Glen North Creek, formerly known as Meridian Glen, a 87-unit apartment community located at 12115 Meridian Ave S in Everett, sold last week for $14.1 million, or just over $162,000 per unit. The buyer was West Palm Beach, Fla. -based Priderock Capital Partners. The seller was Randolph Street Realty Capital, a multifamily investment and management firm based in Chicago. It had acquired the asset in November of 2013 for $8.5 million assuming a HUD loan with an effective interest rate of 3.55 percent with a 35-year amortization and term at the time.
Priderock owns one other asset in the region, the 264-unit North Creek apartments located at 11401 3rd Ave SE in Everett, which it acquired in July of 2016 for $42 million, or just over $159,000 per unit. The seller was Los Angeles-based Lowe Enterprises, which had purchased the asset in Augusts of 2014 for $29.9 million, or just over $113,257 per unit, from BRE Properties, now part of San Mateo, Calif. -based Essex Apartment Homes.
Glen North Creek has a mix of one-bedroom, two-bedroom and townhome-style homes. It boasts a number of amenities, such as a fitness center, a heated indoor lap pool, an outdoor community deck and a Swedish sauna among others.
As the region’s job prospects continue to increase pressure on housing in the region, the northern suburbs of Seattle have seen steady rental growth and increase in occupancy. Snohomish county, including Everett, have been the beneficiaries of that transformation. The US Department of Housing puts Everett in metro region with Seattle and Bellevue, and in its latest Comprehensive Housing Market Analysis of the region from September of 2015 it states that the overall rental market in the area is tight, with an estimated vacancy rate of 4 percent. The report estimates demand of 25,800 new, market rate units during the 3-year forecast period with an estimated 16,350 units under construction meeting only a portion of that demand.
Everett itself has most of its future developments focused around the redevelopment of the Port of Everett, a $350 million project to redevelop its 65-acre North Marina property, Waterfront Place, that will offer over 300,000 square feet of retail, office, restaurant and hotel spaces, along with 660 new residential units.
Another proxy market is in Bothell, just south of Everett, which has seen a number of recent sales, as well. In October Griffis Residential, a Denver-based multifamily investment and management firm, has purchased Bridges at Northcreek, a 524-home multifamily community located at 20225 Bothell Everett Highway for $145 million from Grosvenor Americas. And in downtown Bothell Vancouver, BC-based Belkorp Holdings purchased the 203-unit Six Oaks mixed-use development for $63 million or $310,344 per unit.