Seattle, WA (April 24, 2018) – While the trend seems to favor redevelopment over reinvestment, not every building in Seattle’s rezoned University District is a tear down. For example, the Pacific Apartments, a 34-unit apartment building located at 5219 University Way NE, recently traded for $6.85 million, or $477 per square foot, as a valuable existing property. The new owner plans to renovate units and cure deferred maintenance rather than scrap it and build anew. Colliers International’s Tim McKay, Dan Chhan and Sam Wayne represented the buyer, UW Pacific LLC, in the transaction.
The reinvestment business model is something of an anomaly in the U-District, where the up-zone has encouraged many investors to choose denser, taller new construction over renovation of existing buildings. According to Mr. McKay, “Properties across the U-District are highly stable investments due primarily to the ongoing demand for housing from the student population. UW Pacific LLC saw the value of acquiring 34 units in this submarket, with considerable upside, and acted quickly to bring the asset into its portfolio.” UW Pacific LLC focuses on owning and managing low-rise properties in Seattle.
Many U-District owners have found their building values significantly increased based on land value, while others maintain higher valuations based on traditional income approach. McKay, Chhan and Wayne have helped numerous clients navigate the changing landscape in the U District, completing 11 apartment sale and land transactions valued at over $52 million in the area over the past five years. The team recently they listed an eight-parcel assemblage dubbed Campus Station and positioned as the largest fee-simple development site available in the U District.
Berkshire Hathaway HomeServices represented the seller in the transaction.
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Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
