EAST WENATCHEE — The new 96-unit Maryhill Apartments at 2272 S. Nevada Court sold on March 22 for $20.5 million.
That works out to $213,542 per unit, a new record for the Wenatchee market, according to Summerfield Commercial, a Mercer Island-based company specializing in larger multifamily assets throughout the Pacific Northwest that brokered the deal.
The seller, Maryhill Plaza Apartments LLC, were the original builders of the apartments. The company’s governing officers, according to state records, are Brad Selland, Jason Gaul and Adam Brizendine. The new owners, according to county records, are Altitude Wenatchee 96 LLC. Governing officers are not listed. The registered agent is based in Bellevue.
The sale was completed during the initial lease-up phase and the apartments were about 50-percent occupied at the time of closing, according to a press release from Summerfield. The property includes 72 two-bedroom and 24 three-bedroom units, averaging 1,128 square feet of space. It also includes a clubhouse, swimming pool, barbecue area, sports court and 182 parking stalls.
Ryan Kidwell, managing broker for Summerfield Commercial, said the property was on the market for about 30 days and received seven offers, indicating a “very strong” interest in the Wenatchee Valley market.
“Wenatchee, and other Eastern Washington markets, have received greater interest from investors over the last three or four years as they search for yield that is not as readily available in the larger markets west of the mountains,” he said.
Prospective buyers, he said, were groups who already owned in the market and investors looking for turnkey assets, he said. It’s unusual, but not unheard of to sell a property that’s not fully leased.
The pandemic’s arrival has affected individual commercial property sales differently, Kidwell said.
“It depends entirely on how occupancy and delinquency were affected at the specific asset,” he said. “If the building was minimally impacted, we haven’t seen much impact to pricing. The pandemic has slowed transaction velocity substantially so buildings that do come to market are receiving a lot of interest because there’s fewer available properties.”
That’s also been the trend with residential property sales.
Pacific Appraisal’s Snapshot Report states home sales in the Wenatchee market have continued to climb. The year-to-date median sales price of residential homes in February 2021 was $387,450, compared to $326,750 for February 2020.
Summerfield is not currently marketing anything else in the Wenatchee area, Kidwell said.