Kidder Matthews has just announced the start of the sales of apartments in the 8-unit Hoven Apartments complex in Seattle’s U. District. The complex is located in close proximity to the campus as well as the Husky Stadium Rail station, which is due to open next spring. It is near several bus routes, I-5 and 520, as well as Ravenna Park and the Burke Gilman trail. Hoven and the U. District are roughly five miles from downtown Seattle, which is a major plus for potential investors looking to capitalize on the growing labor market in the downtown core. In 2016, the city is planning to extend the light rail system to the district, which will enhance the connectivity even more.
Certain investors consider the U. District to be one of the best submarkets in the city, according to Dan Swanson, who is marketing the property. It is supported by one of the major economic drivers of the Pacific Northwest, the University of Washington.
“Buildings near campus and transit like the Hoven have traded for $250,000 – $300,000 per unit and $300 to $400 per foot of rentable space. Market cap rates are usually around 5 percent and current cap rates are in the low 4 percent range,” said Swanson.
The development boasts eight loft-style apartments with off-street parking, bike storage and all other modern conveniences including dishwashers, garbage disposals and secure laundry facilities. The apartments are also conveniently located near the University Village shopping center, home to numerous restaurants and a grocery store.
The marketing effort had just started on this development, yet within a few hours of the initial email announcement, Swanson noted that he already had 12 interested parties. “Most of the interested parties for this building have cash on hand, and own in the area, or are in 1031 tax-deferred exchanges looking to place funds in an A location within Seattle. In addition, I expect there to be interest from Chinese nationals and expat individual investors, as well as the marketing net widens over the next week,” he added.
Map courtesy of Kidder Mathews