This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

Exclusive Multifamily Offering

WASHINGTON TERRACE APARTMENTS7920 Washington Blvd SW, Lakewood, WA

$1,400,000 | 12 units

Contact

kiddermathews.com

Dan SwansonKidder Mathews Senior Vice President, Partner 206.296.9610dswanson@kiddermathews.com

Donna MarshallCapstone Real Estate Group Vice President, Investment Sales 425.422.0954donna@capstonerealestategroup.com

Strategically located in Lakewood’s Gravelly Lake neighborhood 1/2 mile from I-5, 1 mile from Lakewood Town Center, a 15-minute drive to Downtown Tacoma, and approximately halfway between Olympia and Seattle

Immediate rental upside by raising rents to market rates upon turnover

Pitched composition roofs, dual-pane vinyl windows, ample storage, and attractive low-maintenance landscaping

All two-bedroom units with individual entrances and private decks or patios

12 carport parking spaces and additional off-street parking

Major employers in the area include JBLM, Madigan Army Hospital, Clover Park School District, St. Clare Hospital, McLane Northwest, Aacres, and the Cities of Lakewood and Tacoma

Centrally positioned between Pierce College (2.9 miles) and Pierce College Fort Steilacoom (3.3 miles); the school employs more than 1,130 and has an enrollment of 20,030

Lakewood’s rental rates have increased 22% in the last 5 years

WASHINGTON TERRACE APTS

Tacoma

Lakewood

DuPont

PUGET SOUND

This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

kiddermathews.com

Washington Terrace Apartments

Washington Terrace in Lakewood’s Gravelly Lake Neighborhood is strategically located approximately one and a half miles from Interstate 5, and less than a 15-minute drive to the Tacoma Central Business District. The property is also situated less than half a mile away from Gravelly Lake and the affluent homes surrounding its shores. Washington Terrace is also conveniently located within two miles of 15 groceries and markets – including a major Safeway – and more than 20 restaurants and coffee shops. Within five miles there are several entertainment venues, including three cinemas, a live theatre, and a variety of museums and cultural centers. Lakewold Gardens, a 10-acre public garden and estate just seven minutes away by foot, offers residents the opportunity to stroll among this National Historic Landmark’s rare and native plants, Japanese maples, State Champion Trees, and more than 900 rhododendrons. Major employers such as Joint Base Lewis-McChord and Lakewood Industrial Park, with its 2.4 million square feet of manufacturing, warehouse, and distribution facilities, are just two and a half miles away. With a short commute to both Tacoma and Olympia, and with the Sounder Train station located just three miles away, the Washington Terrace appeals to a variety of residents who work throughout the region.

Washington Terrace is comprised of 12 two-bedroom apartment homes varying in size from 650 to 1,130 square feet. Two of the units have a second three-quarters bathroom. All 12 apartments have their own individual entrances, ample closet space, and private patios or decks. The property features 12 carports, numerous off-street parking spaces, 12 storage lockers, dual-pane vinyl windows, and pitched composition roofs.

This offering presents an excellent opportunity to purchase a multifamily building with 68% leverage and to take advantage of the property’s rental upside, which will be easily achieved upon turnover. Further, over the past five years, Lakewood’s rental rents have increased more than 20%. This general trajectory is likely to continue as the region sees a dramatic influx of new residents and as King County’s rental rates continue to escalate, outpacing

the income gains of many of King County’s renters. This trend shows no signs of slowing, and should continue to push many King County renters south and will lift the Washington Terrace’s market rates to new heights.

Property Overview

This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

kiddermathews.com

Washington Terrace Apartments

PROPERTY OVERVIEW

Address 7920 Washington Blvd SW

Price $1,400,000

Down Payment $450,000

Price per Unit $116,667

Price per SF $124.22

Current Cap Rate 4.8%

Pro Forma Cap Rate 6.4%

Current GRM 10.7

Pro Forma GRM 8.9

# of Units 12

Avg Unit Size 939 SF

Net Rentable SF 11,270 SF

Lot Size 34,413 SF (0.79 acres)

Effective Year Built 1990

Type of Ownership Fee Simple

APN021910-3057, 021910-3061,

021910-3064

Zoning MR2

CURRENT PRO FORMA

INCOME

Total Scheduled Rent $117,600 $144,240

Other Income $12,964 $13,036

Scheduled Potential Income $130,564 $157,276

Less Physical Vacancy (5.0%) ($6,528) ($7,864)

EXPENSES

Real Estate Taxes $15,934 $17,283

Insurance $1,785 $1,785

Utilities $17,802 $17,802

Repairs and Maintenance $9,000 $9,000

Professional Management $6,202 $7,471

Capital Reserves $3,000 $3,000

Landscaping $2,400 $2,400

Administrative $1,200 $1,200

Total Expenses ($57,323) ($59,940)

Expenses Per Unit $4,777 $4,995

Expenses Per Square Foot $5.09 $5.32

Net Operating Income $66,713 $89,472

Financials & Overview

UNIT MIX

# UNIT TYPE AVG SFCURRENT

AVERAGE RENT CURRENT

RENT PER SFPRO FORMA

AVG RENTPRO FORMA RENT PER SF

10 2 BR / 1 BA 901 $802 $0.89 $972 $1.08

2 2 BR / 1.75 BA 1,130 $893 $0.79 $1,150 $1.02

TOTAL 11,270 $9,800 $12,020

AVERAGE 939 $817 $0.87 $1,002 $1.07

This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

kiddermathews.com

Washington Terrace Apartments

Sales Comparables

WASHINGTON TERRACE7920 Washington Blvd SW, Lakewood

Date Sold TBDList Price $1,400,000Price/Unit $116,667Price/SF $124.22Cap Rate 4.8% (6.4%*)GRM 10.7 (8.9*)Units 12Effective Year Built 1990

SUBJECT

MAJESTIC FIRS6111 88th St SW, Lakewood

Date Sold PendingSale Price $1,750,000Price/Unit $125,000Price/SF $153.00Cap Rate 5.8%GRM 10.0Units 14Year Built 1971

4

THE OLIVER420 Wheeler St S, Tacoma

Date Sold PendingSale Price $5,400,000Price/Unit $112,500Price/SF $160.48Cap Rate 5.7%GRM 10.2Units 48Year Built 1968

3

1 EIGHT UNIT5211 66th St W, University Place

Date Sold 03/25/2016Sale Price $1,180,000Price/Unit $147,500Price/SF $94.43Cap Rate 5.7%GRM 11.1Units 8Year Built 2006

S MADISON ST DUPLEXES6602-6608 S Madison St, Tacoma

Date Sold 02/28/2017Sale Price $440,000Price/Unit $110,000Price/SF $124.43Cap Rate 6.0%GRM N/AUnits 4Year Built 1975

2

University Place

Lakewood

Parkland

Tacoma

AMERICAN LAKE

7

3

21

4

112th St SW

S T

aco

ma

Way

Pacific Hwy S

S 56th St

Emerson St

Sp

anaw

ay L

oo

p R

d S

Perimeter Rd

Par

k A

ve S

WASHINGTON TERRACE

*Market Cap Rate and GRM