Northmarq’s Seattle team completes sale, arranges financing of Kavela Apartments

SEATTLE (Dec. 20, 2024) — Northmarq’s Seattle Multifamily Investment Sales team led by Matt Johnston and Taylor Wyman successfully completed the sale of Kavela Apartments, a 63-unit multifamily community located at 845 NE 66th Street in Seattle.

Northmarq represented the buyer, a Seattle-based family partnership. The seller was Kavela, LLC, an affiliate of Mack Real Estate Group based in New York.

Northmarq’s Seattle Debt + Equity team led by Ron Peterson and Jack Bell collaborated on the deal, securing the permanent-fixed loan on behalf of the borrower through its in-house Fannie Mae DUS platform. The deal was structured on a 10-year term.

“Our team is excited to have procured this acquisition opportunity for the buyer without competition, as it was not publicly marketed and allowed them to fulfill a 1031 exchange out of two equity-heavy, fully depreciated assets that we sold for them earlier this year,” Johnston said. “The acquisition of Kavela will increase the returns on equity for the family and reduce their management burden given the modern vintage and lack of cap-ex needs that Kavela provides. We took a creative approach to assist the family in repositioning some of their portfolio in a manner that increases cash flow, shelters more income, and allows for the benefits of strong leverage. We took a team approach on this deal from start to finish by utilizing Ron Peterson and Jack Bell of the Northmarq Debt + Equity team on the lending side of this transaction.”

“Fannie Mae stepped up with the most competitive terms beating out Freddie Mac and other Life Insurance Company quotes to win this deal,” Peterson said. “We would like to give a big thanks to our borrower for navigating through many moving parts on this deal, as well as Matt & Taylor and the rest of the Northmarq team for bringing this together.”

Built in 2013 and located in the heart of Seattle, Kavela Apartments feature studio, one- and two-bedroom apartments designed with attention to detail, featuring best-in-class appliances, floor-to-ceiling windows, and elevated community amenities just steps away.

Unit amenities include stainless steel appliances, washer/dryer, available patios or balconies, tile backsplash, and more. Community amenities feature a rooftop view deck, storage lockers, a street-level coffee shop and yoga studio, package receiving and easy access to the Roosevelt Link Light Rail Station.

Kavela Apartments are conveniently located near Interstate 5 as well as local restaurants, shopping and outdoor activities. It is near Green Lake and also a short drive from Lake Washington, the University of Washington campus, and downtown Seattle.