Creekside Apartments, located in Everett, in close proximity to the the Mill Creek downtown area, is now under new ownership. The complex was purchased by an entity affiliated with Nathan Clarenburg of Woodinville in December 2016 for $9.5 million or $263,889 per unit. An entity associated with Marco and Amy Lizardi of Sammamish sold the property.
Built in 2013, the 36-unit complex includes mostly two and three-bedroom units, but tenants also have the option of one-bedroom units. The floor plans range from 750 square feet to 1,290 square feet, and rent for the units are between $1,150 and $1,800. In addition to the multiple floor plan options, the complex also offers 12 detached garages.
The Seattle office of CBRE, which worked with the seller on the deal, was represented by Mitchell Belcher and Steven Chattin, both are first vice presidents at the firm, and Jay Timpani, senior associate. The units are equipped with a GE washer and dryer package, large patios and decks, views of the Cascade Mountains, hardwood flooring, walk-in closets, storage, vaulted ceilings and large windows for natural light. The CBRE brochure on the property lists the one year cap rate at 5.63 percent and the current cap rate at 4.80 percent.
A number of apartment complexes have sold recently in the surrounding area showing great interest for the location from a number of investors. Some of the recent deals include a 119-unit Shoreside Village multifamily community in Everett, which sold this month for $15.35 million, or $129,000 per unit. That deal was followed by the sale of a senior living community in Everett, Park Place Apartments, also sold this month in a transaction worth $11.28 million or $132,706 per unit.
The closest proxy to the Creekside sale is Rise Properties’ acquisition of the 192-unit Artesia by the Lake complex for $40.4 million, or around $210,416 per unit, from San Diego-based Fairfield Residential. This transaction occurred mid December, as well, marking perhaps just the start of greater interest in the Snohomish County residential market, which continues its steady climb.
In a Fall 2016 Washington Apartment Market study by the Runstad Center for Real Estate Studies at the University of Washington, the state is well below the national average for apartment vacancy. As of the third quarter of 2016, the statewide apartment vacancy rate was measured at 3.3 percent whereas the national average sits just below 7 percent. Of all the countries in the state, Snohomish has the highest apartment vacancy at 4 percent, and investors may see that as an opportunity for immediate growth.
