Home Finance Alley24, 172-Unit Apartment Complex in Seattle, Secures $52.5MM in Financing

Alley24, 172-Unit Apartment Complex in Seattle, Secures $52.5MM in Financing

Alley24, CBRE, Seattle, The Jacoboson Company, Greystar
Image Courtesy of CBRE

(EDITOR’S NOTE: According to industry sources, $52.5 million was provided in financing. The Registry reported in December of 2019 that Greystar had sold the community for $72 million.)

SEATTLE –January 24, 2020  CBRE Capital Markets’ Debt & Structured Finance group in Los Angeles has arranged financing for the purchase of Alley24, a 172-unit apartment community in Seattle. 

Brian Eisendrath, Brandon Smith and Cory Wizenberg of CBRE’s West Los Angeles office arranged the loan on behalf of the borrower, The Jacobson Company, a Los Angeles-based real estate investment firm.

Located at 241 Yale Ave N, Alley24 was originally built in 2006 and renovated in 2014. The mid-rise multifamily community has a unit mix comprised of, one- and two-bedrooms apartments, modern lofts and townhomes.  Amenities include a 24-hour gym, rooftop firepit lounge and valet dry cleaning. The Jacobson Company will upgrade many of the units and will improve common area amenities.

The property is in the South Lake Union neighborhood, an area that has grown rapidly due to the presence of many of the world’s most prominent tech companies. Alley24 is strategically located within walking distance to many of the area’s top employers, as well as public transportation and parks. The apartment community is also within walking distance of dozens of the area’s most popular dining, retail and entertainment options.

“Given the infill location and the pipeline of 7.2 million square-feet of office space in the submarket, there is a supply and demand imbalance in local multifamily which bodes well for existing product in the neighborhood such as Alley24,” said Larry Jacobson, CEO of The Jacobson Company. “We believe this asset fits into our strategy of long-term ownership of quality assets in excellent locations.

He added, “In the last three years, the company has aggressively expanded its historically California-based portfolio with large acquisitions in Washington, Colorado and Texas. The company plans to add to its portfolio in Washington State and Colorado in 2020.”

Eisendrath added, “In order to provide The Jacobson Company’s investors with high going-in cash-on-cash returns, our team helped place long-term low-cost bridge financing that also provided enough in loan proceeds to accommodate a 1031-exchange.”

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. 

About The Jacobson Company

The Jacobson Company is a private real estate investment company with a 50-year track record of successfully acquiring and operating conventional multifamily, student housing and commercial properties. The company is committed to providing its investors with superior risk adjusted returns in the form of distributable cash flow, optimizing the operating performance of its assets, and realizing appreciation over time, all the while remaining steadfast in its adherence to the unwavering ethical principles of Norman Jacobson, the company’s founder.