Home Finance Greystar Buys 645-Unit Shorewood Heights Apartments on Mercer Island for $209.7MM

Greystar Buys 645-Unit Shorewood Heights Apartments on Mercer Island for $209.7MM

Seattle, Greystar Real Estate Partners, , Olympic-Ida Shorewood Heights LLC, Pinnacle, CS Capital Management, Berkadia, Mercer Island
Image courtesy of Shorewood Heights Apartments

By Jack Stubbs

Prominent multifamily developer and owner, Charleston, SC-based Greystar has recently added another residential asset to its growing Seattle portfolio with its capture of the 645-unit Sherwood Heights Apartments on Mercer Island.

On Tuesday October 31st, the Shorewood Heights Apartments sold for $209.7 million, or roughly $325,116 per unit, according to public records filed with King County. Greystar Real Estate Partners provides property management services, investment management services, and development and construction services in the residential real estate market. The seller of the asset was Olympic-Ida Shorewood Heights LLC, an entity located in Washington affiliated with John A. Goodman. The deal was recorded on October 31st.

Olympic-Ida was a partnership between John Goodman, Olympic Investors (an equity platform within Pinnacle) and a public pension fund represented by CS Capital Management of Los Angeles, according to a statement released by the Daily Journal of Commerce. The Berkadia team of David Sorensen, Kenny Dudunakis and Ben Johnson represented the seller.

Olympic-Ida acquired the property in 2010 for almost $110 million.

Built in 1949, the luxury apartment complex is comprised of 645 units across two stories. The property offers a mix of unit types including studio, one-bedroom, two-bedroom, three-bedroom and one four-bedroom unit. According to the property listing on apartments.com, studios are 550 square feet; one-bedroom units range from 663 to 725 square feet, with rental rates between $1,426 and $2,061; and the two-bedroom units range in size between 760 and 1,186 square feet, with rental rates between $1,568 and $2,270. The three-bedrooms come in at 1,183 square feet and rent for $2,426 a month. Finally, the four-bedroom penthouse apartment is 1,382 square feet in size.

Some of the prominent apartment amenities include hardwood floors, full-sized washer and dryer, large closets, carpeting in the bedroom areas and an attached patio/balcony area, according to the property’s web site. Some of the on-site community amenities include a 24-hour fitness center, a business center and a clubhouse and outdoor patio area.

Located at 3209 E. Shorewood Dr., the residential complex is on the north side of Mercer Island, less than a mile from access to Interstate-90. The property is adjacent to the Gallagher Hill Open Space and sits just a mile south of Luther Burbank Park.

One of the nation’s largest multifamily developers, founded in 1993, Greystar currently has 400,000 units under management, a global real estate portfolio—across the U.S., Europe and Latin America—valued at $15 billion, and more than $7 billion in sponsored multifamily projects, according to the company’s web site. Greystar manages apartment complexes throughout Seattle, with assets in Downtown, Belltown, Capitol Hill, South Lake Union, Queen Anne and Leschi, among others. In October 2016, Greystar acquired the 506-unit Avalon Brandemoor apartment complex in Lynnwood for $132 million from AvalonBay Communities. Following that transaction, in February 2017, the company sold the 282-unit Radius, an urban apartment complex in Seattle’s South Lake Union, to a joint venture between the Beverly Hills, California-based Kennedy Wilson and New York-based LeFrak for $141 million.