San Francisco investor acquires second Capitol Hill apartment property

Felson Cos. , a San Francisco-based investor, has acquired the Hawthorne Apartments in Seattle's Capitol Hill neighborhood for $22 million, representing its second property in the area. The 63-unit mid-rise, constructed in 2001, was last sold for $14. 9 million in 2006 and is currently 95% leased, with rents ranging from $1,850 to $3,495. Felson plans to renovate the apartments and common areas, aligning with the company's strategy to enhance property value through minor upgrades.

The acquisition involved a $13. 1 million Fannie Mae loan, showcasing the confidence in Seattle's multifamily real estate market. Adam Felson, Vice President of Felson Cos. , emphasized that the current market cycle presents a unique opportunity to acquire properties at valuations significantly below peak pricing. This investment reflects a broader trend where investors are targeting multifamily real estate for its potential returns.

Felson’s existing portfolio includes other properties in California, further indicating the company's growth strategy. The deal was facilitated by Cushman & Wakefield, highlighting the importance of professional representation in real estate transactions.