Blackstone Pays $303M for Seattle Apartments
- Aug 02, 2021
Blackstone has paid Greystar $302.8 million for 432 units in Seattle, marking the largest deal closed in the metro this year. Greystar had developed the two assets, the 251-unit Ascent South Lake Union and the 181-unit Marlowe, in 2018 and 2019.
In addition to Greystar, Goldman Sachs was also involved in the sale of the portfolio, according to public records.
Ascent South Lake Union is situated at 1145 Republican St. The 24-story tower offers a mix of one- and two-bedroom floorplans ranging from 731 to 1,115 square feet, as well as six penthouse units with up to 1,831 square feet. Amenities include a 2,600-square-foot fitness center, rooftop lounge and spa, a business center, and 520 parking spaces. Some units include private balconies and patios. The building is LEED Gold certified and includes a 12,000-square-foot retail component.
Located just south at 1146 Harrison St., the seven-story Marlowe features a mix of studio, one- and two-bedroom units between 567 and 1,084 square feet above an 8,727-square-foot retail component. Community amenities include a rooftop deck with barbecues, a fitness center and coworking space. Other building features include EV charging stations and a green roof.
The two communities are a short distance from the neighborhood’s multiple high-end restaurants, bars and retail destinations. Amazon, which in January unveiled a $2 billion affordable housing fund, has several offices within walking distance of the assets. Interstate 5 is less than a mile away from the properties, offering access 2 miles south into downtown Seattle.
Diversified asset mix
Blackstone continues to diversify its rental holdings, following its June announcement that the private equity firm will pay $6 billion for single-family housing provider Home Partners of America. In July, the investor also expanded its affordable housing presence with the $5.1 billion purchase of a 678-community portfolio from AIG.
Although Seattle ended 2020 in a challenging position, signs of improvement have become visible, a recent Yardi Matrix report shows. Although rents have yet to fully recover from the initial shock of the pandemic, rent growth over the year through June was positive, at 0.9 percent. Developers continue to move forward on more than 25,000 units as of the end of July, with more than one-quarter slated for delivery this year.