38-unit Queen Anne Apartment building sells for $9.035 million

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Queen Anne Gardens
Kidder Mathews brokered the sale of Queen Anne Gardens, a 38-unit apartment in Seattle, Washington, and sold to Milestone Properties.

Queen Anne Gardens, a 38-unit apartment building located at 1250 5th Avenue N. in Seattle, Washington, has sold for $9,035,263. The buyer, Milestone Properties, a Seattle-area apartment investment and management company, acquired the property from a private investor. Kidder Mathews’ multifamily investment broker, Dan Swanson represented Milestone Properties in the transaction.

Queen Anne Gardens was built in 1991. Its exceptional Queen Anne neighborhood location positioned it well in the current rental market environment; residents of the building paid both April and May rent at above a 95 percent collection rate.

The sale price per foot was $746, and the cap rate was 4.1 percent. The asset pricing was set in December, and the appraisal and inspection took place days before the stay-at-home order was imposed. Even with current economic challenges, the financing went smoothly.

“The timing of the interest rate lock occurred in a brief window of time, which allowed the buyer to secure an exceptionally low interest rate,” said Swanson, an executive vice president at Kidder Mathews. “The buyer and seller were highly professional and worked in a partnership that resulted in a win-win for both sides,” he said.