Home Finance AIMCO in Contract to Sell 135-Unit 2900 On First in Seattle’s Belltown...

AIMCO in Contract to Sell 135-Unit 2900 On First in Seattle’s Belltown for $69MM

Puget Sound, AIMCO, Seattle, Belltown, 2900 On First, REIT, MIG Real Estate

By Vladimir Bosanac

The multifamily sector across the greater Puget Sound region continues its healthy pace. In another transaction that will close later this month, Denver-based AIMCO is selling a 135-unit property in Seattle’s Belltown neighborhood for $69 million, or $511,111 per unit. The sale of the building, located at 2900 First 1st Avenue, was announced in the public REIT’s quarterly financial results. The buyer is Palo Alto, Calif.-based Pacific Urban Residential.

2900 on First features a mix of studio, one bedroom and two bedroom apartments. They range in size from 450 square feet to 875 square feet and the rent, according to the property’s website on apartments.com, ranges from $2,305 to $3,210 per month.

The building is located a few blocks from the Seattle Center and is in close proximity to Route 99 and the US Interstate 5, two major thoroughfares in this part of Seattle. The units offer private patios and balconies and full-size washers and dryers while select homes feature fireplaces and high ceilings.

In addition, the gated property has a number of community amenities, which include a fitness center and a clubhouse.

Pacific Urban has been a prolific investor in multifamily properties across Puget Sound recently. According to previous reporting by The Registry, the company spend $90 million in June of this year, or about $523,255 per unit, to acquire the 172-unit Alley24 Apartments, which is located at 241 Yale Ave N. in Seattle. In November of 2021, the investor bought the 179-unit Panorama Apartments at 1100 University Street in Seattle for $120 million, or about $670,391 per unit. And in August of last year, Pacific Urban invested $46.5 million, or approximately $188,213 per unit, for the 247-unit Row Apartments in Kent.

AIMCO, which accomplished a nearly 15 percent growth in net operating income from 2021 to 2022, also reported second-quarter revenues of $33.1 million, up 11.2 percent year-over-year, resulting from a $203 increase in average monthly revenue per apartment home across its portfolio. The company boasts an occupancy of 97.7 percent.

The company has been an active player in the Seattle market. In July of this year, AIMCO sold another property, the 104-unit Cedar Rim apartments in Renton for $53 million, or $509,615 per unit. The property was owned free and clear of debt prior to the sale, according to the company. The buyer was Newport Beach, Calif.-based MIG Real Estate. AIMCO owned the property since 2009 when it paid $17.7 million for the asset.

“AIMCO has accomplished a great deal during 2022, and we are well positioned for continued success. The early monetization of our four development assets leased from AIR Communities (“AIR”) highlights our team’s ability to execute and will lead to $100 million dollars of value creation for AIMCO shareholders,” said the company’s President and Chief Executive Officer Wes Powell in a statement. The company is also busy looking at new projects to deliver, and Powell stated that it now has more than 15 million square feet of residential and mixed-use development in its development pipeline, a number that has tripled since the start of 2021.

Philip Assouad, Giovanni Napoli, Ryan Harmon and Nick Ruggiero of the Seattle office of Institutional Property Advisors brokered the sale.