Bellevue-based American Capital Group, the developer and owner of nearly 12,000 apartment units across the Western United States sold this week two apartment complexes it owned in Puyallup for a total of $67.9 million. The two complexes have a combined 450 units, bringing the effective per unit cost to approximately $151,000.
The buyer of the two complexes is an entity associated with American Capital Group, ACG Value Fund 1 LLC. As of this publishing, ACG was not able to respond to questions relating to the sale of these two assets and the interest in the fund. It is conceivable that ACG brought an equity partner into the develompment and retained a percent of ownership in the assets through the fund.
The 225-unit Addison Greens Apartment complex was sold for $34.2 million, or $152,000 per unit. American Capital built the complex in 2006. The property is located at 1715 E Main Ave. next to the Linden Golf and Country Club. The River Trail apartments, built in 2005, are just north of the Addison Greens complex, located at 1617 E. Main Ave. This apartment complex also has 225 units.
The developments promote themselves as an upscale, luxury housing option just minutes from downtown Puyallup and Sumner as well as the Seattle Sounder train station. The complexes feature such amenities as pool and spa, a clubhouse with a fireplace and a TV theater room. The Web sites for both estimate travel time of approximately 35 minutes to the Seatac International Airport.
The apartments in the complexes are comprised of a mix of one and two-bedroom units.
In October of 2015, Los Angeles-based Lowe Enterprises Investors also made an acquisition in Puyallup. It had purchased the 256-unit Deer Creek Apartments for $32.5 million or $126,000 per unit. Andy Sands, managing director for Lowe Enterprises and head of its multifamily activities spoke with The Registry at the time indicating that, “The area has seen strong job and population growth. There are some technology companies in the area, along with the port and the joint base Lewis-McChord military base facility, which makes for a diverse and healthy economy.”
The existing properties in that market are in high demand for renters, which makes them more valuable. “This area has a very tight apartment market. Vacancies in this region are in the range of 4 percent to five percent. One of the reasons for this is the lack of new construction of apartments that has been seen in the area for the past few years,” said Sands at the time.