By Jon Peterson
Los Angeles-based Resmark Apartment Living has sold the 208-unit The Luke apartment complex in Redmond at a low four percent cap rate. “This return is based on the current net operating income coming out of the property,” said Ziv Cohen, president of Resmark Apartment Living.
The seller of the property chose to bring the property to market for sale after it completed the business plan with the asset. “We had acquired the site for this project in the summer of 2013. It was our plan to sell the asset once the complex was developed and became a stabilized community, and we certainly have achieved that. The occupancy of the property is now at 90 percent,” said Cohen.
The property is located in the downtown area of Redmond at 164th Avenue Northeast and Northeast 83rd Street. Resmark had hired the Seattle office of JLL to work on their behalf in the sale of the complex. The listing agents were David Young, Corey Marx and Seth Heikkila. The sales price on the property was $73.750 million, and this was an all-cash transaction.
Resmark sees Redmond as a strong and sustainable apartment market. “This market has very strong rental demand, and not a lot of new product is being added to the market. The downtown market has been adding new amenities including retail and restaurants that have attracted more interest in the area. The vacancy in the downtown region is around 5 percent. Rents over the past 12 months have increased by 10 percent, which reflects the renter demand in the region,” said James Duffy, a vice president of asset management with Resmark Apartment Living.ave
Resmark would like to find more apartments to invest in for the greater Seattle market. According to its Web site, Resmark Apartment Living owns two other assets in Seattle. This is the 171-unit 550 Broadway complex in Seattle and the 209-unit The Hadley on Mercer Island.