By Kate Snyder
An apartment complex in Seattle traded hands recently in a sales transaction that shows investors continue to be attracted to the city’s multifamily market. The 166-Unit Harrison Square Apartments was sold for $60.1 million, or approximately $362,048 per unit, according to King County property records. The buyer was an entity affiliated with ColRich, and the seller was an entity affiliated with Equity Residential Properties, an apartment management company.
Located at 312 2nd Ave. W, the nine-story building was constructed in 1994, according to Apartments.com. The complex offers a mix of studios, one- and two-bedroom apartments that feature white and stainless steel appliances, hard-surface flooring, upgraded lighting, in-home washers/dryers and private balconies. Community amenities include a 24-hour fitness center, underground garage parking and an off-leash dog park on the structure’s rooftop.
Harrison Square sits in the Uptown neighborhood and is in proximity to a number of restaurants and museums. Positioned nearby are the Puget Sound waterfront, Seattle Center, Space Needle and KeyArena.
Berkadia Institutional Solutions Managing Directors David Sorensen, Ben Johnson, Director George Pallis and Senior Managing Director Kenny Dudunakis of Berkadia Seattle completed the sale on behalf of the seller.
“Harrison Square is a very well-located apartment community in the vibrant Lower Queen Anne neighborhood of Seattle,” said Sorensen. “Not only does the property have significant upside through renovations, but we are seeing an upswing in energy throughout many of the downtown Seattle submarkets due to newly implemented back-to-office policies by Amazon and other large employers. The new owners of Harrison Square should be able to capitalize on both, leading to higher rents in the near and long term. We were thrilled to be a part of this transaction and believe it was a great result for both buyer and seller.”
Senior Managing Directors Kevin Mignogna and Charlie Haggard, and Senior Director Vincent Punzi of Berkadia Irvine secured permanent acquisition financing on behalf of the buyer. The 10-year loan was financed through Freddie Mac. King County property records show that the loan amount came to about $39.1 million.
“In partnership with Kevin, Charlie, and our investment sales team, the transaction was smooth from beginning to end,” said Punzi. “Freddie Mac’s creative credit structure allowed us to maximize loan proceeds for ColRich, and we appreciate the opportunity to provide the financing.”
ColRich is a real estate, construction and investment firm with a focus on the multifamily and single-family markets, according to the company’s website. The firm’s development history includes the entitlement, construction, marketing and sales of single-family homes, townhomes, apartments and mid-rise platform condominiums.
The Seattle purchase is not the only Pacific Northwest sales transaction ColRich has been involved in recently.
Earlier this month, the firm bought the Seasons at Farmington Reserve, a 228-unit multifamily community in Bend, Ore., according to The Registry’s previous reporting. That property sold for $63.1 million, or approximately $276,754 per unit. Located at 61560 Aaron Way, the garden-style community was built in 2017 and spans nine, three-story residential buildings and a clubhouse. It comprises one- and two-bedroom floorplans averaging 916 square feet. Situated on a 7.1-acre site, the community is positioned just south of Reed Market Road and east of Highway 97.