By Jon Peterson
Seattle-based developer Brian Regan has placed on the market for sale the mixed-use project known as Fremont Court in the Fremont neighborhood of Seattle. This is the first time in 22 years that the property is offered to the market. The asking price on the sale of the property is $18 million, according to sources aware that the property is up for sale.
The current owner of the complex has selected the Seattle office of Lee & Associates to be the listing agent on the sale. Those working on the sale include Candice Chevaillier, principal, Daniel Kim, associate vice president, and Dea Sumantri, associate.
The property is now on the market for the second time in as many years. It was initially marketed during 2020, however, the asset ran into some issues with the retail and office tenants in the commercial space that led to a number of vacancies during the breakout of COVID-19 during 2020. This has now all been resolved, and the property overall has been stabilized. The asset currently has an occupancy level of 97 percent, according to sources familiar with the property.
The mixed-use property is located at 3414-3424 Fremont Avenue North. It consists of 17 apartments and 18 commercial spaces. The five buildings in the property total 42,607 net rentable square feet. The asset is expected to attract strong investor interest. This could include the capital source of local family offices.
Should the price point be reached, the sale of the commercial space would result in a 5.88 percent cap rate and the sale of the apartments would yield a 5.25 percent cap rate. These returns have factored in the current net operating income of the property.
Fremont Court is located on a parcel of 17,086 square feet of land. It covers roughly one-quarter of a city block. The asset does have a long-range potential for the new owner. It could be redeveloped, although the new owners would need to take the property through an entitlement process.
The current asset has a very strong central location. It is situated just near the Fremont Bridge with close proximity to the Fremont tech hub, South Lake Union and downtown Seattle.