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MOUNTLAKE TERRACE, WA-California developer Interland Corporation has sold its 157-unit Markland Woods to the Snohomish County Housing Authority for $16.7 million. Frank Bosl of the Seattle office of CB Richard Ellis tells GlobeSt.com the county plans to convert the apartments to condominiums and sell them as affordable housing units. Bosl, with fellow broker Jon Hallgrimson, handled the transaction.

The property, located at 23347 Cedar Way in Mountlake Terrace, was originally built in 1990 as condominiums but ended up doing duty as apartments instead. According to Bosl, apartment complexes often contain a high percentage of one-bedrooms, whereas the Markland Woods consists of two- to four-bedroom units. This, says Bosl, makes the property more in line with use as condominiums. “The property has a lot of amenities not typically found in apartments,” says Bosl, “like walk-in laundry rooms and cathedral ceilings.”

While the prices the county will ask for the units is not yet known, they will certainly be well below the average price for single-family homes there. According to the Northwest Multiple Listing Service, that median price in July was $200,500.

As for the seller, why now? “Because they had another out-of-state opportunity they wanted to roll the money into,” says Bosl. Just where that money is rolling was not immediately available. Bosl tells GlobeSt.com that Interland purchased the complex about two years ago in a like-kind exchange. According to records of First American Title Company, Interland acquired the Markland Woods in June 1999 for $16.311 million. Assuming normal costs of sale, this appears to have been a break-even proposition for Interland.

This is the second multi-family property Interland has unloaded in the area thus far this year. In May, it sold a 168-unit complex in Juanita. That asset, known as the Spinnaker, brought $16.8 million, which translates to $100,000/unit. The buyer in that transaction was Atlanta-based Lend Lease Real Estate Investments. Interland reps were not available on deadline to discuss the sale.

The price paid by the county for Markland Woods translates to $106,369 per unit—the highest obtained thus far this year in the county—in all of the Eastside as well says Bosl.

According to a second quarter report of CBRE, sales volume in Snohomish County has been rising slowly but steadily over the last four quarters. Total sales volume there over the first six months of this year were slightly over $47.9 million.

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