Dealmaker: Security Properties Acquires Seattle Multifamily for $104M

A joint venture between Security Properties, Seattle, and STARS REI, Santiago, Chile, purchased 624 Yale, a midrise multifamily property in Seattle’s South Lake Union neighborhood, for $104 million.

The Seattle Daily Journal of Commerce reported a Blume Company Real Estate affiliate sold the property. CBRE, Dallas, brokered the transaction.

Located at 624 Yale Ave N, the asset delivered in 2018 with 206 residential units across two connected buildings and 2000 square feet of ground-level retail space. Studio, one and two-bedroom units average 711 square feet and two rooftop spaces allow views of downtown Seattle and Lake Union.

The South Lake Union neighborhood is widely known as a technology and innovation hub. Amazon, Apple, Meta and Google have expanded in the area in recent years. In addition to being home to Seattle’s thriving technology sector, the neighborhood includes lakefront access, 170 acres of parks, public art, museums and residential and office high-rises.

Alex Gauper, Director with Security Properties, cited 624 Yale as an opportunity to purchase a fully stabilized Class A mid-rise asset at a basis significantly below current replacement cost. “As renters continue to return to the core, we feel 624 Yale’s 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,” he said.

STARS REI Senior Associate Felipe Laso said his firm is bullish in the long-term on Seattle. “We share the conviction [with Security Properties] 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,” he said.