By Meghan Hall
It has been a busy day in the Puget Sound, with a number of sizable commercial deals closing and coming to light. In the most recent transaction to record, major institutional investor Hines acquired Redmond’s Talisman Apartments for $173 million, or just under $605,000 per unit. Public records indicate that the seller of the property was an entity affiliated with Los Angeles-based Lowe Enterprises.
The property is located at 7405 168th Ave. NE, and the complex was completed in 2020 and rises seven stories, according to Apartments.com. The community features 286 one- and two-bedroom apartments that range in size from 578 square feet to 1,362 square feet. Units feature quartz countertops, stainless steel appliances, designer hardware, custom flooring and balconies. Air conditioning, which has become increasingly popular after last year’s heatwave, is also included.
Community amenities are also extensive. A coworking space, as well as a lobby lounge with coffee, is accessible to residents. Residents also can use the community’s two-level fitness center and yoga room, media room, rooftop pet run and community courtyard.
Probably the most essential amenity, however, is the apartment’s location. The property is located blocks from downtown Redmond, close to major employers such as 343 Industries and Microsoft. Eateries such as Nasai Teriyaki, Dough Zone Dumpling House and others, are just across the street.
Public records indicate that Hines purchased the property through Hines U.S. Property Partners, a flagship, core-plus, open-ended fund announced in August of 2021. Hines raised $750 million of equity, including a $100 million investment from Hines. As of August of last year, the fund had more than $1.2 billion in immediate investment capacity.
Hines worked on this off-market deal with Lee & Associates. The team on the deal was represented by Jim Reed, who is a principal out of the firm’s Bellevue office, and Adrienne Hunter, vice president, who is in the firm’s Seattle office.
“As we emerge from the pandemic, the real estate industry is at a critical inflection point and successful managers will need to examine their portfolios in an increasingly dynamic environment,” said Alfonso Munk, CIO of Americas at Hines in a statement when Hines announced the fund. “We are excited to launch this fund and begin implementing our strategy to buy, create and manage to core in order to meet investor demand and lead the industry in re-defining the future standards of core real estate.”
The fund will target properties across a variety of sectors and in “top-performing” submarkets across the United States. To date, Hines itself has a presence in 240 cities and 27 countries. The company has $81.7 billion in assets undermanagement, and another 172.9 million square feet of assets, which Hines serves as an investment manager. The firm also has more than 180 projects in the pipeline, and has developed, redeveloped or acquired 1,450 properties around the world.