The Jacobson Company, a leading private real estate investment and management firm, has sold Alley24, a 172-unit multifamily property in Seattle, Washington, for $90 million. The company originally acquired the asset for $72 million in 2020 after recognizing an opportunity to purchase a more basic apartment community in the thriving South Union Lake submarket with room to maximize l operational efficiency.
According to Larry Jacobson, President and CEO of The Jacobson Company, the company has transparently executed its successful acquisition strategy, prudent and disciplined investment philosophy and best management practices to ultimately create value for its investors.
“Covid has presented serious challenges to multi-family homeowners in downtown Seattle. Fortunately, we were able to draw on decades of multi-family investing experience, through good times and bad, and were able to maintain high occupancy during Covid and over time patiently add the value we have always envisioned with this stellar asset, says Jacobson. “Thanks to our strategy, we were able to maximize the rental potential and achieve an internal rate of return of 20%. We pride ourselves on operating expertly maintained properties and pay close attention to the tenant community and quality of life to ensure retention rates remain high and units continue to be in demand. Our 5-star Google reviews prove it.
The property is located in the South Lake Union neighborhood, an area that has grown rapidly due to the presence of many of the world’s largest technology companies. Alley24 is strategically located within walking distance of many of the area’s top employers, including Amazon, Facebook, and Google, as well as public transit and parks. The property is also within walking distance of dozens of the area’s most popular dining, retail and entertainment options.
“Using our management expertise and enhancing the resident experience, we were able to leverage the strength of the property and the influx of technical employees to the area, to sell the asset well above the initial purchase price and deliver superior results for our investors,” says Jacobson.
Located at 241 Yale Ave N, Alley24 was originally built in 2006 and renovated in 2014. The mid-sized multi-family community features a mix of units consisting of one and two bedroom apartments, modern lofts and row houses. Units include luxury condo-quality finishes such as designer kitchens with quartz countertops and stainless steel appliances, washer/dryers, and oversized windows with views of Lake Union and downtown Seattle. Amenities include two rooftop terraces with a lounge with fireplace, catering kitchen, media room, 24-hour gym and impressive residents’ lounge.
Eli Hanacek, Jon Hallgrimson and Mark Washington of CBRE represented The Jacobson Company in this transaction.