By Jack Stubbs
Following up on its capture in late August 2018 of the 168-Unit Collins Junction Apartments in Lynnwood, Washington-based Coast Equity Partners has made another purchase, this time in King County. On Tuesday, November 20th, the company spent $27.4 million, or approximately $246,846 per unit, to acquire the Trellis Apartments in Federal Way. The seller of the property was Canada-based RISE Properties Trust.
The buyer did not respond to calls for comment about its acquisition of the Trellis Apartments in time for the publishing of this story. The brokers involved in the transaction were Philip Assouad and Giovanni Napoli of Kidder Mathews.
The two-story Trellis Apartments, located at 2120 SW 352nd St. and 35205 25th Ave. SW, was built in 1986 and contains 111 units, according to the property listing on apartments.com. The asset offers a mix of two- and three-bedroom units that range from 987 to 1,150 square feet. Some of the property amenities include on-site maintenance, fitness center and pool.
The asset is approximately five miles southwest of Federal Way and eight miles northeast of Tacoma. Additionally, the property is roughly two miles from access to the intersection of Interstate-5 and Washington State Route 99.
Coast Equity Partners 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. Coast Equity Partners also looks to improve and reposition its investments by focusing on improved property management and providing enhanced amenities or unit upgrades for residents.
Coast Equity Partners’ acquisition of the Trellis Apartments comes a couple of months after it made another apartment purchased in the city of Lynnwood. On August 24th, 2018, the company spent $37.75 million, or approximately $224,702 per unit, to acquire the 168-Unit Collins Junction Apartments from Grosvenor Americas.
RISE Properties has been very active in the Puget Sound region in recent months, also, having spent approximately $315 million on several apartment complexes throughout the region since the beginning of 2018. On March 22nd 2018, the company acquired the the 239-unit West Ridge Park Apartments in West Seattle for $72.45 million, or approximately $303,138 per unit, from Grosvenor Group. In late April, the company purchased the 241-unit Rainier Pointe Apartments in Fife for $39.5 million, or roughly $163,900 per unit, while in August 2018, the company spent $69 million to acquire the 135-unit Modera Capitol Hill Apartments in Seattle.
On October 8th, the company in partnership with Tokyu Land US Corporation acquired the 357-unit Alaire Apartments in Renton from Palo Alto, California-based Pacific Urban Residential for $97.5 million, or roughly $273,109 per unit. On October 17th, the company spent $35.4 million to acquire the 181-Unit Copper Creek Apartments in Milton from The Apartment Associates of Pierce County LLC.