By Jack Stubbs
Scottsdale, AZ-based Pillar Communities, a national property management firm specializing in luxury apartment properties, recently made moves to expand its Puget Sound region portfolio, acquiring the 2nd & John Apartments in Seattle.
On August 12th, the property sold for $40 million, or approximately $500,000 per unit, King County records show. The seller of the property was Bellevue-based Continental Properties, a residential development company that builds and owns multifamily properties throughout the Pacific Northwest.
Philip Assouad, Giovanni Napoli, Ryan Dinius, and Sidney Warsinske at IPA, Marcus&Millichap’s multifamily division, were involved in the transaction.
The 2nd & John Apartments, located at 200 Second Ave. W. in Lower Queen Anne, is a seven-story, 80-unit complex that was built in 2018, according to the property listing on apartments.com. 2nd & John offers a mix of studio, one- and two-bedroom units that range from 609 to 939 square feet and include various amenities like hardwood-style plank flooring, quartz countertops, private patios and walk-in closets, according to the web site for the property.
2nd & John also provides residents access to a number of community amenities including a 24-hour fitness center, rooftop pet park, and a rooftop that offers views of Elliott Bay and downtown Seattle.
Sitting adjacent to Myrtle Edwards Park and close to various city attractions like The Space Needle, Key Arena at Seattle Center and the Olympic Sculpture Park, 2nd & John’s proximity to the Central Business District, South Lake Union and Belltown is one of the property’s defining features, according to its web site. “Without leaving home, care for your pet and connect with neighbors and friends [and] take in wide bandwidth views of iconic Seattle sights. The 2nd & John community creates a neighborhood within a neighborhood. It’a Queen Anne location effortlessly links to Seattle’s waterfront, business and cultural core[s].”
There have been several multifamily apartment transactions in Queen Anne over the last few quarters, with the sale of 2nd & John the latest indication that interest in the neighborhood looks set to continue.
In mid-March 2019, the 29-unit Fifth Avenue Apartments located at 1401 Fifth Ave. N. sold for $10.1 million, or approximately $348,275 per unit, with Top of the 5th LLC acquiring the property from Laurence P. Gill based in Seattle. In early April, the 69-unit Aire Apartments located at 2572 Gilman Dr. W. sold for $28 million, or roughly $405,797 per unit, with Mercer Island-based Kami Limited Partnership acquiring the property from Gilman Terrace Holdings LLC based in Cave Creek, Arizona. Also in April, Timberlane Partners sold the Hudson Apartments, a 127-unit property located at 2450 Aurora Ave. N., for $38.75 million, or about 4305,118 per unit.
Founded in 2000, Pillar Communities’ national portfolio includes 17 properties comprising 4,217 units, and the company’s purchase of 2nd & John represents its latest foray into the Seattle market in particular. In mid-February 2019, the company purchased two apartment properties in Seattle—the 75-unit Decibel Apartments located at 301 12th Ave. in Yesler Terrace and the 85-unit Reverb Apartments located at 1023 E. Adler St.—for a combined $58 million from Calgary, Canada-based Graham Construction and Engineering.
Some of Pillar Communities other assets in Seattle include the 106-unit Aperture on 5th Apartments in Belltown; the 53-unit Borealis Apartments in South Lake Union and the Cornelius Apartments, a 9-story, 137-unit property located in the Central Business District.
Founded in 1977, some of Continental Properties’ current projects in the Puget Sound region include the 137-unit Lux Apartments in Bellevue; the underway 135-unit Bellevue Parkside Apartments and the 172-unit Roy Street Apartments in Seattle.