By Meghan Hall
A newly-constructed apartment complex in Kent has traded hands, adding to the number of multifamily sales closing across the Puget Sound. In a deal that closed August 18th, the first phase of the Ethos Apartments complex in Kent, Wash., sold for $113 million. According to public records, the seller was affiliated with Auburn-based HAL Real Estate. The buyers were multiple limited liability companies affiliated with The Shidler Group, based in Hawaii.
The garden-style multifamily community is located at 2200 W. Meaker St., and it totals 492 units. Residences include studio, one-, two-, and three-bedroom units which range in size from about 650 square feet to just over 1,200 square feet.
According to the community’s website, rents begin at around $1,400 per month. Residences come equipped with wood style flooring, quartz stone countertops, full-size washer and dryers and stainless steel appliances.
In addition, 18,000 square feet of retail, as well as community amenities ranging from a seasonal pool and designated game areas for bocce ball and cards, to a 24 hour fitness center and community lounge. Biking and hiking trails surround the property, which is also situated just adjacent to a golf-course.
The community is divided into two sections, dubbed “The Podium” and “The Loop,” each with similar offerings.
“Our Podiums offer an elevated sense of style with mountainous views and sophistication to exceed your aspirations,” the property’s website states. “Welcome to a decadent lifestyle that truly provides the best qualities of living.”
HAL Real Estate, as well as FNW, won the right to develop the property in 2016. Initial construction on the first phase began in the Spring of 2018. The first phase was completed in the second quarter of 2020, according to HAL Real Estate’s website, with the remaining units underway. According to a source familiar with the transaction, just the first phase–totaling 288 units–was included in the transaction, meaning the property sold for about $392,361 per unit.
The Shidler Group acquired the property in two transactions. In the larger of the two deals, the investment firm paid $88.14 million. In the second transaction, The Shidler Group paid $24.86 million. Both sets of excise tax documents list the same parcel numbers and addresses for the property; however, The Shidler Group has a history of separating land from buildings in its deals.
In 2018, the company acquired the Microsoft-Leased Advanta Office Commons in Bellevue for $224.85 million, and later in 2020 placed the campus on the market for $190 million. The land beneath the buildings, also owned by acquired by The Shidler Group, has been donated to the University of Washington. The ground lease for the property is expected to expire in about 96 years.
Since its establishment in 1972, The Shidler Group has acquired debt or equity investments in more than 2,000 properties. The company has also founded five NYSE-listed public corporations that have issued more than $20 billion in debt and equity securities, according to its website. Many of the company’s ground leases and passive ownership of land is held for the “benefit of educational institutions” supported by The Shidler Family Foundation.