The Dexter
About this Project
Sweeping views of Lake Union, Gasworks Park, and the Cascades highlight this 14-unit apartment building located near the bustling Westlake neighborhood in the heart of Seattle. Its’ proximity to tech industry leaders, neighborhood attractions, and its vast untapped potential made this hidden gem an ideal target for the Walls Property Group. Originally built as a 13-unit apartment complex in 1965, Dexter Ave was showing its age. Looming vegetation, peeling paint, and dated units and finishes were casting a shadow over an otherwise tremendous property. Realizing what the property could be, WPG raised over 1.7 million in equity for the acquisition of the building which closed in July of 2019. Click here for before and after photos!
Upon building acquisition, WPG began a 1.8 million dollar scope of work that included new plumbing, electrical, HVAC systems, structural enhancements, interior, and exterior finishes. The project transformed over 1200 sq. ft. of tenant storage and parking areas to rentable apartment space, adding a net new 800 sq.ft. unit and expanding the floor area in two others. All units were redesigned/reconfigured with the overarching themes of efficiency, convenience, and usability. Extensive efforts were made to enhance the landscaping and trim the canopy allowing more natural light into the units/walkways. The WPG team also added 850 sq.ft. of rooftop deck to the building affording all residents the opportunity to take in some fresh air and stunning panoramic views.
The Details
- Date of acquisition: July 2019
- Acquisition Price: $3,600,000
- Renovation Costs: $1,807,000
- Renovation Complete: October 2020
- Current Value: $7,200,000
- Investment Type: Long term Syndication Investment
- Equity Raised: $1,770,000
- Targeted IRR: 14.0%
- Equity Multiplier: 2.17X
- 5-YR avg COC: 11.4%
Key Value-Add Highlights:
- 1114 sq.ft. of utility/storage/carport converted to livable space
- One net new 3 bedroom/2 bath apartment unit
- Reconfigured living, kitchen, bedroom spaces in all pre-existing units with additional bedrooms and baths
- Modern finishes, upgraded plumbing, and electrical systems, CAT6, and smart home technology
Domain Expertise:
- Syndication/Acquisition
- Asset Management
- Due Diligence/Planning
- Construction Management
- Leasing
- Property Management