By Jack Stubbs
Following up on its late November 2018 acquisition of the 111-unit Trellis Apartments in Federal Way for $27.4 million, Seattle-based Coast Equity Partners has made another acquisition in Federal Way. On Friday, December 28th, the company acquired the Cedardale Apartments for $24.8 million, or approximately $196,825 per unit, King County records show. Coast Equity Partners (CEP), a private multifamily real estate investment company, acquired the property from Pathfinder Partners, a multifamily real estate investor based in San Diego.
The buyer did not respond to emailed requests for comment about the transaction in time for the publishing of this story.
The Cedardale Apartments, located at 2501 SW 336th St., is a two-story property constructed in 1981 that contains 126 units, according to the property listing on apartments.com. The property includes a clubhouse, courtyard and picnic area and also features a fitness center, playground and sport court. The asset offers a variety of one- and two-bedroom units that range from 841 to 905 square feet that rent between $1,395 and $1,700.
According to a description of the property on Olympic Management Co.’s web site, the location of the property is one of its main assets. Cedardale is located between downtown Tacoma and Seattle and is also just three miles from Dash Point State Park and offers easy access to Interstate-5. The property is also roughly four miles southwest of downtown Federal Way and the Commons Mall shopping complex.
CEP works with investors to acquire, reposition and operate apartment communities in select markets across the Pacific Northwest, according to the company’s web site. The company focuses on underperforming multifamily properties in strong markets characterized by positive job and wage growth, a diverse economy and an undersupply or balanced supply of new construction. CEP also looks to improve and reposition its investments by focusing on improved property management and providing enhanced amenities or unit upgrades for residents.
The company’s acquisition of Cedardale Apartments comes a little more than one month after it purchased the Trellis Apartments—located at 2120 SW 352nd St. and 35205 25th Ave. SW—from RISE Properties Trust for $27.4 million, or approximately $246,846 per unit. In late August 2018, the company spent $37.75 million, or approximately $224,702 per unit, to acquire the 168-Unit Collins Junction Apartments from Grosvenor Americas.