This is a rare opportunity to purchase a property in a lower price per unit range compared to surrounding neighborhoods. Comparable properties are selling for $250K to $300K+ per unit.

Offering Summary

Address 530 S Cloverdale St, Seattle, WA 98108
Total Units 15
Built 1967
Square Feet 9,700 Total Net Rentable
Price $1,950,000
Price Per Unit $130,000
Expenses Per Unit 4,599/Year
Price Per Foot $201.03/Net and $188.68/Gross
Current GRM/CAP 12.1/4.5% (3% Vacancy)
Market GRM/CAP 10.3/5.8% (3% Vacancy)
Zoning LR3 (South Park Residential Urban Village)
Terms Cash Out

Investment Highlights

Paragon Real Estate advisors is pleased to offer for sale the Cloverdale Apartments. This attractive 15 unit building is located in the South Park neighborhood and only four blocks from the neighborhood retail and service district and area amenities.

With an explosion of high paying jobs and increasing housing rental rates in Seattle, South Park is an affordable alternative for renters. It offers an up-and-coming residential neighborhood just outside the city center, while providing easy access to the many attractions of downtown. South Park, Columbia City and Georgetown are examples of vibrant and growing Urban Villages just outside the city core, yet within the Seattle city limits.

Highlights
> Located on a 12,000 square foot lot
> Currently zoned LR3 allowing up to four stories
> Mix of one and two-bedroom units
> Covered central courtyard
> Open parking with space for 14 cars
> Four blocks to the retail-service corridor
> Part of the South Park Residential Urban Village in the city of Seattle
> New Milgard vinyl, double-pane windows with transferable 10 year warranty
> Close to neighboring West Seattle, SODO, and Georgetown entertainment centers
> 15 units plus the potential to add one unit within the building footprint




Location Highlights

The Cloverdale Apartments are located at 530 S Cloverdale Street in the South Park neighborhood of Seattle. The apartments are situated on a Metro bus line, with close access to Highway 509 and Highway 99 which funnel commuters directly into the SODO business area, and downtown Seattle. The apartments are four blocks from the local neighborhood retail and service district, and a few blocks from the South Park Community Center, South Park Skate Park, and South Park Public Library.

Situated along the Duwamish River, this area and property are part of the newly planned South Park Residential Urban Village. A Residential Urban Village is an area designated by the City of Seattle in which future development is encouraged, and access to transit allows residents an easy commute to downtown Seattle. With an explosion of high paying jobs and increasing housing rental rates in Seattle, South Park is an affordable alternative for renters. It offers an up-and-coming residential neighborhood just outside the city center, while providing easy access to the many attractions of downtown.
South Park, Columbia City and Georgetown are examples of vibrant and growing Urban Villages just outside the city core, yet within city limits.

This property includes a mix of 15 spacious one and two-bedroom apartments. It is served by individual electric meters and a common laundry room. There is a large storage area behind the laundry room that could be converted into a studio unit under the current city zoning ordinances (buyer to verify). There is open, on-site parking along the back of the property as well as the front of the building.

Operating Information

PRICING
Price$1,950,000
Down Payment$780,000 (40%)
Loan Amount$1,170,000 (60%)
Interest Rate3.91% Fixed 5 Years
Amortization30 Years
 
Price Per Unit$130,000
Price Per Sq.Ft.$201.03
 
Current GRM12.01
Current CAP4.54%
Market GRM10.30
Market CAP5.75%
 
CURRENT EXPENSES
Current Expenses/Unit$4,599
Expenses/Foot$7.11
% of GSI42.50%
MARKET EXPENSES
Expenses/Unit$4,768
Expenses/Foot$7.37
% of GSI37.77%


MONTHLY SCHEDULED INCOMECurrentMarket
Monthly Scheduled Rent$13,159$15,340
Laundry$367$367
Parking $0$70
Miscellaneous Income$0$0
Total Monthly Income$13,526$15,777
 
ANNUALIZED OPERATING DATA
Scheduled Gross Income$162,308$189,320
Less Vacancy$4,869 (3%)$5,680 (3%)
Gross Operating Income$157,439$183,640
Less Expenses$68,989$71,513
Net Operating Income$88,450$112,127
Annual Debt Service ($5,525/mo)$66,303$66,303
Cash flow Before Tax$22,147 (2.84%)$45,825 (5.87%)
Principal Reduction$20,928$20,928
Total Return Before Tax$43,075 (5.52%)$66,753 (8.56%)
 
ANNUALIZED OPERATING EXPENSES
Real Estate Taxes$13,076$15,600
Insurance (Actual 2017)$4,450$4,450
Utilities (Annualized)$21,983$21,983
On-Site Management (Proforma)$8,580$8,580
Maint & Repairs (Proforma)$14,100$14,100
Landscaping (Proforma)$1,800$1,800
Administration (Proforma)$500$500
Reserves (Proforma)$4,500$4,500
Total Operating Expenses$68,989$71,513

Monthly Scheduled Income

# OF UNIT TYPE SIZE CURRENT RENT MONTHLY INCOME MARKET RENT MONTLY INCOME
9 1BD/1BTH 600 Sq.Ft. $861 $7,749 $950 $8,550
2 1BD/1BTH 625 Sq.Ft. $840 $1,680 $995 $1,990
2 1BD/1BTH 650 Sq.Ft. $820 $1,640 $1,050 $2,100
2 2BD/1BTH 875 Sq.Ft. $1,045 $2,090 $1,350 $2,700
0 Studio 0 $0 $0 $750 $750
15 Average/Totals 530 SqFt $1.36 $13,159 $1.58 $15,340

Property Photos

Floor Plans