Top 5 Multifamily Transactions in Seattle
- Jul 26, 2019
Sales activity in Seattle’s multifamily market through the year’s first two quarters shows that the city is one of the most coveted and competitive markets in the U.S. A total of 6,867 units were sold in the metro during the first six months. At the same time, as highlighted by the list below, four properties were sold for more than $100 million each, bringing the midyear total investment volume to $1.9 billion.
Seattle-based Security Properties Inc. was the most active buyer in the first two quarters, having purchased three properties for a total of $270.7 million. The company’s Seattle portfolio counts more than 4,100 units in high-end properties. The table below highlights the top five multifamily sales closed across the Seattle metro area as of June, based on data provided by Yardi Matrix.
Legacy at Pratt Park ($91.8M)
One of the top 10 apartment property owners in the Seattle metro area, Security Properties added 248 units to its portfolio after the purchase of Legacy at Pratt Park. The company, along with partner Rockwood Capital, paid Barings $91.8 million for the property and announced plans to renovate all units so that the community becomes competitive with the new construction in the area. At the time of the sale, the property at 1800 S. Jackson St. was 7 percent vacant.
Legacy at Pratt Park was completed in 2008 in the Central District submarket, where Security Properties owns another asset, Vantage Park. Apartments feature floor plans ranging from 505 to 1,183 square feet while rents average $1,954. The property is located in an opportunity zone and will offer residents access to the future Link Light Rail Station on Interstate 90 scheduled to open in 2023.
Bailey Farm ($113.5M)
Goldman Sachs & Co. entered the Seattle multifamily market in February, with the purchase of the 372-unit Bailey Farm. The asset was previously part of Kennedy Wilson’s portfolio since 2014, when the company purchased the asset from The Wolff Co. for $91.5 million. The community was completed in 2013 at 1225 183rd St. S.E. and provides one-, two- and three-bedroom apartments ranging from 630 to 1,182 square feet.
The property offers easy freeway access to Bothell Everett Highway and interstates 5 and 405.
Pike Motorworks Building ($128.4M)
A Wolff Co. development, built on the structure of the old E Pike BMW dealership, the property was completed in 2016. The Pike Motorworks Building is one of the largest communities in the First Hill submarket. By selling it to TA Realty for $128.4 million, the developer exited the neighborhood, after having previously cashed out of the Sunset Electric Building at 11th and Pine St., according to Capitol Hill Seattle. The 243-unit community at 715 E. Pine St. is TA Realty’s second acquisition in the Seattle market. The company owns another high-end property in the Ballard submarket, Ballard Public.
Pike Motorworks Building is a two-building LEED Silver-certified development. The community offers studio- to two-bedroom floor plans ranging between 400 and 1,500 square feet. Monthly rents averaged $2,700 as of May.
Taluswood is the second property that Security Properties has acquired in Seattle since the beginning of the year. Located at 4208 236th St. S.W., in the Mountlake Terrace submarket, the community provides a total of 512 units, making it the largest multifamily building to change hands as of mid-year. After owning it for almost four years, Waterton sold it for $132 million, $52 million more than the price the property claimed in 2015.
The 1987-built offers one-, two- and three-bedroom apartments. The nearby area is home to Boeing’s 100-acre assembly plant, the Bothell business hub which hosts the offices of Blue Heron Biotechnology, AT&T, Lockheed Martin and Seattle Genetics. Residents also have access to the Alderwood Mall, the Northgate Mall and Park Hills shopping centers, located a few miles away. The community was 11 percent vacant as of May, with monthly rents averaging $1,506.
Metro 112 ($160M)
Topping out our list is Nuveen Real Estate’s $160 million purchase of Metro 112. The transaction was part of a portfolio deal which also included the smaller Boulder Creek property in Sammamish, Wash., bringing Nuveen’s Seattle portfolio to a total of 1,900 units.
Located at 317 112th Ave., in Bellevue, Metro 112 was constructed in two phases in 2010 and 2018 and encompasses two towers. The property offers 358 luxury units featuring studio-, one- and two-bedroom apartments with an average unit size of 843 square feet. The community also includes 20,000 square feet of retail space and offers access to a rooftop terrace. Simpson Property Group will continue to handle property management duties, which was only 5 percent vacant as of May.