In the wake of the COVID-19 crisis, the commercial real estate industry seems to have come to a screeching halt. Two asset classes, however, continue to see some activity (industrial and multifamily), and both will most likely emerge as the assets with lasting stamina. Last week, the region saw another large transaction complete, as Seattle-based Urban Housing Ventures spent $49.7 million, or roughly $700,000 per unit, on the five-story, 71-unit Borgata Apartments in Bellevue.
The apartment complex is located at 37 103rd Ave NE in Bellevue, just south of the city’s urban core. It features studio, one- and two-bedroom units that range in size from 595 square feet to 1,380 square feet. The seller of the complex was Denver-based UDR, which owned the property since May of 2007. At that time, UDR paid $31 million for the complex.
According to an archived post from UDR, the building is located adjacent to iconic Downtown Park in Bellevue and is in close proximity of a number of retailers, cafés, fine dining establishments and boutiques of the Old Bellevue district. The luxury apartments feature designer finishes, natural lighting, as well as ample storage space.
Urban Housing Ventures is a Seattle-based multifamily investor working to solve for a gap in the middle-income affordable housing segment with a unique structure that provides an immediate high net present value impact outcome, according to a LinkedIn posting of one of its principals, Mollie Fadule.
“We are acquiring existing Class A multifamily communities and converting units to ensure an average of 40 percent of the units in our portfolio serve the 60-80 percent average median income segment,” stated Fadule on her page. “Our platform uses only private capital investment and is positioned to deliver a solid risk adjusted return to investors with a double bottom line impact.”
For more than 45 years, UDR (which has also been known over the years as United Dominion Realty Trust and United Dominion Residential Communities) has focused on providing distinctive, high-quality apartment homes paired with exemplary service and amenities, according to the company’s web site. UDR invests in apartment communities in some of the country’s most desirable locations, from New York’s Upper West Side to San Francisco’s Mission Bay District, and hundreds of great neighborhoods in between. UDR focuses on places that have it all: first-rate shopping, superb restaurants, lively nightlife options, access to thriving business centers.
UDR has been active in the greater Puget Sound market for some time. In February of this year, the company announced plans to acquire the 259-unit Brio apartment complex in Bellevue for $170 million, or around $656,000 per unit. This sale will be closing in 2021, according to a company statement. In 2017, UDR sold the 211-unit 8th & Republican Apartments in Seattle for $101.3 million, and it invested $102 million to buy the CityLine apartment complex in Columbia City.