Island Terrace Apartments & 4BD/2.5BTH Home
12 Unit Apartment Building | $5,200,000 ($433,333/Unit) | 4.70% Cap Rate | Mercer Island, WA 98040
For Sale
Active
- Date Added:
- May 17, 2024
- Days on Market:
- 28 days
Asking Price $5,200,000
- Property Type
-
Multifamily
- Square Feet
- 9,715 SF
Listing Contacts
Michael Urquhart
Verified Profile
Eric Smith
Verified Profile
- Property Info
Property Overview
Paragon Real Estate Advisors proudly presents a rare opportunity nestled in the prestigious “Gold Coast” of Mercer Island - the Island Terrace Apartments & Single-Family Home. This is a rare opportunity to acquire a well maintained multi-family building situated among multi-million dollar homes a block from the lake and the historic Calkins Landing with views from most units. The property has been held by the same ownership for over four decades.
Exceptional Investment: Most units feature stone countertops, updated cabinets, and in-unit washer/dryers (6 of 9). The house and unit #6 underwent full remodels including new appliance packages, all new bathrooms, doors, millwork, countertops, cabinets, light fixtures, and hardware. The property offers an unmatched level of luxury and modernity.
Value-Add Potential: Six of the units have been partially updated to varying degrees, presenting a value-add opportunity to further increase rental income by strategic remodeling to today’s standards.
Owner-User Opportunity: Unit #6 and the house are luxurious owner occupancy options. Unit #6 is currently occupied by the owner and both have been meticulously remodeled without compromise, offering a rare chance for an owner-occupant scenario, ensuring flexibility and additional value for the next owner.
Income Stability: Adding to its allure, the property hosts an AT&T cell tower on the roof providing consistent cash flow for the past 34 years. With seven years remaining on the current lease and four five-year extensions, along with rent adjustments for inflation on an annual basis, this income stream offers unparalleled stability and potential for long-term growth. Furthermore, the apartments are well seasoned with long-term tenants.
Recent Capital Improvements:
Unit #6 Remodel – Owners Unit (May 2022-May 2023): $100,000+
Interior House Remodel (September 2023): $150,000+
Exterior House Upgrades (August 2021): $315,000+
New Apartment Durolast Roof (~2015): Unknown
Total Cost: $565,000+
Exceptional Investment: Most units feature stone countertops, updated cabinets, and in-unit washer/dryers (6 of 9). The house and unit #6 underwent full remodels including new appliance packages, all new bathrooms, doors, millwork, countertops, cabinets, light fixtures, and hardware. The property offers an unmatched level of luxury and modernity.
Value-Add Potential: Six of the units have been partially updated to varying degrees, presenting a value-add opportunity to further increase rental income by strategic remodeling to today’s standards.
Owner-User Opportunity: Unit #6 and the house are luxurious owner occupancy options. Unit #6 is currently occupied by the owner and both have been meticulously remodeled without compromise, offering a rare chance for an owner-occupant scenario, ensuring flexibility and additional value for the next owner.
Income Stability: Adding to its allure, the property hosts an AT&T cell tower on the roof providing consistent cash flow for the past 34 years. With seven years remaining on the current lease and four five-year extensions, along with rent adjustments for inflation on an annual basis, this income stream offers unparalleled stability and potential for long-term growth. Furthermore, the apartments are well seasoned with long-term tenants.
Recent Capital Improvements:
Unit #6 Remodel – Owners Unit (May 2022-May 2023): $100,000+
Interior House Remodel (September 2023): $150,000+
Exterior House Upgrades (August 2021): $315,000+
New Apartment Durolast Roof (~2015): Unknown
Total Cost: $565,000+
Property Details
- Class
- C
- Year Built
- 1958
- Stories
- 3
- Lot Size (sq. ft)
- 13,939 SF
- Units
- 12
Highlights
- Property has been held under the same ownership for over four decades
- Most units have views of the lake
- Property is nestled amongst multi-million-dollar homes
- Two separate tax parcels presenting a future exit strategy to sell the house off separate
- Operational upside – Opportunity to raise rents significantly, charge back for utilities, parking, and pet rent
- Current cap rate: 4.7% and Market 5.0% cap rate
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