Case Studies

Real estate investment case study: Slate Lofts and Apartments development

A vision for an underdeveloped neighborhood drives development with a significant return.

Strong brand, transit-rich location, and a best-in-class amenity package in a supply-constrained submarket were secrets to Unico's residential development success

Unico began assembling the Slate land parcel in Seattle’s then-unknown Interbay neighborhood in 2004, envisioning the emergence of one of the newest multifamily destinations in the city, even though U.S. Census data indicated just 11 residents per acre in 2010. However, Unico understood that easy access to some of Seattle’s most vibrant neighborhoods, strong transit options, and generous green space were hallmarks of an undiscovered development gem. Capitalizing on a 2008 change in zoning law, which relaxed height restrictions from 40 feet to 85 feet, the company began building one of the first new developments in the overlooked area.

Slate Apartments and Lofts, a modern residential development in Seattle's Interbay neighborhood.

Unico understood that easy access to some of Seattle’s most vibrant neighborhoods, strong transit options, and generous green space were hallmarks of an undiscovered development gem

More Development Stories

The common room at Slate Apartments, with mid-century modern furniture.

An apartment at Slate, with modern finishes and wood accents.

Knowing that a strong brand is critical to success, Unico leveraged an opportune market cycle and partnered with BlackRock, the world’s largest asset manager, to develop a unique urban apartment community. Tapping into the needs of active Generation-Y renters looking for larger apartments and lifestyle amenities, Unico embarked on a full branding and marketing campaign that captured the notion that at Slate you can “Live Life. Your Way.” Unico also secured financing and a construction contract at the beginning of the recent economic recovery, ensuring a favorable cost basis in which to compete with more established neighborhoods.

Unico delivered the 236-unit project —which features 5,500 sf of ground-level retail and a market-leading amenity package—multiple weeks ahead of schedule and substantially under budget. Multiple parties expressed interest in a pre-sale opportunity for the development; due to apartment market supply considerations, Unico sold the property to LaSalle Investment Management for over $68 million—nearly $300k a door—and realized an 80%+ IRR. The project has been recognized as a key driver in the evolution of the Interbay neighborhood, an area that Expedia recently selected as home for its new corporate headquarters.