Hillcrest, which is on the National Register of Historic Places, is a garden-style complex consisting of studio, one-, and two-bedroom units in one three-story building with a rooftop deck. The loan has a 5.34% interest rate, a debt service coverage of 1.26x, and a loan to value of 59%. Cornell is another three-story, garden-style complex consisting of studio and one-bedroom units. The loan has a 5.34% interest rate, a debt service coverage of 1.25x, and a loan to value of 63%.
The borrowing entities are Hillcrest LP and Cornell Partners. The deals were originated by Richard Olrich, Krage Olrich, and Matthew Olrich in PWF's San Francisco office.
As of the end of March, the Capitol Hill apartment submarket was outperforming the Seattle market as a whole, according to RealFacts, a specialist in multifamily data. Average occupancy for the entire city was 92.4%, while occupancy on Capitol Hill specifically was about 2% higher on average, a source at PW Funding tells GlobeSt.com. Occupancy at Hillcrest and Cornell are 95% and 96%, respectively.
Regionwide, occupancy remained essentially unchanged during the first three months of the year, going up by 0.2% to 92.8%. The average rent stood at $854 in March, compared to $858 in December. Over the past year, rents are off by more than 1.2% due to high unemployment rates. Investors may be thinking Seattle is at the bottom of its cycle, however, as the average price per unit for complexes sold increased by about 8%, going up to $78,000 per unit.
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