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Shorewood buyer gets a deal
Shorewood Heights, the 45-acre apartment community on the northeastern corner of Mercer Island, has been sold. Goodman Real Estate of Seattle and its investment partner, Pinnacle Investments, confirmed today that they have purchased the 645-unit complex. Media sources reported that the sale price was $110 million — an amount more than 20 percent less than the complex sold in 2005.
The Reporter first reported the sale in late July.
Over the years, the apartment community has changed hands and expanded. The new owners plan to add more housing and amenities.
In 2002, 78 new homes were added. In 2007, the city approved a permit for the construction of 124 new apartments and town homes (to be converted into condos later).
They were not built at the time and the permit remains open, city of Mercer Island officials said.
“Shorewood Heights is a landmark multi-family asset with the capacity for development of an additional 124 units,” a press release by the buyers said. The owners plan to complete additional improvements including a swimming pool, upgraded landscaping and an expansion of the existing fitness center.
The seller, Security Properties and Principal Global Financial, bought the property from HAL Real Estate for $141.3 million in December of 2005. The deal at the time was thought to be the region’s second-largest apartment transaction of the year behind Harbor Steps, a mixed-use, multi-story project in downtown Seattle. Seven years prior, the property had been purchased for $55 million. According to the King County Assessor’s Web site, the property is now valued for tax purposes at $100.1 million.
This latest sale is one of the largest apartment complex sales in the Puget Sound area since the Island Square apartment and retail complex, also on Mercer Island, sold for $112 million in 2008..
Pinnacle is a real estate investment, management and brokerage firm with offices and properties throughout the United States. The firm presently manages or owns more than 175,000 multi-family housing units (60,000 affordable housing units) in the United States and beyond.
Shorewood Heights was originally built in 1949 by Island resident Charles Clise.
The Pinnacle Family of Companies on Wednesday paid just under $110 million for Shorewood Heights, a 645-apartment community on Mercer Island. That’s 22 percent less than what the property traded for almost five years ago.
This is the Puget Sound region’s largest multi-family transaction since 2008, when Island Square, a mixed-use project with 235 apartments and 40,000 square feet of office and retail, sold for $112 million. Island Square is also on Mercer Island.
Changes ahead for Shorewood
The new owners of Shorewood Heights have permits ready for improvements. They include:
• an expanded fitness center for residents
• a swimming pool
• 124 new units