By Meghan Hall
A multifamily complex in Seattle’s south end has traded hands as multifamily investment in the Puget Sound continues to pick up. In a transaction that closed on April 30th, the Arbour Court Apartments sold for $19.1 million, or about $254,667 per unit. According to public documents, both the buyer and seller are affiliated with private individuals. The sellers are two entities associated with Kuhar Bay Club LLC and Malom Bay Club LLC, based in Coupeville, Wash., while the buyer is listed as Kirkland-based JM2T Arbour Court.
The asset is located at 2225 South 112th Street. The complex was originally built in 1990 and totals 75 units. According to Apartments.com, the complex features one-, two-bedroom and three-bedroom apartments, and units range in size from 700 square feet to about 1,100 square feet. Rents can run anywhere between $1,300 to $2,100 per month.
Individual units feature in-unit washer and dryer, dishwashers and balconies. Other features, such as carpet, vinyl flooring, and vaulted ceilings are also included in some units. Community amenities include a pool, fitness center, storage space and on-site property managers.
While activity is up, recent data released by Kidder Mathews at the end of the first quarter reveals that multifamily vacancy and unemployment are up. Rents, however, have somewhat stabilized for the time being as the number of new deliveries have slowed. At the end of Q1, vacancy ticked up slightly to 7.6 percent, nearly two percentage points higher than the 5.7 percent vacancy rate recorded during the first quarter of 2020.
Average asking rates have raised slightly, from $1,604 at the end of 2020 to $1,632 at the end of the first quarter. On average, studios are renting for about $1,297 per month, while one-bedrooms and two-bedrooms are renting for $1,503 per month and $1,797 per month, respectively. Three-bedrooms rent for about $2,126 per month.
Over the course of the first quarter, a number of large apartment transactions closed, signaling investor confidence in the market. The largest deal was for Hyde Square. Totaling 618 units, the property sold for $279.1 million, or about $451,618 per unit, to DWS. In another deal, Bell Partners also acquired Bell Jackson Street from Mill Creek Residential for $72.325 million, or $452,031 per unit. The property totals 160 apartments. In a smaller transaction, the Mariposa Apartments in Federal Way sold for $31 million, or about $159,794 per unit. The buyer was Post Investment Group.