357-unit multifamily value-add opportunity in Seattle MSA
Alaire is a 357-unit multifamily community located in the city of Renton, directly adjacent to the powerhouses of Bellevue and Seattle. Alaire is the first low-density garden community outside the urban core, attracting residents looking for a tranquil retreat close to the excitement of the city. Alaire’s unique location just south of Lake Washington, with easy access to multiple interstates and freeways, provides its residents unparalleled connectivity to the region’s major employment hubs including the Eastside’s high-tech core, Bellevue, the Seattle CBD, Southcenter, SeaTac, and Kent Valley. Notable employers within 10 - 20 minutes of the Property include Boeing, Paccar, Valley Medical Center, and the new 700,000 square foot Class-A office building at Southport.
The Seattle / Bellevue MSA is one of the world’s most rapidly growing metropolitan regions, both in terms of economic influence, production, and population as well as innovation and entrepreneurial drive. While Bellevue and Seattle account for much of this growth, the energy and excitement has spilled across the region, enhancing existing employment centers and significantly impacting adjacent core-plus markets such as Renton. This dynamic has positioned Renton as a highly compelling value proposition to adjacent Bellevue and Seattle for both renters and investors.
Alaire Apartments is centrally located in Renton at the south shores of Lake Washington. Renton has been revitalizing itself with a series of public and private projects. These include a new transit center, several community event centers, a 614,000-square-foot urban shopping village, new residential and commercial developments, the $200 million expansion of UW–Valley Medical Center, and a state-of-the-art, 200,000 square foot NFL training facility for the Super Bowl XLVIII Champion Seattle Seahawks.
Renton’s accessible location and pro-business climate has attracted employers to relocate and expand within the city limits, making it home to over 44,000 jobs. While Renton’s largest employer is still Boeing, it accounts for 32% of the city’s jobs, as compared to 59% in 1990. Renton has successfully courted large employers over the years to create a diverse economy. These employers include Valley Medical Center, Providence Health Systems, Paccar, game maker Wizards of the Coast, software publishers Topics Entertainment and Parallels, the Federal Reserve Bank, and IKEA.
Southport is Renton’s newest development located along the south shores of Lake Washington between Boeing and Gene Coulon Park. Puget Sound Energy’s Shuffleton Steam Plant was decommissioned years ago and demolished in 2001 to make way for the new 17.5-acre Southport development which will feature 700,000 square feet of Class A office space located in three, nine-story towers, a newly opened 347-room Hyatt Regency Hotel, 10,000 square feet of boutique shops, four restaurants, and a waterfront special events site all located along a lakefront promenade with shore-to-shore views of Lake Washington and the Seattle skyline.
Surrounded by water, snow-capped mountains, and evergreen forests, Seattle is one of the most picturesque cities in the Pacific Northwest and features the most recognizable skyline on the West Coast. Seattle has an estimated population of over 704,000 with nearly four million people for the metro area. With a booming tech industry and home to Amazon’s global headquarters, Seattle is the second best tech market in the nation, only behind San Francisco. Other Fortune 500 companies in Seattle include Apple, Boeing, Facebook, Google, Microsoft, Nordstrom, Starbucks, and Weyerhaeuser.
In 2016, Seattle was ranked the fastest growing city in the U.S. with an annual growth rate of 3.1%. Residents of the city enjoy a much lower cost of living than other cities such as San Francisco and New York, but still enjoy all the attributes that big cities have to offer such as a thriving arts scene, world-class restaurants, and several mass transit options.
Bellevue is the cultural, social, and financial hub of the Eastside. This rapidly growing and affluent city has nearly five million square feet of retail and entertainment uses and more than nine million square feet of office space. Bellevue is the second largest city in the state of Washington with a population of over 141,000.
Bellevue has undergone tremendous change and growth, primarily because of the city’s talented workforce and rapidly growing downtown area. Its leasable office space has grown nearly 50% since 2000. The City has become a major player in the global marketplace with many companies having chosen Bellevue for their corporate or regional headquarters. Bellevue is home to such companies as Microsoft, Yahoo!, Eddie Bauer, The Disney Company, Infospace, and Symetra Financial.
While Renton’s largest employer is still Boeing, it accounts for just 21% of the city’s jobs, compared to 59% in 1990. Renton has successfully courted large employers over the years to create a diverse economy. These employers include PACCAR, UW-Valley Medical Center, Providence Health Systems, the Federal Reserve Bank, and an IKEA, which is the store’s only location in the Pacific Northwest.
Renton’s industrial market is flourishing with companies like Jefferson Smurfit, Aero-Plastics, Renton Coil Spring, Kaye-Smith, and others making it an ideal location for manufacturers and wholesalers.
Boeing continues to produce the 737 out of their Renton Factory, 10 minutes northeast of Alaire. The 737 is still the best-selling commercial aircraft in the world. Boeing was also awarded the Navy’s Multi-mission Maritime Aircraft contract and will build what is projected to be 300 of the new submarine hunters at the Renton plant. Boeing also produces the new 737 MAX out of its Renton plant which is the fastest selling airplane in Boeing’s history. With its first delivery completed in May 2017, the new airplane already has over 4,300 orders.
Boeing has gone on a building spree for its Next Generation 737, recently increasing its production rate from 42 planes per month up to 48 planes as of July 2017. Boeing previously announced plans to produce up to 52 planes per month in 2018. Boeing delivered a record high 763 airplanes in 2017 and currently has over 5,800 orders for commercial airliners, a seven year backlog.
King County International Airport, also known as Boeing Field, is 10 minutes from Alaire. With a total of 594 acres, Boeing Field is one of the busiest primary non-hub airports in the country and supports over 5,200 direct jobs. The airport serves small commercial passenger airlines, cargo carriers, private aircraft owners, helicopters, corporate jets, military, and other aircraft.
Valley Medical Center (VMC) is the largest nonprofit healthcare provider between Seattle and Tacoma, serving over 600,000 residents in South King County and generating $1 billion in annual revenues. VMC was recently ranked the best hospital in the Seattle Metro and Washington State by U.S. News and World Report. VMC is number one in overall orthopedics and among the top five percent in the nation for spine surgery. Modern Healthcare magazine named VMC a “Best Place to Work in Healthcare” and placed the center in the top 10 nationally.
PACCAR, a Fortune 500 company, is the third largest manufacturer in the world of commercial trucks. PACCAR is known for its leadership in development of aerodynamic, lightweight commercial vehicles that has led to reduced fuel consumption and increased efficiencies.
Founded by Jeff Bezos in 1994, Amazon is the global leader in e-commerce and cloud computing with their world headquarters in Seattle’s South Lake Union neighborhood. Amazon’s cloud computing services are among the largest in the world, serving everyone from small companies to large corporations and government agencies. In 2015, Amazon surpassed Walmart as the most valuable retailer in the U.S. by market capitalization. Amazon is the largest internet company in the world and the second most valuable public company in the world. Additionally, Amazon is the eighth largest employer in the US.
Kent Valley is the premier industrial center of the West Coast, and the fourth largest manufacturing and distribution center in the United States with over 120 million square feet of industrial and flex space. The Valley spreads from Renton/Tukwila to the north and Sumner to the south. Its central location to two of the strongest ports on the West Coast, the Port of Tacoma and Port of Seattle, easy access to major freeways and SeaTac Airport, as well as the availability of Burlington Northern and Union Pacific rail lines, is what has made Kent Valley an industrial powerhouse.
Alaire Apartments is less than 20 minutes south from Seattle’s Central Business District (CBD). The CBD is the Pacific Northwest’s largest employment center which accounts for over 300,000 jobs. Major employers comprising the CBD job market include Amazon, Bank of America, Blue Nile, CenturyLink, Chase, Cobalt, Dendreon, DocuSign, EA Sports, Facebook, Getty Images, Google, Kaiser Permanente, HTC, Hulu, King County, Microsoft, Nordstrom, Oracle, Onvia, Port of Seattle, Russell Investments, Safeco Insurance, Starbucks, Swedish Medical Center, Twitter, Virginia Mason, Vulcan, Washington State, Wells Fargo, and Zillow.
Bellevue is a major regional job center, employing more than 150,000 people and is becoming a leader in commerce, international trade, and technology innovation for the region. The city is also establishing itself as a global player, with large companies having major world, national, or regional offices in Bellevue including Microsoft, T-Mobile, Eddie Bauer, Verizon Wireless, and more. Other large employers in Bellevue include Bellevue College, City of Bellevue, Safeway, Quality Food Center (QFC), Nordstrom, Savers (the Value Village operator), and Bellevue School District, which is one the top school districts in the nation.
Microsoft is the world’s largest software company with their global headquarters located in Redmond, 30 minutes north of Alaire. Microsoft currently employs over 126,000 globally with 47,113 employees in the Puget Sound Region making it the second largest employer in the state behind Boeing. Over 34,000 employees are located at their Redmond headquarters with the remaining employees centered in Bellevue and South Lake Union. Economists report that the multiplier for each Microsoft job is an additional 3.4 new jobs in the area. The average Microsoft salary is $225,000 including options and benefits, which is one of the highest in the tech industry.