Home Finance 11 Capital Buys Apartments in Snohomish for $17.9MM

11 Capital Buys Apartments in Snohomish for $17.9MM

Kirkland, 11 Capital, Swifty Creek Apartments, Snohomish, The Foundation Group, Seattle, The Trail

By Jon Peterson

Kirkland-based 11 Capital has acquired the 70-unit Swifty Creek Apartments in Snohomish located at 627, 707 and 729 Avenue A. The purchase price was $17.9 million, according to sources familiar with the sale of the asset. This sales price is a record price for the sale of an apartment complex in Snohomish, and it comes in at $255,000 per unit and $280 per square foot.

The seller of the asset was a partnership that involved two private families that had owned the property for a long time. The listing agent on the sale that represented both the buyer and seller was The Foundation Group based in Seattle. Working on the transaction was Aaron Locke, partner and Ethan Szmania, broker, with the firm.

The sales price did come in at above the $16.5 million asking price, which was stated in the property’s offering document. The cap rate on the transaction was 4.2 percent, which is based on the property’s current net operating income of $768,592. The projection is that the NOI in the property will go up in the future to around $1.1 million once the property has gone through its major renovation. Rents in the property now are estimated to be somewhere in the range of 20 percent to 30 percent below market rates.

The new owners will be renaming the property The Trail. The asset is now essentially a fully leased property; a few units remain vacant, however, they will be leased once the units have completed their renovations. The property itself will be going through a full renovation by 11 Capital. This will include an upgrade for all of the units and work done to improve the current amenities.

The property has a total of three parcels that included a total of nine structures. The complex was built in three separate phases in 1940, 1989 and 1991. 54 percent of the property, or 38 units, is made up of two bedroom/1.25 bath units. The rest of the asset has 17 one bedroom/one bath units, 12 three bedroom and two bath, two one bedroom/one bath with a loft and one studio unit.

The Trail is located very close to some major recreational amenities. One party of this is the Inter-Urban bicycle trail. There also is the Snohomish Aquatic Recreational Park.