By Jack Stubbs
Encino, CA-based New Standard Equities (NSE), a company that owns and operates multifamily properties in markets throughout the Western U.S., recently made moves to expand its Pacific Northwest region portfolio, purchasing a property in Des Moines, a city just north of Federal Way and west of Kent.
On August 13th, NSE spent $18 million, or about $222,222 per unit, to acquire the Majestic Bay Townhomes from Kirkland, WA-based Weidner Apartment Homes, King County records show.
The seller purchased the property from Emerald Villa LLC for $7.1 million in May 2013.
The transaction included two parcels located at 2423 and 2459 S. 216th St., according to public documents. The parcels comprise just under 2.5 acres and include the five-story Majestic Bay Townhomes, which contains 81 units and was built in 1980. Along with two-bedroom units that average 1,240 square feet, Majestic Bay Townhomes also includes fireplaces, private patio/balcony, underground parking and controlled access, according to the property listing on apartments.com.
The property offers convenient access to I-5 and State Route 99, and is roughly three miles south of Sea-Tac Airport, also sitting in close proximity to various amenities, dining options and open spaces in downtown Des Moines. The property is also approximately 15 miles south of downtown Seattle and six miles south of Federal Way.
There have been several industrial property sales in Des Moines in recent months. In early June, New York-based Clarion Partners spent $81.1 million, or close to $147 per square foot, to acquire a three-building warehouse/distribution property—within the Des Moines Creek Business Park—totaling 551,988 square feet and located at 341 S. 208th St.
On the multifamily side, in late January, Agoura Hills, CA-based Madison Residential spent $15.7 million, or around $203,000 per unit, to acquire the 77-Unit Marina Club Apartments, located at located at 2445 S. 222nd St., from Chicago-based Randolph Street Realty Capital.
Founded in 2010, NSE’s target markets include Northern and Southern California and the Pacific Northwest, and the company looks to acquire multifamily assets in in-fill, supply-constrained markets and submarkets that exhibit long-term job growth and improving demographics, according to its web site.
In terms of its investment criteria for properties throughout the Pacific Northwest region in particular, NSE seeks to capitalize on the region’s strong employment outlook driven by the technology sector in particular, where long-term employers continue to generate demand in secondary suburban markets outside of areas like Seattle’s Central Business District.
Along with several assets in Bremerton, NSE’s Puget Sound region portfolio also includes the 120-unit Duet Apartments in Lynnwood—a city roughly 16 miles north of downtown Seattle—and the 284-unit Venue Apartments in Renton, a city which is roughly ten miles northeast of downtown Des Moines.
Further-out cities like Renton, Des Moines and Federal Way continue to generate interest from local- and out-of-town property investors alike, with the sale of the Majestic Bay Townhomes the latest indication of an expanding multifamily market. On August 7th, RISE Properties Trust, a Canadian real estate trust based in Seattle, and Aegon Real Assets US, a multinational life insurance, pensions and asset management company based in the Netherlands, announced their purchase of the Waterbury Park Apartments in Federal Way—a property comprised of 31 residential buildings across 13 acres—for $56 million.