Waterton has paid $53.2 million for an 18-building apartment complex outside Seattle.
The Chicago-based investor bought the 186-unit, 2000 Lake Washington apartments at 1300 North 20th Street, in Renton, the Puget Sound Business Journal reported. The seller was New York Life Investors, based in New York.
The price for the garden-style complex near the shores of Lake Washington works out to $286,022 per unit. That’s 16 percent less than its assessed value by King County.
New York Life bought the property in 2013 for $32.75 million, or $176,075 per unit.
As values have fallen and sales have dried up from the high cost of financing, the deal marks a rare multifamily transaction in the region, according to the Business Journal.
There were only six deals of 50 or more units in the first quarter, according to CBRE, which listed 2000 Lake Washington, 14 miles southeast of Downtown Seattle.
“The property’s exceptional location overlooking Lake Washington, proximity to the region’s leading employers and amenities, and recent capital improvements were key factors in attracting strong interest from buyers,” broker Kyle Yamamoto of CBRE said in a statement.
The asking price of the three-story complex, as well as its typical per-square-foot rent, was not disclosed by CBRE.
Rent for a 650-square-foot, one-bedroom apartment starts at $1,930, and $2,360 for a 974-square-foot two-bedroom unit, according to the property’s website. Typical apartment rent in Renton is $2,050, according to Apartment List, 2.3 percent more than a year ago.
The Renton property is ideal for “a light value-add renovation program,” according to an announcement from Waterton, which said it will revamp kitchens and living areas, as well as the clubhouse and fitness center. It will also upgrade fixtures and furnishings in the lounge, workspace and pool areas.
The deal is Waterton’s third Seattle-area multifamily investment in 13 months, totalling nearly $220 million. Last year, the firm bought 128 on State in Kirkland for $63.5 million, and The Lakes in Bellevue for $103 million, according to the Business Journal, citing public records.
Waterton said those were also value-add investments now under renovation. The company, founded in 1995, has $10.2 billion in assets under management in more than 20 markets across the U.S., according to its website.
Brokers Eli Hanacek, Mark Washington and Natalie Kasper of CBRE worked with Yamamoto on the listing. Peter Marino, Troy Tegeler, Trevor Breaux and Ryan Greer of CBRE are arranging financing.
— Dana Bartholomew
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