By Meghan Hall
Apartment investors continue to wheel and deal in the Puget Sound market. In a transaction that closed at the beginning of February, but just recorded, Beverly Hills, Calif.-based Kennedy Wilson purchased the Paceline Apartments in Shoreline, Wash., for $90.25 million, or about $408,371 per unit. Public records indicate that the seller was an entity associated with The Rush Companies, a development and commercial real estate firm focused on the Pacific Northwest.
The property is located at 17202 Aurora Ave. N. and features 221 studios, one- and two-bedroom units. Apartments range in size from about 460 square feet to 1,340 square feet, according to Apartments.com. Because the complex is fairly new–built in 2018–it features modern finishes such as vinyl or hardwood flooring, double pane windows, vaulted ceilings and granite countertops. Community amenities include a fitness center and spa, roof terrace, sundeck and clubhouse.
The community is mostly surrounded by residential uses, but Black Coffee Northwest, Trader Joe’s and Shorewood High School are all within the immediate vicinity.
The Paceline Apartments seller and developer is one that specializes in the Pacific Northwest. According to the firm’s website, The Rush Companies is a partnership of six different firms: Rush Residential, Rush Development, Rush Capital, Rush Commercial, Rush Properties, and Edison47. The company has a number of projects within its portfolio, including The Hailey, a 166-unit development in Tacoma and the 203-unit Edgepoint Apartments in Seattle.
The Paceline complex was a collaboration between Rush Commercial and Rush Development, and as a luxury community, was built with the intention of giving residents “a high-end luxury feel with urban access,” according to Rush’s website. Rush states that the project value was about $35 million.
As Kennedy Wilson continues to build its Puget Sound portfolio, it also continues to grow. The company noted in an end-of-year financial release that it ended 2021 on a solid note, with 14 percent growth of multifamily NOI during the fourth quarter. The firm also completed $5.9 billion in investment transactions during the 2021 fiscal year, which grew net operating income by $40 million.