Seattle Multifamily Jumps to New Heights for Rents, Values
The multifamily market in and around the Seattle MSA continues to reach new heights for both rent levels and values, and there are more dollars than deals, say Berkadia brokers for a recent Renton deal.
RENTON, WA—This market has more dollars than deals, with multifamily investor capital chasing product at a rapid pace, say the brokers of yet-another multifamily property to hit the sale column. Sunset View, a 240-unit garden-style multifamily property, recently sold for an undisclosed price to an undisclosed buyer.
Berkadia senior managing director Kenny Dudunakis and senior directors David Sorensen and Ben Johnson of the firm’s Seattle office completed the sale on behalf of the seller, Washington-based Meter Properties.
“The multifamily market in and around the Seattle MSA continues to see new heights as it relates to both rent levels and values,” said Johnson. “There is more money than deals. With the strong fundamentals we are seeing, our team anticipates continued activity that will be supported by existing owners and new equity seeking opportunities in our market.”
Located at 2101 SW Sunset Blvd., Sunset View features one-, two- and three-bedroom floorplans with spacious closets, private balconies and patios, and in-unit washers and dryers. Community amenities include a fitness center, a pool, a playground, a clubhouse, covered parking, an outdoor lounge with grilling stations and a dog park. The property has access to Interstate 405, Seattle-Tacoma Airport, Westfield Southcenter shopping mall and the downtown Renton area.
“This is an asset that provided the buyer the opportunity to begin to grow their presence in the Pacific Northwest with immediate scale, giving them the chance to execute their business plan in a market that is seeing tremendous rent growth and creating challenges to keep housing affordable,” Johnson tells GlobeSt.com. “The rapid rise in valuations has been driven by rent growth.”
Development in 2019 remained focused around employment nodes with a bulk in the neighboring South Lake Union/Queen Anne and Downtown Seattle submarkets as well as the Redmond submarket, according to a multifamily report by Berkadia. The additions were met by demand as multifamily absorption was robust in these areas too. Demand is expected to persist as employers continue to grow payrolls, especially in the information/professional and business services sectors.
At a metro level, annual leasing activity nearly doubled from multifamily absorption during 2018 to keep pace with inventory growth, holding occupancy at 95.6% year-over-year and on par with the five-year average. Multifamily developers capitalized on healthy occupancy amid growing inventory by accelerating rent growth, says the report.