Origin Capital/Randolph Street Partnership Sells Seattle, WA Multi-Family Property
Stalled Condo Turned Multi-Family Project Completed, Stabilized and Sold in Two Years
CHICAGO, IL (July 9, 2014)—A partnership that includes Origin Capital Partners (“Origin”) and Randolph Street Realty Capital (“Randolph Street”) has completed the sale of The Residences at 3295 in Seattle, Wash., just two years after its acquisition and following the completion of a build-out and repositioning program. The property was sold to an institutional multi-family investor for $15.5 million. The brokerage firm of Hendricks-Berkadia represented the sellers.
The Residences at 3295 is a six-story, 60-unit apartment project that also includes 2,784 square feet of ground floor retail space. At the time of its sale, the residential units were 95 percent leased and the retail space was leased in total to a neighborhood restaurant and lounge through 2018.
According to David Welk, Director of Acquisitions – Southeast & West, Origin Capital Partners, “This sale represents a strong execution of the underwritten business plan on every facet – project scope, timing, cost, operational performance and, ultimately, with a well-timed disposition. Given where we were at in this point in the West Seattle development cycle, it was viewed as an opportune time to sell and we are very pleased with the results.”
In April 2012, when the Origin/Randolph Street partnership purchased the asset, it was a stalled condominium project. The vacant building was approximately 70 percent complete upon acquisition and effectively in shell condition. The original developer, who had purchased the property out of bankruptcy, lacked the financial resources to complete the project.
Within 12 months of acquisition, the partnership completed a $3.6 million renovation project. This included the completion of electrical, plumbing, landscaping, facade and HVAC in the common areas and completion of drywall, cabinets, countertops, flooring and carpeting in the residential units as well the build-out of the commercial space. The amenities offered at the property are unmatched by other boutique-sized assets with a fully furnished rooftop deck offering views of Downtown Seattle and Mount Rainer, a second terrace-level deck with BBQ grills and fire pits, 24-hour fitness center, bike room and storage units.
“The Seattle market has proven to be one of the strongest in the country in terms of job growth and multifamily investment as of late. There was a clear value-add proposition which we were able to execute, and rather than refinance we decided to take advantage of the strong environment and sell the property to an institutional investor,” said Jonathan Saliterman, Principal of Randolph Street Realty Capital.
The Residences at 3295 was the second property in Seattle acquired by the Origin/Randolph Street partnership. They own and manage Bay Club Apartments, an 88-unit garden-style apartment complex in Des Moines, WA. The partnership has also acquired two assets in the Chicago market, Lux24 and Naper Place.
About Origin Capital
Origin Capital is a Chicago-based investment manager that acquires commercial real estate in select U.S. markets on behalf of its principals and investment partners. Origin’s institutionally-trained team has over $2.6 billion of transaction experience. The firm has access to off-market deal flow, through its experience with non-traditional deal sourcing such as note purchases, recapitalizations, short-sales and bankruptcy sales. Origin focuses on the underserved $10 - $50 million asset market, which sits below hedge fund and REIT equity allocation targets and allows for higher expected returns. Alignment is a core value at Origin and is evident through significant co-investment equity contributions in all company deals and funds.
# # #