SEATTLE—For the first time in 50 years, two apartment buildings have changed ownership hands in the high-demand University District very near the University of Washington campus. The Tyee Apartments and Levere Apartments, with a total of 88 aggregate units, were sold by Kennedy Tyee LLC & Levere LLC to Seattle University District Limited Partnership for $20 million.

The transaction was arranged by Colliers International's Tim McKay, Dan Chhan, Sam Wayne and Arvin Vander Veen.

“The Tyee and Levere apartment buildings are located just two blocks from the University of Washington campus and two blocks from the Link light rail station at the northwest corner of NE 41st Street and Brooklyn Avenue in the U-District. This main and main location is unmatched,” notes McKay.

The Tyee Apartments, built in 1963 at 4115 Brooklyn Ave. NE, features 48 units in a mixture of studios and one-bedroom units. Its sister property, the Levere Apartments, a brick building constructed in 1927, offers 40 studio, one-bedroom and two-bedroom units at 4105 Brooklyn Ave. NE.

“Like other large deals we've sold in the U-District recently, Tyee and Levere attracted a lot of attention, generating multiple bids from a wide range of local, national and international developers, and investors,” adds Chhan.

The extensive marketing resulted in potential buyers expressing interest in the core-plus opportunity offered in acquiring 88 value-add units on 20,600 square feet of high-rise-zoned dirt, which is rare in Seattle, Chhan tells GlobeSt.com.

“This type of property in a top market, a global gateway city, was a significant factor in this sale,” Chhan adds.

The combination of the long-term prospects and the valuable location made it the sale come together, GlobeSt.com learns. Ultimately, an investor stepped up to buy both buildings with plans to remodel the existing structures and land bank them for the future, Wayne says.

“The new owner is planning to operate as is for now,” Wayne tells GlobeSt.com. “This is an irreplaceable location that should only get better with time.”

The sale of the Tyee Apartments and Levere Apartments is the latest successful transaction for the McKay/Chhan/Wayne team, which has facilitated several of the largest land assemblage transactions ever the U-District, in addition to existing apartment building sales. In addition, Vander Veen is an accomplished investment sales advisor with 40 years of experience.

In 2015, Colliers International predicted that the University District would experience greater transaction volume, and 2017 certainly proved that case. More sales closed in 2017 than during the previous four years combined. Colliers also predicted escalating pricing metrics–which are demonstrated in spades across nearly every sale in 2017.

Rental rates continue to climb in the University District, yet so have vacancy rates as developers deliver 500 to 1,000 units each year. Given a development pipeline of nearly 6,000 units and a now completed up-zone, continued sales and development activity is expected in the University District, with its focus on market-rate apartments and efficiency units, according to Colliers.

Instant Insights /

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