Home Finance Kennedy Wilson Sells the 230-Unit Carvel Apartments in Mukilteo for $69.25MM

Kennedy Wilson Sells the 230-Unit Carvel Apartments in Mukilteo for $69.25MM

Seattle, Housing Authority of Snohomish County, Kennedy Wilson, Mukilteo, Everett, Paine Field, Boeing, Puget Sound region
Image courtesy of www.carvelatharbourpointe.com

By Jack Stubbs

On Thursday, September 13th, a 12-acre property that includes the Carvel at Harbor Pointe Apartments in Mukilteo sold for $69.25 million, according to public records filed with Snohomish County. Public documents list the buyer as the Housing Authority of Snohomish County. The seller was Beverly Hills, California-based Kennedy Wilson, a global real estate investment company that focuses on multifamily and office properties throughout the Western U.S., U.K. and Ireland. The transaction was recorded on September 19th.

Neither the Snohomish Housing Authority nor the seller—who acquired the property for $46.5 million in February 2016, according to public records—responded to calls for comment about the transaction in time for the publishing of this story.

The transaction was for a 12.15-acre parcel located at 4500 Harbour Pointe Blvd., according to Snohomish County records. Public documents indicate that the sale included thirteen different residential structures, and Google Maps indicates that the 4500 Harbour Pointe property is comprised of thirteen separate buildings.

The parcel includes the Carvel at Harbour Pointe Apartments, built in 1998, as well as an associated clubhouse and recreation center. The Carvel property features newly-renovated modern interiors, quartz countertops and private balconies, according to its web site. The complex offers one-, two- and three-bedroom units that range from 563 to 998 square feet and rent for between $1,309 and $2,119. According to the property listing on apartments.com, the three-story Carvel at Harbor Pointe Apartments contains 230 units as well as a business center, fitness center and property management center, among other amenities.

The property is approximately three miles south of Mukilteo, ten miles west of Mill Creek and adjacent to Washington State Route 525. The asset is also roughly three miles from access to the in-the-works Paine Field Airport, which is set to impact the local marketplace. Paine Field Airport in Everett, which will begin hosting commercial flights in late 2018, is poised to impact the local office and industrial markets in Snohomish County and expand on the long-standing presence of Boeing in Everett’s industrial market. Boeing outputs more than $68.7 million in sales and supports 905 jobs annually, according to a second quarter 2018 report released by Colliers International, “The Paine Field Effect on the Northend CRE Market.” As for the imminent opening of Paine Field, major airlines Alaska, United and Southwest have announced planned service to and from the airport, which will accommodate up to 2,350 daily passengers.

Along with Paine Field Airport, there have been a couple of apartment transactions in Everett in recent months indicating that confidence in the area remains strong. In late January 2018, California-based Aukum Group acquired the 204-unit Waterstone at Silver Lake Apartments in Everett for $47.1 million from Silverlake TIC-RH LLC. And in early April, Artemis Real Estate Partners purchased the 148-unit Garden Court Retirement Community for $49.7 million, or approximately $335,810 per unit, from Everett-based Metco Management Group.

The Housing Authority of Snohomish County provides rental assistance to over 5,000 Snohomish County citizens, according to the organization’s web site, and provides rental housing, senior and disabled properties and manufactured housing communities. The Housing Authority operates properties in Everett, Lake Stevens, Arlington, Lynnwood and Mountlake Terrace, among other locations throughout Snohomish County.

Originally founded in 1977, Kennedy Wilson has 25 global offices located throughout the U.S., Europe and Japan, according to the company’s web site. The company’s national portfolio included 21,391 multifamily units, 6 million commercial square feet, 2 hotels and 411 residential units/lots as of July 31st, 2018. Kennedy Wilson’s Pacific Northwest portfolio includes 10,563 multifamily units and 1.9 million commercial square feet. Some of the company’s other apartment properties in the Puget Sound region include the 209-unit Apex Apartments in Tacoma, the 372-unit Bailey Farm Apartments in Bothell and the Equinox Apartments in Seattle.

In late May 2018, Kennedy Wilson announced the $422 million sale of a six-property multifamily portfolio totaling 2,199 units, which locally in the Puget Sound region included the 297-unit Big Trout Lodge in Liberty Lake; the 396-unit Montair at Somerset Hill Apartments in Tumwater; and the StonePoint property in University Place, which comprises 240 units. The asset sales generated cash proceeds of $223 million for Kennedy Wilson, its commingled funds and equity partners, including net proceeds to Kennedy Wilson of approximately $104 million. The Company had a 41.3 percent average ownership in the six properties.