SEATTLE, WA - A joint venture between Security Properties and STARS REI purchased 624 Yale, a trophy type-one midrise style multifamily property located in Seattle's South Lake Union neighborhood for $104,000,000. This will be the second asset for this partnership, following the acquisition of Augusta Apartments in the University of Washington's University District back in 2019. Security Properties now owns 113 assets totaling approximately 22,500 units across its portfolio. This includes 30 properties and more than 6,400 units in the Seattle/Tacoma/Bellevue MSA.
624 Yale was completed in 2018 and consists of 206 residential units spread across two connected buildings. The property also features 1,942 SF of ground level retail space. Floorplans consist of studios, one and two-bedroom units averaging 711 square feet. Unit interiors consist of white or light brown cabinets, stainless steel appliances, quartz countertops, hardwood flooring, double and triple-paned windows, spacious closets, and private balconies in select units. From an amenity perspective, the property offers a leasing center, fitness center with yoga studio, two rooftop spaces with sweeping views of downtown Seattle and Lake Union, controlled building access, secure parking garage, bike storage, dog washing station and a mail room with parcel lockers. The business plan is a long-term hold with strategic value-add upgrades to both unit interiors and amenity spaces.
South Lake Union has solidified its reputation as one of the nation's marquee technology and innovation hubs. Industry leading companies such as Amazon, Apple, Meta, and Google's appetite for expansion in the area has magnified in recent years, fueling robust economic growth in the area. South Lake Union also sits within the Circle of Employment, which hosts numerous high-wage technology and life-sciences companies surrounding Lake Union such as Adobe, Tableau, the University of Washington, PEMCO, and many more. In addition to being home base to Seattle's thriving tech scene, the neighborhood includes lakefront access, 170 acres of parks, public art, multiple transportation options, museums, residential and office high-rises, and a wide array of bars and restaurants.
According to Alex Gauper, Director at Security Properties, "the acquisition of 624 Yale represented a unique opportunity to purchase a fully stabilized trophy mid-rise asset at a basis significantly below current replacement cost. As renters continue to return to the core, we feel 624 Yale's dynamic location at the center point of Seattle's most robust and diversified employment center well positions the asset to fully capture the recovery and future growth of the South Lake Union submarket. We are very excited to have a partner in STARS REI that shares in our long-term conviction and to add 624 Yale to our Seattle core portfolio."
"We are delighted to keep increasing our residential portfolio in Seattle with Security Properties as our partner. We remain bullish in the long-term on this city due to its powerful and unique ecosystem" said Felipe Laso, Sr. Associate at STARS REI, a privately held real estate investment management company headquartered in Santiago, Chile. "We both share the conviction that opportunities appear in uncertain times, so instead of putting our pencils down, we are trying to be as active as possible in finding high-quality buildings such as 624 Yale."