By Meghan Hall
Institutional investment is continuing to see merit in Seattle’s suburbs as deals continue to close. In a recent transaction, Palo Alto, Calif.-based Pacific Urban Residential acquired The Union Apartments in Federal Way, Wash., for $38.8 million. The sellers, according to public documents, are a number of limited liability firms based throughout the country.
The property traded for $159,016 per unit. The sellers are affiliated with Tarzana, Calif.-based Gelt Union LLC and Gelt Inc; Niceville, Flor.-based Racer LLC and Joe Roubicek; Woodland Hills, Calif.-based Golden Egg Union Apartments LLC, and Pacific Palisades, Calif.-based Mission Union Apartments LLC.
The asset is located at 2111 SW 352nd St. and was formerly known as the Terra Apartment Homes. In all, the community has 244 residences. Built in 1984, units are a mix of studio, one- and two-bedroom units, and residences are outfitted with storage space, linen closets and over-sized walk-in closets, as well private balconies and patios. Typically, the apartments range in size from 432 square feet to 1,141 square feet, and rents begin at $1,157 per month, according to Apartments.com.
Community amenities include a swimming pool and sundeck, an onsite tanning salon and a fitness center.
“Terra Apartment Homes is your private sanctuary, where you can kick back and recharge,” states the property’s website. “This is life at ease. This is life at Terra Apartment Homes.”
The property is surrounded by a “litany” of parks, according to the community’s website, and an onsite dog park is also available to residents. The surrounding area is also mostly residential, with the Align Apartments, Waverly Apartments and Trellis Apartments complexes all located nearby. A small shopping center, anchored by Hong Kong Market and Jersey’s Sports Bar, is also within walking distance.
The acquisition is not Pacific Urban’s first foray into the Puget Sound market. Over the course of 2016, for example, the firm spent $1 billion on a number of multifamily transactions up and down the West Coast. In 2017, the company purchased the 357-unit Wasatch Hills community in Renton for $67.2 million, or $188,000 per unit. Later in 2019, Pacific Urban acquired the 198-unit Atwater Clearing Apartments in Everett for $40.2 million, or $203,030 per unit. Currently, the company has acquired or executed asset strategies for “well over” 100 apartment communities, and target sWest Coast markets, including the Puget Sound, for investment.