Vulcan Real Estate has sold its Augusta Apartments in Seattle to a joint venture between Security Properties and STARS REI, for $98.1 million. JLL’s David Young and Corey Marx brokered the transaction.
The seven-story apartment community located at 4041 Roosevelt Way NE was designed by Runberg Architecture Group and built by Exxel Pacific in 2017, achieving LEED for Homes Platinum. Augusta includes 210 units of one-, two- and three-bedroom units with 20 percent of them designated as affordable and 3,470 square feet of ground-floor retail. According to Yardi Matrix data, the apartments were 94.8 occupied and tenants were paying an average rent of $2,608.
The modern property also includes a number of amenities including a resident lounge with a theater room, a fitness center and sports court, a rooftop deck with barbecues, conference and study rooms, a guest suite and a dog grooming area. Augusta also benefits from being within walking distance to the University of Washington and the 27-mile recreation Burke Gilman Trail.
Ada Healey, Vulcan’s chief real estate officer, said Augusta was a very successful project for them that leased up quickly and that they would continue to build more developments in the region. The funds from the Augusta sale will be used for the company’s development efforts and other land and value-add investments around the region, according to Vulcan.
A PROPERTY WITH POTENTIAL
With such positive momentum at Augusta, the property was a prime target for Security Properties, according to Davis Vaughn, the company’s senior director of acquisitions. Vaughn told Multi-Housing News that there would be minimal capital improvements but added they may explore including a technology package in the units.
“We buy a variety of profiles but have been selectively focusing on core lately because we think the risk adjusted returns in that space are attractive right now,” Vaughn told MHN. “We liked Augusta specifically because of the growth potential we see in the U-District.”
While Augusta will benefit from being in the University District’s growing neighborhood, the property will only be blocks away from the new light rail station that is slated for a 2021 opening. The new University District light rail station at the corner of NE 43rd Street and Brooklyn Avenue NE is part of SoundTransit’s plans to extend the Northgate Link with three new stations.