4926 212th Street SW MLT 98043

by | Oct 22, 2019 | Real Estate Broker | 0 comments

BUILD A 15-UNIT APARTMENT BUILDING

4926 212th Street SW
Mountlake Terrace WA 98043

SALE PRICE $1,200,000
OR BEST OFFER

INCLUDING
DESIGNS, SURVEY,
PRELIMINARY APPROVAL OF PLANS
FOR 15-UNIT
APARTMENT BUILDING

 

JAMES ROBERT DEAL ATTORNEY PLLC
PO Box 2276, Lynnwood, Washington 98036
Telephone 425-771-1110, Fax 425-776-8081
James@JamesDeal.com

BUILD A 15-UNIT APARTMENT BUILDING

4926 212th Street SW
Mountlake Terrace WA 98043

SALE PRICE $1,050,000
OR BEST OFFER

INCLUDING
DESIGNS, SURVEY,
PRELIMINARY APPROVAL OF PLANS
FOR 15-UNIT
APARTMENT BUILDING

Dear Potential Buyer:

In 2004 my wife and I were driving along 212th Street SW and saw this rental home for sale. The seller had done furniture finishing in the garage and had given himself lung cancer. We bought the home for $239,000.

We bought this home because it was on a busy street, because Mountlake Terrace ordinances would allow us to establish a law office there, and because the sign ordinance would allow us to erection a large, unlighted sign on 212th Street SW, which has a high traffic count. I chose not to establish my law office there. Instead, we chose to focus on listing and selling real estate with Keller Williams Everett. 

We continue to move forward with plans to develop this property into a 15-unit apartment. The property is specifically zoned for apartment buildings. Mountlake Terrace wants more housing built and is cooperative.

We have architectural plans approved by Mountlake Terrace planning department for construction of a 15-unit apartment building. We will develop it ourselves unless someone buys the project from us.

Currently the property is rented to a family for $2,800 per month. Do not go onto the property unless you have signed a contract to purchase the property and unless I am with you. Do not knock on the door or talk with the tenants. They would just tell you to call me.

All reasonable offers will be considered. We would consider the sale of a partial interest.

See photos and videos at this link.

Take a video walk through of the property on YouTube at this link.

Construction cost estimates:

Click here to open a new link to read plans and cost calculations.

The spreadsheet figures are estimates. They are subject to revision. A potential buyer may use this template but must verify his own numbers. In addition to a PDF version of the spreadsheet, there is an Excel version so you can adjust your expectations. 

Costs will be less and cash flow will be higher if the owner handles his own management and saves 10% of rents, or if the owner can reduce the 5% vacancy factor, or if the owner is a Mister Fixit and can reduce the 5% allocated for repairs. 

The real value of this property is in the land and the approved permits. Fortunately, the lot is big enough for 15 units and 17 parking spaces. Fortunately, this corner lot is zoned for apartments.

The reason for building all studio apartments is that studios require only one parking space per unit, whereas one-bedroom apartments, for example, require 1.5 parking spaces per unit. Building all one-bedroom apartments would reduced the number of units from 15 to only 11 (17/1.5). While rents are higher for one-bedroom apartments, the total rent for 11 one-bedroom apartments would be less than the total rent for 15 studio apartments.

Ceilings will be high, creating room for storage cabinets along the interior walls of each unit up near the ceiling.

Murphy beds will fold up into the wall. 

The building will have an extra room which can be a common area.

Part of the building roof will be flat, which will afford tenants and guests a place to relax with an expansive view of the neighborhood.

The buyer will have to advance around $70,000 for a performance bond. I did not include the cost of the bond in my calculations, because it is refundable once the building is completed.

Current rental status:

This is a four-bedroom home. It is currently rented for $2,800 per month. The living space is 1,770 square feet in size. One bedroom is huge. Two bedrooms are large. One bedroom is medium in size. This is a one-bathroom home. 

The floors are hardwood and ceramic tile throughout the home, except for linoleum in the bathroom. The home is equipped with ADT security.

We repainted, updated, and remodeled this home in 2019. We updated the bathroom in 2022.

There is no garage, but there are three off street parking spaces on the west side of the home. And there is a huge front yard big enough to park several RVs.

The current lease runs through the end of 2022.

If the buyer plans to keep the house as a rental while the buyer is getting ready to build, the buyer may want to inspect the home interior. The buyer may do that, but only after the buyer has signed a purchase agreement and has agreed on price and terms. The offer can be written subject to inspection of the home. 

We are also interested in obtaining a $100,000 loan against the property. It would be secured by a second-position deed of trust and title insurance. The loan would be due in 18 months or when the home is sold or refinanced. The interest rate would be 10% interest only. 

Sincerely,

James Robert Deal

Contact:
Matthew Parker, Attorney and Broker
425-774-6611, extension 2

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