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STEVE FISCHER
PRINCIPAL | BROKER
P: 206.505.9435
TYLER SMITH
PRINCIPAL | BROKER
P: 206.505.9425
MOUNT VERNON 8-UNIT
309 UNION STREET | MOUNT VERNON, WA 98273
WESTLAKE ASSOCIATES | 2
Headline font
Investment Offering
8
7.23%
$1.15M
LIST PRICE
# OF UNITS
MARKET CAP
WESTLAKE ASSOCIATES, INC. IS PLEASED TO PRESENT
THE MOUNT VERNON 8-UNIT EXCLUSIVELY FOR SALE.
PROPERTY HIGHLIGHTS
• Vinyl Windows
• Major Upside in Rents
• 5.95% In-place Cap Rate
• 7.23% Market Cap Rate
• Debt available in Low/Mid 3%
• Rents have been rising in Skagit County throughout 2020
INVESTMENT HIGHLIGHTS
Name
Address
Price
Lot SF
Net Rentable SF
$ per Unit
$ per NRSF
Year Built
Mount Vernon 8-Unit
309 Union Street | Mount Vernon, 98273
$1,150,000
18,627 SF
6,848 SF
$143,750
$167.93
1977
WESTLAKE ASSOCIATES | 4
Property Details
PROPERTY DETAILS
BUILDING INFORMATION
County
Market
Land Use
Style
APN#
Zoning
Skagit
Mount Vernon
Apartment
Low-Rise / Garden
P26812
R3
Name
Address
Year Built
# of Buildings
# of Floors
# of Units
Lot Size
Net Rentable SF
Construction
Heat
Roof
Laundry
Parking
Mount Vernon 8
309 Union Street
1977
1
2
8
18,627 SF
6,848 SF
Wood Frame
Electric Baseboard
Compostition
Common
Surface
Location
309 UNION STREET
Financial Analysis
CURRENT MARKET
Scheduled Rent Income $115,080 $124,800
+ Other $1,500 $2,400
+ Utility Recovery $1,560 $9,120
+ Laundry $1,200 $1,200
Scheduled Gross Income $119,340 $137,520
- Vacancy & Credit Losses ($5,967) 5.0% ($6,876) 5.0%
Gross Income $113,373 $130,644
CURRENT MARKET
Real Estate Taxes (2020) $8,881 $10,580
Property Insurance $5,635 $5,635
Utilities W/S/G/E $10,713 $10,713
Management $5,669 $6,532
Resident Manager $2,400 $2,400
Maintenance & Turnover $7,200 $7,200
Grounds $2,400 $2,400
Reserves $2,000 $2,000
Total Expenses $44,898 $47,460
CURRENT MARKET
Net Operating Income $68,475 $83,184
Less Loan Payments ($46,476) ($4,476)
Pre-Tax Cash Flow $21,999 7.65% $36,708 12.77% Plus Principal Reduction $16,552 $16,552
Total Return Before Taxes $38,552 13.41% $53,260 18.53%
PRICE $1,150,000
Price per Unit $143,750
Price per NRSF $167.93
Price per Land SF $61.73
Current Cap 5.95% Current GRM 9.64 Market Cap 7.23% Market GRM 8.36 Loan Amount $862,500 Down Payment $287,500 % Down 25.0% Rate 3.500% Amortization 30 years Term 5 years Monthly Payment $3,873 Annual Payment $46,476
EXPENSES
INCOME
OPERATING DATA
PRICE ANALYSIS
PROPOSED FINANCING
Rent Roll
UNIT
UNIT TYPE
SF
CURRENT
RENT / SF
MARKET
RENT / SF
1 1 BD | 1 BA 650 $1,050 $1.61 $1,150 $1.76 2 1 BD | 1 BA 650 $1,050 $1.61 $1,150 $1.76 3 1 BD | 1 BA 650 $1,050 $1.61 $1,150 $1.76 4 1 BD | 1 BA 650 $1,050 $1.61 $1,150 $1.76 5 2 BD | 1.5 BA 1,062 $1,345 $1.26 $1,450 $1.36 6 2 BD | 1.5 BA 1,062 $1,350 $1.27 $1,450 $1.36 7 2 BD | 1.5 BA 1,062 $1,345 $1.26 $1,450 $1.36 8 2 BD | 1.5 BA 1,062 $1,350 $1.27 $1,450 $1.36 TOTAL 8 6,848 SF $9,590 $10,400 AVG 856 SF $1,198 $1.40 $1,300 $1.52
WESTLAKE ASSOCIATES | 8
Property Photos
WESTLAKE ASSOCIATES | 10
Demographics & Site Amenities
POPULATION 1-MILE 3-MILE 5-MILE
Total Population
12,332
40,160
58,185
Growth 2020 - 2025 (est.)
1.3%
1.5%
1.2%
Median
Age
35.4
36
36.6
HOUSEHOLDS & INCOME
1-MILE
3-MILE
5-MILE
Total
Households 4,344
12,844
18,986
Median HH Income
$58,002
$66,416
$67,855
Renter Occupied Housing
48.15%
38.23%
37.69%
WHAT’S NEARBY
RETAIL
Haggen Safeway Grocery Outlet
Mt Vernon Red Apple Mkt Skagit Valley Co-Op Fred Meyer
The Shops at Burlington Burlington Crossings
SCHOOLS & SERVICES
Mount Vernon High School Madison Elementary Lincoln Elementary Mt Baker Middle School Little Mountain ElementaryFOOD & DRINKS
The UpcountryAntojitos El Mangal Coco’s Cuisine 2nd Street Deli & Dogs Rachawadee Thai Cafe Taste of India
COA Mexican Eatery Il Granaio Italian
C-Square & Third St Cafe Taco Time
The Curious Chef Kyoto Kitchen
Trumpeter Public House Olive Garden Thai House Pacioni’s Pizzaria Mr T’s Family Cafe Burgermaster Catrina Tacos The Porterhouse Pub Mt Vernon Cafe
Skagit River Brewery Town Pump Tavern Ristretto Coffee Lounge Applebee’s Grill Revival Lounge Jorge’s Kitchen Coffee Doctor Starbucks Shambala Bakery The Olde Towne Tea Empire Ale House Cuppa Coffee & Tea The Lunchbox Diner The Curious Chef Riverside Cafe
Skagit Valley Hospital Kiwanis Spray Park Hillcrest Park Baker View Park Lowe’s
JOANN Fabrics Walmart Office Depot Hobby Lobby
Coastal Farm & Ranch Cascade Mall
Mount Vernon
LOCATED ON INTERSTATE 5, Mount Vernon is conveniently
located mid-way between Seattle, Washington, and Vancouver,
British Columbia, Canada. Mount Vernon is the regional center
for financial, technology, cultural, legal, health care, education and
government.
Mount Vernon has grown by over 32% in the last 10 years – more
than double the growth rate of Washington state. People here enjoy
a quality of life unequaled in the United States, with affordable
housing, a strong economy, amazing natural landscapes, a strong
educational system, and a low crime rate.
Nestled between the San Juan Islands in the Puget Sound to the
west and the Cascade Mountains with the scenic Cascade Loop
drive to the east, Mount Vernon is known for its spectacular natural
environment. It’s also home to the world-famous Skagit Valley Tulip
Festival, which attracts one million visitors annually.
Travelers from near and far come for the Skagit Valley Tulip Festival
and stay for the Skagit Valley Tulip Festival Street Fair in historic
downtown Mount Vernon. Biking and bird watching are also on the
must-do list. On the eastern edge of the county along a magnificent
stretch of highway are the North Cascade Mountains where you can
view eagles on the Skagit River or hike on 50 miles of trails.
Wander historic downtown and the nearby waterfront park, wineries
and breweries. Take a driving tour of historic barns and working farms
with produce stands or u-pick fields. Discover wildlife along the Padilla
Bay Trail.
WESTLAKE ASSOCIATES | 12
Puget Sound Summary
Set in the beautiful Pacific Northwest, the greater Seattle area is a national center for manufacturing, technology, services, international trade and tourism.
MAJOR EMPLOYERS
Today some of the world’s most recognizable Fortune 500 companies call Seattle home: Microsoft, Starbucks, Amazon, Nordstrom, Costco and REI. Other major companies in the area include Boeing, T-Mobile. Expedia, F5 Networks and Nintendo of America. According to the Puget Sound Business Journal, technology companies are leading the way in employment growth in the Seattle MSA. As the home of Microsoft and Amazon, Seattle accounts for over 20% of the nation’s software publishing employment. Microsoft is one of the top employers in the sate with over 42,000 employees. Their World Headquarters, located in Redmond is over 10 million square feet.
The Puget Sound has become a international leader in innovative industries with organizations such as the Fred Hutchinson Cancer Research Center, the University of Washington Medical Center and the Bill and Melinda Gates foundation. Healthcare employment is projected to continue to grow dramatically and Seattle has the 5th largest biotechnology Research and Development alliance between the University of Washington and the Fred Hutchinson Cancer Research Center.
The Puget Sound is one of the capitals of the aerospace industry anchored by Boeing, the world’s largest aerospace company,
second-largest maker of large commercial jets, and second largest global defense contractor. Boeing is one of the largest employers in the Puget Sound, employing approximately 80,000 in Washington.
Employment is expanding through the greater Seattle area. The Puget Sound region is projected to generate 1.2 million new jobs by 2040.
INTERNATIONAL TRADE
Seattle has remained one of the most resilient cities due to its diverse industries, making it more attractive for new companies to relocate and expand in the area. The Port of Seattle, which also operates the Seattle-Tacoma International Airport, is a major gateway to Asia and cruises to Alaska. The Port of Seattle ranks as the 6th business seaport in the US, playing a key role in bringing international trade, transportation and travel to the Pacific Northwest.
RECREATION
The region is known for its quality of life, arts, and outdoor lifestyle which helps attract an educated workforce. Numerous camping, hiking, winter sports, and recreational activities are located a short drive from the city. Seattle’s main attractions include Pike Place Market, the Space Needle, and Seattle Center, home of the 1962 World’s Fair. Seattle is home to a number of professional sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle Mariners, and the Seattle Sounders FC soccer team.
PUGET SOUND LARGEST EMPLOYERS
80,000
Employees JOINT BASE LEWIS-MCCHORD56,000
Employees42,000
Employees25,000
Employees40,000
Employees20,000
Employees10,000
Employees15,000
Employees13,000
Employees20,000
EmployeesSince 1975, Westlake Associates, Inc. has been the premier
provider of commercial real estate brokerage services in the
Puget Sounds Region.
Our unsurpassed commitment to creating and preserving our
clients’ real estate investment wealth has resulted in thousands of
successful transactions and a long history of repeat business and
client referrals.
The professionals at Westlake Associates collaboratively work
with clients to develop customized, creative solutions designed to
mazimize investment returns.
We’ve built a strong foundation of experience in Investment
Property Sales, Commercial Leasing, Property Management,
and comprehensive real estate services over our 40 year history.
We operate as a team and leverage each other’s resources and
experience to provide the highest level of client services.
PROUD MEMBERS OF:
Commercial Brokers Association (CBA)
Northwest Multiple Listing Services (NWMLS) LoopNet National Listing Services
CoStar Commercial Real Estate Data & National Listing Commercial Investment Real Estate (CREI)
Washington State Realtors Association (WSMA)
EXCLUSIVELY LISTED BY:
STEVE FISCHER
PRINCIPAL | BROKER
P: 206.505.9435
fischer@westlakeassociates.com
TYLER SMITH
PRINCIPAL | BROKER
P: 206.505.9425
tylersmith@westlakeassociates.com
1200 Westlake Avenue N, Suite 310
Seattle, Washington 98109
DISCLAIMER: This information has been secured from sources we believe to be reliable, but we make no
