In a $102 million joint venture, Denver-based UDR acquired luxury apartment homes CityLine in Seattle’s Columbia City neighborhood. In Q1 2017, the company paid $86.5 million for CityLine and $15.5 for CityLine II, an addition to the original apartments. UDR exercised its fixed price purchase option to acquire CityLine, as stated in its financial disclosures for the first quarter of 2017.
UDR utilized a fixed price purchase for CityLine, a 244-home West Coast Development Joint Venture community. For CityLine, UDR’s total investment was $86.5 million and was acquired at a 5.3 percent cash flow cap rate. The community also had an average monthly revenue per occupied home of $2,018 at the time of acquisition.
UDR also expanded its joint venture with a $15.5 million investment in CityLine II, which is a 155-home development located adjacent to CityLine. UDR retains a 49 percent interest in that development. UDR will receive a 6.5 percent return on its equity investment until stabilization of the community. Additionally, UDR has a fixed-price purchase option to acquire the property one year after completion. The details of the transactions were revealed in the company’s first quarter of 2017 financial results’ document.
CityLine, designed by Hewitt and VIA architecture and developed by Wolff Development Company, is located at 4740 32nd Ave. S. in Columbia City and is in close proximity to the Sound Transit light rail station. The development offers one and two-bedroom homes from $2,616 to $3,363, according to CityLine’s website.
The apartments include a wide range of amenities including a rooftop deck, 24-hour fitness center, a clubroom, private wine storage, courtyards, under-unit parking, indoor and outdoor fireplaces, bocci ball and bike services. Each unit comes with top of the line finishes including quartz countertops, GE stainless steel appliances, washers and dryers in unit, under cabinet lighting, and premium homes offer two-story townhome units, balconies, vaulted ceilings and sky bridges connecting buildings.
After the completion of the original apartments, the same team proposed CityLine II, which establishes the second phase of the Wolff Development Company project. The project went through the second round of design guidance from the Seattle Design Review Board in January of 2016. The addition provides new market rate rental housing built to LEED green building standards. The project includes 155 apartments with 126 underground parking stalls. The project also includes one bike parking stall per unit. The development would spread out the units across six four-story townhouses. It will be 190,258 square feet.