Metro on First

THE CHALLENGE

Located in Seattle’s iconic Queen Anne neighborhood, Metro on First is a 106-unit trophy asset that initially attracted attention due to its premier location, proximity to downtown, and luxurious unit features. However, despite its appeal, the property was 20 years older than newer Core+ comps, requiring strategic marketing to achieve premium pricing.

Our team sought to position Metro on First as a light value-add opportunity, with significant upside potential through minor upgrades such as updating flooring, cabinets, countertops, and adding tech packages to match Class A standards.

WHAT WE DID

We brought the property to market in August, leveraging its standout location, large unit balconies, Haussmann-style architecture, and modern amenities like a rooftop deck and fitness center to attract strong investor interest. Initially, we targeted Core+ pricing based on comparable high-end assets in the area.

In mid-September, we selected a highly motivated local buyer when the 5-year Treasury rate stood at 3.49%. However, as the due diligence process progressed, rising interest rates posed a significant challenge. By the time due diligence was near completion, the 5-year Treasury had climbed to 4.22%, creating financing hurdles that caused the initial buyer to withdraw from the deal.

Overcoming Setbacks

The fallout could have been a major setback, but our team’s proactive approach ensured a quick pivot. Through our extensive buyer network and continuing to work with the previous buyer, we secured an all-cash buyer, eliminating financing-related uncertainties. The new buyer was also able to close within 35 days of signing the new purchase and sale agreement due to their relationship with the previous buyer and assuming their due diligence studies. With their office located in Japan, this will be the first asset of the new ownership group in the Pacific Northwest.

THE RESULTS

• Buyer Transition: Seamlessly transitioned from the initial buyer to an all-cash buyer.
• Closing Efficiency: Closed within 35 days, a testament to streamlined due diligence.
• Preserved Value: Despite rising interest rates, achieved pricing that reflected the property’s strong fundamentals.

The successful sale of Metro on First highlights our team’s ability to navigate market volatility and secure favorable outcomes for clients. By leveraging creative marketing strategies, emphasizing the property’s competitive strengths, and maintaining strong buyer relationships, we delivered results even in challenging market conditions.

This case study exemplifies our team’s GRIT—a proactive, resilient approach that ensures deals succeed no matter the obstacles.