By Meghan Hall
Apartments across the Puget Sound continue to sell at a rapid pace, and PGIM has added to the trend with its recent disposition of the Vantage Park at First Hill and 700 Broadway complexes in Seattle. The deal closed on September 9th, according to public records. Combined, PGIM sold the assets for $68.4 million.
The buyer of the properties is 1011 E Terrace St. Owner LLC, which is affiliated with Bellevue-based American Property Management.
In the larger of the two deals, the Vantage Park at First Hill property at 1011 E Terrace St. sold for $34.9 million, or about 383,516 per unit. The asset itself is located at 1011 E Terrace St. According to Apartments.com, the property was originally constructed in 1999 and it features one – and two-bedroom units ranging in size from 784 square feet to just over 1,000 square feet. Rents begin at $2,325 per month. In-unit amenities include walk-in closets, bathtubs and stainless steel appliances. In all, there are 91 units spread out over six stories.
Residents also have access to a fitness center, planned social activities, clubhouse grill and roof terrace. Bike storage, online services and a renters insurance program is also available.
In a second deal, American Property Management acquired 700 Broadway for $33.5 million, or about $567,796 per unit. Built in 2003, the community contains 59 units. Residences, which are between 426 square feet and 1,115 square feet in size, have been recently renovated and feature hard surface floors, quartz countertops and stainless steel appliances. Community amenities include a zen garden, grill and picnic area.
Seattle’s recovery is continuing to “make headway,” with the multifamily asset class helping to lead the way. A combination of reopening, as well as additional stimulus funds, are continuing to bolster investor outlook, according to a Summer 2021 report released by Yardi Matrix. $631 million in stimulus was received by King County, and $128 million was directed towards Seattle specifically.
As of may, rents had increased 0.4 percent to $1,813. Investors are continuing to take note of improving fundamentals. Yardi Matrix notes that 6,959 units traded between May of 2020 and May 2021. Of the 39 assets that sold, 47 percent were considered part of the “lifestyle” segment, 46 percent were RBN communities. The remaining seven percent that sold were classified as fully-affordable. As money continues to flow into the Puget Sound, through stimuli and other measures, Yardi Matrix predicts that multifamily fundamentals will improve.