By Meghan Hall
Illinois-based Inland Real Estate Group has made a big investment into the Puget Sound region, closing on a deal to buy a Lakewood apartment community last week. According to public documents, the firm paid $119 million, or about $228,000 per unit, for the Village at Seely Lake. The seller was a limited liability company associated with Blackstone.
The property features a mix of one-, two- and three-bedroom units ranging in size from 586 square feet to more than 1,300 square feet. According to Apartments.com, the complex was originally constructed in 1990 and includes 522 units spread across 39 buildings. In all, the property includes 28 acres. Community amenities include a business center, clubhouse, gym, pool and spa, and indoor basketball court. A media room and private dog park are also accessible to residents.
According to its website, Inland Real Estate Group of Companies is one of the nation’s largest commercial real estate and finance organizations. The company has completed more than $47 billion in acquisitions over its 50-year history, and owns hundreds of millions of square feet of commercial properties and more than 82,000 apartment units across 49 states.
As first reported by The Registry, Blackstone initially put the complex up for sale at the end of July, with guidance pricing around the $110 million range. Blackstone originally acquired the property around four years ago, and purchased the property from Salt Lake City-based Bridge Investment for $63 million. The real estate investor had owned the asset through its LivCor unit, which is established in 2013. Since then, LivCor has gorwn to oversee more than 250 communities around the country in 22 states totaling more than 81,000 apartment homes.
When the asset was put up for sale, the rent collection rate for April, May and June sat at about 97 percent. Prior to the sale, Blackstone had started renovating the property, including upgrades to the exterior—including roof replacement—as well as updates to the amenities. Around 27 percent of the apartments had also been updated to include stainless steel appliances, quartz countertops and plank flooring.
A number of other sizeable apartment transactions have graced the Puget Sound in recent weeks, including the sale of The Bond Redmond, which traded to G.W. Williams Co. for $66 million. And in a separate transaction, Wilshire Capital Partners sold off the land beneath its newly completed Tellus on Dexter Apartments for $18.5 million to a company that specializes in ground leases. The transactions signify needed movement in the Puget Sound investment market that moving forward, will help investors and commercial real estate experts determine the path of the multifamily industry.