Prince of Wales

Prince of Wales

1818 20th Ave Seattle, WA
The Narrative

This project was ripe for a full court press, as it was begging to be stripped to the bones and reworked from the ground up. METER bought this property, immediately started renovation and permitted for new unit construction.

When we say we added new features, we mean everything, from electrical to plumbing, to flooring to kitchens and bathrooms. The magic is that we maintained many of the classic touches that makes it uniquely Seattle.

Then there was the question of the land. we recognized the potential for it, then permitted, planned and designed 8 modern units of new construction. Then, we sold the land and the design for $1.7M.

The Basic Numbers
Purchase Date: October 26, 2012
Sale Date of Land: April 23, 2014
Sale Date of Building: September 30, 2014

Purchase Price: $3,450,000
Development Cost, Land Entitlement: $94,757
Development Cost, Cap X (Existing): $2,509,194
Total Project Cost: $6,053,951

Sale Price of Land: $1,700,00
Sale Price of Building: $8,765,000
Total Gross Profit: $4,411,049

Net Operating Income at Sale: $407,283
Performance CAP at Sale: 6.85%

IRR 68.83%

This Property is a True METER Trifecta!

We mention the Trifecta for certain projects, and this project fits that definition to a "T." The three major criteria we recognize in this Trifecta were:

  • Mismanaged / Poor Condition. What this property needed was some updates and experienced quality control

  • Opportunity to Add New Units. Once the building was updated, we recognized the space to ad new units to.

  • Divisible Land. The amount of land this property was sitting on was incredible, and just waiting for development in a fantastic area.

We wouldn't say this project was simple, or even easy. But METER's experience made it clear, if not obvious. The footprint square footage of this building, in this exploding neighborhood, was maximum, and its revenue and performance was minimal. We just made the right moves to make it efficient, and livable.