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135-Unit Belltown Property Fetches $28M-Plus

SEATTLE-Seeing upside in rental rates, Pacific Property Co. of Palo Alto acquires 2900 on First, a 135-unit apartment property here that includes 14,000 sf of retail and 200 structured parking spaces. The seller, Equity Residential, acquired the asset in 1996 for under $12 million.

By Brian K. Miller | Updated on October 06, 2005

SEATTLE-Pacific Property Co. of Palo Alto has acquired 2900 on First, a well-leased 135-unit apartment property here that includes 14,000 sf of retail and 200 structured parking spaces in a seven-story building. The sale price was $28.25 million.

Built in 1989, the property was one of the first apartment buildings constructed following the city’s decision to create a 24/7 mixed commercial and residential neighborhood in Belltown. The seller, Equity Residential, acquired the property as a stabilized asset in 1996 for $11.75 million and invested another $3.25 million in the property over time.

Pacific Property CEO Al Pace tells GlobeSt.com he expects to push the investment’s sub-5% capitalization rate north of 6% within 18 months via renovations and rental increases. “Concessions and inventory are declining and so the actual rent growth–and, therefore, the NOI–is more significant than one might think,” says Pace. “We think there is $150 (per unit per month in rent) sitting on the table without doing anything to the property.”

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