Vulcan Hands Over Luxury Residential in Seattle

By Keith Loria, Contributing Editor

Ada Healey, Vulcan Real Estate

Stockbridge Capital Group has acquired the Rollin Street Flats apartments, a mixed-use property in Seattle’s South Lake Union, from Vulcan Real Estate for $138.2 million.

“Rollin Street is South Lake Union’s premier luxury apartment community. Initially designed as condominiums, the units feature large floor plans and high quality finishes and amenities,” Ada Healey, Vulcan Inc.’s vice president of real estate, told Commercial Property Executive.  “At the time of sale the occupancy rate of the residential units was 96 percent and the retail space was 100 percent leased, demonstrating strong cash flow and good income prospects for the future.”

Located on the corner of Westlake Avenue North and Denny Street, the 11-story building features 208 LEED Gold certified loft-style apartment homes, including five penthouse homes ranging from 1,579 to 2,036 square feet. Retail tenants on the first floor include Bar Method, La Toscanella, Ligne Roset, Mio Sushi and Pedini.

The building’s entry and lobby are highlighted by artist Leo Saul Berk’s work, made from timbers and decking salvaged from a one-story building that previously stood on the site. Tenant amenities include rooftop decks and a full-size basketball and volleyball court.

According to Healey, institutional investors have been very bullish on Seattle this past year and the growth trajectory for Seattle’s economy is very strong.

“Going forward, Vulcan is targeting higher risk/reward investments, all of which made this the right time to sell Rollin Street,” she added. “We are actively seeking new investment opportunities in the Seattle region including land and ground-up development as well as value-add assets. This transaction fits our philosophy by providing capital for future investments that meet our criteria.”

South Lake Union has experienced tremendous growth over the past decade and is home to many innovative companies. As a result, the neighborhood has become a highly sought after residential location. Rollin Street Flats also front the South Lake Union line of the Seattle Streetcar and is nearby key employment centers in South Lake Union, Denny Triangle and the Seattle CBD.

“The specific coordinates of Rollin Street at the Denny/Westlake intersection could not be more prominent; it enjoys a location on the Seattle streetcar line, is across the street from Whole Foods and is just blocks from the CBD to the south and the lakefront to the north,” Healey concluded.