Unit $121,186
Price/Foot $144.68
Sales Date 2.19.2016

Sales Comparables MAP

Subject Property
2709 Lincoln Way
Lynnwood, WA
Stinson
133 124th St SE
Everett, WA
Patricia
5901 186th Pl SW
Lynnwood, WA
Arterra
711 W Casino Rd
Everett, WA
Willshire Cove
19800 50th Ave W
Lynnwood, WA

Twin Firs Apartments

Large units with hook-ups for a full size washer and dryer, storage, private patios and abundant parking (over 2:1) with a location close to freeways and transit make this an appealing property for both ownership and residents.