The Velmeir Companies Sells Uptown 11 Mixed-Use Development for $32MM

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By Brittan Jenkins

In a $32 million deal, The Uptown 11 sold to Xiao Investments Company in a deal that closed May 11th. The seller was an LLC associated with Michigan-based developer The Velmeir Companies.

According to King County public records, Xiao Investments Company paid $18,135,000 for the retail and kiosk units of the building. For that transaction, $27,426 was deducted in personal property resulting in a taxable selling price of $18,107,573. Xiao also paid $14,165,000 or $416,618 per unit for the 34 residential units. Public records show $123,561 was deducted in personal property resulting in a taxable selling price of $14,041,439.

According to a press release from Colliers International, “The sales price equates to over $830 per net rental square foot, a record for overall blended sales price of a low-rise mixed-use residential building in the Seattle market.”

The three-story, 34-unit building sits on a 17,026 square foot lot and was completed in August of 2016. The building also offers 16,000 square feet of retail which CVS currently leases, and has 65 below-grade parking stalls across two and a half levels. The units range from studios to two-bedrooms and sit on the top two levels of the development. There is a 9,500 square foot green roof with 2,145 square feet of roof deck amenity space, according to Sierra Construction which served as the general contractor on the project.

In January of this year, Xiao purchased Park Place Apartments, a luxury senior living complex in Everett for $11.28 million or about $132,706 per unit. The complex offers 85-units for senior citizens ages 55 and up. The property was originally built as a nursing home in 1965 but was later converted in 2015 to become residential apartments.

Velmeir has a presence in the city as well. Last April, the group announced that PCC Natural Markets will anchor a new mixed-use development. The project includes 75 one-, two- and three-bedroom apartments above PCC. The grocery store’s space is about 25,000 square feet.

Daniel Corcoran and Preet Sabharwal from the New York City office for Marcus Millichap represented the seller on the retail and kiosk units of the building. Dylan Simon, Senior Vice President, and Jerrid Anderson, Senior Associate, of Colliers International’s Seattle office, represented Velmeir Companies in the residential portion. Together, Marcus Millichap and Colliers International closed the deal.