Gatsby 5 LLC Sells Seattle U District Student Housing for Over $5.7M After Redevelopment
Gatsby 5 LLC has sold a student housing property in Seattle's University District for more than $5.7 million, according to King County records, marking a redevelopment exit in one of the city's more supply-constrained submarkets.
The property, known as Husky Urban Living and located at 4729 21st Ave. N.E., changed hands the week of Aug. 12, 2026. Kidder Mathews reported the transaction.
A Redevelopment Play from Acquisition to Exit
Gatsby 5 LLC acquired the site in 2023 for $1.6 million, then scraped the existing structure and rebuilt before bringing the asset to market. The transaction represents a move from a $1.6 million land basis to a sale price exceeding $5.7 million in roughly three years, reflecting value created through the redevelopment cycle.
The strategy — buying older or underperforming product, demolishing and rebuilding, then selling into a market where newly constructed space commands a higher valuation — is a recognized approach in urban infill markets where land is scarce and demand for modern housing is consistent.
Why the U District Supports Redevelopment Economics
The University District sits adjacent to the University of Washington, creating steady demand for student housing tied to enrollment and campus-proximate living. Land scarcity in the submarket and the premium that tenants place on updated unit layouts and modern amenities can support the economics of ground-up redevelopment over simple acquisition and hold strategies.
In prime urban locations, redevelopment is often pursued as a route to stabilized income when a site's existing improvements no longer maximize its value. By delivering a newly built product, owners can target rents that differentiate the asset from older nearby housing stock — a competitive dynamic that is particularly pronounced in student housing markets.
Transaction Details
The sale price exceeded $5.7 million, per King County records. The buyer was not identified in available source material. Price per unit, cap rate, and loan terms are undisclosed. Square footage, unit count, and year of completion for the rebuilt structure are also undisclosed.
Market Context
Value-add and redevelopment transactions in urban student housing markets are often driven by the gap between a site's total development cost and the finished asset's market value. When a rebuilt property can be sold at a price meaningfully above that cost, the economics can support the additional risk and timeline associated with demolition and reconstruction.
For student housing specifically, competitive advantages typically stem from proximity to campus, updated unit configurations, and amenity packages that distinguish newer product from older housing stock. The U District's position next to the University of Washington makes it one of Seattle's more institutionally relevant student housing submarkets.
Sources
Kidder Mathews — U District Housing Sells for Over $5M (Aug. 12, 2026)