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RISE Properties & Tokyu Land Acquire Surprise Lake Village in Milton for $106MM

Blackstone, RISE Properties Trust, Surprise Lake Village, Milton, Tokyu Land US, Revantage,
Courtesy of RISE Properties.

(EDITOR’s NOTE: According to public records, RISE and Tokyu paid $106 million, or about $313,610 per unit, for the asset. The seller is Revantage, a Chicago-based affiliate of Blackstone.)

Residential Community Purchase Marks 33rd Acquisition in the Pacific Northwest for RISE

SEATTLE, Wash — RISE Properties Trust (“RISE”) a Canadian real estate trust based in Seattle, and Tokyu Land US Corporation(“Tokyu”), a fully-integrated real estate development and investment company, today announced the purchase of Surprise Lake Village, a 338-unit garden-style community located on the southern shore of its namesake lake in Milton, WA. 

Surprise Lake Village was built in 1986 and offers a diverse mix of floor plans; including a variety of flat, lofted, and townhome style units. The community is one of just a handful throughout the Puget Sound with swimmable lake frontage, a highly desirable natural amenity that creates a serene setting for residents. A low-density site plan and mature landscaping throughout the property further complement this feature. The property is located just off Meridian Avenue, the primary arterial that serves the cities of Milton and Edgewood while connecting to the greater region via Highway 167 and I-5.

Amenities at the community include a lakeside clubhouse, fitness center, theater room, BBQ area, dog park, two playgrounds, soccer field, and a second clubhouse featuring an indoor/outdoor pool and spa. All unit interiors will be renovated to a modern, high-end finish level as part of an extensive value-add strategy. Amenity spaces will also be reimagined throughout the project, with special attention paid to complementing the natural beauty of the property.

Beau Madsen of RISE noted, “This purchase is particularly exciting in that it marks our acquisition of about 4,000 multifamily units in the Seattle metro since 2018, totaling north of $1,100,000,000 of investment made locally. We believe strongly in the fundamentals of our region and the ability of our platform to create value for our communities and investors. Surprise Lake Village, specifically, is an extraordinary low-density asset nestled on Surprise Lake in Milton. We look forward to creating a one-of-a-kind renter experience for this community.”

Ben Cherney, Vice President of Tokyu, stated, “Surprise Lake Village is an irreplaceable asset where, together with RISE and Thrive, we will be able to provide a garden-style offering that will compete directly with new construction. This is in large part thanks to the resort-like setting and layout of the property. The finished product will be the gold standard for south Sound communities.” 

The transaction, brokered by David Young, Corey Marx, and Chris Ross of JLL, represents the fourth joint venture between RISE and Tokyu, following the acquisitions of Alaire Apartment Homes in Renton, Dockside Apartments in Kent, and just last week Discovery Landing Apartment Homes in Burien.

Including Surprise Lake Village, RISE owns approximately 5,500 units in the Pacific Northwest.

The property will be managed by Thrive Communities, a Seattle-based property management firm with more than 16,000 apartments under management.

About RISE Properties Trust

RISE Properties Trust is a private Canadian REIT focused on the US multifamily sector in the Pacific Northwest. Through fully-integrated operations, the Trust acquires underperforming apartment properties and improves their operations, cash flow, and value. 

About Thrive Communities

Thrive Communities is an award-winning property management firm with approximately 16,000 apartments under management.  Their in-house renovation platform has improved over 5,300 apartments on both occupied and unoccupied units. Thrive’s fully-integrated and hands-on team approach ensures each asset is operating at its full potential while maximizing value for its clients.  

About Tokyu Land US Corporation

Tokyu Land US Corporation is a subsidiary of Tokyu Land Corporation, a fully-integrated real estate company in Japan that operates an urban development business, a residential business, a wellness business, overseas businesses and more. Tokyu Land US Corporation has offices in Los Angeles and New York, and investments in multifamily and office properties in New York, California, Oregon, Georgia, and Washington, Washington DC, and North Carolina.