Magma Equities recently completed a multimillion-dollar condominium conversion of a 52-residence community in Kirkland. The condominium complex, called The Slater, features one- and two-bedroom floor plans that start at $395K and range from 541 to 1,120 SF.

The project includes five homes designated as affordable housing for those earning less than 80% of the area’s median income, which is $103K. Prices for the affordable homes start at $185K.

Fannie Mae reports that 40,000 households in Seattle pay more than 50% of their income on rent.

“Housing costs continue to consume a large percentage of wage earners’ income, especially in Seattle, which is one of the most expensive housing markets in the United States,” Magma Equities Managing Principal Ryan Hall said in a statement. “With average asking rental rates approximately $2,100 per month, condo ownership at this price point can be a realistic and a more practical option for many renters. Interest rates are still at historic lows, and mortgage payments can be several hundred dollars a month less then rents for a comparable apartment. More importantly, housing costs will remain constant.”

There are currently 6,187 multifamily rental units under construction with an additional 9,433 in the pipeline in the Seattle metro, according to a report by Polaris Pacific, which represents the sales and marketing for the property on behalf of Magma Equities.

“While new construction is trying to keep up with demand, the fact is the new inventory is priced well out of the reach of most renters in the region, which is doing nothing to solve the housing affordability problem,” Polaris Pacific Vice President and Regional Manager Josh Nasvik said. “As a result, we are seeing an increase in condominium sales, especially in Kirkland where sales have substantially outpaced all the other Seattle submarkets in the past three months.”

Magma Equities, based in El Segundo, California, acquired the property in October. The five-story building, built in 2010, is at 11415 Slater Ave. NE.