By Jack Stubbs
Mercer Island-based Keeler Investments Group (KIG), a company that invests in office, retail, mixed-use and industrial properties throughout the Puget Sound region, recently made moves to expand it’s Pacific Northwest portfolio, this time targeting a condo property in Seattle’s ever-busting Capitol Hill neighborhood.
On September 26th, in a transaction that was recently recorded, the company spent $10.46 million to acquire the The Montage Condominiums from Mountainland Estates LLC based in Logan, UT, King County records show.
Marcus & Millichap’s Seattle office listed and sold the property.
Built in 2007, The Montage Condominiums property is located at 1422 Boylston Ave. immediately adjacent to the ever-active Pike/Pine corridor, and comprises 24 condo units across six stories, according to the property listing on apartments.com.
According to Reologics Sotheby’s International Realty (RSIR)’s web site, the Montage Condominium property was put on the market in mid-June 2019. Rents will increase by $100 per unit at a market cap rate of roughly 4.57 percent. The total estimated market value of the sellable units is about 28 percent higher than the current offering price.
The property sits in close proximity to the Pike/Pine corridor, where another residential project has been taking shape over the last couple of years. In June of 2018, Spokane, Wash.-based SRM Development acquired the historic Knights of Columbus building in Seattle’s Pike/Pine neighborhood located at 722 E. Union Street for $18.5 million.
SRM Development, along with Runberg Architecture Group, plans on incorporating the original structure into its new plans for a 128-unit project planned for the site, which was most recently approved by the East Design Review Board in mid-August 2019.
Both The Montage Condominiums and the in-the-works development are located just blocks from Cal Anderson Park and Seattle Central College, and are also roughly one mile East of local Seattle attractions like Pike Place Market, the Washington State Convention Center and Westlake Park.
In June 2019, Holliday Fenoglio Fowler, (HFF) announced that it had secured $31.3 million in construction financing for the development of Pivot, a 71-unit mixed-use property under-construction in Seattle’s Capitol Hill neighborhood. The mixed-use project, the site for which was acquired by developer Vibrant Cities in August 2016, will also include a rooftop deck and 22,300 square feet of ground-floor retail.
In late July, The Lavanch Apartments, a 20-unit apartment building located at 956 10th Ave E., sold for $6.85 million, with Alavanch LLC selling the building to Kianfar LLC.
KIG currently owns and manages more than 500,000 square feet of commercial properties (including office, retail, mixed-use, multifamily, flex and industrial) and 700 acres of land in the greater Puget Sound region, according to the company’s web site.
In Seattle specifically, the company also owns the nearly 36,000 square foot Ford Building located at 1521 10th Ave., and the 10-story Seaboard Condominium property in the Central Business District, which is a historic landmark building originally constructed in 1909.
According to The Registry’s reporting, KIG was last active in the Puget Sound region in second quarter of this year: in May 2019, the company sold the 80,000 square foot Marymoor Technology Center in Redmond to Seattle-based Unico Properties for $23.5 million, or approximately $296 per square foot.