By Jack Stubbs
Charleston, North Carolina-based Greystar, a prominent developer and owner of multifamily properties, recently added another residential asset to its growing Seattle portfolio with the capture of the ZIG Apartments located in Seattle’s First Hill neighborhood.
The property sold on Friday, January 19th for $68.5 million, or roughly $402,941 per unit, according to public records filed with King County. The seller of the property was Seattle-based developer Intracorp, who was represented in the transaction by JLL, and Los Angeles-based Resmark Apartment Living.
“Zig Apartments offers Greystar a rare opportunity to acquire a best-in-class multifamily asset in the strategic gateway market of Seattle. The property will greatly benefit from the city’s robust employment growth and resulting positive rental trends,” said Kevin Kaberna, executive director and leader of Greystar’s US investment platform, in a recent statement made by the company. “This core plus acquisition is indicative of Greystar’s continued commitment to acquiring core assets in up-and-coming areas of gateway markets where we can deliver maximum returns and outstanding value to our investors,” Kaberna added.
The ZIG Apartments was built in 2017 and comprises seven stories, according to the property listing on apartments.com. The property offers a mix of studio, one- and two-bedroom apartments, according to the property’s web site. The studios range in size from 361 to 486 square feet and rent for between $1,520 and $1,730; the one-bedroom units range from 456 to 670 square feet, with rents between $1,780 and $1,965; and the largest units range from 800 to 1,033 square feet and rent for between $2,985 and $3,295.
According to the property web site, some of the in-unit apartment amenities include plank flooring, quartz countertops, stainless steel appliances and private balconies and courtyard patios. Community amenities available to residents include lobby lounge, secure resident parking garage, on-site fitness studio and a rooftop deck.
Located at 550 Broadway, the property is roughly one mile north of Seattle’s historic Pioneer Square neighborhood and approximately two miles from the waterfront in downtown Seattle. Additionally, the property is less than two miles from access to Interstate 5.
Founded in 1993, Greystar is one of the nation’s largest multifamily developers. The company currently has more than 400,000 units under management across 140 markets, a global real estate portfolio valued at $16.5 billion, and more than $7 billion in sponsored multifamily projects, according to the company’s web site. The company offers a wide variety of services to its clients including property management, investment management and development and construction services.
Greystar currently manages 11 apartment complexes throughout Seattle, according to the company’s web site, with assets in Downtown, Belltown, Capitol Hill, South Lake Union, Queen Anne and Leschi, among others. Some of these properties include the 62-unit Post Alley Court Apartments downtown; the 211-unit Excelsior Apartments; and the 189-unit Martin Luxury Apartments in Belltown.
Greystar has also been active in Seattle’s residential market in recent months. In November 2017, the company completed a significant acquisition with their capture of the 645-unit Shorewood Heights Apartments on Mercer Island for $209.7 million from Olympic-Ida Shorehood Heights LLC.
Intracorp focuses on real estate acquisition and development in California, Hawaii, and throughout the Northwest. The company has developed 27 million square feet and has successfully invested more than $1 billion on behalf of global institutions, real estate investors, family offices and high net-worth individuals, according to the company’s web site.