McQuaid Commercial Real Estate has sold a 24-unit multifamily property located at 3515 SW Ocean View Drive in Southwest Seattle.
“We are pleased to get this property closed in 2010, after an exhaustive marketing effort over many months” said Michael McQuaid, the broker representing the seller group.
The sales price of $2,050,000 equated to a CAP rate of 5.16 and slightly over $102 per net square foot. The building was in average condition with many long term tenants and was managed by one of the five owners, all but one of whom is a decedent of the original developers such that this is the first time this 1979 building has ever sold.
The buyer is David Katt, a local investor who lives within a few miles of the building and has many years of rental property experience, primarily with single family homes, some of which were sold and the proceeds invested in the 24-unit through the use of a tax-deferred exchange.
“This was a challenging sale due to the absolute lack of anything else in the area to look at for comparable rental or sales values.” McQuaid said Tuesday. “The property is nearly equidistant to the Fauntleroy and White Center neighborhoods, dramatically different market places. The buyer paid all cash and expects to spend another $200,000 on the building for deferred maintenance and upgrades.”
MCQUAID Commercial Real Estate is located at 400 Roy street in lower Queen Anne. It is an open concept, boutique-style firm offering advising services and focuses on superior client representation.