The newly-constructed Altitude Renton apartment community located at 1600 S. Benson Rd. in Renton sold last week for $30,185,000, or approximately $258,000 per unit. The buyer was an entity associated with Beverly Hills, Calif. -based FSC Realty, and the seller was Chris Koruga’s Eagle Ridge Villa LLC, who was also the developer.
The development was completed in 2015 and according to apartments.com, only two units are available for rent, representing over 98 percent occupancy. The complex is composed of two 4-story buildings with a total of 117 apartment units. The southernmost building has 61 residential units and 4,039 square feet of office use on the ground floor. The northernmost building has 56 residential units. The site sits on a 2.89-acre lot adjacent to Benson Road, just south of downtown Renton and Highway 405.
Kidder Mathews’ team of Ryan Dinius, Giovanni Napoli and Philip Assouad worked on the sale and represented both the buyer and the seller.
Just earlier this month, the Meter Group purchased the 240-unit Sunset View apartment complex also in Renton for $33.6 million from Investors Management Group (IMG) of Los Angeles with Rasameel Structured Finance Co. of Kuwait as the lead investor on the transaction.
Earlier this year in July of 2016, San Diego-based Fairfield Residential purchased the Grammercy, a 382-unit complex for nearly $61.2 million, or roughly $160,140 per unit, according to public documents.
According to a recent, third quarter Seattle Multifamily Real Estate Market Review by Kidder Mathews, over the past twelve months the average regional rent increased from $1,300 to $1,420 (9.2 percent). The King-Central sub-region has the highest overall rent in the region, currently averaging $1,843/month ($2.71/square foot/month), up 6.3 percent over the past year. The King-Eastside sub-region has the second highest overall rent, currently averaging $1,809/month ($2.00/square foot/month), up 8.1 percent over the past year. It is important to note that a portion of the increase is attributed to the higher prices of new units delivered over the past three years, especially in the smaller Eastside submarkets.
Currently there are an estimated 278,284 market rate units in complexes with 20 or more units in the five-county region. King County has the largest share of the inventory at 63.3 percent. That lead is likely to increase as 87.1 percent of the planned new development over the next four years is in King County. Pierce and Snohomish will account for about 6.5 percent and 5.6 percent respectively, stated the report.