By Jack Stubbs
Another apartment property in Kent changed hands last week.
On Wednesday, January 31st, Redwood City, California-based Freshwater Investments acquired the Lighthouse Apartments in Kent for $16.5 million, or approximately $217,105 per unit, according to public records filed with King County. Freshwater purchased the property from Los Angeles, California-based investment firm TruAmerica Multifamily.
The buyer did not respond to calls for comment about the transaction in time for the publishing of this story.
Built in 2001, the three-story Lighthouse Apartments in Kent contains 76 units and offers a mix of one- two- and three-bedroom units. The one-bedroom units are 716 square feet; the two-bedroom units range from 865 to 1,088 square feet; and the three-bedroom units are 1,198 square feet, according to the property’s web site.
Some of the in-unit apartment amenities include hardwood floors, high ceilings, private balcony and large closets, and select units also contain a fireplace, according to the web site. Community amenities available to residents include a business center, clubhouse with TV lounge, garages, fitness center and sundeck, among other amenities.
Located at 10934 SE 254th Place, the apartment complex is roughly two miles east of Kent and roughly nine miles to the north of Federal Way. Additionally, the property is close to Washington State Route 515 and approximately four miles from access to Washington State Route 167.
The complex also sits in close proximity to several other apartment properties in Kent. Some of these include the 177-unit Village at Lake Meridian Apartments; the 216-unit La Mirage Apartments; the 50-unit Parkwood Apartments; and the 93-unit Village Green Apartments.
Freshwater Investments is a private equity real estate investment firm that acquires, renovates, repositions and manages multifamily residential properties throughout the U.S. The company targets core-plus and value-add opportunities in Colorado, Arizona, Texas, Oregon and Washington, according to its web site.
In terms of its acquisition strategy, Freshwater looks for assets of 100-plus unit and targets deal sizes of between $10 million and $25 million. The company’s Washington portfolio also includes the 93-unit Stinson Apartment Homes in Everett.
Founded in 2013, TruAmerica is a manager and operator of multifamily assets that invests throughout the United States. The company focuses on the repositioning of Class B apartments to unlock potential in the properties through tailored renovation and focused asset management, according to its web site.
Since its founding, the company has acquired 87 properties and currently has 137 assets under management. As one of the country’s most active multifamily investors, TruAmerica manages a $7 billion portfolio of 32,383 units across various locations throughout the Western and Eastern United States, including Arizona, California, Colorado, Oregon and Washington, among others.
TruAmerica currently has 14 properties—comprising 2,892 units— in its Washington portfolio. Some of these include the 188-unit Alderwood Park Apartments in Lynnwood, the 386-unit Brackett Apartments in Edmonds, and the 153-unit Ridgegate Apartments in Kent.
TruAmerica’s sale of the Lighthouse Apartments follows hot on the heels of another apartment disposition in Kent. Also on January 31st, the firm sold the 177-unit Village at Lake Meridian Apartments to The Jacobson Company, a Los Angeles-based real estate investment company, for $28.1 million.