Home Finance Hawaii-Based Investor Purchases Ballard Apartment Community for $53.5MM

Hawaii-Based Investor Purchases Ballard Apartment Community for $53.5MM

MacNaughton, Pryde Development Company, Ballard, Seattle, Keelson Ballard
Courtesy of Keelson Ballard

By Meghan Hall

Another Seattle apartment community has traded hands, this time to a developer from Hawaii. In a deal that closed this week, the Keelson Ballard apartments sold for $53.543 million, or about $503,933 per unit, according to public records. The buyer of the asset is Honolulu-based MacNaughton, which claims to be one of Hawaii’s “most active and innovative real estate developers.” 

Colliers’ Tim McKay, Dan Chhan, Sam Wayne and Matt Kemper represented the buyer in the deal.

“This was an excellent transaction for both parties, as opportunities to acquire institutional assets in Ballard are rare,” said Wayne. “Keelson is positioned to perform exceedingly well. The Ballard submarket has demonstrated consistent demand and rent growth throughout the pandemic. Vacancy currently sits at 3.3 percent and rents are up 13 percent year-over-year.”

The asset is located at 1537 NW 56th St. The asset was built in 2017, and public records indicate that the seller is a limited liability company known as Pryde Johnson Ballard 56th LLC. The entity is affiliated with Seattle-based Pryde Development Company and FA Johnson Development. The community features 105 one- and two-bedroom units that range in size from 538 square feet to 933 square feet.

“Clean, uncluttered lines, natural, abundant light, and quality materials complement a lifestyle of Scandinavian design,” the property’s website states. “Combined with superior functionality, home is as comfy as it is contemporary. Ballard’s finest, designed to inspire—some even with their very own panoramic view of the water.”

Apartments are equipped with designer backsplashes, custom, two-toned cabinetry, undermount sinks and air conditioning. Units also come with patios and balconies. Community amenities include a rooftop plaza, 24-hour gym, pet park, bike room and storage lockers.

The property is also centrally located, within walking distance of Target, Safeway, and a number of local eateries. The Swedish Ballard Medical Campus is also nearby, as is Salmon  Bay.

The asset’s new owner, MacNaughton, has built 4.5 million square feet of space over its 45-year history in Hawaii. It has built 49 projects in Hawaii, including $2 billion of residential homes and 2.5 million square feet of retail. According to MacNaughton’s website, this is its first property in the Puget Sound; the remainder of the firm’s portfolio is spread between Hawaii and Vermont.