Investment Overview

Originally completed in 1902, the Axtell is a three-story, eight-unit apartment community located in the Sehome neighborhood of Bellingham. Built for Frances Axtell, one of the first two woman elected to the Washington State Legislature, the home was converted to apartments by Axtell in 1926 while retaining its historic charm. On the market for the first time in 30 years, the Axtell presents a wonderful value-add opportunity with rents well below market, yet with major work done to building systems in the past 6 years. Tenants find themselves mere steps from all downtown Bellingham has to offer, and a short half-mile walk to Western Washington University. The Axtell consists of one studio with 388 square feet, four one-bedrooms with an average of 672 square feet, two two-bedrooms with an average of 1,000 square feet, and one top-floor three-bedroom with 839 square feet and a partial wraparound deck. Current ownership has completed extensive capital improvements in recent years, including fully replacing the electrical system (~2020), replacing the roof and repairing decks (2023), and repainting the property (2024). The original plumbing system was bronze supply lines and galvanized drain lines, and since completion some supply lines have been upgraded to copper and some drain lines have been upgraded to ABS. At a purchase price of $1,450,000, the Axtell offers excellent price-per-pound metrics of $181,250 / unit and $245 / SF. Current operations present a tremendous value-add opportunity with average rents at $1,199 or $1.62 per foot, while comparable properties nearby consistently achieve well north of $2.00 per foot for similar units.