123 4TH APARTMENTSMixed Use Building (Management)
123 4th Apartments is the first large-scale mixed use building of its kind in Downtown Olympia. Being that the building is seven stories and features a structured parking garage, the cost of construction was substantially higher than a typical garden style apartment project.
The increased cost of urban style construction meant that in order for the project to pencil, the rents would have to be substantially higher than any other project in Thurston County.
There was not a single comp for this type of project so we had to go about building a pro forma the developer could take to the bank (to get financing) and that we could actually deliver on relying solely on our experience and expertise in the apartment market.
Once our pro forma was built and the project was underway, it was time to start generating a buzz about the property. We reached out to every local news outlet, the Thurston County Ecomonic Development Council, and Downtown Association and just about every other entity that has a vested interest in downtown Olympia.
We believed that in order to deliver on the pro forma we created, we’d need to get the building pre-leased to at least 25% occupancy before opening the doors. We wanted to be confident that the numbers we projected were in line with the downtown reality.
We ended up exceeding our pre-leasing goal. Prior to construction ending, we had pre-leased approximately 30% of the units in the building. We also proved to the community that there is, in fact, a market for urban living in Olympia.
As of the date of this article we’re almost 70% occupied and our numbers have stayed true to our original pro forma.
This project really has and will continue to help change the face of downtown Olympia.
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