Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 2609 NE 195th St, Lake Forest Park WA
Total Units 72
Built 1985
Square Feet 44,454 Net Rentable
Price $16,995,000
Cost Per Unit $236,042
Expenses Per Unit $5,308/Year
Cost Per Foot $382.31 Net Rentable (617 Ave SqFt)
Ave Rent/SQFT $1.81
Current GRM/CAP 17.5/3.3% (3% Vacancy)
Market GRM/CAP 15.0/4.1% (3% Vacancy)

Investment Highlights

Paragon Real Estate Advisors is pleased to offer for sale the Ballinger Estates Apartments. This 72 unit apartment building is located in a residential neighborhood of Lake Forest Park.

As people are moving North in search of affordable rental units Ballinger Estates offers an investor the opportunity to acquire a well located, well maintained apartment building with income upside. A new owner can increase rents to market value and reap the rewards of immediate upside and long-term appreciation or reposition the building by upgrading the finishes and adding washer and dryers to the units.

  • Meticulously cared for, turn-key building

  • Immediate rental upside

  • Well landscaped grounds provides park-like setting

  • Open and spacious floor plans with a separate dining area

  • Each unit has a private balcony or a patio

  • Abundant storage in each unit

  • Great street appeal and ample on-site parking

  • 1 common laundry in each building with leased equipment

  • Reposition asset by adding washer and dryers to units

Location Highlights

Lake Forest Park is situated along the shore of Lake Washington, a bedroom community by design, most of the city consists of single-family housing on medium to large-sized lots. This charming neighborhood includes numerous parks and nature preserves, convenient access to the Burke-Gilman Trail, a summertime farmer's market, and a large new and used bookstore / food court holding frequent musical events.

The city of Lake Forest park offers eight distinct parks. These areas offer a wide range of recreational activities from hiking, bird watching, children’s play area, picnic areas, biking, walking, running and much more.




Town Center at Lake Forest Park is a true community center that draws a regional crowd and is home to several unique and organic local stores which collectively cater to customers, thus serving as a daily destination. Friends of Third Place Commons, a non-profit organization that operates through public donation, offers over 1,200 community events throughout the calendar year attracting patrons from all over the Puget Sound region.

Operating Information

PRICING
Price$16,995,000
Down Payment$8,695,000 (51%)
Loan Amount$8,300,000 (49%)
Interest Rate3.85% 3 Year Fixed
Amortization30 Years
 
Price Per Unit$236,042
Price Per Net Sq.Ft.$382.31
 
Current GRM17.5
Current CAP3.0%
Market GRM15.0
Market CAP4.1%
 
Current Expenses
Current Expenses/Unit$5,308
Expenses/Foot$8.60
% of GSI39.33%
Market Expenses
Expenses/Unit$5,634
Expenses/Foot$9.13
% of GSI35.80%


Monthly Scheduled IncomeCurrentMarket
Monthly Scheduled Rent$80,295$91,200
Utility Bill Back$0$2,550
Laundry (Leased)$435$435
Miscellaneous Income$250$250
Total Monthly Income$80,980$94,435
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$971,760$1,113,220
Less Vacancy$29,153 (3%)$33,997 (3%)
Gross Operating Income$942,607$1,099,223
Less Expenses$382,150$405,682
Net Operating Income$560,457$693,541
Annual Debt Service ($38,911/mo)$466,933$466,933
Cash flow Before Tax$193,524 (1.08%)$226,608 (2.61%)
Principal Reduction$150,012$150,012
Total Return Before Tax$243,536 (2.80%)$376,620 (4.33%)
 
ANNUALIZED OPERATING EXPENSES
Insurance (Actual)$20,129$20,129
Real Estate Taxes (2016)$97,733$115,000
Utilities (Actual)$60,000$60,000
Property Management (Actual)$37,704$43,969
On-Site Management (Actual)$38,880$38,880
Maint & Repairs (Proforma)$46,800$46,800
Landscaping (Proforma)$55,404$55,404
Administration (Proforma)$7,500$7,500
Reserves$18,000$18,000
Total Operating Expenses$382,150$405,682

Property Photos

Unit Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
9 Studio 420 Sq.Ft. $963 $8,667 $1,050 $9,450
51 1BD/1BTH 600 Sq.Ft. $1,116 $56,916 $1,250 $63,750
12 2BD/1BTH 840 Sq.Ft. $1,226 $14,712 $1,500 $18,000
72 Average/Totals 617 SqFt $1.81 $80,295 $2.05 $91,200

Sales Comparables

Subject Property
2609 NE 195th St, Lake Forest Park WA
Year Built 1985
Units 72
Sales Price $16,995,000
Price Per Unit $236,042
Price/Foot $382.31
CAP Rate 3.3%
GRM 17.5
Junction 160
16100 Linden Ave N, Shoreline WA
Year Built 1978
Units 60
Sales Price $16,000,000
Price/Unit $266,666
Price/Foot $368.70
CAP Rate 5.0%
GRM 12.5
Sales Date 2.28.2017
Kenmore Village
17620 80th Ave NE, Kenmore WA
Year Built 1985
Units 58
Sale Price $11,800,000
Price/Unit $203,448
Price/Foot $337.38
CAP Rate 3.3%
GRM 16.7
Sales Date 2.24.2017
Union 18
1140 18th Ave, Seattle WA
Year Built 1969
Units 57
Sales Price $20,800,000
Price Per Unit $364,912
Price/Foot $453.93
CAP Rate 5.3%
GRM 12.9
Sales Date 9.14.2016
HIghland Village
14510 NE 7th St, Bellevue WA
Year Built 1975
Units 76
Sales Price $19,400,000
Price/Unit $255,263
Price/Foot $257.04
CAP Rate 3.9%
GRM 15.3
Sales Date 8.31.2016
Gilman Terrace
2572 Gilman Dr W, Seattle WA
Year Built 1989
Units 65 + Com
Sale Price $20,155,000
Price/Unit $283,873
Price/Foot $358.02
CAP Rate 3.1%
GRM 16.8
Sales Date 5.31.2016

Sales Comparables MAP

Subject Property
2609 NE 195th St, Lake Forest Park WA
Junction 160
16100 Linden Ave N, Shoreline WA
Kenmore Village
17620 80th Ave NE, Kenmore WA
Union 18
1140 18th Ave, Seattle WA
HIghland Village
14510 NE 7th St, Bellevue WA
Gilman Terrace
2572 Gilman Dr W, Seattle WA