The Real Estate Gold Rush: How Seattle’s Early Boomers Made Millions on Dirt

For the past four or five years there has been a general and steady advance in the values of all real estate in and about Seattle. This advance has been based upon the sure and solid foundation of actual prosperity and growth, and upon demand for property for the purposes of improvement, and not solely upon the quicksands of wild speculation or the inflated ideas of visionary schemers.

To show the general character of this rise in values it may be well to give a few illustrations. During the past three or four years prices of property on Front street, for instance, have advanced quite rapidly. A lot joining Hamme Kennedy's corner was sold three years ago to Win. Walker, of Port Gamble, for $3,000, and that gentleman recently refused for the same [price].

The lot joining this property on the north was sold to M. H. Drew, of the same place, for less than $1,000, and $10,000 would not touch it today. The property on the corner of University and Front streets was sold to L. Gilmer, three years ago, for a few months ago one-fifth of it brought as much as the entire purchase price.

Going further north, to the corner of Front and Pike streets, we find a lot purchased in 1879 by Robert Abrams for $500 and sold in 1880 for $4,500, and today the same property could not be touched for less than $6,000.

Business houses erected on any of this Front street property will pay from 4 to 5 per cent. per month on the investment, allowing liberally for the ground.

For those owning vacant property in the business district to build thereon: Two years ago the ground on which the Post Building now stood was occupied by a wooden structure, and brought a rental of about $25 per month. The brick building which has taken its place pays a rental of $800 per month, or more than one and one-quarter per cent. per month on the entire investment over and above taxes and repairs.

Two years ago the lot on which Gatzert's Front street block stands sold to Gove and Scott, of Port Gamble, for $9,000. They held it a year and sold it to Gatzert for $10,000. He invested about $5,000 in buildings and now receives a monthly rental of not less than $100.

The Colman water block, on Front street, was given to the Seattle and Walla Walla Railroad Company by the Terry estate at a nominal consideration in 1871. In 1878 Mr. Colman paid the company about $2,000 for the property and, after holding it three years, refused thirty thousand dollars in gold coin for the block.

In 1873 John Sullivan bought a lot (60x125 feet) on Front street for $600. He invested $500 in buildings and receives therefor a monthly rental of about $90.

On James street H. Butler has 45x100 feet which cost him in the early days about $100. He has put on buildings at an expense of less than $400, and receives a monthly rental of $80.

H. L. Yesler, principal property owner in the business part of town, has no less than forty business houses rented, and receives all the way from 6 to 8 per cent. per month on his investment in buildings and property.

In 1873 Francis McNatt, of White river, owned the corner where H. L. Yesler now lives. He was anxious to sell the place, and by way of accommodation Mr. Yesler took it off his hands at $1,000. The owner has a standing offer of $50,000 for the property.

H. McAleer in 1879 paid $75 for a lot on Commercial street. He put on buildings at an expense of $3,000; receives $13 per month rent, and refused, a few days ago, to sell for $97,000.

The two-thirds of a lot on the corner of Washington and Commercial streets was bought in the early days by L. V. Wyckoff for $50. He put on buildings at an expense of not over $3,000. The property has brought $200 per month rent for many years. Wyckoff sold it six months ago for $10,000, and it has since been sold for $11,000; and we doubt if $12,000 would induce Mr. Maud, the last purchaser, to part with it.