Home Commercial Blackstone Continues Puget Sound Investment, Buys Five Apartment Communities for Combined $223.5MM

Blackstone Continues Puget Sound Investment, Buys Five Apartment Communities for Combined $223.5MM

Blackstone, TruAmerica, Windsor Apartments, The Commons at Federal Way, Lakewood Apartment Complex, Federal Way, Renton

By Meghan Hall

It has been a busy season for private equity investment firm Blackstone, who has closed on a number of property transactions throughout the Puget Sound in recent months. In separate deals that closed Monday, Blackstone acquired five multifamily complexes in Kent, Renton, Lynnwood and Federal Way, paying $223.5 million for the assets. The seller, according to public property documents, was Los Angeles-based TruAmerica Multifamily.

In the largest of the acquisitions, Blackstone acquired the Windsor Apartments for $56.3 million, or about $279,000 per unit. Located at 4415 NE 5th St., the property was originally constructed in 1989 and includes 202 units spread across 27 buildings. Units can be one-, two-, or three-bedrooms, and range from between 700 to about 1,100 square feet. Rents begin at around $1,300 per month, according to the property’s website. Communities amenities are extensive, featuring an onsite daycare and childcare facilities, game room, athletic center, club house, fitness center and pool, among others.

In the second buy, Blackstone purchased The Commons at Federal Way for an even $56 million. The property is located at 190 S. 334th St. Built in 1979, it totals 260 units. Apartments are about 700 to 800 square feet, while the largest townhomes sit at about 1,000 square feet. Rents begin at around $1,330 per month. The community features one- and two-bedroom apartments, as well as two-bedroom townhomes. Amenities include a spa and hot tub, fitness center and television lounge.

Blackstone then spent $35 million, or about $229,000 per unit on the Madison at Ridgegate Apartments in Kent. The complex was built in 1989 and includes 153 one- to three-bedroom residences. Square footages range from 600 to 1,160 square feet.

In a fourth transaction, Blackstone paid $27.5 million for the Constellation Apartment Homes on Puget Drive in Renton. With 132 residences, the per-unit price of the complex comes to about $208,000. Amenities include basketball and tennis courts, a media center and pool.

In Blackstone’s latest transaction–which just only recently recorded last week, despite closing at the same time as the others–the company spent $49 million for Lynnwood’s Avana One Six Four complex. The 506-unit development includes a mix of one-, two- and three-bedroom units. A pool and fitness center, picnic areas, and on-site playground are available to residents.

The transactions are not the first deals that Blackstone and TruAmerica have worked on together. In 2018, the pair of companies announced its first joint venture partnership when they acquired a 635-unit multifamily portfolio in Denver and Seattle. The transaction was valued at $126.5 million. Together, the companies acquired the Montair complex in Colorado and Walden Pond, a 316-unit golf course community in Everett. 

In recent months, Blackstone has been active throughout the Puget Sound on its own, selling the Lakewood Apartment Complex for $119 million and the Arbor Chase Apartments in Kent, Wash., for $24.5 million. 

Blackstone has also been active in investing in other property types, allocating nearly one quarter of its life sciences funds to markets in the San Francisco Bay Area and Seattle. For its new life science office commingled fund, the firm raised $7.5 billion. The firm has also invested in self-storage, acquiring Simply Self Storage from Brookfield Asset Management for $1.2 billion in October. The acquisition included two locations in Seattle and continued to expand Blackstone’s vast portfolio in the region.