By Jack Stubbs
RISE Properties Trust, a Canada-based real estate trust that focuses on the multifamily sector in the greater Seattle area, on August 13th acquired another apartment complex in Seattle’s Capitol Hill neighborhood as part of a joint venture with Cigna Investment Management.
The purchase marks the 13th local acquisition for RISE.
On Monday, August 13th, the company purchased the Modera Capitol Hill Apartments for $69 million, or approximately $511,111 per unit, according to public records filed with King County. The seller was Dallas-based Mill Creek Residential.
For the seller, the sale of the Modera represented a continuation of Mill Creek Residential’s strategy in the Puget Sound region. “This [sale] isn’t representative of any big strategic change for Mill Creek, we are still active and dedicated to the Seattle market. This was an off-market transaction and the opportunity aligned well with our and our partner’s strategy,” said Sean Hyatt, senior managing director for Mill Creek Residential’s Pacific Northwest division based in Bellevue.
The six-story Modera Capitol Hill Apartments, located at 1427 11th Ave., contains 135 apartment homes over subterranean parking, according to Mill Creek Residential’s web site. The property offers a mix of studio, one- and two-bedroom units ranging from 382 to 1,158 square feet. The studios rent for between $1,902 and $2,067; the one-bedroom units rent for between $2,149 and $2,229; and the largest units are available for between $3,658 and $3,958.
Some of the in-unit amenities include energy efficient stainless steel appliances, quartz countertops and LED lighting. The apartment complex also offers a full fitness center, club room, media room and outdoor courtyards. Other amenities include a large rooftop deck and access-controlled garage parking.
The apartment complex, built in 2016, is located on 11th Avenue in the heart of the Pike/Pine corridor of Capitol Hill. The property is just one block south of Cal Anderson Park and near the Capitol Hill Light Rail Station and several blocks north of Seattle University.
“Modera has an A-plus location—right in the center of the bustling retail, dining and nightlife hub of Seattle in Capitol Hill,” said Barrett Sigmund, President at RISE, in a statement released by the company. “Modera is already a WHFHA award-winning building and, as its new owners, we want to further enhance our residents’ living experience with technology upgrades and by transitioning property management to Thrive Communities. We believe the location, product, boutique-living experience and best-in-class management will be a winning combination.”
Modera will be managed by Thrive Communities, a Seattle-based company with more than 9,000 apartments under management.
RISE Properties’ capture of the Modera Capitol Hill Apartments adds to the company’s portfolio of 11 other apartment properties throughout the Puget Sound region. Some of these include the 192-unit Artestia By the Lake apartment community in Everett; the 83-unit Borgata property in Renton; and the 126-unit Station Nine apartment complex in Lynnwood.
RISE has been active in the region in recent months. On March 22nd 2018, the company acquired the the 239-unit West Ridge Park Apartments in the Delridge district of West Seattle sold for $72.45 million, or approximately $303,138 per unit, from Grosvenor Group. In late April, the company purchased the 241-unit Rainier Pointe Apartments in Fife for $39.5 million, or roughly $163,900 per unit.
Along with the recent sale of the Modera Capitol Hill Apartments, the neighborhood has seen several mixed-use developments approved in recent months. In mid-June, an 8-story, mixed-use 71-unit development located at 1208 Pine Street—designed by Tiscareno Associates—was approved at a Design Review Recommendation (DRR) meeting. In late July, another 58-unit project designed by architect SHW and located at 420 Boylston Ave. E. was given the green light at an Early Design Guidance (EDG) meeting. And on August 8th 2018, a two-building, 228-unit project located at 1812 and 1818 Broadway—designed by Weber Thompson and developed by Mill Creek Residential—was approved at a DRR meeting.