Second Street Site // Multifamily Land Sale in East Wenatchee

Challenges

• Second Street Site was a fully entitled, shovel-ready 8.8-acre parcel in East Wenatchee, permitted for 200 multifamily units but the Seller decided not to build the project and needed to redeploy their capital in a different direction.
• The development market was challenging, with competing new supply already in the pipeline across the Wenatchee submarket, making buyers cautious about adding more units.
• While the entitlements carried real value due to 2018 energy code cost savings, reduced water and sewer district fees, and Opportunity Zone 1.0 benefits, many prospective buyers did not attribute value to these savings. Some wanted to design their own plans, others wanted to build something other than apartments, and the savings required a nuanced understanding of local development economics to properly underwrite.
• Selling entitled land in a secondary market requires a different approach than selling stabilized assets because the buyer pool is narrower, the underwriting is more speculative, and the value proposition depends heavily on the advisor’s ability to tell the development story.

Action

The Multifamily Mason team launched a comprehensive outreach campaign that went well beyond passive marketing. We engaged our Exclusive Buyer Network with one-on-one outreach to every prospective developer including regional and local apartment builders, homebuilders, and groups interested in land-banking for the long term.

Each conversation was tailored to the buyer’s specific strategy. For developers, we walked through the entitlement value, energy code savings, and infrastructure advantages. For land-bankers, we framed the site’s long-term appreciation potential in a growing Wenatchee submarket. For builders considering alternative uses, we provided zoning flexibility analysis and comparable development data.

When market feedback revealed that most groups were discounting the existing permits, we adapted our positioning, emphasizing the site’s raw fundamentals and flexibility rather than anchoring solely to the permitted 200-unit plan. This pivot broadened the buyer pool and ultimately attracted a group that saw the opportunity to redesign and re-permit at a lower density that fit their investment thesis.

Results

• Closed at $2,700,000, enabling the Seller to redeploy capital quickly while the buyer planned to redesign and re-permit the site at fewer units
• Final pricing landed at approximately $15,500 per buildable unit which was a win for both Seller and buyer given the market conditions
• Demonstrated that even in a challenging development market with competing supply, the right outreach strategy and market storytelling can move entitled land at fair value
• Connected the buyer with local and regional teams including property managers, subcontractors, and market specialists, setting them up for execution success on a ground-up project in a smaller market

Sale Details

• Property Name: Second Street Site
• Location: East Wenatchee, WA
• Site Size: 8.8 Acres
• Zoning: Multifamily
• Permitted Units: 200
• Sale Price: $2,700,000
• Price per Buildable Unit: ~$15,500

Testimonial

"Before hiring the Multifamily Mason team, we engaged an off-market offer that unfortunately, didn't move forward.  We hired the Multifamily Mason team to provide certainty in execution and depth in their buyer network, and they delivered. We went from listing-to-close in ~6 months, which was quick for a development site. At each challenge along the way, the Multifamily Mason team was proactive, thoughtful, and guided us to a smooth closing, achieving our investing objectives."

— Andy, Kyle, Steve, and Ryan, Sellers

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“As a developer, certainty in our process is critical to our success. The Multifamily Mason team guided us with market data and insights, especially in a smaller market without robust public data. They provided benchmarks, introduced us to local and regional teams including property managers, subcontractors, and more. Without their insight into the local market, we would not have gotten comfortable with the site, submarket, and adding to the current supply pipeline. We are excited to get to work and build a phenomenal multifamily project in a growing market, with the continued help of the Multifamily Mason team.”

— Sunleaf Development, Buyer