Home Finance Isherwood Apartments in Seattle Sell for $11.5MM

Isherwood Apartments in Seattle Sell for $11.5MM

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By Vladimir Bosanac

An 32-unit Fremont apartment complex located on 3614-3628 Linden Ave. N in Seattle traded hands at the very end of July for $11,546,800, or roughly $360,838 per unit. The seller of the complex was an entity associated with Charles Spaeth and Rebecca Brown, and the buyer was a group of LLCs associated with Rhoda Alton.

The three-story complex was built in 1989, and it features a combination of two- and four-bedroom units. The development is just off of Fremont Way N and Aurora Avenue N. It is a few blocks from Fremont’s retail corridor on Fremont Avenue N.

The sale is the just another in a long series of residential complexes that have traded hands across the region. Some developments have seen institutional and regional investors move into the market, but some private offices have been able to compete with in transactions similar to this one.

A similarly priced deal of 37 units sold on Capitol Hill in June for $11.8 million, or $318,919 per unit. Initially, the seller was asking for a higher price, according to a property flyer, which was advertised at $12.4 million.

According to a recent, second quarter of 2017 Apartment Insights report, rents in King and Snohomish counties has increased to $2.01 per square foot, which is a 4.6 percent increase over the first quarter and 7.6 percent increase over the second quarter of 2016. At the same time, incentives have been reduced to nearly half of what they were in the first quarter. However, there are 23,572 units under construction, 58 percent of that number in Seattle alone. The impact of those units on the market will result in easing some of the current pressure, although as the regional economy continues to be strong rent increases are to be expected for the foreseeable future.