Top 3 February Transactions in Seattle

Despite its position as one of the nation’s most expensive places to rent, Seattle’s multifamily market continues making gains. A third-quarter Marcus & Millichap report from last year highlights how the rapid growth of the metro’s tech sector — and corresponding population growth among renters aged 20 to 34 — is keeping strong upward pressure on rents, even as construction activity hits record highs.

Multifamily.Today investigated the top three multifamily transactions in King County, the heart of the Seattle metro, and some interesting dynamics stand out from these three deals alone, speaking to the market’s diverse strengths, whether for luxury residential towers or even aging suburban properties well outside the urban core. Check out the top three sales below:

3. Central Flats in Kent

Bridge Investment Group’s $149 million purchase of Central Flats at 1024 Central Ave. N. in Kent marks the third-largest multifamily acquisition in February. Denver-based Grand Peaks, the seller, had acquired the 576-unit asset from Kennedy Wilson in June 2017 for $108.5 million, according to documents filed with the King County recorder’s office. The buyer financed the acquisition with a $99.6 million loan from Wells Fargo.

Built in 1986, the 48-building property has a mix of one-, two- and three-bedroom units between 500 and 1,010 square feet. The sale price — averaging $258,680 per unit — is very notable, particularly given the asset’s age. Last year, a newly built, 492-unit luxury community just down the road traded for $88.1 million, or about $180,000 per unit, Multi-Housing News reported.

2. Arras Apartments in Bellevue

Security Properties traded Arras Apartments, a 279-unit multifamily asset in Bellevue, for $175 million toward the start of the month. Athene Annuity & Life Co. provided the buyer, Lakevision Capital, with an $88 million loan. The community at 12282 NE 12th Lane opened in 2019 and is managed by Greystar.

The per-unit price of $627,240, while enormous, is hardly surprising: Bellevue has seen some of the fastest rent growth in the market, particularly among high-end rental communities. Many of the country’s largest tech and e-commerce firms, from Meta to Amazon, have rapidly scaled their presence within city limits. Amazon alone has a potential footprint equaling nearly 7 million square feet in Bellevue, GeekWire reported in December.

1. West Edge Apartments in Seattle

Urban Visions’ sale of the 340-unit West Edge Apartments near Seattle’s Pike Place Market tops our list of multifamily transactions for February. PGIM Real Estate paid a whopping $293 million, or $861,765 per unit. No acquisition financing was recorded at the time of the sale.

The 39-story tower’s per-unit sale price set a regional record, according to Puget Sound Business Journal, topping the previous high of $719,649 per unit set in 2017. West Edge offers a mix of one- and two-bedroom apartments and penthouse suites at 1430 Second Ave. On-site community amenities include a lounge with outdoor terraces on the eighth floor, a fitness center, a 39th-story lounge with fireplaces, electric vehicle-charging stations, and a car and bike wash area.