MLK APARTMENT SITE MULTIFAMILY DEVELOPMENT SITE - 7324 MLK JR WAY S | SEATTLE WA 98118
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MLK APARTMENT SITE MULTIFAMILY DEVELOPMENT SITE 7324 MLK JR WAY S | SEATTLE WA 98118
TABLE OF CONTENTS
PROPERTY DESCRIPTION 3
UNIT MIX 4
RENT COMPARABLES 5
LOCATION OVERVIEW 6
DEMOGRAPHICS 7
TARGET MARKET 8
NEIGHBORHOOD GROWTH 9
LOCATION HIGHLIGHTS 11
Jim Thorpe
Owner/ President
(206) 547-1370
Jim@NorthlakeCD.com
Seth Heck
Acquisitions and Development
MLK
(206) 547-1370 APARTMENT SITE
Seth@NorthlakeCD.com
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 2
PROPERTY
DESCRIPTION
The MLK Apartment Site is a 14,600 SF level building site that is a OFFERING DETAILS
prime candidate for redevelopment. This lot is Zoned NC3P-95 (M)
which allows for a 90,000 SF 9 story mixed use building with no Price Undisclosed
parking required. The addition of the Othello Light Rail Station in Offer Review Upon Receipt
2009 gave this neighborhood substantial growth in the sense of
new development and the MLK apartment site offers the PROPERTY SUMMARY
opportunity to add an additional 120+ units to the thriving
neighborhood. The completed project has an estimated annual Address: 7324 MLK Jr Way S
rental income of $2,300,000, and a finished value between Lot Size: 14,631 SF
$35,000,00-$40,000,000. Zoning NC3P-95 (M)
Overlay: Urban Village
Height Limit: 95 FT
FAR: 6.25
Gross Allowable Size 91,250 SF
Units 120
Parking Not Required
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 3
UNIT MIX
DETAILED RESIDENTIAL SUMMARY
UNIT TYPE UNITS ABG SF NRSF RENT/SF MONTHLY RENT GROSS ANNUAL RENT
Studio 70 435 30,450 $3.36 $1,461.60 $1,227,744.00
Urban 1 30 520 15,600 $3.20 $1,664.00 $599,040.00
1 Bed 20 650 13,000 $3.05 $1,982.50 $475,800.00
TOTAL/AVERAGE 120 492 59,050 $3.20 $1,702.70 $2,302,584.00
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 4
RENT COMPARABLES
APARTMENT ADDRESS PROXIMITY TO SUBJECT BR's BA's RENT SQFT RENT/SF W/S/G PARKING YEAR BUILT
Othello Apartments Subject 0 1 $ 1,665 555 $ 3.00 Metered Included 2022
4200 S Othello St .1 Miles 0 1 $ 1,575 493 $ 3.19 2016
4200 S Othello St .1 Miles 0 1 $ 1,595 462 $ 3.45 2016
4200 S Othello St .1 Miles 0 1 $ 1,692 505 $ 3.35 2016
4219 S Othello St Adjacent 0 1 $ 1,400 501 $ 2.79 2010
4219 S Othello St Adjacent 0 1 $ 1,460 490 $ 2.98 2010
4700 31st Ave S 1.8 Miles 0 1 $ 1,500 559 $ 2.68 2017
STUDIO AVERAGE $ 1,537 502 $ 3.08
Othello Aparments Subject 1 1 $ 1,720 555 $ 3.10 Metered Included 2022
4200 S Othello St .1 Miles 1 1 $ 1,767 555 $ 3.18 2016
4200 S Othello St .1 Miles 1 1 $ 1,762 551 $ 3.20 2016
4200 S Othello St .1 Miles 1 1 $ 1,892 671 $ 2.82 2016
4219 S Othello St Adjacent 1 1 $ 1,650 664 $ 2.48 2010
4740 32nd Ave 1.7 Miles 1 1 $ 2,007 771 $ 2.60 2017
ONE BEDROOM AVERAGE $ 1,816 642 $ 2.86
Othello Apartments Subject 2 1 $ 2,500 850 $ 2.94 Metered 100 2022
4740 32nd Ave .1 Miles 2 2 $ 3,110 1138 $ 2.73 2017
4740 32nd Ave 1.7 Miles 2 2 $ 2,437 975 $ 2.50 2017
4740 32nd Ave 1.7 Miles 2 2 $ 2,757 1005 $ 2.74 2017
4801 Rainier Ave S 1.6 Miles 2 2 $ 3,000 1051 $ 2.85 2014
3701 S Hudson St 1.5 Miles 2 1 $ 2,767 866 $ 3.20 2012
TWO BEDROOM AVERAGE $ 2,814 1007 $ 2.81
TOTAL AVERAGE RENT $ 2,025 711 $ 2.88
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 5
LOCATION
OVERVIEW
The Rainier Valley of Seattle is developing rapidly, thanks in large part, to the Othello light rail station and improvements around it. The Othello
neighborhood is emerging into a vibrant commercial and residential community as new businesses open and residential projects are being constructed
along and around the main thoroughfare of MLK Jr Way S. The paradigm is shifting to community-focused housing. With a population of over 34,000
people, it’s among the most culturally and economically diverse neighborhoods in the state.
Providing a socially and visually stimulating environment is the City’s goal. With a strong residential history, the Othello neighborhood has a record number
of new residential and commercial projects. This neighborhood provides many amenities including the convenient light rail station, New Holly Community
Garden, the Othello Playground, as well as ample grocery stores, restaurants, banks, schools, and cultural centers.
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 6
DEMOGRAPHICS AND INFRASTRUCTURE
POPULATON ESTIMATES
2010 2025 2030 2035 2040
Seattle 610,333 733,125 745,589 765,218 797,790
MEDIAN HOUSEHOLD INCOME
Market 2020 Projection 2025 Projection
Seattle $79,757 $91,481
State of WA $69,388 $81,323
Nationally $60,683 $69,179 MLK
APARTMENT SITE
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 7
TARGET MARKET
CONSUMER PROFILE
After extensive research into the product types available to our targeted market, we identified the options for ownership and rental housing availability.
We found the average price for an entry level home, within a 1 mile radius, to be $377,500. At this price point, the monthly cost of homeownership is
roughly $2,400 a month including taxes, insurance and HOA. If the consumer were to try to find a more affordable option in a condo, they are still
looking at $290,000 or $1,900 a month including taxes and insurance. Both of these options are still higher than our proposed $1,665 average rent for
unit. We believe by bringing a superior, new construction product to the market, it will offer consumers a viable alternative to homeownership.
NEIGHBORHOOD RESEARCH
Of the 16 apartment buildings in the area, there is only 1 with units
available. By bringing 100 Class A apartment units to the market, we
think the MLK Apartments will help fill the demand the area is
showing for additional apartments and more urban style living. The
growth of the neighborhood surrounding the Othello light rail station
adds to the demand for more housing options. We anticipate a
positive response from the growing population of young
professionals, with jobs in the city, looking for a more affordable
option.
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 8
NEIGHBORHOOD GROWTH
A. Station At Othello Park Apts. B. 7339 43rd Ave S
Adjacent to the project is a newer Directly behind the project is a proposed
mixed use building consisting of 351 6-story apartment building with 56 small
residential units and over 17,500 Sf of efficiency dwelling units and 29
retail space. apartments (85 units).
C. Othello Square D. Station 118
Across the street from the project is a Just north of the project is a two year
proposed large scale community old apartment complex with over
development project which will consist 8500 Sf of retail space at grade and
of 438 mixed income residential units, a 359 residential units over 5 stories.
community center, a public charter high
school and a community healthcare
clinic.
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 9
NEIGHBORHOOD GROWTH
E. Mercy Othello Plaza
Mercy Othello is a brand new
multifamily complex just a few blocks
north of the project. This 108 unit
community serves households earning
between 30% and 60% area median
income and boasts a large community
center and multiple landscaped
courtyards.
F. W39 Apartments
Construction is set to begin in the Fall
of 2019 on this new apartment project.
Upon completion in the first quarter of
2021 W39 will consist of 141 units and
over 5,000 SF of retail space with
frontage on MLK Jr Way.
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 10LOCATION HIGHLIGHTS
TRAVEL DISTANCE FROM MLK APARTMENT SITE
The City of Seattle has experienced considerable growth over the
past decade. This has impacted not only the population statistics but
1 MIN
also the types of new developments. The Othello neighborhood was
previously a dated residential community but now it has become an OTHELLO PLAYGROUND
extension of rapidly expanding Seattle population and is seeing
younger and more affluent residents. As a result, new commercial
developments – such as high-end markets, retail, active open space,
and recent investments in light rail and transportation infrastructure –
reflect the demands of the changing population.
7 MIN SEWARD PARK
This page highlights some of the numerous amenities very close to
the proposed MLK APARTMENTS development site.
6 MIN RAINIER BEACH POOL
15 MIN SEATAC AIRPORT
12 MIN RICHMOND BEACH PARK
2 MIN OTHELLO LIGHT RAIL STATION
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 11Brighton
Childcare
Othello
MLK APARTMENT Playground
SITE
Austin Park
Central Park
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 12REGIONAL
EMPLOYERS AND
JOB GROWNTH
The greater Seattle area is a national hub for manufacturing, technology, services, international
trade, and tourism. Today some of the world’s most recognizable companies call Seattle home;
Microsoft, Starbucks, Amazon, Boeing, Expedia, Costco and so on. The Puget Sound region
has also become an international leader in innovative industries such as Fred Hutchinson
Cancer Research and the Bill and Melinda Gates foundation.
Employment is expanding throughout the Puget Sound, and the region is projected to generate
1.2 million new jobs by 2040. This is not surprising for those who have seen the consistent
construction within the city over the last 10 years.
The region is also known for it’s quality of life, moderate temperatures, and the numerous
outdoor activities like biking, skiing, swimming, hiking and camping. The opportunity to engage
in these activities is in such close proximity to the city, that it continues to attract top talent to the
Seattle workforce. Employees are moving to the area not just for the job opportunities, but also
for the lifestyle benefits.
MLK APARTMENT SITE | OFFERING MEMORANDUM | NORTHLAKE CAPITAL 13You can also read
