Why Pricing Discipline & Patience Delivered the Best Outcome at Southwood Apartments
In today’s market, the difference between a good result and a great one often comes down to timing, positioning, and discipline. The recent sale of the 99-unit Southwood Apartments in Burien is a clear example of how those factors can align to create a successful outcome.
Located at 121 S. 174th Street, Southwood is a garden-style community consisting of 99 units originally built in 1983 and expanded in 2002. The property offered all the fundamentals investors are looking for, including a convenient South King County location, large floor plans, and significant value-add potential with 100% of units positioned for renovation.
But the most important part of this story started well before the property came to market.
The First Attempt: A Disconnect Between Pricing and Reality
In 2024, the ownership group interviewed multiple brokerage teams. Our team advised that the property would likely achieve a value in the $18 million range, based on market fundamentals, comparable sales, and buyer underwriting. Another firm suggested a significantly higher number, around $23 million, and ultimately won the listing.
The property was marketed for a full year. There was strong interest, multiple tours, and ultimately several offers. But tellingly, those offers clustered around the same number—approximately $18 million—right where we had indicated from the beginning.
Rather than transact below their expectations, the seller made a strategic decision to step back, reassess, and wait.
The Second Attempt: Aligning Strategy with the Market
After the listing expired, ownership re-engaged and brought our team on to reposition the opportunity. This time, the strategy was different—not just in price guidance, but in execution.
We launched a broad, targeted marketing campaign across the CBRE platform, reaching a wide range of private and institutional investors. The property generated significant activity, reinforcing that Southwood was a high-quality offering with real upside.
And another key difference was how we approached buyer selection.
Knowing the Buyer and Creating the Outcome
While interest came from across the country, the eventual buyer was a local private investor with deep experience in South King County. Their familiarity with the submarket, and confidence in the value-add plan, allowed them to underwrite the opportunity differently than many institutional groups.
Equally important, we worked collaboratively with the buyer to address leasing and operational assumptions that would support their financing strategy. By aligning the business plan with lender expectations, the buyer was able to secure more favorable financing, which ultimately allowed them to pay a stronger price.
The property successfully closed at $18 million, validating both the original pricing guidance and the importance of disciplined execution.
The Takeaway
Southwood is a reminder that the market is always speaking. You just have to listen.
Overpricing a property does not create value. It often delays it. In contrast, aligning pricing with real buyer demand, maximizing exposure, and selecting the right buyer can ultimately produce the best possible outcome.
For owners considering a sale, the lesson is clear: Timing matters, strategy matters, but understanding your buyer is what drives value.
About CBRE’s PNW Multifamily Private Client Group
CBRE’s PNW Multifamily Private Client Group offers a range of services tailored to individual investors and partnerships. Its worldwide platform integrates sales, finance, and valuation services, positioning the firm as a comprehensive multifamily advisor.
Contact Information: Peter Wright: peter.wright@cbre.com | (206) 442-2735, Reed Hunter: reed.hunter@cbre.com | (206) 442-2713 & Spencer Clark: spencer.clark@cbre.com | (206) 442-2764