SEATTLE—GlobeSt.com has exclusively learned that a partnership that includes Chicago-based Origin Capital Partners and Randolph Street Realty Capital has completed the sale of the Residences at 3295 in Seattle, WA, just two years after its acquisition and following the completion of a build-out and repositioning program. The property was sold to an institutional multifamily investor for $15.5 million.
The Residences at 3295 is a six-story, 60-unit apartment project that also includes 2,784 square feet of ground floor retail space. At the time of its sale, the residential units were 95% leased and the retail space was leased in total to a neighborhood restaurant and lounge through 2018.
The brokerage firm of Hendricks-Berkadia represented the sellers.
According to David Welk, director of acquisitions of the Southeast & West at Origin Capital Partners, “This sale represents a strong execution of the underwritten business plan on every facet—project scope, timing, cost, operational performance and, ultimately, with a well-timed disposition. Given where we were at in this point in the West Seattle development cycle, it was viewed as an opportune time to sell and we are very pleased with the results.”
In April 2012, when the Origin/Randolph Street partnership purchased the asset, it was a stalled condominium project. The vacant building was approximately 70% complete upon acquisition and effectively in shell condition. The original developer, who had purchased the property out of bankruptcy, lacked the financial resources to complete the project.
Within 12 months of acquisition, the partnership completed a $3.6 million renovation project. This included the completion of electrical, plumbing, landscaping, facade and HVAC in the common areas and completion of drywall, cabinets, countertops, flooring and carpeting in the residential units as well the build-out of the commercial space. The amenities offered at the property are unmatched by other boutique-sized assets with a fully furnished rooftop deck offering views of Downtown Seattle and Mount Rainer, a second terrace-level deck with BBQ grills and fire pits, 24-hour fitness center, bike room and storage units.
“The Seattle market has proven to be one of the strongest in the country in terms of job growth and multifamily investment as of late. There was a clear value-add proposition which we were able to execute, and rather than refinance we decided to take advantage of the strong environment and sell the property to an institutional investor,” says Jonathan Saliterman, principal of Randolph Street Realty Capital.
The Residences at 3295 was the second property in Seattle acquired by the Origin/Randolph Street partnership. They own and manage Bay Club Apartments, an 88-unit garden-style apartment complex in Des Moines, WA. The partnership has also acquired two assets in the Chicago market, Lux24 and Naper Place.
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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.
