Seattle Apartment Property Sells at Record $518 Per Square Foot

The $14.65 million sales price of Elliott Bayview equates to $357,317 per unit; and a top FHA lender Greystone originates four HUD loans for more than $43 million.

Seattle—Marcus & Millichap Real Estate Investment Services has arranged the sale of Elliott Bayview Apartments, a 41-unit apartment building in Seattle. The $14.65 million sales price equates to $357,317 per unit and $518 per square foot. The price per square foot is the highest ever achieved by a multifamily property of less than 100 units in Seattle.

Timothy McKay, senior associate, and Daniel Chhan, associate, both in the Seattle office of Marcus & Millichap, represented the seller, a local developer, and the buyer, a Los Angeles-based family investment company.

“This transaction perfectly highlights the firm’s ability to move capital around the country, with particular emphasis on the West Coast in this case,” says McKay. “We began working with the property’s developer about halfway through the construction process and over the span of approximately 120 days we spoke with a number of local, regional and national apartment buyers. Ultimately, we reached out to a representative of the buyer, whose company was in a 1031 exchange. The transaction progressed smoothly and we closed on time; just 44 days following the effective date.”

“Multifamily property investors target Seattle because of its extremely strong local economy and high barriers to entry,” concludes Chhan.

Constructed in 2012, the 28,296-square foot property is located at 151 John St. in Seattle’s Queen Anne neighborhood.

Greystone originates four HUD loans for over $43M

New York—Greystone announced that it has originated more than $43 million in HUD loans across four properties in Oregon, Nebraska, Washington and Florida. The deals were overseen by Adam Sasouness, an originator in the Greystone multifamily lending group.

One of the loans, Courtyard Village at Raleigh Hills, was refinanced by Greystone in 2011. However with the unprecedented low interest rates, it made sense to refinance again, further reducing the borrower’s interest rate by 120 basis points. The project is a 179-unit seniors community located in Portland, Oregon, which was refinanced for $15.25 million with a 29 year self-liquidating non-recourse loan.

“As the largest multifamily lender of HUD insured loans, Greystone provides loans in markets nationwide varying in size and scope. We are very dedicated to finding the optimal financing structure to meet our client’s needs and objectives,” Betsy Vartanian, head of Greystone’s FHA business, says. “Even though all four loans faced significant prepayment penalties, refinancing still made sense as interest rates are currently at historically low levels, and the refinancing covered the penalties. With the depth of our experience and resources, coupled with the great opportunities affiliated with HUD insured financing, we are able to arrange financing for our borrowers regardless of location or loan size and provide them with competitive rates and attractive terms including non-recourse.”

Greystone provided a $12 million loan to Lexington Ridge Apartments, a 216-unit apartment complex located in Lincoln, Nebraska; a $4.8 million loan to Heatherwood Apartments, a 66 unit property in Tukwila, Washington; and a $11.2 million loan to Lauder Ridge Apartments, a 152 unit property in located in North Lauderdale, Florida.