By Jack Stubbs
A luxury apartment property on Mercer Island has just changed hands.
On Friday, October 20th, the Hadley Apartments sold for $95.75 million, or roughly $458,000 per unit, according to public records filed with King County. The buyer was San Rafael, California-based SyRES Properties, a commercial real estate investment firm. The seller was Foster City, California-based Legacy Partners, a privately held real estate firm that owns, develops and manages multifamily properties. JLL was the broker on the deal.
The property is more than 90 percent leased. Legacy will retain property management of Hadley, which marks a combined 2,125 units in ten communities under management in the Pacific Northwest Region, according to a statement by Legacy Partners.
“The very strong interest in the property, which is situated on a ground lease, represents the high quality of the asset and the fact that the island’s extremely high barriers to entry result in no other projects coming up behind us – a rarity in any submarket,” said Kerry Nicholson, Senior Managing Director of Legacy Partners in the statement. “Residents love residing in the peaceful village atmosphere of Mercer Island, but also having quick access to the high energy of both Bellevue and Seattle. We are grateful for our strong relationship with Resmark, and we are looking forward to building upon our expanding regional property management portfolio,” Nicholson added.
Built in 2016 and located at 2601 76th Ave SE, the property is comprised of 209 units. The property is less than half a mile from access to Interstate-90. The location of the apartment complex is one of its main attractions, according to the property’s website, as it sits near various dining options and commercial retailers. It offers “quietude and sanctuary, just minutes from Seattle’s urban attractions,” also in close proximity to the Town Center shopping complex and Luther Burbank Park. The property also provides easy access to downtown Seattle—5 miles to the west—or downtown Bellevue, 6 miles to the east.
The property offers a mix of studio, one-bedroom and two-bedroom unit options. The studios and one-bedroom units total roughly 564 square feet, while the two-bedroom units are approximately 1040 square feet. According to the website, the property provides a home “where high-end design and fluid function” meet, with interiors that reflect Mercer Island’s natural setting. Some of the prominent amenities include hand-selected unit finishes, large windows that allow natural lighting, contemporary kitchens and bathrooms with quartz countertops, walk-in closets and outdoor patios and balconies. The below-ground parking garage includes 237 spaces.
SyRES Properties focuses on the acquisition, development and management of multifamily residential properties, with approximately 500 units under ownership and a pipeline of over 1,000 units in various stages of development, according to their website. The company’s development pipeline and acquisition prospects are focused on the coastal cities of the western United States. Founded in 2014, the company has invested more than $80 million in residential real estate transactions in California, according to their website.
Founded in 1968, Legacy Partners has developed over 60,000 apartment homes. The company manages a portfolio of over 60 multifamily communities with more than 14,000 apartment homes, with a gross value of over $2 billion, according to their website.The company focuses their efforts in core markets in the Western U.S. with properties in locations throughout California, the Pacific Northwest, Colorado, Texas and Arizona. Some of the company’s apartment home complexes in Seattle include Legacy at Pratt Park in the Central District, Gilbert House in Queen Anne, and Bowman Apartments in Wallingford.