By Jon Peterson
Tallahassee, Fla.-based State Board of Administration of Florida has acquired two apartment complexes in Seattle for a total investment of $154 million, according to an e-mail received from the pension fund.
The larger of the two transactions was the $142 million acquisition of the 298-unit Dimension by Alta complex. This property has a current occupancy of 91 percent. The asset was constructed last year, and the complex is located at 225 Cedar Street.
Florida SBA is the pension fund for the State of Florida. The transaction on the Dimension property was acquired as a separate account transaction through Chicago-based Heitman. The pension fund now owns a 100 percent interest in the property.
The cap rate on this transaction is in the 4.2 percent range. This yield factors the current rent being produced by the property. The seller of the property was Atlanta-based Wood Partners, who also developed the complex. The buyer and seller of the asset were represented by the Seattle office of CBRE.
Florida SBA has also become the 100 percent owner of the 801 Dexter Apartments in the South Lake Union sub market of Seattle. The pension fund recently paid $12 million to acquire the final 12 percent interest in the property. The investor had paid $72.9 million for an 88 percent stake in the property in August of 2012.
The Dexter property totals 286 units. The asset is now 97 percent occupied. The developer and seller of the property was Vancouver-based Holland Partner Group. Both transactions on this property by Florida SBA were completed through the pension fund’s separate account manager, Atlanta-based Invesco Real Estate.
Florida SBA looks to invest in real estate on a nationwide basis through several investment structures. One of these is buying properties directly through separate account managers where the pension fund owns the property itself. It also invests in assets through joint ventures or is a limited partner through commingled fund commitments. Most of the pension fund’s investments are done with the four main property types of office, industrial, retail and apartments.