Growth Path Boosts South Snohomish Investor Appeal
Affluent cities in South Snohomish have become an attractive alternative to Bellevue, pushing multifamily rental rates and pricing for newer construction such as the $58 million sale of Altia.
LYNNWOOD, WA—A recent sale is one of the largest multifamily transactions in Snohomish County within the last several years. And, brokers associated with the disposition of Altia, a 230-unit garden-style multifamily property, point to its diverse unit mix and relatively recent construction as positives for the buyer. The asset sold for $58 million to California-based FSC Realty LLC.
“We have no doubt that the buyer will do well with this investment going forward,” says David Sorensen, Berkadia senior director.
Sorensen, along with Berkadia senior managing director Kenny Dudunakis and senior director Ben Johnson, completed the sale on behalf of the seller, Seattle-based Goodman Real Estate.
“Altia is well positioned in South Snohomish county along the path of growth,” said Johnson. “The Lynnwood and Mill Creek submarkets have seen extremely strong performance over the past 24 months that we anticipate to continue.”
Indeed, while North Snohomish saw banner growth begin to taper, affluent cities in South Snohomish have become an attractive alternative to Bellevue, pushing rental rates and higher pricing for new construction, according to a report by Colliers International.
Across the region in 2018, the market experienced a decline of more than 20% in transaction volume from the peak sales year of 2016. However, overall pricing was up, measured both by price per unit and price per square foot. In each county, submarket and neighborhood, unique dynamics emerged that will impact operating and investing decisions, says the Colliers report.
“This sale highlights the continued demand for suburban garden-style product in the Seattle area,” Sorensen tells GlobeSt.com. “The lack of new supply and relatively affordable rents make submarkets like Lynnwood a highly sought after location for both renters and investors alike.”
The property is located at 16520 Larch Way with access to Hauge Homestead Park, in addition to the restaurants and shops along 164th St. SW. Altia features one-, two- and three-bedroom floorplans.