In a new record-setting multifamily sale for Federal Way, San Francisco-based FPA Multifamily LLC sold off the Pavilion Apartments in Federal Way to three LLCs associated with Los Angeles-based Prime Residential for $93.1 million or $179,730 per unit.
King County public records show each of the three LLCs, Prime Catalina Campus Drive II LLC, Prime Portfolio Campus Drive II LLC and Prime Tramway Campus Drive II LLC are associated Prime Residential and include Atwater James Multifamily Investments, AJMI GP LLC and JCA Investments.
Public records state the three LLCs will split the asset with Prime Catalina Campus Drive II LLC taking the largest interest in the apartment complex at 52.2 percent. Prime Portfolio Campus Drive II LLC has a 23.5 percent interest and Prime Tramway Campus Drive II LLC has a 24.3 percent interest.
According to JLL, which previously marketed the Cascade Ridge apartments (now Pavilion Apartments) in 2011, the apartments were built in 1989 and 1991 and underwent a renovation in 2007 and 2008. Located at 1900 SW Campus Drive, the building offers lofts, one, two and three-bedroom units as well as a fitness center, pool, spa, playground, basketball court, and in-unit washers and dryers. JLL also listed the property as being a 518-unit complex consisting of 48 two and three-story apartment buildings.
Prime Residential has an existing apartment building in Federal Way, Glen Park at West Campus. At the time, it set the record for the largest multifamily sale in Federal Way at $85 million or $183,190 per unit. Prime Residential acquired Glen Park at West Campus from San Diego-based Fairfield Residential in October 2016. Located at 952 SW Campus Drive, the 464-unit apartment building offers one, two and three-bedroom units ranging from $1,122 to $2,454 per month. The apartments also include recreation areas with a playground, indoor basketball court and tennis courts.
A 2017 Seattle Apartment Market Study from Colliers’ Seattle Multifamily Team boasts the South King area as being one of the most active apartment markets in the region. Researchers said rent growth strong even with low vacancy rates but the development pipeline is slow to gain momentum. “Developers are gaining confidence in the South King, but not in droves yet. Last year over 500 units were added to the market, a quantity not exceeded since 2002. In coming years, more development is slated for delivery, yet it’s sporadic,” according to the study.
“Rental rate growth in South King beats most markets in the region. Year-over-year growth topped 10 percent while vacancy fell, a truly remarkable occurrence,” states the study.