By Jack Stubbs
As 2019 comes to a close, it seems that investors remain intent on making their mark in the Puget Sound region’s multifamily market, with a property in Federal Way having recently changed hands between two San Diego-based companies for a sizable sum, undergoing a name-change as it comes under new ownership.
On December 16th, San Diego-based S. Lew & Associates, Inc. spent $90 million, or around $224,438 per unit, to acquire the Avery at The Reserve Apartments in Federal Way—recently rebranded as The Encore Apartment Homes by the buyer—King County records show. The seller was The ConAm Group, who originally purchased the property in late 2016 from Kennedy Wilson for $63.8 million, or about $159,102 per unit.
Avery at The Reserve Apartments, located at 125 SW Campus Drive, was originally built in 1989 and contains 401 units across 31 buildings, according to public documents. The property offers a mix of one-, two- and three-bedroom units that range from 710 to 1,150 square feet and rent for between $1,140 and $1,660, according to its web site.
Some of the community amenities available to residents include an indoor pool, state-of-the-art fitness center, covered parking and garage, business center/clubhouse, and exterior landscaping.
The roughly 40-acre complex is about three miles south of Federal Way and eleven miles north of Tacoma via Interstate-5, also offering convenient access to State Route 99.
The location of the property—from which residents can see the iconic Mt. Rainier—is one of its primary features, according to the buyer’s web site. “Its tranquil setting includes abundant greenery, as well as quick access to desired lifestyle amenities. Encore is also proximate to main thoroughfares and mass transit, providing connections to key employment drivers of both King and Pierce Counties.”
A number of multifamily properties in Federal Way have traded over the last couple of months, with the sales price of Avery at The Reserve eclipsing several other recent transactions. In mid-July, IPA announced the sale of Homestead, a 134-unit apartment complex, for $26.5 million, which equates to $197,761 per unit.
In early August, RISE Properties Trust (“RISE”) a Canadian real estate trust based in Seattle, and Aegon Real Assets U.S., announced their purchase of the 31-building Waterbury Park Apartments in Federal Way for $56 million. And in late August, Kirkland, WA-based Weidner Apartment Homes sold the 83-Unit Bayview Apartments for $15.6 million, or about $187,951 per unit, to Redwood City, CA-based Bayview Associates LLC.
Founded in 1978 and managing a multi-million dollar investment portfolio, S. Lew & Associates specializes in commercial real estate, large multi-family residences and land development across the Western U.S. in states including California, Washington, Arizona and Nevada.
The company’s capture of the Encore Apartments adds to its existing Pacific Northwest portfolio, which also includes the Waterbrook Loft & Apartments in Kent; the Aspen Creek Apartments in Puyallup; and the Park at Dashpoint, which is also located in Federal Way.