Union Bay Apartments and Executive Suites has a new owner after a nearly $24 million deal that closed late last week. Los Angeles-based Champion Real Estate Company purchased the complex from MJRY Investments LLC on January 12th for $23,950,000 or $328,082 per unit. Dylan Simon and Jerrid Anderson of the Colliers’ Seattle Multifamily Team were the brokers in the transaction and represented Champion Real Estate.
Located at 526 Yale Ave. N, the 73-unit building is in Seattle’s South Lake Union neighborhood and just three blocks north of REI’s flagship store.
Built in 1994, the 86,525-square-foot building, which is managed by Precision Management Company Inc., includes both residential apartments and executive suites for visitors. According to the Union Bay Apartments Web site, each apartment is equipped with modern appliances like a washer and dryer, dishwasher, refrigerator and oven. The complex also provides community features that include garage parking, a fitness center, rooftop garden and sun deck with picnic areas and a BBQ.
The apartments range from studios to one-bedroom one-bathroom, two-bedroom one-bathroom and two-bedroom two-bathroom units, costing anywhere from $1,380 to $2,850 per month. A unique aspect of the complex is that it offers fully furnished units for visitors. Those suites are available for short or long-term renting and include full access to all the amenities of the community. Prices for the furnished suites range from $675 per week to $1,000 per week.
In a press release from Colliers International, Anderson stated, “This was a remarkable purchase for Champion, and the result of a targeted approach of hallmark assets in the market that fit Champion’s business model.”
According to a 2016 fourth quarter report from Apartment Insights, rent in the fourth quarter is down in all three of the most expensive submarkets in the Seattle-Bellevue area. Per unit, rent is averaging $2,272 or $2.84 per square foot in downtown Seattle, $2,119 or $2.47 in Bellevue and $2,065 or $2.69 in South Lake Union. This comes mainly as a result of increased supply in the market, which over the next two years will continue to expand. The report is tracking 13,876 units that are scheduled for a 2017 completion, as well as envisioning another 10,744 units in 2018.
In the report, Tom Cain added, “We believe the market may have peaked in the third quarter of 2016. Looking forward, we see rent increases slowing along with vacancies and rental incentives rising. This quarter appears to mark a turning point.”