Washington

Kidder Mathews Brokers $23.5M Sale of Highland Green Apartments in Kent, Washington

by Amy Works December 2, 2022

KENT, WASH. — Kidder Mathews has arranged the sale of Highland Green Apartments, a garden-style multifamily complex located at 10105 SE 236th St. in Kent. A California-based company acquired the asset from a private family for $23.5 million, or nearly $245,000 per unit. Dylan Simon, Brandon Lawler and Jerrid Anderson of Kidder Mathews’ Simon and Anderson team represented the seller in the deal. Kidder Mathews also sourced the buyer and was the only brokerage firm involved in the transaction. Built in 1991, Highland Green features 96 apartments.

December 2, 2022

Development Multifamily Washington Western

Legacy Partners Breaks Ground on 288-Unit Copal Multifamily Property in Bellevue, Washington

by Amy Works December 1, 2022

BELLEVUE, WASH. — Legacy Partners has broken ground on Copal, an apartment community in Bellevue’s Bel-Red submarket. Located at 1525 132nd Ave., the mid-rise, transit-oriented residential property was formerly known as Bellevue Station. The eight-story property will offer 288 apartments, including 230 market-rate units and 58 below-market Multifamily Tax Exemption units. Community amenities will include a gym with a separate yoga zone, coffee bar, rooftop clubroom with terrace and an indoor/outdoor/games room. The lobby will offer coworking space with separate breakout work booth for residents. Additionally, the asset will feature 10,000 square feet of ground-floor retail space. Completion is slated for second-quarter 2025.

December 1, 2022

Development Loans Office Washington Western

Developer Evolution Projects Receives $109M Construction Financing for 35 Stone Office Building in Seattle

by Amy Works November 29, 2022

SEATTLE — Seattle-based Evolution Projects has received $109 million in construction financing for the development of 35 Stone, a pre-leased office building in Seattle’s Fremont neighborhood. Canyon Partners Real Estate provided a mezzanine loan to finance the development, concurrent with the closing of a senior construction loan from The Union Labor Life Insurance Co. Slated for delivery in third-quarter 2024, the five-story building will offer 112,700 square feet of office space and 7,500 square feet of retail space. Onsite amenities will include a roof deck, bike parking, locker and shower suites, a central lobby with retail space and 135 parking stalls. Designed to meet Living Building Pilot Program standards, the property will reduce energy usage by at least 25 percent compared to other office buildings and is anticipated to be one of the most energy efficient and sustainable office buildings in Seattle. Brooks Running will occupy the office space in 35 Stone, which is situated within the master-planned Campus Seattle development. Brian Kelly and Eric Lonergan of Savills represented Brooks Running in the lease transaction. Kaden Eichmeier and Bruce Ganong of JLL represented the borrower in the financing.

November 29, 2022

Acquisitions Multifamily Washington Western

CBRE Negotiates $78.5M Sale of Lakemont Orchard Apartment Community in Issaquah, Washington

by Amy Works November 23, 2022

ISSAQUAH, WASH. — CBRE has arranged the $78.5 million sale of Lakemont Orchard, a multifamily property in Issaquah. An undisclosed buyer acquired the asset from an affiliate of New York Life Insurance Co. Originally built in 1992, Lakemont Orchard features 201 apartments with balconies in a mix of one-, two- and three-bedroom floor plans, with an average unit size of 916 square feet. Onsite amenities include a pool, hot tub, sundeck, newly upgraded gym, TV and billiards lounge, outdoor dining area and basketball/sport court. The seller upgraded the roofs, siding and clubhouse prior to the sale, but all the apartments are eligible for renovation. Situated on more than 20 acres, the gated community is located at 18305 SE Newport Way. Jon Hallgrimson, Eli Hanacek, Mark Washington and Kyle Yamamoto of CBRE’s Pacific Northwest represented the seller in the deal.

November 23, 2022

Market Reports Multifamily Washington Western Western Market Reports

Seattle Metro Multifamily Market — It’s a Supply Thing

by Jeff Shaw November 18, 2022

By Brian O’Connor, Executive Director, Valuation & Advisory, Cushman & Wakefield The Seattle Metro apartment market has been surprisingly resilient. The market quickly bounced back from the COVID downturn at a robust clip and has continued moving at a healthy pace. During the first six months of 2022, metro Seattle absorbed more than 12,600 units. That already surpasses a typical full year of demand by several thousand units. From January 2022 through June, the market absorbed 3,779 newly constructed units — a respectable level. If you also factor in the decline in existing units, then the market absorbed another 8,886 units. That tells us that the supply of new units was too low…or demand was much stronger than we expected. The market had rebounded to a metro-wide vacancy rate of only 1.33 percent at mid-year 2022, an astoundingly low level. From year-end 2021 to June 2022, overall apartment vacancies declined from 3 percent to 1.33 percent. We do, however, expect vacancies to begin increasing slightly. These rates typically see an uptick as we head into winter. Rent growth also slows during this time. We expect to see the metro-wide vacancy rate start to rise just a bit by year-end 2022, to …

November 18, 2022

Market Reports Retail Washington Western Western Market Reports

Seattle’s Retail Sector Proves Resilient

by Jeff Shaw November 8, 2022

By Dino A. Christophilis, Senior Vice President, CBRE; Daniel Tibeau, Associate, CBRE; and Parker Ksidakis, Associate, CBRE Few sectors were as disrupted by the pandemic as retail. While 2020 proved to be a tumultuous year, the last year and a half have demonstrated the resiliency of retail — both in Seattle and nationally. The Seattle economy is performing well for a recovering retail sector, with continued employment growth and increasing retail spending. The Puget Sound is notorious for its lack of new retail development, and the recent years have been no exception. The environment of increasing demand with a flat level of supply results in positive conditions for existing retail space. Like much of the nation, concerns persist in Seattle around inflation, increasing debt costs and a potential slowing in the global economy. However, the situation in Seattle is more positive and nuanced. Growing Investment Activity Year to date, Seattle is poised to outperform the prior year in terms of total investment dollars. The second quarter of 2022 experienced 65 percent greater investment volume relative to the same quarter in 2021. This figure is particularly notable as 2021 was an exceptional year. Investors deployed pent-up capital that was held during the height of the pandemic. Total retail …

November 8, 2022

Acquisitions Industrial Washington Western

BKM Capital Acquires Pacific Industrial Park in Marysville, Washington for $20.3M

by Amy Works October 31, 2022

MARYSVILLE, WASH. — BKM Capital Partners has expanded its Puget Sound portfolio with the purchase of Pacific Industrial Park in Marysville. Pacific Industrial Park LP I sold the asset for $20.3 million. Constructed between 1998 and 2000, the 122,000-square-foot light industrial park features four Class A buildings, which are currently 100 percent leased across 11 units that range in size from 5,060 square feet to 28,206 square feet. Tenants include Snohomish County Sheriff, Greenpointe Technologies and Dish Networks. The assets are located at 14800-15100 40th Ave. NE. BKM’s in-house property and construction teams will execute an improvement program at the property to create a standardized tenant experience. Upgrades and improvements will address parking lots, ESG projects, interior buildouts, roofs, drought-tolerant landscaping, HVAC, lighting, signage and a wrought iron security fence surrounding the sheriff’s office space. Matthew Hagen and Matthew Henn of Kidder Mathews represented the seller, while Fletcher Farrar of Neil Walter Co. represented the buyer in the deal.

October 31, 2022

Market Reports Office Washington Western Western Market Reports

Seattle’s Office Market Shows Improvement

by Jeff Shaw October 28, 2022

By Charlie Farra, Senior Managing Director, Newmark The Puget Sound office market has fared better than many peer metro areas during the pandemic. While the market remains tenuous in the region, local office fundamentals have improved to date in 2022. A consistent through the chaos is a flight to quality. If employers expect a return to office, they are being tasked with creating a physical environment that is far more favorable than a home office or local coffee shop. We are referring to this as “commute-worthy real estate.” Energy, collaboration, amenities, views, natural light and safety are some of the main points of focus and, due to current economic conditions, the ability to find such space at discounted pricing is within reason. New office leases are trending toward 75 percent of their pre-pandemic footprint as companies consider how and where to operate their businesses going forward. Professional service companies currently account for the most demand and are in the office more frequently than the technology sector. In tech cities like Seattle, this is a seismic shift from the previous decade, which saw skylines transform from the expansions of Amazon, Microsoft, Meta and Google. Many companies returning to the office are utilizing a hybrid …

October 28, 2022

Development Loans Multifamily Washington Western

PCCP Provides $13.2M Equity Investment for Multifamily Development in Sumner, Washington

by Amy Works October 27, 2022

SUMNER, WASH. — PCCP has provided a $13.2 million preferred equity investment to Timberland Partners to finance the construction of Sumner Apartments, a garden-style multifamily community in Sumner. Construction of the project commenced in May, with completion slated for third-quarter 2024. Situated on 5.7 acres at 16017 60th St., Sumner Apartments will offer 162 studio, one- and two-bedroom apartments spread across nine three-story residential buildings. Unit interiors will feature vinyl flooring, triple-pane windows, stainless steel appliances, walk-in closets, quartz countertops, full-size washers/dryers and private patios and balconies. Community amenities will include a clubhouse and amenity center, pool, covered barbecues, dog park, picnic area, electric car charging stations and bike parking. Jake Leibsohn of Northmarq’s Seattle regional office arranged the preferred equity investment between PCCP and Timberlane Partners and sourced the project’s $35.5 million senior construction loan through a regional bank.

October 27, 2022

Acquisitions Multifamily Seniors Housing Washington Western

Oxford Capital, Fortress Investment Acquire Three Seniors Housing Communities in Sequim, Washington

by Amy Works October 26, 2022

SEQUIM, WASH. — A joint venture between Oxford Capital Group LLC and Fortress Investment Group LLC has acquired a three-property, 256-unit seniors housing portfolio in Sequim. The properties are located northwest of Seattle, just across the Salish Sea from Victoria, British Columbia. The buyer acquired the properties from an independent family operator. Oxford’s seniors housing management affiliate, Oxford Living US LLC, will manage the properties. Terms of the transaction were not disclosed. “We are excited to continue to expand our seniors housing silo as we strategically assemble a portfolio of properties throughout the United States and Canada,” says John Rutledge, founder, chairman and CEO of Oxford Capital Group. “Oxford Living has made targeted seniors housing acquisitions and investments in a number of growing markets throughout the southeastern United States and Canada, including Florida and Ontario. We plan further portfolio acquisitions in these and other markets.” “This transaction builds further on our strategy of acquiring seniors housing assets with scale in attractive demographic areas that are well positioned to weather an inflationary environment,” adds Peter Stone, managing director at Fortress. “While most institutional investors focus on high-end development in urban centers, our strategy is to buy overlooked mid-market properties which are …

October 26, 2022

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