SEATTLE, WA – Security Properties purchased SKY Sammamish, a 159-unit multifamily property built in 2018 and located in Sammamish, Washington, for $70,250,000. Security Properties now owns 28 assets and over 6,400 units in the Greater Seattle marketplace.
Sammamish, a highly desirable suburb east of Seattle situated between Bellevue, Redmond, and Issaquah, offers an irreplaceable combination of top tier school districts, access to local employers and proximity to some of Washington’s most desirable nature. While its population has grown quickly over the past 20 years, the city has historically been, and is forecasted to continue, being one of the most supply insulated submarkets in the entire Seattle metropolitan area. This has caused the barrier to entry to be extremely high, with median home values exceeding $1.6 million. Consequently, the median household income in Sammamish is about $215,000 higher than any other US city with a population over 50,000.
SKY Sammamish is located along 228th Ave., the city’s primary north and south thoroughfare with access to both I-90 (to the south) as well as SR-202 (to the north). The property was developed as a phase of the expanding Sammamish Town Center ‒ a multi-phase, mixed-use development project that will serve as the new town center for Sammamish. The property is the only housing located within the town center development and sits adjacent to a variety of commercial spaces, retail, and food options. Most notably, the site is adjacent to Metropolitan Market, an upscale Seattle-based grocery chain.
The business plan is a core-plus investment with moderate upgrade characteristics. While the asset currently offers a best-in-class amenity package and well-appointed living units, Security Properties has identified several opportunities to further emphasize these strengths.
According to Alex Gauper, Senior Director at Security Properties, the acquisition was made because, “SKY Sammamish is a prime example of our firm’s investment thesis of identifying newer-vintage assets in markets with high barriers to entry and a diverse mix of stable drivers. We feel that we have the best asset in a submarket with a very limited historical supply, excellent schools, and strong demand for high-quality housing. The Issaquah and Sammamish submarket has been a strong performer for us for many years and we are excited to add to our existing portfolio in the area.”