By Jack Stubbs
Another apartment complex in Renton has recently changed hands.
On Tuesday October 31st, the Montclair Heights Apartments in Renton sold for $47.8 million, or $274,712 per unit, according to public records filed with King County. The buyer was Larkspur, California-based Aukum Management, a privately-held real estate investment and asset management company focused on value-add apartment opportunities in the western United States. The seller was Los Angeles-based TruAmerica Multifamily, a manager and operator of multifamily assets that invests nationwide. The deal was recorded on November 1st.
Built in 1987, the two-story 174-unit Montclair Heights Apartments complex features a combination of two-bedroom and three-bedroom units. According to the property listing on apartments.com, the two-bedroom units range between 1,108 and 1,158 square feet, with rents ranging between $1,750 and $1,855. The three-bedroom units range between 1,170 and 1,338 square feet, with rents between $1,880 and $2,975.
Some of the prominent apartment amenities include in-unit washer and dryer, vinyl plank flooring, spacious closets and a private attached patio or balcony, according to the Montclair Heights Apartments web site. Some of the community-oriented features of the complex include a pool, on-site maintenance and management, media room, fitness center and covered parking.
Located at 2223 Benson Road S, the property is two miles to the south of downtown Renton and half a mile to the north of the La Rosa Meadows neighborhood. The property sits in close proximity to prominent transit corridors, 4 miles from access to Washington State Route 167 and roughly two miles from access to Interstate-405. Additionally, the property is less than a mile from Washington State Route 515 to the west. The property is within less than a mile of several other apartment complexes to the north, including The Berkshire, a 274-unit complex, Woodcliffe Apartment Homes, a 301-unit property, and Heritage Hill Apartment Homes, a 5-story 174-unit complex.
Founded in 2009, Aukum Management partners with accredited investors and select private equity funds to purchase apartment assets in need of updating. Upon acquisition of a property, the company renovates, re-brands and repositions the asset, according to the its web site. As of December 2016, Aukum and its principals had an active portfolio of over 3,500 units valued at more than $500 million. The company acquires property in select secondary growth markets in the western U.S. such as Portland, Salt Lake City, Denver and Phoenix. In 2016, the company closed on the acquisition of Golfside Village Apartments, a 141-unit property in Vancouver, Washington.
TruAmerica Multifamily, founded in 2013, focuses on the repositioning of primarily Class B apartments through focused renovation and asset management. Since 2013, the company acquired 83 properties and has 141 assets under management, according to its web site. Nationwide, the company manages a portfolio of 33,307 units valued at $7.1 billion, in locations including California, Nevada, Colorado, Oregon and Washington.
Locally in the Puget Sound Region, the company has 14 properties (2,750 units in total) currently under management in Washington, including Alderwood Park, a 188-unit property in Lynnwood; Brackett, a 386-unit asset in Edmonds; Constellation, a 132-unit property in Renton; and Lighthouse, a 76-unit in Kent. Last week, on October 24th, the company acquired the three-story 192-unit Skyline Apartments in Kent for $42.6 million (roughly $221,875 per unit) from Danville, California-based Green Leaf Capital Partners.