MetLife Supplies $53M Acquisition Loan for Seattle Apartments Buy

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A joint venture between Security Properties and STARS REI has inked $53 million of acquisition financing to purchase a Seattle multifamily property, Commercial Observer can first report. 

MetLife Investment Management provided the five-year, fixed-rate loan for the JV to acquire  624 Yale Apartments in Seattle’s South Lake Union neighborhood. Michael Coen, Tom Chiang and Ben Westphal originated the loan for MetLife.

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CBRE’s Scott Williams arranged the transaction. 

Security Properties and STARS purchased the nine-story property for $104 million from an entity affiliated with Blume Company Real Estate, Puget Sound Business Journal reported.

Located at 624 Yale Avenue North near the south end of Lake Union, the nine-story apartment community was built in 2018 with 206 units in two buildings featuring studios, one-bedroom and two-bedroom units. Its amenities include a rooftop with views of downtown Seattle, a fitness center and a business center. 

“The acquisition of 624 Yale represented a unique opportunity to purchase a fully stabilized trophy mid-rise asset at a basis significantly below current replacement cost,” Alex Gauper, director at Security Properties, said in a statement. “As renters continue to return to the core, we feel 624 Yale’s dynamic 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.”

Officials at CBRE did not immediately return requests for comment. MetLife declined to comment.

The 624 Yale Apartments property is near another newer luxury rental asset in the South Lake Union neighborhood called Onni South Lake Union. Blackstone recently supplied a $700 million whole loan to Onni Group for the 1,097-unit property, which also includes 23,000 square feet of ground-floor retail space.

Andrew Coen can be reached at acoen@commercialobserver.com