Home Finance Essex Property Trust Buys Monterra in Mill Creek Apartment Complex for $55MM

Essex Property Trust Buys Monterra in Mill Creek Apartment Complex for $55MM

Essex Property Trust, Sares Regis, Monterra in Mill Creek, Mill Creek, Sares Regis Multifamily Value-Add Fund IV,

By Meghan Hall

Making up for a slow 2020, investors remain busy in the Puget Sound heading into the end of 2021. In another transaction to close at the end of last week, two major developers struck a deal for the Monterra in Mill Creek apartments complex. The asset, according to public records, was sold to San Mateo, Calif.-based Essex Property Trust for $55 million, or about $395,683  per unit. The seller was Sares Regis, based in Newport, Calif.

The asset is located at 13401 Dumas Rd. and features one-, two- and three-bedroom units, according to the asset’s website. Rents range from between $1,687 to $2,114 per month, while unit sizes are between about 760 square feet to 1,173 square feet. The complex was originally constructed in 2003 and has 139 units.. 

Apartments feature contemporary lighting and double-pane windows, a fireplace, vaulted ceilings, quartz countertops and stainless steel appliances, among other features. Community amenities include 24/7 maintenance, a fitness center, playground and courtesy patrol.

Sares Regis originally acquired the asset back in 2018 for $39 million, or about $280,575 per unit. At the time, Sares Regis, a western U.S. real estate investor and developer, acquired the asset from Chicago-based Equity Residential, a publicly traded REIT that invests in apartment properties nationwide. 

The complex is within easy distance to Interstate 5, McCollum Park Athletic Field, the Columbia Super Range, and a shopping center anchored by a Fred Meyer and Walgreens. Jackson High School and Henry M. Jackson High School are both located nearby.

Sares Regis’ sale of the asset comes shortly after its announcement that it is seeking a $500 million capital raise for a new apartment fund. The fund, called Sares Regis Multifamily Value-Add Fund IV, will target markets in the Western part of the United States, including the Puget sound. Key markets are characterized by significant employment growth, above-average rent growth and high-barriers to entry, according to previous reporting by The Registry.

Ultimately, Sares Regis is looking to acquire Class B properties or those that have a solid value-add strategy. Properties in need of renovation or repositioning will be sought after. Sares Regis will also look to take advantage of ongoing demographic shifts in lifestyle choices, including a decreasing preference for home ownership, a strong job market for higher-income wage earners and a lack of quality multifamily units at affordable rents in its target markets.