By Jack Stubbs
On Thursday, August 30th, the Bradford Park Apartments in Lynnwood sold for $24.6 million, or $246,000 per unit, according to public records filed with Snohomish County. The buyer was Freshwater Investments, a private equity real estate investment firm based in Redwood City, California. The seller was San Francisco-based Hamilton Zanze, a company that specializes in the acquisition and management of apartment communities throughout the Pacific Northwest and other national markets.
The Bradford Park acquisition was brokered by Berkadia.
Located at 16604 48th Ave. W., the Bradford Park Apartments contains 100 units, according to the property listing on rent.com. The complex offers a mix of one-, two- and three-bedroom units, according to the property’s web site. The one-bedroom units total 700 square feet, while the two-bedroom units range from 900 to 1,080 square feet and rent for between $1,617 and $1,879. The three-bedroom/two bathroom units total 1,080 square feet and rent for $1,907. The Bradford Park Apartments also implements various sustainability practices including the use of ENERGY STAR appliances, green transportation and water conservation.
The web site also highlights the property’s location in a “serene and lush setting” less than two miles from views of the Puget Sound and close to the waterfront Meadowdale Beach Park. The asset is also approximately two miles north of downtown Lynnwood and roughly five miles north of Mountlake Terrace.
The acquisition of Bradford Park represents Freshwater’s third acquisition in the Puget Sound region—the company also owns the 76-unit Lighthouse Apartments in Kent and the 93-unit Stinson Apartments in Everett—and aligns with the value-add strategy of the company. “We are in business of creating the best opportunities for our investors. Analyzing potential investment projects, we do our homework, leaving no stone unturned,” said Alex Rozenfeld, founder and managing partner of Freshwater Investments in a statement released by the company. “Bradford is undoubtedly a high potential property and was received with much enthusiasm by our investors, which in turn allowed us to have a record short fundraising period. I see every project we undertake as an opportunity to grow and try new things.”
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. The company currently has $145 million of assets under management.
Freshwater Investments plans to add significant renovations to Bradford Park, including exterior landscaping and redesigned and upgraded communal spaces, with a focus on enriching tenants’ lives. “In addition to creating value for our investors, we also feel responsibility for building better communities that enrich our residents’ lives. In the renovations plans we’re putting emphasis on inviting and functional communal spaces, encouraging social interactions and offering additional resources. We’ll have a community library and a dog park, and are exploring options to offer a community garden,” Rozenfeld added.
Bradford Park Apartments is just five miles south of Paine Field Airport in Everett, which will begin hosting commercial flights in late 2018. The opening of the airport is also expected to impact the local office, industrial and residential markets in Snohomish County. The opening of Paine Field is also expected to further establish Boeing’s commitment to Everett and the surrounding areas. With 34,500 employees and a 6.85 million square foot industrial footprint, Boeing has historically been one of the primary drivers of Everett’s industrial market, according to a second quarter 2018 report written by Colliers International.
Major airlines Alaska, United and Southwest have already announced planned service to and from Paine Field, which will accommodate up to 2,350 daily passengers, according to the report.
Founded in 2001, Hamilton Zanze primarily focuses on multifamily property investments and acquisitions in the Pacific Northwest, Southwest and other target markets. The company’s portfolio has risen to 18,692 units under management as of fourth quarter 2017, according to its web site. Hamilton Zanze’s Washington portfolio includes 17 properties.
The company’s sale of the Bradford Park Apartments comes just a few weeks after it sold another Puget Sound region asset. On August 6th, Hamilton Zanze sold the 124-unit Pointe East Apartments in Fife to OpenPath Investments for $21 million, or approximately $169,355 per unit.
Another apartment property in Lynnwood also sold in recent weeks. On August 24th, Everett-based Coast Equity Partners acquired the Collins Junction Apartments in Lynnwood for $37.75 million, or approximately $224,702 per unit, from United Kingdom-based Grosvenor USA Limited.