Part of the Firm’s Commitment to Sustainability and Attainably Priced Urban Housing
Seattle, WA. – October 18, 2023 – Nitze-Stagen announced today that the Seattle-based real estate development firm has purchased two mid-century apartment buildings located at 2840 and 2852 Eastlake Avenue. This acquisition allows for the preservation of attainably priced apartment homes in the popular Eastlake neighborhood.
This is the first time the properties have been for sale; the buildings were developed in 1957 and 1958 by the current owner. Nitze-Stagen paid $22 million (about $213,592 per unit) for the adjacent six- and five-story masonry and concrete apartment buildings. In total there are 103 (78 units in 2840 Eastlake and 25 units in 2852 Eastlake) one-bedroom apartments at an average of 500 sq. ft. There are also 54 parking spaces which will be retained as parking for tenants. There are no associated commercial or retail uses in either building.
Combining Nitze-Stagen’s acumen for preservation and multi-family housing expertise, all 103 units will be renovated as leases roll-over. Common area upgrades will commence sooner with building energy efficiency improvements, life-safety upgrades, brightening of stairwells and access corridors, modernizing common areas, adding amenities such as a gym and secured bike storage in unused spaces, and exterior updates that highlight the mid-century architecture, along with native landscaping in outdoor areas and the public realm.
The purchase meets Nitze-Stagen’s core values of renovating and reuse of existing buildings to reduce carbon emissions, providing housing along transit-oriented and walkable neighborhoods, and a long-term commitment to stable, attainably priced urban housing.
Even with building upgrades, rents will be at or below 80% of the area medium income to preserve housing affordability in a very tight Eastlake rental market. “Preserving attainably priced housing is itself an exercise in sustainability–we have a long history of revitalizing older buildings that many other developers would ignore or demolish,” said Peter Nitze, Principal and CEO of Nitze-Stagen.
“Older buildings such as these in Eastlake can offer more affordable housing options than newer buildings all while contributing to the diversity and vibrancy of the city.”“Given the age of the buildings, size of the two lots combined at 70,824 sq. ft., and the desirable location, these parcels could have easily been redeveloped into luxury apartments. But we believe that a healthy supply of older buildings is needed for long term neighborhood affordability, and it helps to preserve community character with a blend of old and new architecture.”
“2840 and 2852 Eastlake Avenue are part of our commitment to keeping Seattle affordable for people across all demographics,” concluded Nitze. “There is no one model, it takes a variety of strategies and while new construction is part of the mix and our on-going work, today’s complex and costly process of new development means that we are not keeping up with demand. Preserving attainably priced housing is an important supplement and can also help to prevent displacement.”
“We are excited to add these two buildings to our existing residential portfolio of 1,345 units of affordable apartment homes in the city of Seattle, already built or in the development pipeline.”