By Meghan Hall
An apartment complex just south of Tacoma and not far from Joint Base Lewis-McChord has traded hands. In a deal that was struck on June 8th, the Oak Terrace Apartments in Lakewood, Wash., sold for $10.5 million, or for about $115,385 per unit. The seller is affiliated with Twin Emeralds LLC, while the buyer is associated with Oak Terrace SS LLC. Records indicate that the LLCs are linked to private citizens.
The asset is located at 42 Thunderbird Parkway Southwest. Data from Apartments.com indicates that the property has 91 units, all of which are one-bedroom, one-bathroom units. The average size per unit is about 726 square feet. The complex features amenities such as a fitness center and pool.
The property’s greatest asset, however, is its location. The apartment complex is not far from major employment centers in Tacoma, nearby Joint Base Lewis-McChord and DuPont’s growing industrial and employment market. A number of attractions are also nearby, including the Lakewold Gardens, American Lake, Chambers Bay Golf Course and the Pierce College Science Dome.
The Puget Sound Multifamily market has already seen more movement in 2021 than it had a year ago at this time. A recent analysis by Kidder Mathews’ Simon Anderson Group shows that as of May 2021, Puget Sound apartment sales volume sat at a little less than $1.2 billion. The last couple of months have seen an increase in apartment buildings–particularly larger assets–coming to market, a trend that is expected to continue.
“The start to 2021 feels different already and although we are not yet at mid-year, listing volume is up markedly and closed sales as of May are nearly outpacing Q3 2020 sales totals,” states Kidder Matthews.
Thus far, however, 50 percent of total sales volume has occurred between the $1.2 million and $5.2 million range. Deals that have been closing were often between private families, individuals and smaller real estate companies, as is the case with the sale of the Oak Terrace Apartments. Kidder Mathews predicts that pent-up demand will lead to higher levels of transaction activity and more institutional players re-entering the market in the coming months.