Two properties in Seattle that are focused on Section 8, rental assistance units sold on June 30, 2017 for $43 million. Both properties were sold by Dallas, TX-based Pinnacle, a national apartment owner and operator that has properties in twelve states, and purchased by Sherman Oaks, CA-based GHC | Housing Partners, a national developer, owner and operator of affordable housing properties.
One of the properties is the Alaska House, a 105-unit apartment complex located at 4545 42nd Ave. SW in Seattle. 104 of the units are Section 8 assisted living units, and all of the Section 8 assisted units at this property are one-bedroom apartments. The property sold for $21.5 million, or $204,762 per unit, according to county records.
The second property is the International House, a 99-unit apartment building that is located at 607 South Maynard Avenue in Seattle. 98 of the units in this property are Section 8 assisted living units, and they are all one-bedroom apartments. This property also sold for $21.5 million, which comes to approximately $217,172 per unit.
Pinnacle has owned these properties since July of 2004, when it paid approximately $13.5 million for both buildings, according to county records. Pinnacle is a privately held organization that manages multifamily properties nationwide, according to its web site. It was established in 1980 and today is one of the largest multifamily management companies in the United States with a portfolio of over 172,000 units. Pinnacle works with pension funds, private partnerships, international investors, insurance companies, lenders, special servicers, syndicators, government agencies and high net worth individuals. In the state of Washington alone, it has properties in 39 cities.
GHC focuses on acquiring, developing and managing primarily affordable housing communities throughout the United States. Today, it owns and manages more than 170 properties, encompassing more than 20,000 units across 24 states with a market value exceeding $1.25 billion.
The King County Housing Authority provides rental housing and rental assistance to more than 18,000 families with low and moderate incomes throughout the county—except incorporated areas in Seattle and Renton. Tenants receiving rental assistance have been pushed out of Seattle with rising housing prices, according to one report from the Seattle Times, leaving many with few choices but to move out of the city.
It is not clear what the new owners plan to do with the two buildings at this time.