$23M Buys Luxury Apartment Complex

EVERETT, WA-An affiliate of Seattle-based Security Properties has acquired Hearthstone at Merrill Creek, a 220-unit luxury apartment community located in Everett, Washington. The sale price was $23.1 million, which translates to nearly $105,000 per unit, the highest per unit price ever recorded for the south Everett sub market. The vacancy rate at the property is about 5%. The cap rate on the investment is said to be at or slightly below 6%.Located south of Everett in the Paine Field market area of Snohomish County, Hearthstone at Merrill Creek is a gated community featuring spacious luxury flats, carriage house and town home units. Amenities include an expansive clubhouse with pool, business center, indoor basketball court, exercise and weight room, and a nature trail that surrounds the property.The seller was the developer, Bellevue, WA-based Schnitzer Northwest. Completed in 2000, it is the only apartment complex developed by Schnitzer Northwest, though the company is exploring future multifamily projects. The company is currently gearing up for a major mixed-use development on land adjacent to Meydenbauer Convention Center in Downtown Bellevue.Jon Hallgrimson and Frank Bosl of Seattle-based CB Richard Ellis represented Schnitzer in the sale of the property. According to Schnitzer Northwest’s Chief Investment Officer, Greg MacDiarmid, the company will use the proceeds from the sale to invest in new opportunities throughout the Northwest. “We are gearing up to re-deploy our capital into other opportunities as well as expanding our presence into multiple markets,” he says.