By Jack Stubbs
On Tuesday, December 12th, the Tria Apartments in Newcastle sold for $24 million, or roughly $315,789 per unit, according to public records filed with King County. The buyer of the asset was San Francisco-based Jackson Square Properties, a private real estate investment management company that specializes in the purchase and ownership of multi-family apartment communities. The seller was Goodman Real Estate, a Seattle-based real estate investment company that specializes in multifamily and commercial assets.
The 7-story asset, located at 12833 Newcastle Way, was built in 2016 and contains 76 units, according to the apartment listing on apartments.com. The property offers one- and two-bedroom units: the one-bedroom units comprise 545 square feet and rent for $1,775; the two-bedroom units range from 1,152 to 1,213 square feet and rent for between $2,815 and $2,985.
Select units contain dens and balconies, according to the property’s web site. Some of the prominent in-unit amenities include a spacious resident rooftop deck area, spacious floor plans and fully-furnished kitchens (including ovens, refrigerators and freezers, among other utilities). The property, which also provides property management and maintenance services, offers an “intimate footprint, stylish design and boutique services,” to its residents, according to the web site.
The property is located six miles to the south of downtown Bellevue and roughly the same distance to the north of Redmond. Additionally, the property is roughly three miles from access to transit corridor Interstate 405.
The asset also sits in close proximity to other apartment complexes: it is less than half a mile from the three-story 50-unit Newport Crossing Apartments and is adjacent to the two-story 30-unit Del Mar Village Apartments built in 1983. Avalon Newcastle Commons, a larger 378-unit apartment complex, sits one mile to the north of Tria Apartments.
Founded in 2004, Jackson Square Properties owns a portfolio of multifamily assets that includes 70 communities with 20,000 units in 9 states, valued at over 3.8 billion dollars, according to the company’s web site. The company looks for value-added or rehabilitation opportunities in targeted metropolitan markets including Northern and Southern California, Salt Lake City, Chicago, Denver, Portland and Seattle. Since 2010, Jackson Square has acquired close to 13,000 apartment units in 6 states with a total purchase price of $1.4 billion and sold approximately 7,000 units valued at $700 million, according to the company’s web site.
The company has been active recently in the Puget Sound’s residential market. In March 2016, the company bought the 50-unit Meadows at Cascade Park Apartments in Vancouver, Washington from Belkorp Group of Companies for $35.3 million. More recently, in December 2016, the company acquired the 304-unit Waters Edge Apartments, a multifamily property in Kent, from Admiral Capital Group and Security Properties for roughly $56.5 million.
Goodman Real Estate, founded in 1980, is a locally-based real estate company that maintains a diversified portfolio of commercial properties across the U.S. and Canada. The company manages a portfolio with assets valued at more than $2.5 billion that spans investment types that include multifamily construction, hotels and resorts, office and retail assets, and land development, according to its web site. Some of the company’s Seattle assets include 80 Main, a 45-unit property in downtown Seattle; Addison, a 240-unit project; and Cadence Apartments, a 142-unit asset.
In recent months, Goodman has sold other assets located in Seattle. In February 2017, the company sold the 91-unit Vive Apartments in Ballard to Vive Apartments LLC for $24.1 million. In May 2017, the company sold a 98-unit apartment building in Seattle’s Ravenna neighborhood for $25.7 to an LLC associated with SKS Trading Co. Ltd.