L5 plans continued acquisition activity in Seattle area as job growth thrives;
Firm has 2 other projects in contract to purchase totaling $7.5 million
Seattle, WA – A partnership between L5 Investments, a Northern California-based multifamily investment firm, and Seattle-based Shuler Architecture, has acquired Innsbruck Apartments, a fully-occupied, 31-unit multifamily community in SeaTac, WA (an emerging submarket of Seattle) for $2.6 million. Built in 1967 and renovated in 2007, the property is located at 3223 South 160th Street just 15 miles from downtown Seattle.
Under the new ownership, the property – which has a significant degree of deferred maintenance – will undergo an extensive renovation in order to meet the high demand from area residents seeking quality, market-rate rental housing.
“Our partnership saw this asset as a prime opportunity to add value through a major renovation as well as improving overall operations,” said Michael Flaherty, founder and managing partner of L5 Investments. “Innsbruck Apartments fit nicely within L5’s acquisition strategy to grow our portfolio in thriving markets throughout the United States.”
Flaherty added that the firm currently has two additional apartment properties in escrow in the Seattle region totaling approximately $7.5 million. “The Seattle job market is booming and ranks among the nation’s hottest, adding just over 78,000 jobs last year. We see a heightened demand for suburban markets outside the downtown area as rents there are rising at a very rapid pace,” he said.
L5 and its partners plan to invest approximately $700,000 in property renovations at Innsbruck with extensive interior upgrades including adding a washer and dryer to each unit, and the conversion of an office to a new, leasable studio unit. Exterior improvements include paint, energy conserving products such as LED lighting, upgraded railings, new signage, additional parking, and attractive landscaping.
Located within walking distance to a new light rail mass transit facility, Innsbruck is also near the SeaTac Airport; major employers and business incubators; and routes 99, 509, and 518 as well as Interstates 5 and 405. On-ramps to these highways are ¾ mile from Innsbruck and provide easy access to the greater Puget Sound region.
The seller of Innsbruck Apartments were local private investors. David Massa of Madison Partners Real Estate represented the buyer and Grandbridge Capital provided the debt.
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 $118 million of assets 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. With over 50 years of real estate experience, 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 belief that trust starts and ends with honesty and integrity. L5 is based in the Sacramento area. www.L5invest.com.