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REA
October 30, 2019  

New Seattle Apartment Tower Up for Grabs

A new residential high-rise in Seattle is back on the market.

The 461-unit Kiara, at 111 Terry Avenue North in the booming South Lake Union neighborhood, is valued at north of $335 million, or $727,000/unit. The 41-story apartment building, which was completed last year, is 93% occupied. Eastdil Secured is representing the developer, a partnership between Holland Partner Group of Vancouver, Wash., and the U.S. arm of Sekisui House, one of Japan’s biggest homebuilders.

In the spring, the partnership shopped the tower along with five other luxury apartment properties via Eastdil. But it pulled the Kiara from the 2,126-unit portfolio to focus on continuing its initial lease-up phase. The partnership sold the other five properties — three in Los Angeles and two in Seattle — to two separate buyers.

The average monthly rent at Kiara is $3,750, or $4.60 per square foot. Units ranging from studios to three bedrooms have an average size of 815 sf. They feature open floor plans, gourmet kitchens, washer/dryers, walk-in closets, wood-style plank floors and motorized roller shades. There are also penthouse units with 10-foot ceilings, floor-to-ceiling windows and terraces. Amenities include 335 parking spaces, a rooftop terrace, a club room, a “sports book” with nine television screens and a dog run with a wash station.

There’s also 18,000 sf of retail space that is fully leased. The anchor tenant is District H, a high-end offshoot of the Korean grocery chain H Mart. A Whole Foods Market is next door.

South Lake Union is a prominent technology hub. The glass-and-steel Kiara is next to Amazon’s global headquarters. Amazon, Facebook and Alphabet’s Google are scheduled to complete 5.5 million sf of offices by 2021 that will bring another 29,000 jobs to the area.

Last month, the Holland partnership sold the largest property in its original portfolio offering — the 606-unit Sofia in Los Angeles — to Carlyle Group of Washington for $272.5 million, or $450,000/unit.

In June, Iconiq Capital of San Francisco snapped up the other four properties in the portfolio for $616 million. Two are in Los Angeles: the 300-unit Grace on Spring and the 275-unit Griffin on Spring. They traded for $406 million, or $706,000/unit. The other two are in Seattle: the 275-unit Chroma in the South Lake Union neighborhood, and the 209-unit Perry Apartments in the First Hill neighborhood. The Chroma sold for $114 million, or $415,000/unit, and the Perry commanded $96 million, or $459,000/unit.