Mukilteo apartments sell at profit

MUKILTEO — On the Green at Harbour Pointe, a 294-unit apartment complex, has changed hands for the second time in less than two years, this time for $47 million.

The property, bought in early 2006 by California-based Legacy Partners, sold to Pacific Property Co., which paid nearly $160,000 per unit.

That’s a relatively high per-unit price for Snohomish County, though two other recently-sold complexes have commanded similar or higher prices. The 516-unit Mill at Mill Creek Apartments fetched $155,000 per unit, or $80 million total, in a deal announced last month. And the 344-unit Millington Apartments, a luxury complex built just last year on Everett’s Merrill Creek Parkway, brought in $74 million, or more than $200,000 per unit.

Legacy Partners paid less than $124,000 per unit last year to buy 558 units at On the Green in Mukilteo. It then began transforming 264 of those into condominiums overlooking Harbour Pointe Golf Club. That development, called Front9, is selling well, said John Hatton, a local project manager for Legacy Partners.

The landlord also began upgrading the remaining apartments, a program that California-based Pacific Property intends to continue. The new owner intends to keep those units as apartments rather than convert them.

Prices for local apartment complexes have skyrocketed in recent years, thanks to investor interest in the Puget Sound region’s strong rental market.

“The feeding frenzy we saw even just 60 to 90 days ago has slowed because of the credit crunch in the capital markets,” Hatton said. But, he added, this region is still considered one of the top five nationally for commercial real estate investments.

In its midyear report on demand for apartments, GVA Kidder Mathews in Seattle predicted the number of vacant apartments will continue to go down in the coming years. That could keep pushing rents upward at a noticeable pace.

Just more than 4 percent of apartments in Snohomish, King and Pierce counties were without tenants as of this spring. At the same time that more people have moved into the area, the number of apartments has shrunk because of condo conversions, and the number of new apartment units under construction or planned between now and the end of 2009 is fewer than 600, according to Dupre+Scott Apartment Advisors.

Reporter Eric Fetters: 425-339-3453 or

Talk to us

More in Herald Business Journal

Members of Gravitics' team and U.S. Rep. Rick Larsen stand in front of a mockup of a space module interior on Thursday, August 17, 2023 at Gravitics' Marysville facility. Left to right: Mark Tiner, government affairs representative; Jiral Shah, business development; U.S. Rep. Rick Larsen; Mike DeRosa, marketing; Scott Macklin, lead engineer. (Gravitics.)
Marysville startup prepares for space — the financial frontier

Gravitics is building space station module prototypes to one day house space travelers and researchers.

Orca Mobility designer Mike Lowell, left, and CEO Bill Messing at their office on Wednesday, Aug. 16, 2023 in Granite Falls, Washington. (Olivia Vanni / The Herald)
Could a Granite Falls startup’s three-wheeler revolutionize delivery?

Orca Mobility’s battery-powered, three-wheel truck is built on a motorcycle frame. Now, they aim to make it self-driving.

Catherine Robinweiler leads the class during a lab session at Edmonds College on April 29, 2021. (Kevin Clark / The Herald)
Grant aids apprenticeship program in Mukilteo and elsewhere

A $5.6 million U.S. Department of Labor grant will boost apprenticeships for special education teachers and nurses.

Peoples Bank is placing piggy banks with $30 around Washington starting Aug. 1.
(Peoples Bank)
Peoples Bank grant program seeks proposals from nonprofits

Peoples Bank offers up to $35,000 in Impact Grants aimed at helping communities. Applications due Sept. 15.

Workers build the first all-electric commuter plane, the Eviation Alice, at Eviation's plant on Wednesday, Sept. 8, 2021 in Arlington, Washington.  (Andy Bronson / The Herald)
Arlington’s Eviation selects Seattle firm to configure production plane

TLG Aerospace chosen to configure Eviation Aircraft’s all-electric commuter plane for mass production.

Jim Simpson leans on Blue Ray III, one of his designs, in his shop on Friday, August 25, 2023, in Clinton, Washington. (Ryan Berry / The Herald)
Whidbey Island master mechanic building dream car from “Speed Racer”

Jim Simpson, 68, of Clinton, is using his knowledge of sports cars to assemble his own Mach Five.

Inside the new Boeing 737 simulator at Simulation Flight in Mukilteo, Washington on Wednesday, Sept. 20, 2023. (Annie Barker / The Herald)
New Boeing 737 simulator takes ‘flight’ in Mukilteo

Pilots can test their flying skills or up their game at Simulation Flight in Mukilteo.

An Amazon worker transfers and organizes items at the new PAE2 Amazon Fulfillment Center on Thursday, Sept. 14, 2023, in Arlington, Washington. (Ryan Berry / The Herald)
Amazon cuts ribbon on colossal $355M fulfillment center in Arlington

At 2.8 million square feet, the facility is the largest of its kind in Washington. It can hold 40 million “units” of inventory.

A computer rendering of the North Creek Commerce Center industrial park in development at 18712 Bothell-Everett Highway. (Kidder Mathews)
Developer breaks ground on new Bothell industrial park

The North Creek Commerce Center on Bothell Everett Highway will provide warehouse and office space in three buildings.

Dan Bates / The Herald
Funko president, Brian Mariotti is excited about the growth that has led his company to need a 62,000 square foot facility in Lynnwood.
Photo Taken: 102312
Former Funko CEO resigns from the Everett company

Brian Mariotti resigned Sept. 1, six weeks after announcing he was taking a six-month sabbatical from the company.

Cash is used for a purchase at Molly Moon's Ice Cream in Edmonds, Washington on Wednesday, Aug. 30, 2023. (Annie Barker / The Herald)
Paper or plastic? Snohomish County may require businesses to take cash

County Council member Nate Nehring proposed an ordinance to ban cashless sales under $200. He hopes cities will follow suit.

A crowd begins to form before a large reception for the opening of Fisherman Jack’s at the Port of Everett on Wednesday, August 30, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Seafood with a view: Fisherman Jack’s opens at Port of Everett

“The port is booming!” The new restaurant is the first to open on “restaurant row” at the port’s Waterfront Place.