Seattle, WA, May 1, 2018 – L5 Investments (L5) has acquired Montrose Apartment Community for $15.35 million. The 97-unit property is located at 220 S. 152nd Street in Burien, WA, a growing suburb of Seattle located in South King County.
This acquisition marks L5’s fourth apartment community in the greater Seattle region. L5 now owns a total of 220 units here, and a total of 3,700 units nationwide.
“L5 is focused on acquiring strategically located, value-add apartment communities in markets across the nation by identifying densely populated areas experiencing strong job growth with good access to mass transit options,” said Michael Flaherty, founder and managing partner of L5 Investments, an El Dorado Hills, CA-based multifamily investment firm. “We see the suburban markets of Seattle as a great fit for this investment model. Montrose is currently stabilized with strong occupancy, and once we have completed our improvement program, we expect to see significant upside as it performs at the top of its market class.”
Flaherty noted that L5 will invest approximately $1.1 million in capital improvements over the next 12 months in order to meet the demands of today’s tenants. The renovations will focus on updating flooring, cabinets, lighting, appliances, and adding in-unit washers and dryers in all two and three-bedroom units.
Originally built in 1963, Montrose Apartment Community is situated on nearly three acres of land and includes seven, three-story buildings. On-site amenities include a fitness center, pool and playground. The unit mix includes one, two and three bedrooms which range in size from 728 square feet to 1,130 square feet. All units contain fully equipped kitchens, appliances, and private patios/balconies and some of the units include vaulted ceilings and fireplaces.
The well-located property offers excellent access to Interstate 5 and Route 509 which provides residents with quick access to the region’s major employment hubs of downtown Seattle, Kent, Bellevue and Tacoma and is located less than one-half mile from the Burien Transit Hub, providing bus service to the Puget Sound region. Situated approximately one-half mile from downtown Burien, the community is also near a variety of retail and restaurant amenities. The City of Burien offers public green spaces, pedestrian friendly walkways and public artwork. Over the past decade, downtown Burien has become a popular shopping destination known for its art walks and community festivals.
Ben Johnson of Berkadia brokered the transaction on behalf of L5 and the seller, an FPA Multifamily, LLC entity.
This most recent acquisition is L5 Investment’s second apartment property purchase in the City of Burien. In late 2017, L5 acquired the Raleigh Apartments, a 52-unit apartment community for $8.2 million. The property is situated on 1.3 acres located at 12415 Ambaum Blvd SW. The community features abundant parking, expansive unit interiors, and a mix of studio, one and two-bedroom units. The Raleigh is currently undergoing a strategic improvement program totaling nearly $700,000. Improvements include modernizing unit interiors with upgrades to kitchens and flooring along with the addition of in-unit washers/dryers. The community is adjacent to Salmon Creek Ravine park, which offers 88-acres of undeveloped open space with hiking trails and panoramic views of Puget Sound.
About L5 Investments
Founded in 2009, L5 Real Estate Investments, LLC (DBA L5 Investments) is a privately held investment firm focused on value-add, income-producing multifamily properties in emerging U.S. markets. The firm currently has in excess of $280 million of assets totaling 3,700 units under management in seven states. The company targets opportunities that provide high-yield, passive cash flow and long-term capital appreciation for its investors through strategic acquisition, renovation, and superior asset management. L5 and its partners continue to capitalize on opportunities to own multifamily properties in premier locations. These properties generate attractive short-term income and long-term wealth potential. L5’s success and reputation has been built on its track record, conservatism, passion, attention to detail and the belief that trust starts and ends with honesty and integrity. L5 is based in El Dorado Hills, CA. www.L5invest.com.
About FPA Multifamily, LLC
FPA Multifamily, LLC is a private equity real estate firm focused on the acquisition, renovation and management of both core plus and work force housing apartment communities. Founded in 1985, FPA has owned over 100,000 apartment units valued at over $10.0 billion. FPA is currently investing through its value-add focused FPA Apartment Opportunity Fund VI which will acquire approximately $1.8 billion of assets and its core plus focused FPA Core Plus Fund III which will acquire approximately $900 million of assets. Headquartered in San Francisco, FPA also has offices in Irvine, Portland, Denver, Minneapolis, Dallas and Atlanta. For more information, please visit www.fpamf.com.