By Meghan Hall
Scottsdale, Ariz.-based apartment management and investment firm Pillar Communities is quickly continuing the expansion of its Pacific Northwest portfolio with the purchase of two apartment communities in Seattle. Both deals — in which Pillar bought the Reverb Apartments and Decibel Apartments complexes from Calgary, Alberta-based Graham Construction and Engineering — closed at the beginning of February for a combined $58 million.
The smaller of the two transactions, the Decibel Apartments, is located at 301 12th Ave., in between the growing Yesler Terrace and Squire Park neighborhoods. The seven-story, 75-unit apartment building sold for $27 million, or about $360,000 per unit. The building offers an array of studio, one- and two-bedrooms which can range in size from 481 to 658 square feet, according to Pillar’s website. Completed in 2016, the building is newly constructed and hosts a wide variety of amenities, including: 24-hour package delivery, an on-site fitness center and a garden rooftop complete with a dog run, pet wash station, fire pit and barbecue. With a WalkScore of 93 and a TransitScore of 99, the property is easily accessible to downtown, Capitol Hill and Pioneer Square.
The Reverb Apartments Complexis located just a block away from Decibel, at 1023 E. Adler St., but is slightly larger at 85 units. Pillar Communities paid $31 million, or around $364,705 per unit for the property. The apartments and amenities are also similar in size and scale to its Decibel counterpart. A combination of studio, one- and two-bedrooms, most units are between 446 to 1,019 square feet in size. The units come equipped with stainless steel appliances, quartz countertops and wood vinyl flooring. On-site parking and a large clubroom and game room are part of the amenities package offered for the building.
The two acquisitions bring Pillar Communities’ total portfolio in the Puget Sound region to six properties; Pillar also owns the Aperture on Fifth, Helix and Ellipse, Pine and Minor, The Cornelius and Soren Ballard throughout the Seattle. The transactions occurred during what is so far a busy first quarter for the Seattle apartment market. Footprint Investments sold three of its micro-apartment buildings in Seattle for $28.4 million, while The Raleigh Manor Apartments in the Pinehurst neighborhood traded for $12.3 million to Henry Prosperous LLC, an entity based in Renton, Wash., just days after Pillar Communities closed on its two properties.
Founded in 2000, Pillar’s other properties are all located in and around Phoenix, Ariz., where the company began. Today, Pillar has a total of 17 communities and 4,217 units in Arizona and the Puget Sound region. According to Pillar’s website, the company is pursuing expansion and hopes to continue investing in more properties in Arizona and beyond.