705 Lofts

Highlights:

• STABILIZED ASSET WITH VALIDATED CASH FLOW: T-12 NOI of $466,350 (+24% vs. 2023), 95% physical occupancy, 8+ years of steady performance through interest rate cycles, and a clean expense base. A buyer steps into a true "day-one income" deal.
• MARK-TO-MARKET LOSS-TO-LEASE: In-place rents average $1,595/unit/month versus CoStar's market rent benchmark of $1,793 — a $198/month/unit gap representing approximately $95,000/year in unrealized revenue achievable through natural turnover with no required Capital Expenditure.
• LIGHT VALUE-ADD UPSIDE, STRONG YIELD-ON-COST: Interior renovation scope of $8,000–$10,000/unit (LVT flooring, stainless appliances, quartz/butcher-block counters, modern fixtures) supports an additional $100–$150/month premium per unit, yielding 17%–22% on cost with a 3-year stabilization timeline.
• OUTPERFORMANCE VS. PEER SET: Per CoStar, 705 Lofts has delivered +11.6% effective rent growth over 3 years and +22.2% over 5 years, materially outperforming its direct rent comparable set (-5.3% / +2.1% over the same periods). The asset has earned a premium rent track record that survives at sale.
• TRANSIT-RICH INFILL LOCATION WITH WALKABILITY: Two blocks from the new East Link light rail extension, adjacent to King Street Station regional rail and the Sound Transit transit tunnel, and within the walkable urban core of Pioneer Square, International District, and the SoDo employment district. 23 dedicated garage parking stalls support residents who choose to keep a vehicle while serving a tenant base oriented toward transit, walking, and bikeshare.

Description:

ORION Commercial Partners, LLC is pleased to offer the exclusive opportunity to acquire 705 Lofts ("the Property"), a 40-unit Class B multifamily property with a single ground-floor commercial tenant, located at 705 South Weller Street in Seattle's International District submarket. Built in 2006, the six-story elevator-served building offers a rare combination of: (i) stabilized in-place cash flow on a well-maintained classic asset, (ii) clear and immediately achievable mark-to-market upside, and (iii) optional light interior renovation upside with attractive yield-on-cost economics — all within a transit-rich infill location two blocks from the new East Link light rail extension & regional transit hub.

The Property has performed strongly through a challenging Seattle multifamily cycle. Trailing twelve-month (T-12, Mar '25 – Feb '26) Net Operating Income is approximately $466,000 — a 24% increase from $375,790 since October 2023. The building maintained a physical occupancy of 95% (2 vacant units of 40) throughout the trailing period, and has delivered effective rent growth of +11.6% over the past 3 years and +22.2% over the past 5 years — materially outperforming the direct rent comparable set, which posted -5.3% and +2.1% respectively over the same periods.

Despite the building's strong performance and stabilized profile, current asking rents on the rent roll lag market by roughly $200/unit/month based on comparable analysis. A new buyer can capture additional revenue through natural turnover at market rates with no required capital expenditure. Additionally, the unit interiors offer a classic 2006-vintage finish package (laminate countertops, carpeted bedrooms, white appliances) and provide a textbook light value-add opportunity: $8,000–$10,000 per unit in interior Capital Expenditure, with a unit renovation package of LVT plank flooring, stainless appliances, quartz or butcher-block counters, modern cabinet pulls, and light fixtures. This unit reno plan supports an incremental $100–$150/month rent premium above achievable market rents, yielding 17%–22% yield-on-cost.

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