By Meghan Hall
Investors continue to show their interest in the Puget Sound market, placing capital into assets and betting on the long-term outlook of the region. In the latest transaction to close this month, Redondo Beach, Calif.-based Montrose Investors LLC purchased the Arbor Chase Apartments in Kent, Wash., for $24.510 per unit. The seller was LivCor, the multifamily arm of The Blackstone Group.
According to public documents, the sale closed last week. Located at 1615 West Smith Street, the complex features a mix of two- and three-bedroom units that are about 900 square feet to about 1,200 square feet. The residences are spread across 10 different buildings. Rents begin at $1,492 per month, according to data from RentCafe.com
Individual apartment amenities include wood burning fireplaces, patios and balconies, in-unit washer and dryers, ceiling fans and large closets. Community offerings include covered parking, a business center with WIFI, outdoor pool and fitness center and a playground.
A number of apartment complexes across the Puget Sound have sold in recent weeks as investors look to deploy capital before the year’s end. Last week, the Puyallup Tribe closed on a deal to buy a Fife apartment complex for $13.6 million, while the 63-unti Bayside Garden complex sold for $11.9 million in an off-market deal. In two larger deals, Blackstone sold off its Village at Seely Lake for $119 million to Illinois-based Inland Real Estate Group, while San Francisco-based Jackson Square Properties acquired the Griffis Seattle Apartments for $56.5 million.
The multifamily market, though slower this year, still remained resilient throughout the second and third quarters. In King County, where 70 percent of regional apartment stock is located, rent collections fell to 76.4 percent in September, according to the NMHC Rent Payment Tracker and a report recently released by Colliers International. However, Colliers notes that this trop is within the historical range of healthy. Occupancy and rents subsequently contracted by 1.2 and 2.6 percent, respectively.
Sales volume, however, has increased. Between the second and third quarters, investment in the multifamily market jumped from $165 million to $630 million, and deal volume increased from 438 units to 1,528 units. Colliers predicts that so long as COVID-19 related uncertainty remains, deal volume will likely stay low when compared to five-year averages, with the most dependable assets attracting investors and stable pricing.