By Jack Stubbs
On December 9th, Sack Properties, a San Francisco-based multifamily real estate investment firm that has predominantly focused on developing properties in the Bay Area and in recent years has expanded into the Pacific Northwest, recently added another asset to its local portfolio.
On December 9th, the company spent $32.2 million, or around $335,416 per unit, to acquire the Summit Apartment Homes in Redmond. King County public records list the seller as Seattle-based Coast Equity Partners, a private real estate investment firm that acquires, repositions and operates apartment communities across the Pacific Northwest.
Giovanni Napoli, Philip Assouad, Ryan Dinius, and Sidney Warsinske at IPA were the brokers for the sale of the property.
Coast Equity Partners previously acquired the property from Irvine, CA-based development firm Sares-Regis Group in September 2017 for $29,600,000, or just over $308,000 per unit, according to The Registry’s reporting.
The Summit Apartment Homes, which was built in 1981 and is located at 14820 Redmond Way, contains 96 units across three stories. The property includes a designated barbecue area, hardwood-style flooring in kitchens and entryways, stainless steel appliances throughout, and a streamlined online payment system. Some of the on-site services include a business center, designated clubhouse and lounge.
The complex offers two-bedroom/two-bathroom units that average 1,004 square feet and rent for between $1,850 and $2,230 per month. The Summit is more than just a collection of apartment homes, as it offers a “first-rate living experience,” namely, the luxurious on-site shared amenities and an apartment orientation that fosters a truly communal atmosphere, according to the property’s description on apartments.com.
Summit Apartments, which is roughly one mile west of downtown Redmond and three miles east of Kirkland via Redmond Way, sits in close proximity to several other multifamily communities, some of which include Trailwood Apartment Homes, Scarborough Townhomes, Element Townhomes and the Shadowbrook Apartments.
Since its founding in 1958 until 2012, Sack Properties’ strategy focused on multifamily real estate investments in the San Francisco Bay Area, with strong environmental regulations limiting new developments and a growing population increasing the demand for rental units, according to the company’s web site. With the company’s introduction of its first commingled fund in 2012, Sack Properties expanded its geographic focus to include similar markets like Oregon and Washington State.
As of June 2017, at which time the company owned a total of thirteen properties comprising 1,500 units throughout Northern and Southern California with a portfolio valued at $500 million, the company looked to grow its multifamily operations on the West Coast, and hired a new director of acquisitions and dispositions to lead the firm’s growing operations throughout the Pacific Northwest.
The company’s capture of the Summit Apartment Homes comes just a few months after another acquisition in the Snohomish County city of Mill Creek. In June 2019, the company spent $141.9 million to acquire the 570-unit Mill at Mill Creek Apartments—a complex which includes the 136-unit Chelsea Pointe Apartments—from New York-based investment firm Blackstone Group.
A number of multifamily properties in Redmond have changed hands over the last several months, with the trade of the Summit Apartments just the latest example of note. In late September, Greensboro, N.C.-based Bell Partners spent $96 million, or about $395,000 per unit, to acquire the 243-unit Redmond 3040 Apartments—now know as the Bell Overlake Apartments—from White Peterman Properties Inc. (WPPI).