SEATTLE-GlobeSt.com has exclusively learned that Compass, an 89-unit apartment community was sold here for $19.9 million. The seller was GRE Edmonds Way LLC of Seattle.
The buyer of the class-A property at 23020 Edmonds Way was a private equity firm from San Francisco. Built in 2012, the community offers studio, one- and two-bedroom floor plans.
The transaction was negotiated by Marty Leith and Kenny Dudunakis of the Seattle office of Hendricks-Berkadia. According to Hendricks-Berkadia, the average Seattle metro-area vacancy rate fell 4.4% by the end of 2012. Rent increased 3.7% year over year, reaching $1,054 per month.
According to a report from the firm, the Puget Sound economy continued to gain traction in 2012, registering nonfarm employment growth of nearly 50,000 workers, a 2.9% increase. Last year's rehiring efforts put the metro's total job count near pre-recession levels, according to the firm.
“Expansion was greatest in the manufacturing sector, as more than 10,000 positions were created in the past year, a gain of 5.6%. Rising payrolls tamped down the Seattle unemployment rate, as the rate plunged to 7.9% at the end of the year, 200 basis points below the 9.9% peak in late 2009.”
Other points from the forecast include:
*Demand for apartments totaled 3,000 newly occupied units in 2012.
*Developers completed 2,710 market-rate units in 2012, a relatively low annual total. The Seattle Downtown submarket was the recipient of one-third of all deliveries
last year.
*Planning surged in 2012, as builders requested permits for 8,950 multifamily units. In 2011, permits for 5,150 units were approved.
*The average apartment vacancy rate fell to 4.4% by year-end, the third-consecutive year of reduced vacancy.
*Market rent increased 3.7% year over year in the Seattle metro area, reaching $1,054 per month. The Seattle Downtown submarket posted a 5.6% gain, as new product propelled the monthly average rent to $1,463 per month.
Looking ahead, the firm says that local hiring will intensify over the forecast period, with nonfarm employment rising by 3.1% in 2013 and by 3.3% in 2014 on the addition of 112,500 jobs. “Metroarea payrolls will likely surpass pre-recession levels in the second half of this year. Amazon.com is increasing its presence in Seattle this year. The online retailer recently purchased three sites and plans to build 3 million square feet of space, which could house 10,000 to 15,000 workers. Amazon.com will also add 1,000 new staff and is undertaking a 380,000-square-foot addition to their headquarters.”
In addition, the firm points out that Microsoft's plans to hire 1,500 personnel in the near term, expansions are planned at the Bill & Melinda Gates Foundation, Boeing and University of Washington Medicine Lake Union.
“As developers move to capitalize on the metro's resilient payrolls and housing demand, apartment completions will surge to 5,240 units in 2013, creating a supply overhang. More than 50% of the new units expected to come online in 2013 will be in the Downtown Seattle submarket.” Substantial supply growth is also expected in the North Seattle area, accounting for roughly 25% of new apartment product this year, says the firm.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
