Two-and-a-half years ago, Seattle's Security Properties, with the help of Lubert-Adler Partners of Philadelphia, bought out its original partner in the Pearl District's Honeyman Hardware Lofts for $20.5 million.
Last week, Security Properties and Lubert-Adler sold the 100-unit Pearl District apartments for $37.1 million to San Jose real estate investment firm DiNapoli Capital Partners.
HFF brokered the deal, which was first reported by the Real Estate Alert newsletter .
The three-building property, located at 555 N.W. Park Ave., includes about 11,000 square feet of retail space. Before a renovation in 1991, the buildings housed a hardware store and warehouse space.
After Security Properties and Lubert-Adler bought out Equity Resource Group in 2012, the firms invested $4.6 million in a renovation that boosted the housing component up from 89 units to 100. About 15,000 square feet of retail space was converted into work-live lofts as part of the remodel.
Security and Equity originally bought the property in 2006 intending to redevelop the site with an additional 49 rental units. Instead, they put the property on the market in the fall of 2011 until Security and Lubert-Adler bought out Equity in July 2012.
