SEATTLE November 6, 2019 Vulcan Real Estate and a joint venture between Security Properties and STARS REI today announced the transaction of the Augusta Apartments for $98.1 million. The seven-story Augusta Apartments feature 209 rental units including 20 percent affordable housing and 3,470 square feet of ground floor retail space.
The sale price equates to $469,378 per unit. Vulcan intends to invest funds from the property sale toward its continued development efforts, as well as new land and value-add investment opportunities around the region.
“Augusta has been a very successful project, having leased up quickly and adding to the incredible vibrancy of the University District,” said Ada M. Healey, chief real estate officer for Vulcan Inc, “We are looking forward to continuing to build quality development projects like Augusta throughout the region.”
The Augusta Apartments are located at 4041 Roosevelt Way NE and are within walking distance of the University of Washington campus, the Burke Gilman Trail and the new University District light rail station which will open in 2021 at the corner of 43rd and Brooklyn.
“Augusta was a prime target for us as we are seeing very attractive risk-adjusted yields in core assets,” said Davis Vaughn, Senior Director-Acquisitions, for Security Properties. “In addition to the relative value in the core space, we think there is near term upside with the planned expansion at the University of Washington, plus walkability to the light rail starting in 2021, which this asset is perfectly positioned to capitalize on. We look forward to creating value for our investors as we continue to grow in Seattle with this acquisition.”
“We’re excited to add Augusta Apartments to our portfolio and expand into the University District submarket,” said Joaquin Canessa, Vice President at STARS REI. “Seattle is a strategic city for our portfolio, and this submarket enjoys demographic diversification and growth with the University expansion and the light rail extension.”
Augusta features a variety of shared indoor and outdoor spaces including a roof deck and courtyard, each with adjoining community lounges. Additional amenities include a guest suite, a study area, a fitness center, a dog grooming room, and a sports court.
Completed in 2017, Augusta was designed by Runberg Architecture Group and constructed by Exxel Pacific, Inc. The project is LEED for Homes Platinum certified. David Young and Corey Marx with Jones Lang LaSalle Americas, Inc. brokered the transaction.
About Vulcan Real Estate
Seattle-based Vulcan Real Estate directs all real-estate investment activities for Vulcan Inc, a Paul G. Allen company. Through strategic acquisitions and innovative development, Vulcan Real Estate has created a diversified portfolio of high-performing quality assets including office, life sciences, residential and mixed-use projects.
The company’s integrated team of real estate professionals offers a full range of development and portfolio management services from site selection and urban planning to build-to-suit construction, leasing, financing and asset repositioning. Its real estate model is based on quality, sustainable development that builds new value across the entire community.
Since 2000, Vulcan Real Estate has delivered $4.1 billion in assets in 44 projects comprising 10.1 million square feet and 2,858 residential units. Eighty percent of the development projects have occurred in South Lake Union, renowned as one of the largest urban redevelopment projects in the country. The company also has 400,000 square feet of commercial space and 532 residential units under construction. Its development pipeline consists of an additional 5.0 million square feet and 2,000 residential units in the Seattle and Bellevue markets.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington.
For more than 50 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 90,000 residential units at a cost of over $6.5 billion.
Security Properties maintains a focused multifamily strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists.
About STARS REI
STARS REI is a privately held company with real estate holdings in the U.S. and the U.K. Our real estate industry experience, passionate team, commitment to excellence, and global perspective create exceptional long-term value in our real estate holdings. We invest in real estate opportunities that have the potential to improve the property and the surrounding area, placing an emphasis on the quality of life in and around the property itself. Whether these assets are fully developed, in need of redevelopment or coming to life from the ground up, STARS REI is constantly looking for creative ways to transform real estate in the markets in which we invest. STARS REI values consistency and discipline in our portfolio construction. We look for partners who appreciate our perspective, have local expertise, and are personally committed to the projects on which we work. We operate at the highest level of integrity to build long-term, mutually beneficial and successful relationships while we execute on each business plan. Our headquarters is in Santiago, Chile and we maintain an office in the U.S. in the New York City metro area. We work in close partnership with each partner and are involved in both major and day-to-day decisions. We rely on the combined expertise of our local partners and our internal team to create the best solutions that maximize long-term value.