Magnolia Suites offers a compelling long-term investment opportunity in the Magnolia submarket, characterized by limited trading activity with only eight properties and 93 units sold in the past two years. The property boasts a range of desirable amenities, including garage parking, fireplaces, common laundry facilities, and private patios. Its proximity to Magnolia Manor Park, the Village retail corridor, and Discovery Park enhances its appeal to dog lovers and outdoor enthusiasts. Recent leasing activity indicates strong rental growth, with the last two leases achieving a 9.18% rent increase and the last five leases averaging a 10.63% increase. The interiors feature partial renovations, including shaker-style cabinetry, granite countertops, and vinyl plank flooring, with potential for further upgrades to enhance value. In late 2024, Magnolia Suites completed significant deferred maintenance improvements, including upgrades to electrical and fire protection systems. With no new construction starts anticipated in the next five years and median home sale prices reaching $1.2 million as of April 2025, Magnolia Suites is well-positioned for rental stability and potential upside. INVESTMENT HIGHLIGHTS Ideal Unit Mix & Layouts: The community features spacious two-bedroom units, with average sizes just under 1,000 square feet; nearly all units include private balconies with views of Lake Washington’s Ship Canal, Queen Anne, and Downtown Seattle. Value-Add Offering: This stabilized garden-style community has undergone partial renovations with cosmetic updates, offering new owners the chance to implement a comprehensive value-add program and increase rents by an average of $660 per unit post-renovation. Immediate Upside Potential: Current rents are 18.7% below market rates, offering new ownership a chance to significantly increase net operating income by aligning with market rates; this opportunity is bolstered by strong effective rent growth projections in the neighborhood, with growth expected to surpass 2.9% by Q4 2025 within Magnolia’s ZIP code. Coveted Asset: This stable operating community is in one of Seattle’s most recognized suburban neighborhoods, surrounded by high-end, million-dollar single-family homes; Magnolia’s apartment supply is extremely limited, with no competition from new construction expected through 2030. Additional Income Streams: New owners can boost additional income $35,000 annually in the near term by implementing a RUBS utility program to recover operational expenses and capitalizing on additional revenue from 25 dedicated parking spaces. Strategic Location: Located near the heart of Queen Anne, this property is within walking distance of some of the most recognized parks in the Puget Sound, as well as iconic restaurants, cafes, and grocery stores; situated just 14 minutes northwest of Downtown Seattle, which is home to 336,900 jobs, providing tenants with quick access to major corporate headquarters like Amazon, Nordstrom, and Zillow. Affluent Tenant Demographics: Magnolia Suites maintains 100% occupancy, indicating high demand and consistent rental income; within a 1-mile radius, the median household income is $153,211, approximately 41% higher than the metro average, suggesting a strong tenant base and an opportunity to increase rents to market rates.