By Jack Stubbs
On Wednesday October 12th, the Bridges at 11th Apartments in Seattle’s University District sold for $64.4 million, or $350,000 per unit, according to public records filed with King County. The buyer was Austin, Texas-based American Campus Communities, an entity that develops, owns and manages student housing communities. The seller was Seattle-based Security Properties, a multifamily real estate investor, developer and operator. The property under a 50-year ground lease with the University of Washington, which commenced in December of 2011.
The 184-unit apartment complex, located at 4557 11th Avenue NE, sits in close proximity to the University of Washington, just a quarter of a mile to the north of the campus. Additionally, the property is less than half a mile from access to Interstate-5. The property lies within half a mile of other apartment complexes—some of which are also affiliated with the university—such as Studio 7 Apartments, College Place Apartments, Malloy Apartments and the U-District Student Housing: Pacific Sunrise building.
The 8-story property, built in 2015, is set on .85 acres of land and totals 159,716 square feet. The property offers a mix of unit types, with studio, one-bedroom, two-bedroom and three-bedroom units available, according to the apartment listing on zillow.com. The studios range between 441 and 550 square feet, ranging in price from $1,500 to $1,850. The one-bedroom option begins at $1,890 and totals 630 square feet, while the two-bedroom’s rental price starts at $2,900 and totals 1,108 square feet.
According to the apartment listing on the buyer’s website, some of the in-unit amenities include private balconies, quartz-stone countertops with stainless steel appliances, walk-in closets, washer and dryer and hardwood-style flooring in the living area and kitchen. Some of the on-site amenities include a 24-hour fitness center, a rooftop courtyard and garden area, a conference center, and an indoor community kitchen. The website also highlights the property’s convenient location, which allows easy access to Interstate-5 and close proximity to public transportation.
The property sits on land owned by the University of Washington. The property owners have a 50-year ground lease that began on December 6th, 2011. Under the terms of the initial agreement between Security Properties and Seattle Children’s Hospital and the University of Washington, for a period of 20 years, at least 34 apartments inside the building have to be offered as affordable units, with an income that does not exceed 75 percent of Area Median Income.
Founded in 1993, American Campus Communities is the nation’s largest developer and owner of student housing communities, according to the company’s website. The company creates new developments, repositions and upgrades existing communities, and partners with universities to develop and manage on-campus housing properties. To date, the company has acquired 150 student housing communities and 87,300 beds totaling more than $5.3 billion in value, according to the company’s website.
In September 2017, American Campus Communities announced that it had entered into an agreement to recapitalize and ultimately acquire seven select student housing properties nationwide totaling 3,776 beds for an aggregate $590.6 million. Part of that acquisition was the Hub U District Seattle, a 248-bedroom property, which was part of a two-property interest acquisition with Core Spaces/DRW Real Estate Investments for a total of $135.7 million.
Security Properties, founded in 1969, focuses on multifamily investments and manages capital on behalf of private and institutional investors. Since its founding, Security Partners and its partners have invested over $1.3 billion of equity in multifamily real estate, representing a portfolio value of almost $5.6 billion, according to the company’s website. Currently, the company’s portfolio reflects interests in 103 assets that encompass over 18,900 multifamily housing units, according to their website. Some of the company’s current residential assets in the Seattle area include Angeline, a 193-unit property in Seattle; Beaumont Grand, a 267-unit property in Lakewood; and Bordeaux, a 124-unit asset in Bothell.