By Jon Peterson
Newport Beach, Calif.-based MIG Real Estate has made its $46.6 million purchase of the 274-unit Berkshire Apartments located at 1300 Eagle Drive South in Renton its initial apartment deal in the Seattle marketplace, according to sources that follow apartment complexes in the greater Seattle market.
“Seattle has tremendous job growth and a limited amount of Class B apartments to satisfy the increasing demand in the area,” says Greg Merage, chief executive officer for MIG. The investment company funded the acquisition with a combination of internal equity and agency funding. The buyer declined to comment on what it paid for the property.
“Yes, we would like to buy more apartments in the area in the future. Seattle is one of the company’s top target markets based on its above average long-term growth”
The cap rate on the sale was 5.3 percent. This return factors in the property’s current net operating income. When the asset was bought, the complex was 96 percent occupied. The new owner is planning to make some improvements to the property. This will include the continued renovation of unit interiors like the upgraded flooring, cabinets, counters, appliances and fixtures.
The seller of the property is an entity of Berkshire Apartment Investors based in Vancouver, Wash. They were represented in the transaction by the Seattle office of CBRE. The listing agents on the sale were Jon Hallgrimson and Eli Hanacek.
The property was constructed in 1979. It has a total of 443 parking spaces with some open parking and some in a car ports. The project amenities include swimming pool, clubhouse, exercise room and spa.
The Renton apartment market continues to show strong rental demand. This interest is one reason why rents have increased by 13 percent year-over-year as of the second quarter of last year.
MIG hopes to make more apartment investments in the Seattle marketplace. “Yes, we would like to buy more apartments in the area in the future. Seattle is one of the company’s top target markets based on its above average long-term growth,” said Merage. The only other real estate property that MIG owns in Seattle is the two-building Canyon Park 228 Corporate Center office park in Bothell.
