Redevelopment and Conversion of Site 701 S. Jackson St.

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Through analysis of the local market and the highest and best use of the parcel located at 701 S Jackson St in Seattle WA, we have determined that building an eight-story multifamily apartment building on this site will generate an IRR return of 6.5%. We examined the market for both residential rental rates and retail rates to determine an NOI of $2.3M per year after 5 years of construction and lease-up. Comparable nearby properties were examined to determine reasonable rental rates and third-party sources of data provided rent growth figures. Significant affordable housing exists in this neighborhood which helped us determine that a 20% affordable housing makeup would be appropriate for this site.

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The property subject to this report is located at 701 S Jackson Street in the city of Seattle. Its parcel number is 5247802725, with a zoning code of IDM-75-85, which is a zone in the downtown area where both commercial and residential development is generally allowed. The property lies within the mandatory housing affordability overlay, where new buildings must deliver a required percentage of affordable units or pay an in-lieu fee towards the City’s fund. This property is registered under the taxpayer name Dott Mar Inc. The two existing constructed buildings were initially purposed for automotive maintenance and gas refueling. The initial building was constructed in the 1940s, and the gas station was constructed years later, and both were operated until 2008. We infer that the ground has likely been contaminated from decades of activity. The assessor appraised value of the property is $3,831,400, and the lot area is 13,440 square feet.