Exclusively Offered by Paragon Real Estate Advisors

Offering Summary

Address 1117 Pike St, Seattle WA 98101
Built 1906
Square Feet 10,800 Total Net Rentable
Price $2,150,000
Price Per Building Foot $199.07 Per Net Rentable
Price Per Lot Foot $597.22 Per Lot Sq.Ft.
Current GRM/CAP 22.1 / 3.3% (5% Vacancy)
Market GRM/CAP 8.9 / 9.2% (5% Vacancy)
Current Annual NOI $71,236
Market Annual NOI $197,699
Total Expenses Per Year $21,218
Terms Cash Out
Lot Size 3,600 Sq.Ft.
Zoning NC3P-35

Investment Highlights

> First time on the market in almost 40 years
> 3 blocks to Downtown Seattle
> Potential for redevelopment
> Three story, wood-framed construction
> Secured access entry
> Walk Score of 91, “Walker’s Paradise” and a transit score of 73
> Conveniently situated a block away from the I-5 freeway on-ramp
> Cal Anderson Park and Volunteer Park both to the Northeast
> Less than a five minute drive from Seattle CBD, Amazon Head Quarters, and South Lake Union
> Seattle University and Swedish First Hill Campus are both within 10 blocks
> Half mile from the main Capitol Hill drag on Broadway comprised of shops, restaurants, grocery stores, and bars full of nightlife.



Sales Comparables

SUBJECT - The Pike Building
1117 Pike St, Seattle WA
Seattle, WA 98101
Year Built 1906
Building Size 10,800 Sq.Ft.
Sales Price $2,150,000
Price/Sq.Ft. $199.07
Lot Size 3,600 Sq.Ft.
Zoning NC3P-85
Sales Date TBD
Good Arts Building
110 Cherry St
Seattle, WA 98104
Year Built 1903
Building Size 26,406 Sq.Ft.
Sales Price $4,525,000
Price/ Sq.Ft. $171.36
Lot Size 7,200 Sq.Ft.
Zoning PSM-100
Sales Date 12.15.2015
Eitel Building
1501 2nd Ave Seattle
Seattle, WA 98101
Year Built 1904
Building Size 35,003 Sq.Ft.
Sales Price $5,350,000
Price/Sq.Ft. $152.84
Lot Size 5,993 Sq.Ft.
Zoning DMC240-290
Sales Date 11.18.2018
Metropole Building
417 - 423 2nd Ave Ext S
Seattle, WA 98104
Year Built 1900
Building Size 27,645 Sq.Ft.
Sales Price $4,000,000
Price/Sq.Ft. $144.69
Lot Size 6,961 Sq.Ft.
Zoning PSM-100
Sales Date 9.10.2015
Howell Retail Buidling
1314 Howell St
Seattle, WA 98101
Year Built 1962
Building Size 2,220 Sq.Ft
Sales Price $1,200,000
Price/Sq.Ft. $540.54
Lot Size 2,962 Sq.Ft.
Zoning DMC-240-290/400
Sales Date 5.20.2018
J&M Building
201 1st Ave S
Seattle, WA 98104
Year Built 1900
Building Size 25,450 Sq.Ft.
Sales Price $3,235,000
Price/Sq.Ft. $127.11
Lot Size 6,534 Sq.Ft.
Zoning PSM-100
Sales Date 11.26.2014

Sales Comparables MAP

SUBJECT - The Pike Building
1117 Pike St, Seattle WA
Seattle, WA 98101
Good Arts Building
110 Cherry St
Seattle, WA 98104
Eitel Building
1501 2nd Ave Seattle
Seattle, WA 98101
Metropole Building
417 - 423 2nd Ave Ext S
Seattle, WA 98104
Howell Retail Buidling
1314 Howell St
Seattle, WA 98101
J&M Building
201 1st Ave S
Seattle, WA 98104

Operating Summary

PRICING
Price$2,150,000
Year Built1906
Rentable Sq.Ft.10,800 Sq.Ft,.
Price Per Sq.Ft.$199.07
Down Payment$1,075,000 (50%)
Loan Amount$1,075,000 (50%)
Interest Rate4.50% Fixed
Amortization25 Years
 
Current GRM/CAP22.09/3.31% (5% Vacancy)
Market GRM/CAP8.90/9.20% (5% Vacancy)
 
CURRENT EXPENSES
Expenses/Foot$1.96
% of GSI21.80%
MARKET EXPENSES
Expenses/Foot$2.95
% of GSI13.18%


MONTHLY SCHEDULED INCOMECURRENTMARKET
Monthly Scheduled RentModified Gross $6,550NNN $18,000
CAM Reimbursements$1,560$2,135
Parking Income$0$0
Total Monthly Income$8,110$20,135
Lease Rates$7.28 NNN$20 NNN
 
ANNUALIZED OPERATING DATACURRENTMARKET
Scheduled Gross Income$97,320$241,620
Less Vacancy$4,866 (5.00%)$12,081 (5.00%)
Gross Operating Income$92,454$229,539
Less Expenses$21,218$31,840
Net Operating Income71,236$197,699
Annual Debt Service ($5,975/mo)$71,702$71,702
Cash Flow Before Tax($466) (-0.04%)$125,997 (11.72%)
Principal Reduction$23,815$23,815
Total Return Before Tax$23,348 (2.17%)$149,811 (13.94%)
 
ANNUALIZED OPERATING EXPENSESCURRENTMARKET
Real Estate Taxes 2017 Actual$8,788$17,200
Insurance Proforma$6,000$6,000
Management (5%) Proforma$3,930$5,400
Reserves (3%) Proforma$2,500$3,240
Total Operating Expenses$21,218$31,840

Capitol Hill

Capitol Hill has a great location just minutes to the East of Seattle’s CBD. The neighborhood is bound by I-5 to the West, beyond which is Eastlake and Downtown; to the North you can find Portage Bay and the Montlake neighborhoods; to the South is First Hill and the Central District; and to the East is the Madison Valley neighborhoods.

Capitol Hill is known to many for being a fastpaced, hip neighborhood with countless avenues  to explore. During the day, Capitol Hill is flooded with people taking advantage of the easy-to-walk neighborhood to explore the various coffeehouses, shops, and markets. At night, the neighborhood transforms into a thriving area of taverns and bars hosting live music boasting with nightlife and entertainment.

To the north is Capitol Hill’s largest and most popular public park. The 48-acre park is home to the Seattle Asian Art Museum, tennis courts, picnic tables, conservatory, and water-tower observation deck. Leading into the Southern entrance of the park is Capitol Hill’s famous Millionaire’s Row on 14th Ave E.
The rest of the neighborhood is comprised of a mixture of motel-like studio apartment buildings to some of the most historic mansions, with the two types sometimes shoulderto-shoulder.

With the neighborhoods central location, commuting to and from the area is easy with I-5 just to the west and the advanced transit system implemented over the past few years. The long planned Capitol Hill link light rail station located on Broadway opened in March of 2016. The transit line runs from the University of Washington to Angle Lake Station making 14 stops along the way including one at Sea-Tac Airport.

In addition to the light rail, King County Metro has multiple transit bus lines with easy connections make for easy and hassle free routes. Routes 8, 10, 43, 49, and 60 all operate in the neighborhood and offer services to downtown with frequent trips scheduled daily.

Why Choose Seattle - King County?

A HIGHLY-SKILLED WORKFORCE
The region’s highly skilled and educated workforce provides a deep talent pool, with 47 percent of adults holding a bachelor’s degree or higher.

Top-tier talent is one of the key reasons out-of-state companies, such as Google, Facebook, Apple, Dropbox, Twitter, Alibaba, and SpaceX, are attracted to opening strategic locations in Seattle-King County.

ESTABLISHED INDUSTRY CLUSTERS
The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known

CUTTING-EDGE RESEARCH
The success of the clusters has contributed to innovation for emerging industry segments such as biomedical devices, interactive media, e-commerce, clean energy, and space exploration. Small and medium-sized businesses provide a vital contribution to the cluster ecosystem, and in turn benefit from the collaborative climate for which the Seattle-King County region is known.