The Bayside Apartments

The Bayside Apartments is a 10-unit market-rate multifamily building located in one of the most historic and desirable investment areas of Snohomish County. Situated on Rucker Ave. overlooking the East Waterway, the property is one block from Everett High School, just South of Port Gardner Bay and the Indigo Hotel, and less than a mile to downtown Everett. Residents enjoy countless dining and entertainment options within reach as well as local outdoor recreation, transportation access, and an immediate setting of quaint homes, manicured lawn, and friendly neighbors. The Bayside provides access to a small-town feel while providing all of the amenities a major city has to offer. Strong absorption trends combined with older housing stock has prompted renters to move into multifamily properties of all vintages, seeking affordability and proximity to transportation and employers. As interest rates remain elevated by comparison to recent years, The Bayside and many similar properties in the North Everett community have benefited in measurable ways. Manageable vacancy rates, steadily increasing monthly rents, and stronger tenant applications suggest an upward trajectory over a 3-5+ year horizon. In terms of future community growth, the Herald newspaper released an article in December 2024 confirming TopGolf has solidified plans for a new Everett Mall location, which is 13 minutes (5.9 mi) South of Bayside. Blue-collar workers make up most of Everett’s rental population with an average household income between $45,000 and $75,000, putting homeownership out of reach for most in their 20's and 30's. The local underlying economic fundamentals are driven by a myriad of major employers within the immediate submarket led by The Boeing Company (with over 35K employees), Providence Regional Medical Center (5K employees), Everett Naval Station (2.9K employees), County and State Governments (6.8K employees), local school districts (2.6K-9K employees), and Walmart (2.4K employees). Snohomish County has a population of roughly 830,000 inhabitants. It is the third largest county in the state lead only by King and Pierce Counties, and Everett is the seventh largest city in Washington.Bayside offers investors the chance to acquire an attractive, light value-add property with substantial upside through further renovations. Currently, 7/10 units have been lightly renovated and 3/10 remain untouched. Renovations include some countertops being replaced, LVP flooring, white appliances, some stainless, paint, fixtures, and hardware. One unit has laundry added while the remaining nine utilize the shared facility on the lower level of the building next to the parking garage. There is an estimated $344/mo +/- per unit upside achievable through further renovations, adding laundry to units, and modernizing interiors. Additionally, there is an in-place high-low rent discrepancy of $175 per unit based on the current rent roll, and a $105 - $119 discrepancy looking at the average rent for one and two bedrooms vs the in-place low rent for each unit respectively. If the last five years have taught us anything one of the primary lessons is location matters. Bayside has multiple two-bedroom apartments offering views of the Puget Sound, Naval Base, and East Waterway which put forward the idea those units could command a premium in the building due to tenant demand.