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Jefferson at Mill Creek for Sale, Many Say for Big Bucks

MILL CREEK, WA-The 47-acre property has been listed, but the parties are keeping a lid on the asking price. Rumors are flying, however, that the high-end luxury apartment complex of JPI is being tagged at well over $50 million.

By Janet Parker | Updated on February 10, 2001

MILL CREEK, WA-Irvine, TX-based developer JPI has put its Jefferson at Mill Creek project up for sale. Of the 489 units planned here for the 47-acre complex at 14420 North Creek Dr., 389 have been completed, the first of which was occupied last April. The remaining 100 units are fully permitted and ready for building, says listing broker Greg Laycock of the Seattle office of Cushman & Wakefield. Although Laycock declined to discuss the selling price, the rumor mill has been grinding out a price well in excess of $50 million, based in part on JPI’s record of obtaining top dollar for its apartment developments across the country.

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.”

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