Investment Overview

Originally built between 1900 and 1906, the Avalon is a two-story, sixteen-unit apartment community located in downtown Bellingham. Built as ten large flats, the Bellingham Herald described the building as “the leading fashionable apartment house in the city and the most modern.” Tenants enjoy nine-foot ceilings throughout all units, with ample natural light provided by large windows in nearly every room. The original fir siding remains in excellent condition, contributing to the historic charm of the property. The Avalon consists of two studios with approximately 400 square feet, eight one-bedrooms averaging approximately 600 square feet, and six two-bedrooms averaging approximately 930 square feet. All units retain their original trim, and many retain original fir flooring that’s been repainted over time. Some units have been upgraded with baseboard heat, and all units have radiator heat served by a steam boiler in the basement. There is no known knob-and-tube wiring, and Square D electrical panels supply electricity to the units. Plumbing has been partially updated over the years. At a purchase price of $2,350,000, the Avalon offers excellent price-per-pound metrics of $146,875 / unit and $210 / foot, not including the large basement. With a going-in return of 6.9% and the opportunity to achieve well north of a 7% pro forma return with normalized expenses, the Avalon provides an excellent risk-adjusted income stream with room for outsized growth in the long term.