Seattle Community Commands Top Dollar
- Oct 18, 2016
By Veronica Grecu
Seattle—In a $90 million deal, Kennedy Wilson and an equity partner have acquired Equinox, a luxury community in Seattle’s vibrant Capitol Hill district. The price equates to about roughly $553,681 per unit. The seller of the eight-story building was identified as JP Morgan Asset Management.
Built in 2009 as a Class A rental community, Equinox is located at 1524 Eastlake Ave. East and consists of 204 apartments in a combination of studios, one- and two-bedroom units ranging in size from 520 square feet to 1,340 square feet. The property was 94.5 percent occupied at the time of sale. According to data provided by Yardi Matrix, rents range from $1,849 for a studio to $3,627 for a two-bedroom unit. Greystar Management is listed as Equinox’s property manager.
Common area amenities include controlled access, fitness center and yoga studio, business center, landscaped rooftop terrace, courtyard, community rooms, as well as 268 covered parking spaces and bike storage.
Offering views of the city skyline, Space Needle, Lake Union and the Aurora Bridge, Equinox is walking distance from shopping and dining destinations, as well as major employers such as Amazon, Facebook, the Fred Hutchinson Cancer Research Center, and Google, whose future campus will be located nearby.
As detailed in a press release, the partnership invested $38 million, of which Kennedy Wilson’s share is 51 percent. The sale was subject to a $53 million Freddie Mac loan with a 10-year interest and an interest rate of LIBOR +2.11 percent. The transaction was also financed with $24 million of net proceeds from the recent sale of the Reserve, a multifamily community located in Federal Way, Wash.
“Both transactions in the greater Seattle area demonstrate our ability to recycle capital from an asset where we realized significant value creation into a high-quality asset in a thriving submarket with future asset management potential,” said Shem Streeter, Managing Director of Kennedy Wilson, in a statement.
Image courtesy of Yardi Matrix