By Jon Peterson
Greystar Real Estate Partners, with a corporate office in Charleston, S.C. and a regional office in Seattle, has acquired the 506-unit Avalon Brandemoor apartment complex in Lynnwood for $132 million, or $260,869 per unit, as stated by sources aware of the transaction.
“The acquisition of Avalon Brandemoor is part of our continued expansion in the Seattle metro area,” said Cliff Chandler, a managing director of investments for Greystar. He works out of the company’s regional office in Irvine, Calif.
The property was sold by AvalonBay Communities. The public REIT sold the asset through the Seattle office of JLL. The brokerage firm would not discuss any of the financing terms of the transaction.
The sale of the complex produced a 5.3 percent cap rate. This return is based on the property’s current net operating income.
The asset is located at 3333 164th Street Southwest, and it was first developed in 2000. At the time of the sale the property had a current vacancy of 5.3 percent, according to sources familiar with the property. The apartment has a mixture of units that includes 110 one bedroom, 120 two bedroom/one bath, 163 two bedroom/two bath and 113 three bedroom/two bath.
JLL was led in the sale by David Young and Corey Marx, both managing directors in the Seattle office. “Avalon Brandemoor provides scale along with the opportunity to reposition a Class A, institutional asset through a targeted value-add program. The combination of Avalon Brandemoor’s location and Seattle-Bellevue’s strong market demographics made this very intriguing for investors,” said Young in a prepared statement.
“Particularly compelling is that even with a value-add approach, the apartment homes will remain an affordable option when compared to product in surrounding submarkets,” said Marx in a prepared statement.
Avalon Brandemoor has a total of 29 buildings in the community. The shared amenities in the complex include a 3,500 square foot fitness center, a heated outdoor pool and spa, a clubhouse with a lounge and game room and an outdoor grilling area with picnic space.