The new Hadley Apartments, at 2601 76th Ave. S.E. on Mercer Island, have sold for $95.7 million, according to King County records.
The seller was Legacy Partners, which paid $8.6 million in 2014 for a ground lease on the almost 1.9-acre site.
Legacy’s equity partner on the project was Resmark Apartment Living.
The buyer was SyRES Properties of San Rafael, California. Both parties used LLCs in the transaction.
Corey Marx and David Young of Jones Lang LaSalle brokered the deal, which Legacy confirmed in a press release.
Legacy will continue to manage the apartments, which it says are 90 percent leased.
The sale was only for the 160,000-square-foot building, and not the land, which is leased from Keeler Investments of Mercer Island. That lease runs through 2086, with a 15-year option to extend.
Located in downtown Mercer Island, the Hadley was designed by VIA Architecture and built by Chinn Construction.
The six-story building has 209 luxury units, ranging from studios to two-bedroom apartments.
When it opened last fall, Legacy said that rents would range from $1,004 to $2,500. Amenities include a theater room, charging stations for electric vehicles, bike room, roof deck and barbecue area, conference room and fitness center.
There are 227 parking spaces at and below grade. Retail tenants in the 9,200 square feet of commercial space include Freshy’s Local Market, Mioposto Pizzeria and Orange Theory Fitness.
The site was previously home to the Islander Restaurant and True Value Hardware.
In a statement, Legacy’s Kerry Nicholson said, “The very strong interest in the property, which is situated on a ground lease, represents the high quality of the asset and the fact that the island’s extremely high barriers to entry result in no other projects coming up behind us — a rarity in any submarket.”
The Hadley is in an area that the city has targeted for more density and mixed-use development, close to the Island Crest Way exit from Interstate 90. It’s a 10-minute walk to the Park & Ride, and the site of the light-rail station scheduled to open in 2023.
The complex was named for Homer Hadley (1885-1967), who first proposed the idea of a floating bridge across Lake Washington in 1921.
The Lacey V. Murrow Memorial Bridge was finally built in 1940, connecting Mercer Island and Bellevue to Seattle. It was the first floating bridge in the world, and used Hadley’s signature concrete pontoons. The structure has since been rebuilt, after the 1990 storm that sank some sections of the bridge.
A second companion bridge was added in 1989. That north span is officially called the Homer M. Hadley Memorial Bridge. Construction is now underway there to add flexing tracks for the world’s first light rail line to run on a floating bridge.
The recently founded SyRES Properties is a real estate arm of privately held Syufy Enterprises, an entity of the Syufy family. Beginning in the 1940s, that family expanded its Century Theatres chain into retail development, golf courses and other businesses. The family sold the theaters to Cinemark in 2006 for an undisclosed amount.
The SyRES website says it now has 500 units under ownership, and over 1,000 units in various stages of development in California, Oregon and Washington. The Hadley is the firm’s first local investment.
Legacy is based in the Bay Area, and has over 2,000 units under management locally. It most recently completed the 278-unit Bowman, in Wallingford, which is 95 percent leased.
Nationally, Legacy manages a $2 billion portfolio with over 60 multifamily communities and more than 14,000 units.
By: Brian Miller