By Jack Stubbs
In one of the larger multifamily sales this year, the first of a two-building luxury apartment property known as Broadstone Saxton in Seattle’s First Hill neighborhood sold on November 20th for $167.4 million. The second building, Broadstone Lexington, has not yet closed, King County records show.
The buyer was Chicago-based Equity Residential, a company that focuses on the acquisition, development and management of rental apartment properties in urban and high-density suburban coastal gateway markets across the U.S. The seller was Phoenix, AZ-based Alliance Residential Company, a national multifamily developer and property management firm.
Located at 520 Terry Ave and 1050 James St., the 400-unit Broadstone First Hill consists of two adjacent properties— the Saxton and Lexington— across the street from one another that, combined, offer just over 7,600 square feet of ground-floor retail space. Retail tenants include gourmet hamburger chain BurgerIM, the local Metropolitan Deli and Café, and Washington-based Locus Cider & Brewing Co.
The two-building asset was placed on the market in late August 2019 by Cushman & Wakefield, who represented Alliance Residential Company, the property developer.
The eight-story, Broadstone Saxton property, opened in January 2019, offers 325 contemporary units along with a variety of luxury amenities including a rooftop deck with views of the Puget Sound, indoor/outdoor sports lounge and a central courtyard. The property offers a mix of studio, one- and two-bedroom units, with rents ranging from $1,955 to $2,275.
Broadstone Lexington opened in March 2018, bringing 75 exclusive residences and 6,700 square feet of amenity space including a rooftop veranda, club room and a dedicated study lounge.
Construction financing was arranged and provided by the New York office of Helaba, also known as Landesbank Hessen-Thueringen Girozentrale, a firm headquartered in Germany.
When Broadstone First Hill was put on the market earlier this year, it was expected that the property would likely attract global investor interest in the luxury asset, in part due to its prominent location in the Emerald City’s downtown core. “Downtown Seattle has emerged as of one of the most dynamic and important urban centers in the world. The city is experiencing unprecedented levels of economic expansion that will continue to drive strong apartment fundamentals,” said executive director at Cushman & Wakefield Pete Shelton in a statement.
Founded in 1969, Equity Residential owns or has investments in 306 properties–consisting of 79,412 apartment units–primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, according to the company’s web site.
According to The Registry’s reporting, the firm was last active in the Puget Sound region earlier this year. In January 2019, Equity Residential acquired the Mark on 8th Apartments in South Lake Union for $74.1 million, or approximately $421,022 per unit, from San Francisco-based MacFarlane Partners.