By Jack Stubbs
Madison Residential recently added another asset to its local Puget Sound portfolio.
On Tuesday, November 7th, the Bend of the River Apartments in Kent sold for $12.4 million, or roughly $172,222 per unit, according to public records filed with King County. Los Angeles-based Madison Residential is a real estate company that targets opportunistic residential investments and acquires multifamily apartment communities throughout the West coast and South East. The seller was Kirkland, Washington-based Weidner Apartment Homes, a provider and manager of a wide variety of rental housing options throughout North America. The deal was recorded on November 9th.
Giovanni Napoli, Philip Assouad and Ryan Dinius of Kidder Mathews were the brokers for the transaction.
Built in 1989, the three-story Madison on the River Apartments contains 72 units, and offers one- and two-bedroom apartments, according to the property listing on apartments.com. The one-bedroom units range from 540 to 710 square feet, with rent between $1,170 and $1,225. The two-bedroom units are 945 square feet and rent for $1,455. Some of the in-unit amenities include washer and dryer, walk-in closets, fireplace and attached balcony.
Located at 8721 S. 259th St., the complex is just over one mile to the south of downtown Kent. The property’s location is one of its main assets, according to apartments.com, sitting on the Green River Trail and in close proximity to shopping at Kent Station and the Auburn Supermall. Additionally, the property is roughly three miles from access to Washington State Route 167 and four miles from access to State Route 516. The property is also proximate to several other apartment complexes in Kent, within four miles of the 81-unit Arterra Apartments, 76-unit Light House Apartments, the 108-unit Meridian Green Apartments, among several others.
Madison Residential targets small to mid-sized assets below the scope of institutional firms, implementing a value-add business strategy, according to the company’s web site. The firm has directly sourced, financed and managed investments with asset values in excess of $800 million, consisting of over 5,000 apartment units nationwide. The firm’s current portfolio consists of six properties along the West Coast (in Nevada, Washington and California) that comprise 530 apartment units.
In addition to the recently-acquired Bend on the River Apartments, the company’s other Washington properties include the 105-unit Align Apartment Homes in Federal Way and the 61-unit Encore Apartments in Lynnwood acquired in September and December 2016, respectively. The firm is also currently seeking investment opportunities in several West Coast markets including Portland, San Francisco and San Diego, among others.
Founded in 1977, Weidner Apartment Homes acquires and manages residential assets nationwide. The company offers residents and associates stability in an ever-changing economic climate, known for holding onto their properties for the long-term, according to its web site. The company currently has 260 properties comprising 50,000 units under management. Some of the company’s other Washington assets include the 254-unit Island Park Apartments in Kent and the Majestic Bay Townhomes, an 81-unit property in Des Moines.
Weidner in recent weeks made its presence felt in the local residential market. On October 27th, the company purchased the 34-story 313-unit Tower12 Apartment building—located in Downtown Seattle near the historic Pike Place Market—for $225.5 million from Bellevue-based Continental Properties LLC. The acquisition was the company’s largest to-date in the Puget Sound region.