By Jack Stubbs
On Tuesday, October 16th, the Fairway Estates Mobile Home Park in the Snohomish County city of Everett sold for $23.5 million, or roughly $139,053 per unit, according to public records filed with Snohomish County. The buyer, CPI Fairway Estates Owner LLC, shares the same address as The Carlyle Group, a global alternative asset management company based in Washington D.C. The seller was Maple Leaf Holdings Inc., an entity affiliated with Michael and Allison Hall and based in Vancouver, B.C. The transaction was recorded on October 18th.
The Carlyle Group’s media relations team did not respond to requests for comment about the transaction in time for the publishing of this story.
The Fairway Estates Mobile Home Park, located at 1427 100th St. SW, is a 169-unit community that sits on 30 acres, according to the web site for the property. The property features a two-story, 6,000 square foot club-house with an activity hall and exercise room. All of the homes at Fairway Estates are purchased by each resident and the common grounds—which include a pond and waterfall—are maintained by the park.
The property is approximately seven miles south of downtown Everett via Interstate-5 and about eight miles north of Lynnwood. The asset is also just one mile east of Paine Field Airport—located at 3220 100th St. SW—which is set to change the fabric of Everett. Major airlines Alaska, United and Southwest have already announced planned service to and from the airport, (which is scheduled to begin hosting commercial flights sometime in early 2019), which will accommodate up to 2,350 daily passengers.
The sale of the Fairway Estates property follows a little more than one month after the sale of another mobile home park located in King County, Washington. On September 10th, 2018, California-based Property Group acquired the Heather Hills Mobile Home Park in Milton for $15.5 million.
There have been several other transactions in the multifamily market in Everett since the turn of the year. TruAmerica acquired the Walden Pond Apartment community located at 9900 12th Ave W. in mid-December 2017 from Holland Partner Group for $67.7 million, or roughly $214,240 per unit. In late January 2018, Aukum Group acquired the 204-unit Waterstone at SilverLake Apartments for $47.1 million from Everett-based Metco Management Group. In another disposition by Metco, on April 3rd Artemis Real Estate Partners purchased the 148-unit Garden Court Retirement Community in Everett for $49.7 million, approximately $335,810 per unit.
Founded in 1987, The Carlyle Group has $210 billion of assets under management across 335 investment vehicles, according to the company’s web site. Carlyle’s Real Assets segment comprises its global real estate, infrastructure, and energy and natural resources platform, with a total of $45 billion in assets under management. Since its inception, Real Assets has invested approximately $52 billion in a total of 1,087 transactions around the world.
Along with the recent sale of the Fairway Estates mobile home park, there has been a significant amount of activity across the multifamily market in Everett over the last few months. Shifting demographics are happening at a time when investment activity continues to occur on the multifamily side.
SeaLevel Properties on June 18th spent $7 million to acquire a 5.44-acre site within the Port of Everett’s 65-acre Waterfront Place Central mixed-use project from the Port of Everett. The project, slated for completion in 2020, is located at 1300 W. Marine View Drive and will include 266 units of housing.
As another example of the evolving multifamily sector in Everett, in late March 2018, Northwest Washington’s behavioral healthcare leader Compass Health received $4.5 million in funding from the Washington State Housing Trust Fund to help finance an 82-unit affordable housing project located at 3300 Lombard Ave. for people with chronic behavioral issues, which is also scheduled for completion sometime in 2020.