EVERETT — A Seattle company is the new owner of Hearthstone at Merrill Creek after paying more than $23 million for the 220-unit apartment complex in south Everett.
Security Properties Inc. bought the property at 1901 Merrill Creek Parkway from the developer, Bellevue-based Schnitzer Northwest.
The price paid for the property translates to approximately $105,000 per unit.
That’s believed to be the highest ever for the south Everett area, said Frank Bosl, a vice president with CB Richard Ellis. He and Jon Hallgrimson, a senior vice president with CB Richard Ellis, represented Schnitzer in the transaction.
"We think it’s a great property," said Mike Fulbright, director at Security Properties, adding he’s optimistic about the apartment complex’s potential as Snohomish County grows.
He said about 5 percent of Hearthstone’s apartments were empty when the property changed hands. That’s below the 7 percent to 8 percent average vacancy rate for the Puget Sound region.
Bosl said the Boeing Co.’s announcement that it will assemble the 7E7 jetliner in Everett buoyed interest in the property, as it’s located near Boeing’s main plant.
Built in 1999 and 2000 by Schnitzer Northwest, Hearthstone lies just west of the intersection of Merrill Creek Parkway and Hardeson Road. Though it’s on the edge of an area that hosts business parks and industrial warehouse buildings, the complex is surrounded by two creeks and a wooded property.
The three- and four-story buildings in the complex include "luxury" apartments with up to three bedrooms, with rents ranging from about $700 to more than $1,300 a month. Amenities at the complex include gas fireplaces, garages, a large clubhouse with a pool and play area and exercise facilities.
Fulbright said Hearthstone is Security Properties’ first purchase in Snohomish County, but the firm owns 26,000 units at other complexes nationwide.
Since last fall, at least two other apartment developments in the county, one in the Canyon Park area of Bothell and the other in south Everett, have sold for more than $20 million.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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