By Meghan Hall
The Seattle suburb of Lynnwood, Wash., has seen its fair share of property transactions this year, with perhaps one of the largest closing just recently. San Diego-based MG Properties expanded its Puget Sound portfolio with the acquisition of the Tivalli Apartments for $119.2 million, according to an industry source familiar with the transaction. MG Properties acquired the asset from Kennedy Wilson in November of this year.
Kennedy Wilson originally acquired the property for $94.3 million, or $246,000 per unit, in March of 2016.
Built in 2014, MG Properties paid approximately $311,000 per unit for the 383-residence property. According to the apartment complex’s website, units come equipped with modern lighting, wood floors, patios, and vaulted ceilings. Units can be studios, one-, two- or three-bedroom apartments, which range in size from about 500 to 1,200 square feet. Featuring about 15 different layouts, pricing for studios begin around $1,500 per month, while three-bedrooms are pricier at up to $3,000 per month.
Community amenities also include on-site management, pool, fitness center, playgrounds and sports courts.
The Tivalli is not MG Properties’ first asset in the area; the multifamily developer and manager also owns six other communities in various suburbs around Seattle, including Newberry Square, located just up the street from Tivalli. MG Properties also owns the Arbor Chase Apartments in Kent, Discovery Landing in Burien and The Boulevard at South Street in Tukwila, among others. According to the company’s website, MG Properties tends to target assets in metropolitan areas with an undersupply in rental housing and favorable demographics, such as the San Francisco Bay Area, Las Vegas and Portland. The firm also invests in underperforming or value-add apartment properties across the Western United States.
Since 1992, the company has acquired more than 140 properties totals 30,000 units. The company also manages an additional 20,000 residences in 55 communities, with a total apartment portfolio with a market value of more than $3 billion.
In recent months, Skanska has completed $57 million in light rail work in Lynnwood and Mountlake Terrace. FSC Realty also purchased the 230-unit Altia Townhomes for $58 million from Berkadia, while on the commercial side, Phoenix-based Vestar purchased the majority of the Lynnwood Retail Center for $95 million.