Throughout the last decade, prices per unit have escalated in the Puget Sound market, with the record belonging to LeChateau on Richards Creek in Bellevue, which hit gold with $188,000 per unit being paid in 1999 to Bellevue-based-Bentall LLC by New York investors.

A number of apartment experts in the greater Seattle area say the market has softened, including Morris Groverman of the Seattle office of Colliers International Groverman says. "Vacancies are up and rents are flattening, but expenses (such as utilities and taxes) continue going up," he notes. Groverman used to be able to project rents, now he says the changing climate is making projections very difficult. "I liked the apartment market of two or three years ago. Back then, all I had to do was make one call and a property would be sold." He contrasts that with marketing nowadays requiring big promotional packages, lots of time, and then "maybe you can sell at list price." Does he think Jefferson could score anything approaching $180,000 per unit? "No way."

Laycock, however, is undaunted by market negativity and says the Jefferson project is already drawing heavy interest. "This asset class is one of the most sought after by institutional companies around the world . . . the nicest in Puget Sound for a garden court project," says Laycock. At a recent industry event, Laycock says institutional investors were bemoaning the lack of large apartment properties to add to their portfolios.