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Largest Privately Developed “Net Zero” Multifamily Property in the U.S. for Sale on Bainbridge Island for $22.4MM

Kidder Mathews, Bainbridge Island, Capstone Real Estate Group, The Walk on Bainbridge Island
Courtesy of Kidder Mathews

Seattle, Wash. (January 28, 2021) – The largest privately developed “net zero” apartment property in the United States has been listed for sale. The Walk on Bainbridge Island is a 38-unit multifamily community located at 401, 405, 519, 521 Madrona Way NE in Bainbridge Island, Washington. The units in the four buildings that comprise the property are spacious, averaging 1,123 square feet, and current rents average $2,724. Kidder Mathews’ Dan Swanson and Donna Marshall from Capstone Real Estate Group are marketing the property for $22,400,000 at a 4.27% current cap rate.

The Walk on Bainbridge Island is a 2019-constructed apartment property designed and built with high-quality materials like insulating concrete form (ICF) walls, condominium-quality finishes, and cutting-edge energy efficiency standards, which provide for low maintenance. The buildings’ solar panels and insulation allow the property to operate without an electric bill to the residents; it produces all its energy.

Located in the ‘A’ residential submarket of Bainbridge Island’s downtown Winslow, it is about eight miles west of downtown Seattle with significant barriers to entry, low supply, and strong demand with demographics comparable to downtown Bellevue. The year-round ferry connection to downtown Seattle is a 35-minute ride. The area features consistently high levels of apartment occupancy and home appreciation. Residents are close to the city center but appreciate safety, lower density, and outdoor experiences.

The Walk on Bainbridge Island is a safe investment with reliable cash flow. The Walk operates at near 100 percent occupancy with no delinquencies or current concessions. The buildings’ rents have increased at an average of four percent upon turnover since lease-up, which occurred as COVID-19 restrictions were first put into place.

“The Walk’s economic fundamentals are stronger than any other building in the Puget Sound market,” said Swanson. “Its large units, ‘ahead of its time’ construction, walkable location, and proximity to downtown Seattle make it a work-from-home paradise,” he said.

About Kidder Mathews
Kidder Mathews is the largest independently owned commercial real estate firm on the West Coast, with 900 real estate professionals and staff in 21 offices in Washington, Oregon, California, Nevada, and Arizona. Kidder Mathews offers a complete range of brokerage, appraisal, property management, consulting, project & construction management, and debt & equity finance services for all property types. The firm performs $8 billion in transactions, manages over 70 million square feet of space, and conducts over 1,800 appraisals annually.