San Diego-based Fairfield Residential, a name that has become familiar with its recent activity, continues to expand its presence in Seattle’s surrounding suburban submarkets with the acquisition of a multifamily asset in Federal Way on Thursday.
The seller, San Francisco-based Hamilton Zanze, sold The Retreat at Maple Hill Apartments to Fairfield for $41.9 million, or $139,667 per unit. Senior Managing Director Kenny Dudunakis and Associate Directors Ben Johnson and David Sorensen from Berkadia Real Estate Advisors in Seattle represented the seller, a privately-held real estate firm, in the transaction.
For families with one person working in Seattle while one works in Tacoma or Olympia, it is the perfect middle market where you’re still seeing affordable housing
“Both (buyer and seller) are fantastic groups to work with, and both are active in the market,” Johnson said. He added that Hamilton Zanze has nearly 2,500 units within the Puget Sound region, stretching down to Vancouver, Wa. The firm focuses on suburban markets surrounding a city core with strong value assets built in the 1980’s or 1990’s and over 150 units.
Built in 1981 and renovated in 2007, The Retreat at Maple Hill is a 300-unit residential complex located at 1901 S.W. 320th Street just west of Interstate 5 and in close proximity of Pacific Highway. Rental rates range from $1,078 for a 750-square-foot one-bedroom unit to $2,071 for a 1,500-square-foot three-bedroom unit. The units feature fireplaces as well as personal balconies and patios.
Federal Way and many other surrounding areas of Seattle have seen extremely active market activity, Johnson added, so there are many investors still circling potential assets to add to their portfolios. With a consistent 96 percent occupancy rate, the lack of supply in the area has not nearly met its demand causing rental rates to increase by 33 percent in the last five years, according to Johnson.
What has attracted many tenants to Federal Way is where it is in King County, Johnson says, setting a premiere location nestled between Seattle and Tacoma allowing a reasonable commute to both cities as well as to Kent Valley and the Ports of Seattle and Tacoma. “For families with one person working in Seattle while one works in Tacoma or Olympia, it is the perfect middle market where you’re still seeing affordable housing,” Johnson said.