Apartment complex south of Seattle trades for more than twice prior sale price

Nevada-based firm investment firm buys 230-unit complex for $40.8 million

According to Randyl Drummer at CoStar News, "An apartment complex south of Seattle traded for more than twice its prior sale price in the latest sign that multifamily investment is picking up across the region.

Goodman Real Estate sold the 230-unit Altitude 104 apartments at 2201 104th St. South in Tacoma for $40.8 million to affiliates of Los Angeles-based Oro Capital Advisors, according to Pierce County property records.

Goodman, one of the region's top sellers of multifamily properties over the past year, bought the complex built in 1990 about a decade ago for $18.5 million, CoStar data shows.

Greater Seattle apartment sales increased more than 40% in 2024 from the prior year, with the $4.1 billion in sales volume approaching the Puget Sound region's five-year annual average of $4.9 billion, according to CoStar analytics.

The deal brokered by Berkadia's Seattle office comes a couple of months after Goodman sold three apartment complexes in Tacoma for $102.6 million in one of the largest local multifamily sales of last year.

Altitude 104 includes one-, two- and three-bedroom units across 12 acres.

The buyer "has the opportunity to upgrade the community and achieve increased rent premiums while utilizing the very attractive agency loan that was in-place," Berkadia Senior Director Brandon Lawler said in a statement."

The recent sale of the 230-unit Altitude 104 apartment complex in Tacoma for $40.8 million, more than double its previous purchase price, highlights a growing trend in the multifamily real estate market. As investment firms continue to acquire properties at increasing valuations, this could have significant implications for property taxes in King County and the surrounding areas.

King County, which includes Seattle and its suburbs, follows a property tax assessment system based on market value. As multifamily properties continue to trade at higher prices, assessed values are likely to rise. This increase in assessed property values can lead to higher property tax bills for apartment owners, who may pass these costs onto tenants in the form of rent increases.

The surge in investment activity suggests a strong demand for multifamily housing, with investors betting on continued rent growth and appreciation. According to CoStar analytics, apartment sales in the Greater Seattle area increased by over 40% in 2024, nearing the five-year average of $4.9 billion in transaction volume. Such rapid appreciation can lead to higher tax assessments, as local tax authorities use recent sales data to determine fair market value.

For King County residents, particularly renters, the impact of rising property values and taxes could mean higher living costs. Landlords, especially those who acquire properties at record prices, may seek to offset their expenses by raising rents. This dynamic further exacerbates affordability concerns in an already expensive housing market.

Moreover, local governments may adjust tax rates and levies to align with increased revenue potential from higher property values. While this could provide additional funding for public services, infrastructure, and education, it also raises concerns about the financial burden on property owners and renters alike.

In conclusion, as multifamily investments continue to surge and property values climb, King County residents should anticipate potential increases in property taxes. Policymakers and tax authorities must strike a balance between leveraging increased tax revenues for community benefits while ensuring affordability remains a priority for residents.