Investment Overview

The Seattle Investment Sales Team of IPA has been retained as the Exclusive Listing Brokers for the sale of Atrium on James, a 300-unit multifamily community centrally located in Kent, Washington, within 30 minutes of downtown Seattle or downtown Bellevue. The offering presents a value-add investment opportunity with significant upside within a strong submarket of the Seattle MSA.

The community is conveniently located at the confluence of Puget Sound’s main freeways and arterials with easy access to Interstate 5, State Routes 167, 181, 509, and 516 providing one of the best access points to the region’s major employment centers. Downtown Seattle, the Eastside, Renton, Kent Valley, and SEA International Airport are all five to 30 minutes away. The Kent Transit Center and Sounder Commuter Train are within two miles of Atrium on James, offering bus and rail access into downtown Seattle.

Atrium on James is also located near several major retail destinations and lifestyle amenities. Kent Station, a 20-acre mixed-use development with open-air shopping, dining, and office space is only five minutes away. Kent Station operators include an AMC Theatre, Duke’s Seafood, Mama Stortini’s, LOFT, Road Runner Sports, and much more. A pedestrian boardwalk through Kent Station extends to Kent Transit Center.

Value-Add investment opportunity

Significant upside can be achieved as follows: operationally, renovations to interiors, reprogramming common areas, and curing deferred maintenance. Neighboring renovated apartment communities are achieving $300 to $500 more in rent than Atrium on James.

SUGGESTED INTERIOR RENOVATIONS

Recommended interior renovations would include white shaker cabinets, new countertops with undermount sinks, stainless-steel appliances, LVP flooring in the living and wet areas, upgraded fixtures and 2” faux wood blinds. There are currently 32 renovated “white premium” units that were recently conducted and achieving up to a $200 premium.

SUGGESTED COMMON AREA RENOVATIONS

Exterior and common areas are primed for renovation, and suggested upgrades include a complete face-lift to the clubhouse and leasing office, reprogramming / expanding the fitness center, converting the outdoor tennis court into a first-class dog park, exterior paint, installing a BBQ near the pool, landscaping upgrades and community re-branding, all of which will drive rents further.

EASY ACCESS TO MAJOR EMPLOYMENT HUBS

Centrally located from the main employment hubs of downtown Seattle, Bellevue, and the Eastside (25 to 30 minutes). Kent Valley, Renton, and SEA International Airport are all within 20 minutes. The Sounder Commuter Train offers a convenient commute to downtown Seattle with the Kent Station less than miles from Atrium on James.

strong submarket growth

Per CoStar, Kent’s forecasted rent growth is 4.2% in 2024; 3.8% in 2025 and 3.6% in 2026. Over the past several years, rent growth in Kent has been amongst the highest in the Seattle MSA, given its affordability and coupled with its close proximity to multiple employment hubs and suburban amenities. Over the last decade, its population grew by 40% compared to 14% for the Seattle MSA. By 2027, Kent’s population is expected to grow by another 6.5%.

housing affordability

The average single-family home price in South King County is $658,205, making homeownership over twice as expensive than renting at Atrium on James. As interest rates continue to climb and for-sale housing supply remains low, housing affordability continues to remain unfavorable.