By Meghan Hall
A huge apartment complex in the Seattle suburb of Federal Way has traded hands. Marking one of the larger apartment deals of the year, South Carolina-based Greystar acquired the Club Palisades Apartment complex in Federal Way for $175 million, or about $233,000 per unit. The sale closed on December 18th, according to public documents, and the seller was another big name in real estate: Kennedy Wilson.
Located at 2211 S. Star Lake Rd., the complex was originally constructed in 1987 and was later renovated in 2005. The property includes 750 units that includes a mix of one-, two- and three-bedroom apartments. According to data from Apartments.com, units range in size from about 580 square feet to more than 1,200 square feet. Many units feature new plank flooring, quartz countertops and private patios or balconies. Community amenities are extensive and include a fitness center, pool, spa, tanning salon and move theater.
Kennedy Wilson originally acquired the asset back in 2011, and at the time the property was the second largest apartment community within the Seattle Metro area. Kennedy Wilson paid $67.5 million for the property, or $90,000 per unit. Kennedy Wilson capitalized the transaction with partners Fairfax Financial, the LeFrak Organization and KW Property Fund III. At the time, the property was purchased as an REO from a group of insurance companies.
Under Greystar’s ownership, the property is being rebranded as “Avana Star Lake,” according to the property’s new website. The acquisition of the property is far from Greystar’s first in the Puget Sound region. Currently, the owner and developer has a number of projects underway, including a 227-unit student housing and another 236-unit development—both located in the University District.
Greystar has properties in virtually every submarket in Seattle, from Bothell and Everett to DuPont, Puyallup and Renton, states its website. Currently, Greystar has $37.2 billion in assets under management and a track record of more than $16 billion of completed rental housing projects in the United States. Globally, the firm owns and operates more than 713,000 units.