By Meghan Hall
As demand for housing throughout Seattle continues to soar, rental prices throughout the region continue to climb, making investment in multifamily properties an attractive prospect for major real estate firms throughout the United States. San Diego, Calif.-based RedHill Realty Investments is working to expand its portfolio in the region and has acquired the 388-residence Landing at Dash Point apartment complex in Federal Way for $71.3 million, or around $184,762 per unit, King County records show. RedHill purchased the property from San Francisco-based FPA Multifamily in February 2018.
The 11-acre property, located 31004 19th Place SW., was built in 1978 and offers a range of one-, two- and three-bedroom apartment units. According to Apartments.com, the units range in size from 588 square feet to 1,188 square feet; the development’s site — originally run by FPA Multifamily — is no longer available. Trinity Property Consultants, an affiliate of FPA Multifamily, bought the property back in 2016 for $46 million, or roughly $118,556 per unit, showing how quickly property values throughout the region have increased. According to previous reporting done by The Registry, Bridge Investment Group Holdings paid around $29 million for the property back in 2013.
The development is located close to Dash Point State Park and a small shopping center with an Anytime Fitness, Starbucks and Subway. It is easily accessible from Interstate 5 and is close to Lakota Middle School and the Puget Sound. Seattle Tacoma Airport is about a half hour drive by car, while downtown Tacoma is only about 20 minutes away.
The Landing at Dash Point property was built over several phases and was completed in 1978, according to property records. What RedHill will do with the property is unclear, although the company’s website states that it focuses on assets that provide Core Plus, Value Add and Situational opportunities. The company sources in excess of $1 billion in assets weekly and usually seeks to acquire their assets directly off market.
This is not RedHill’s first acquisition in Federal Way. The company purchased Align Apartment Homes, a 105-unit multifamily asset in April of 2018 for $20.85 million, or around $198,571 per unit, according to King County records. At the time, the purchase was the fourth acquisition in six months over $200 million that, according to the company’s site, is part of its aggressive acquisition strategy in the Pacific Northwest. RedHill also owns the 186-unit RedHill Pines complex and 304-unit Hampton Bay community in Kent, Wash.