Originally published: djc.com
A four-building Queen Anne portfolio sold this week for $138.5 million, according to King County records. The seller was RREEF, aka Deutsche Asset & Wealth Management, which assembled the portfolio during 2011-2014 for about $114.2 million.
Emerald Bay Equity developed the quartet from about 2006 to 2014, with RREEF then among the lenders. During planning and construction, the cluster of buildings at Crockett Street was dubbed the Queen Anne Collection.
The buyer, via four LLCs, was Timberlane Partners, which also announced the deal. It includes 245 apartments over about 63,551 square feet of commercial space, with Trader Joe’s, a still-surviving Bartell, Zeeks Pizza and KeyBank among the tenants.
The buyer’s brokers were David Young, Corey Marx, Slater Smith and Chris Ross at JLL. The residential portion of the deal was worth about $377,000 per unit. The commercial component was worth about $725 per square foot; that space is said to be 100% leased. Public records indicate a $97 million loan from Forethought Life Insurance and Commonwealth Annuity & Life Insurance.
Timberlane’s Dave Enslow said in a statement, “We’re thrilled to add the Queen Anne Collection to our growing portfolio of multifamily assets. This acquisition not only strengthens our presence in Seattle’s core submarkets but also demonstrates our commitment to investing in properties that offer residents an exceptional living experience in highly sought-after neighborhoods.”
Changing hands, from north to south, were: the four-story, 45-unit Sweetbrier, at 2103 Queen Anne Ave. N.; Eden Hill, with four stories and 36 units at 1925 Queen Anne; the four-story, 57-unit Seven Hills, at 1919 Queen Anne; and the newest, largest Queen Anne Towne, at 1920 Queen Anne.
That has 107 units, five stories and the Trader Joe’s; some may recall that it replaced the old Metropolitan Market, which consolidated operations down the hill in Uptown, when it took the former Larry’s Market space, circa 2006.
Underground and structured parking for the quartet has about 373 stalls, some of that for shoppers. The original design and construction rosters included names like Weber Thompson, Charter Construction, Tiscareno Associates, Pennon Construction and Donahou Design Group.
Enslow added, “The combination of high-quality residential units and a diverse retail offering makes this a truly compelling investment for our fund.” Timberlane now has about 1,300 units in various West Coast markets, which it values at over $460 million. The multifamily investor also has a Los Angeles office.
Emerald Bay developed the portfolio under old city zoning, before Mandatory Housing Affordability provisions took effect on upper Queen Anne. At that same Crockett Street intersection, the seven-story Gables Queen Anne opened in December with its 245 units above a new Safeway. No other large projects have emerged in that area.