By Jack Stubbs
On June 19th, a multifamily property in the West Seattle—which is just south of Harbor Island and West of the Industrial District—changed hands, according to King County records.
The buyer—MHE Real Estate based in Marina Del Rey, California, a company that acquires and manages student housing, residential, retail and commercial properties throughout the U.S.—purchased the Nova Apartments for $18.3 million, or approximately $295,161 per unit, from New York-based Zurich Alternative Asset Management, a company that manages investments across hedge funds, private equity and U.S. real estate.
The transaction comes roughly a month after MHE Real Estate spent $18.7 million, or approximately $301,602 per unit, to acquire the Strata on California Apartments in West Seattle from Canada-based real estate company RISE Properties Trust.
The 5-story Nova Apartments, located at 4600 36th Ave. SW in the Delridge Neighborhood of West Seattle, contains 62 units and offers a mix of one- and two-bedroom units that range from 547 to 980 square feet and rent for between $1,378 and $3,000, according to the property’s web site. The units offer a number of features including vinyl plank flooring, stainless steel appliances and expansive windows, while community amenities include a community garden/lounge, bike storage and rooftop cabanas.
Adjacent to the West Seattle Golf Course, Nova Apartments is about six miles south of downtown Seattle via the West-Seattle Bridge and roughly two miles northwest of South Seattle College. Offering picturesque views of the Puget Sound and the Olympic Mountains, the property’s location is one of its main assets, according to the web site.
“Ideally situated near downtown Seattle, Nova defines modern, urban living. Take advantage of all the star attractions the area has to offer, including trend-setting restaurants, popular shops and striking outdoor destinations when you live in this pet-friendly apartment community.”
There have not been all that many multifamily property sales in West Seattle over the last few months, though MHE’s recent acquisition of the Nova Apartments follows on the heels of another purchase made by the company in the same neighborhood—in mid-May 2019, the company spent $18.7 million to acquire the 62-Unit Strata on California Apartments located at 6312 California Ave. SW.
MHE and Select Student Housing focus on the student housing sector across the West Coast. With over 4,000 beds under ownership, MHE creates luxury living for students in areas that are adjacent to 4-year universities, according to the company’s web site. MHE’s student housing properties tend to be fully rehabbed to a new construction standard of finish.
In terms of its overall development strategy for other property types, MHE focuses on acquiring, rehabilitating and managing commercial and residential properties while striving to enhance the qualify-of-life for businesses and tenants. MHE is actively looking to increase its unit count in markets where it already operates properties, in areas including Seattle, WA; Eugene, OR; and Los Angeles.
The company’s Puget Sound region portfolio also includes The Edge/Edge North Apartments in West Seattle, close to the West Seattle Junction and Alki Beach.
On the development side, there are several apartment projects in the works and planned for West Seattle currently undergoing Design Review. As one example, in November 2018, a proposal submitted by Caron Architecture and Capelouto Development Company for a seven story, 75-unit apartment building at 4508 California Ave. SW—located in the neighborhood’s up-and-coming Junction District—was granted approval the Southwest Seattle Design Review Board.
Founded in 2006, Zurich Alternative Asset Management (ZAAM) is Zurich Insurance Group’s dedicated alternative asset management platform. ZAAM’s strategy for U.S. Real Estate is consistent with Investment Management’s global strategy for Real Estate investments, according to the company’s web site. Totaling over 200 properties in 30 states, ZAAM’s U.S. real estate portfolio aggregates over 20 million square feet of commercial space. ZAAM targets investment opportunities in a number of West Coast markets including Seattle, Portland, San Francisco and Los Angeles.