By Kate Snyder
In a continuance of its recent activity in the Pacific Northwest, Seattle-based Security Properties has purchased for $104 million, or approximately $504,854 per unit, a mixed-use property in Seattle that includes 206 residential units and 3,090 square feet of retail space, according to King County public records. The deal was a joint venture between Security Properties and STARS REI. The seller was an entity affiliated with Blume Company Real Estate.
The nine-story property, called 624 Yale Apartments and located at 624 Yale Ave. N in Seattle, was constructed in 2018, according to the property’s website. The building is 255,649 square feet and was constructed with steel, concrete, brick and glass. It sits on 0.24 acres just west of Interstate 5 in the city’s South Lake Union district.
According to Apartments.com, the complex offers studio, one and two bedroom apartments. Amenities include laundry and linen closets with washer, dryer and built-in storage shelves, kitchen islands in select homes, quartz countertops, stainless steel appliances and overhead storage. Outdoor features include a roof terrace, courtyard and picnic area. Some units also offer views of the Space Needle, Lake Union or Gasworks Park.
According to Alex Gauper, Director at Security Properties, “the acquisition of 624 Yale represented a unique opportunity to purchase a fully stabilized trophy mid-rise asset at a basis significantly below current replacement cost. As renters continue to return to the core, we feel 624 Yale’s dynamic location at the center point of Seattle’s most robust and diversified employment center well positions the asset to fully capture the recovery and future growth of the South Lake Union submarket. We are very excited to have a partner in STARS REI that shares in our long-term conviction and to add 624 Yale to our Seattle core portfolio.”
“We are delighted to keep increasing our residential portfolio in Seattle with Security Properties as our partner. We remain bullish in the long-term on this city due to its powerful and unique ecosystem” said Felipe Laso, Sr. Associate at STARS REI, a privately held real estate investment management company headquartered in Santiago, Chile. “We both share the conviction that opportunities appear in uncertain times, so instead of putting our pencils down, we are trying to be as active as possible in finding high-quality buildings such as 624 Yale.”
Security Properties was founded in 1969 and since then, the firm and its partners have invested more than $2 billion of equity in multifamily real estate, representing a portfolio value of nearly $5.9 billion, according to the company’s website. Currently, the firm’s portfolio reflects interests in 113 assets encompassing nearly 22,354 multifamily housing units – including properties under construction.
Founded in 1982, Blume Company Real Estate is also based in Seattle and according to its website, “seeks to enhance the vitality of the urban environment by building enduring projects which complement the character of the community.”
Jon Hallgrimson, Eli Hanacek, Mark Washington and Kyle Yamamoto with CBRE’s Pacific Northwest multifamily team represented the seller.
“The property’s central location to high-paying employers, abundant entertainment options, and outdoor amenities at Lake Union made 624 Yale an attractive investment option. The property’s high-rise quality of construction also offered a rare opportunity to acquire an asset at a significant discount to replacement cost,” said Kyle Yamamoto, first vice president at CBRE.