By Jack Stubbs
“We’re excited to add [the Henry Apartments] to our growing portfolio of apartment communities in the Seattle metropolitan area,” said Ben Margoles, executive vice president of private real estate investment company Washington Holdings, who last week acquired an apartment property in Queen Anne.
On Thursday, February 1st, the 100-unit Henry Apartments in North Queen Anne sold for $42.1 million, or approximately $421,000 per unit, according to public records filed with King County. Seattle-based Washington Holdings develops, manages and invests in real estate assets within the western U.S. The seller of the property was Daly Partners, another Seattle-based real estate investment and development firm.
According to Patrick Ashman, co-founder of Daly Partners, the disposition of the Henry Apartments was a while in the works. “The timing was right, and when the opportunity presented itself, the deal met our expectations. It was always going to be a three to five year deal,” he said.
Located at 24 Etruria St., the five-story Henry Apartments complex was built in 2016 and contains 100 units, according to the listing on apartments.com. According to the property’s web site, the property offers 22 different unit layouts ranging from studios to a variety of one-bedroom options that include open, traditional and live-work floorpans. The one-bedroom unit layout types range from 575 to 851 square feet and rent for between $1,895 and $2,595.
The units feature modern interior finishes, and some of the amenities include high ceilings, private decks, walk-in closets and upgraded bathrooms, according to the web site. The property also features artwork by a local muralist, and community spaces that include two open air courtyards, rooftop decks and a resident lounge.
Sitting in North Queen Anne, the 100-unit asset is just a mile from Fremont to the north and just two blocks from the edge of Lake Union. Additionally, the property is just a mile-and-a-half from Gasworks Park and approximately a mile from access to Washington State Route 99.
According to Margoles, the property’s setting is one of its main draws. “In particular, we were attracted to the location of the Property on North Queen Anne, which offers residents easy walking access to Fremont’s array of shops and restaurants, and its growing employment base,” he said. “This is also a great location for bikers, given the nearby Burke Gilman trail and the Westlake Bikeway, which connects the neighborhood to South Lake Union.”
Founded in 2002, Washington Holdings seeks income-oriented and opportunistic investments that require significant repositioning, construction or leasing, according to the company’s web site. Washington Holdings acquires and develops a variety of commercial properties—from transitional and surplus property in need of repositioning to stabilized —and also makes strategic investments in land.
Operating throughout the Western U.S., the company typically looks for $10 million to $200 million office properties. The company also targets industrial/R&D flex facilities, bioscience buildings, telecommunication facilities and mixed-use urban infill projects, according to its web site.
According to Margoles, Washington Holdings’ most recent acquisition of the Henry Apartments is part of a longer-term strategy. “We have a long-term focus and Henry is meant to be a long-term hold for our portfolio. We intend to grow our apartment portfolio to over 2,500 units, through acquisitions and development, sometimes with partner developers,” he said.
Some of Washington Holdings’ other current apartment investments include the 124-unit Hayes on Stone Way in Fremont; the 180-unit Carter on the Park in downtown Redmond; the 95-unit Heron Flats + Lofts in downtown Redmond; and the 269-unit Center Steps development (which is being developed by Maria Barrientos) in Seattle’s Uptown neighborhood.
Daly Partners is a real estate investment and development firm that aims to incorporate its local vision into neighborhoods throughout Seattle through the development of multifamily projects, according to the company’s web site. The company currently has projects throughout Seattle, in neighborhoods including Eastlake, the University District, Westlake and the Central District. Some of Daly Partners’ developments in the city include Dexter Hayes, a 65-unit project in South Lake Union; Etruria, a 100-unit apartment complex in Queen Anne; and another 66-unit development in the U-District.