By Jack Stubbs
An apartment property in Federal Way last week changed hands between two California-based companies. On Monday, April 23rd, Red Hill Realty Investment, a property investment and management company, acquired the Align Apartments from California-based Madison Residential, for $20.85 million, or approximately $198,571 per unit, King County records show. The transaction was recorded on April 27th.
Directors David Sorensen and Ben Johnson and Senior Managing Director Kenny Dudunakis of Berkadia’s Seattle office completed the sale on behalf of the seller.
Red Hill Realty’s capture of the Align Apartments represents a buy that is characteristic of the company’s broader acquisition strategy, according to Eddie Cheng, managing director at the company. “All together, this is our third acquisition in the last two years, and we like value-add deals that show a lot of potential and a proven value-add strategy. We plan on improving the asset and doing renovations to the interior and exterior,” he said.
The three-story Align Apartments, located at 35434 25th Ave. SW., was built in 1996 and contains 105 units, according to the property listing on apartments.com. According to the web site for the asset, the apartment complex offers two- and three-bedroom units. The two-bedroom units range from 878 to 970 square feet and rent for between $1,310 and $1,4670, while the three-bedroom units total 1,169 square feet and rent for between $1,600 and $1,680.
Some of the in-unit amenities include fireplace, balcony/deck and wood flooring, and some of the community amenities include a fitness center, clubhouse, outdoor pool and business center.
The property is approximately five miles to the southwest of downtown Federal Way and roughly eight miles to the east of Tacoma. Additionally, the asset is about four miles from access to Washington State Route 99 and roughly two miles from Interstate-5.
Red Hill Realty Investment operates nationally in the multifamily sector, but focuses primarily on Western U.S. markets including Seattle, Washington; Portland, Oregon; and the San Francisco Bay Area, according to the company’s web site. In terms of single-asset value-add opportunities, the company looks to acquire properties for between $20 million and $100 million.
The company operates various properties throughout California, Colorado and Arizona. Some of Red Hill’s properties in the Puget Sound region include the 304-unit Hampton Bay Apartments and the 168-unit Redhill Pines Apartments, which are both located in Kent.