The Seattle multifamily real estate market continues to attract investors, and a recent sale by the Simon | Anderson Team of Kidder Mathews of the Ellenbert apartment building in Capitol Hill shows just where the market watermark may be for historic properties in the city. The 43-unit property, located at 915 E Harrison Street, sold for $7,050,000, or $163,953 per unit, according to public records reviewed by The Registry. This sale is a testament to the demand for historic properties in prime locations in the city of Seattle. However, the per-unit pricing has hit a level not recently seen in this submarket.
According to public documents filed with King County, the Neyhart Family was the seller of the property. They owned the apartment building for several decades. The buyer was an entity associated with Kenny Properties of Seattle.
Originally marketed as part of a portfolio, the building’s historic charm and prime location ultimately led to its sale as a standalone property, according to an announcement distributed by the brokerage firm. Capitol Hill is a vibrant neighborhood that has seen significant growth and development in recent years, making it a sought-after location for residents and investors alike. The property’s location within the neighborhood just blocks from Broadway Avenue, further enhances its appeal.
The sale of this property is just one example of the continued growth and strength of the Seattle multifamily real estate market, which has continued to garner interest throughout the last few years. As the city continues to attract new residents and businesses, demand for quality properties in prime locations may likely continue to increase.
However, this sale also marks a per-unit pricing not seen in Seattle for many years. Even the assessed value of the property in King County records puts the value of this asset closer to $14 million, or nearly double the amount for which it traded. Kidder Mathews’ industry research sees the effects of the aggressive interest rate environment over the last twelve months as a major driver of volatility in the market. As a result, the company is expecting higher capitalization rates and lower prices per square foot and per-unit sales until mid-year 2023, at the earliest. On the positive side, the firm is anticipating rental income to climb slightly even with increased vacancy across every market in the region.
According to The Registry’s earlier reporting, some comparable transactions include the Young Women’s Christian Association of Seattle-King County-Snohomish County purchasing an apartment building in the same neighborhood for $38 million, or $408,602 per unit, in November of last year. This property is located at 800 E Denny Way and is comprised of 93 units. Roughly a year ago, a Snohomish-based buyer purchased the Velo Apartments – a 49-unit apartment complex at 301 E Roy Street – for $14.25 million, or roughly $290,816 per unit.
In addition, The Registry also reported that King County purchased a multifamily property located in the neighborhood at 1010 E Republican St. for $11.6 million, or approximately $322,222 per unit, according to King County public records.
Overall, the sale of the apartment building at 915 E Harrison Street is an interesting transaction that underscores the strength of the Seattle real estate market while at the same time showing that there are deals to be made when the right circumstances appear to motivate the sellers. With its prime location and historic charm, the property is sure to be a valuable asset for its new owner.