RISE Secures $93M Refi for Seattle Buildings

These properties are located in the city’s Belltown and Capitol Hill neighborhoods.

RISE Properties Trust has obtained a total of $92.5 million in first mortgage funds to refinance the 131-unit Joseph Arnold Lofts and the 135-unit Jack Apartments, both in Seattle. Mesa West Capital provided the financing, which was arranged by James Bach in CBRE’s Seattle office.

RISE acquired Joseph Arnold Lofts in 2019 from Invesco Real Estate for $74.3 million, also with financing from Mesa West. Invesco paid developer Schuster Group $68.2 million for the property when it was new in 2013, Yardi Matrix data shows.

The company undertook a recent renovation at the property that included upgrades to common areas and unit interiors. Shared amenities include a fitness center and clubhouse, as well as 76 parking spaces and a bicycle maintenance center. The property offers mostly one-bedroom units, and a handful of studios, with average rent at the property increasing from $2,559 a month in 2020 to $2,712 in 2024, according to Yardi Matrix data. It is 90.2 percent occupied.

Joseph Arnold Lofts is situated at 62 Cedar St. in Seattle’s Belltown neighborhood, one block from the Seattle waterfront. It offers views of Elliot Bay, Olympic Mountains, the city skyline and the Space Needle. Residents have easy access to the Pike Place Market, Seattle Center and the 2nd Avenue retail district.

Jack Apartments was completed in 2016 and was acquired by RISE two years later from Mill Creek Residential for $68.8 million, the same data shows. The property is located at 1427 11th Ave., in the Capitol Hill neighborhood, and offers studios and one- and two-bedroom units, 27 of which count as affordable housing.

Average rent at the property has gone down from $2,450 a month in 2020 to $2,359 in 2024, according to Yardi Matrix data. It is 95.6 percent occupied

Common-area amenities at Jack Apartments include a fitness center, clubhouse and 124 parking spaces. There are washers/dryers in all units, along with microwaves. The property counts as transit-oriented, as it is within a quarter mile of two transit stations.

Seattle multifamily developers still eager

Seattle’s supply of apartments continues to see a steady expansion, with inventory rising by 8,758 units during the first three quarters of 2024, or 2.8 percent of existing stock, Yardi Matrix reports. That was 70 basis points higher than the U.S. rate for the same period.

More units are to come. Developers had 22,846 units under construction as of September, with another 100,000 units in the planning and permitting stages. The pipeline remains heavily skewed toward upscale properties (71.1 percent), followed by fully affordable projects (24.5 percent). Yardi Matrix estimates that total deliveries for 2024 will be 10,963 units.

Seattle remains a relatively expensive apartment market, though not quite as much as before. The metro’s average asking rents were down 0.3 percent on a trailing three-month basis through September, to $2,216 a month, Yardi Matrix notes. The average U.S. rate remained flat, at $1,750 a month.