Security Properties has expanded its Seattle portfolio with the $400.8 million acquisition of a five-property, 903-unit Seattle portfolio from Washington Holdings. It was one of the largest multifamily deals in the Seattle area this year.
The assets sold are Liza Eastlake, The Hemlock, The Hayes on Stone Way, The Carter on the Park and Heron Flats & Lofts. They are described as high-quality assets in some of Seattle’s most desirable and well-connected neighborhoods, all of which are near major regional employers.
Eastil Secured represented Washington Holdings, a commercial real estate investor with offices in Seattle, Los Angeles and Silicon Valley.
Mark Bates, Chief Investment Officer of Security Properties, said in prepared remarks that the acquisition strengthens the firm’s Seattle portfolio and also demonstrates its ability to execute complex transactions that require creative capital structures and trusted capital relationships.
The firm sees opportunities to secure high-quality assets that are positioned for long-term performance in the Seattle market, where multifamily fundamentals remain strong despite national headwinds. The market is seeing a demand from return-to-office trends but supply of new product is constrained as units under construction in the metro continue to drop.
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Since its founding more than 50 years ago, Security Properties has acquired or developed more than 109,000 residential units at a cost of more than $12 billion across more than 660 assets. While imost of the firm’s assets are located in the Pacific Northwest, the company is planning to expand nationally to key markets like Denver, the Bay Area and Nashville, Tenn.
Security’s new assets
Washington Holdings refinanced The Carter on the Park, a 180-unit luxury community in Redmond, Wash., with a $43.5 million loan from Prudential Financial in August 2024, according to Yardi Research Data. Previous financing for the Class A property at 7508 159th Place NE included a $43 million loan originated by USAA in 2017. The six-story building came online in 2016 and features one-, two- and three-bedroom floorplans averaging of 712 square feet. The community also has four live-work units and 16 apartments reserved as affordable. Rents range from $1,881 to $2,147 for the live-work units and $1,958 to $4,570 for the larger apartments, with an average of $2,639, according to Yardi Research Data.
Heron Flats & Lofts is also located in the Seattle suburb of Redmond. Built in 2018, the 95-unit property is located at 7662 159th Place NE. It has five live-work units that range in size from 634 to 921 square feet and rent for $2,779 to $3,432, according to Yardi Research Data. The other units range in size from 563 to 1,402 square feet with rents from $2,070 to $4,691, the same source shows.
The Hayes is located at 3627 Stone Way North in Seattle and has 124 units ranging from studios to two-bedroom floorplans. The four-story building has 7,050 square feet of ground-floor retail space. Units sizes range from 400 to 1,225 square feet with rents ranging from $1,806 to $3,436, according to Yardi Research Data.
The Hemlock, a 297-unit partially affordable property, is located at 8704 Greenwood Ave. North in Seattle. Built in 2023, the asset has 60 units of affordable housing and 13,080 square feet of retail. The property has studios, one-, two- and three-bedroom units ranging in size from 339 to 1,158 square feet, with an average of 623 square feet. Rents range from $1,426 to $4,046, with an average of $2,239, Yardi Research Data reported.
All of the above properties all have washers and dryers, in addition to private balconies or patios in select units. Community amenities include rooftop terraces, media rooms, clubhouses and fitness and business centers.
Liza Eastlake, a 207-unit property with 42 affordable apartments, is located at 2517 Eastlake Ave. East. Built in 2024, the community has studios, one- and two-bedroom apartments ranging in size from 390 square feet to 1,053, with an average of 717 square feet Rents range from $1,829 to $4,774, with an average of $3,369, according to Yardi Research Data.
Washers and dryers are located in all units and several have private balconies or patios.
The building has 2,500 square feet of retail space and amenities including a fitness center, business center, clubhouse and rooftop terrace. There are also EV charging stations powered by solar energy.
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