By Meghan Hall
New York-based global investment company KKR has added to its Puget Sound portfolio. In a deal that closed mid-September but just recently recorded, the company purchased the Courtyard Marriott Federal Way for $25.4 million. Public records indicate that the seller is a limited liability company affiliated with West Palm Beach, Flor.-based Chatham Lodging Trust.
The property is located at 31910 Gateway Center Boulevard. King County Assessor’s data shows that the hotel was constructed in 1999 and totals about 98,529 square feet. Individual rooms feature coffee and tea, air conditioning, a sofa bed and more. Property amenities include a bar and lounge, business center with internet access, pool, a banquet room and a fitness center.
The deal comes just before KKR closed its Real Estate Partners Americas II Fund (“REPA III”). The Fund closed at $4.3 billion, and will be dedicated to a variety of investments throughout the U.S. including Seattle, according to sources familiar with KKR’s plans. As of September of this year, REPA III had already deployed $1 billion in capital.
“More than double the size of our predecessor fund, REPA III demonstrates the enthusiasm our investors have for the current opportunity set in the Americas as well as their confidence in our integrated platform to deliver differentiated absolute and relative investment performance through changing market cycles,” said Chris Lee, Head of Real Estate Americas for KKR.
Over the past decade, KKR has established 12 offices and now has $33 billion of assets under management. The company also owns some well-known Puget Sound assets. In April of this year, the company, along with Urban Renaissance Group, acquired 300 Pine in Downtown Seattle for $580 million. In December of 2019, KKR purchased F4 Tower and Summit in Bellevue for $1.2 billion, one of the largest deals to close in the region to date.