On the corner of East John and 16th, savvy investors have picked up a piece of Capitol Hill history — a Frederick Anhalt building. The unusual home for Group Health administrative offices since the late ’60s was recently acquired by Anhalt Apartment LLC, an investment wing of Trinity Real Estate started this year by real estate mogul Richard Leider.
The Anhalt building was originally acquired by Group Health in 1968 for administrative purposes, a Group Health representative tells CHS. Group Health said the building has been vacant since 2008 “after it was determined the facility’s infrastructure could not be modified to meet Group Health’s business standards.”
Leider from Trinity Real Estate said the project plan is to “retain as much as possible,” but the overhaul will “fully rebuild the interior” to accommodate future residents. Leider says his plan is to put in “roughly 24 apartments” that will range from studios to three bedroom dwellings.
Frederick Anhalt creations continue to dot Capitol Hill and a few other pockets of the city. The map below documents where you can find them and this CHS post provides a little background on the rather unlikely contributor to the area’s architectural history. Built in 1930 under the architectural direction of Anhalt , the three-story building at 16th and E John is defined by its courtyard, and Tudor spire. Its heating is still the original steam-powered system. Leider said his group enthusiastically pursued buying the Anhalt.
View Anhalt Buildings in Seattle in a larger map
The 21,636 square foot building was purchased by Anhalt Apartment LLC for the price of $2,715,000.00 on May 7th.
Trinity Real Estate and Norman Partners recently formed a partnership called Northstar Realty Fund “to buy multifamily properties and other kinds of commercial real estate in the Puget Sound region… it will be targeting assets that are below the radar of many institutional funds, and thus often priced more attractively,” says a January article from Multi-Housing News. With a tax appraisal near $4 million, the purchase of the Group Health Anhalt is in line with this strategy, Leider reiterated this purchasing method to CHS, saying they look for buildings that need some updating.
Trinity Real Estate, bought the Marborough on First Hill in 2010 for $12.75, put in $4 million in renovations and sold it to Cielo Azul Ventures in 2011 for $27 million dollars, turning a cool $10 million dollar profit.
The apartment project remains in its early phases with land use coaching and planning underway. A design review process will follow. Leider calls the Anhalt a “beautiful property” and says the process has also already begun to nominate the building for a “landmark designation.”
Leider said that no future acquisitions on Capitol Hill are imminent but said he “love(s) the neighborhood and want(s) to find more…we’re very interested.” The Anhalt purchase may be a singular event, however, given the rarity of the structures.