By Jack Stubbs
On Wednesday September 27th, the Martha Lake Apartments in Lynnwood sold for $34.8 million, or roughly $224,516 per unit, according to public records filed with King County. The buyer was Irvine, California-based Sares Regis Group, a company that manages residential and commercial assets. The seller was Chicago, Illinois-based Waterton, a real estate investor and property management company that focuses on multifamily apartments and hospitality properties nationwide.
Two members of Kidder Mathews brokered the transaction, with senior vice presidents Philip Assouad, and Giovanni Napoli representing Waterton in the deal.
The 3-story, 155-unit Martha Lake Apartments property, located at 16626 Sixth Avenue West, lies roughly 5 miles to the northeast of Lynnwood. The property sits in close proximity to central transit corridors, just two miles from access to Interstate 405 and 5 miles from access to Interstate 5. Additionally, the Martha Lake complex sits in close proximity to other apartment developments, including Altia Townhomes and Apartments, Heritage Ridge Apartments, Millwood Estate Apartments and Station Nine Apartments. The apartment complex is half a mile to the south of Martha Lake park.
The residential property, built in 1991, is comprised of one-bedroom, two-bedroom and three-bedroom units. One-bedroom units run from 600 to 700 square feet, with monthly rent of between $1,290 and $2055, according to the property listing on apartments.com. The two-bedroom units total between 900 and 1,000 square feet, with rents of between $1,535 and $2,550 (depending on whether the units contain one or two baths). Finally, largest units total 1,109 square feet and cost between $1,935 and $2,555 per month.
Some of the property’s primary highlights include fully equipped kitchens; select homes have vaulted ceilings, fireplaces, walk-in closets and a private patio or balcony, according to the website. The property also features a full fitness and recreation center, including a fitness center, sauna and pool.
Sares Regis Group, founded in 1993 through the alliance of two companies, The Regis Group and The SARES Company, acquires and manages commercial as well as residential assets. Since 1994, the company has been active in the commercial sector, having successfully developed and acquired more than 78 properties totaling over 35 million square feet (with an aggregate value of roughly $2.53 billion) according to their website. The company’s commercial properties span the sector, including warehouse, distribution and manufacturing properties, master-planned and mixed-use parks, research and development facilities, and multi-tenant industrial business parks, according to their website.
Over the years, the company has produced more than 20,000 multi family homes. Their capture of the Martha Lake Apartments is the latest in a long line of acquisitions—since 1993, the investment division has developed or acquired approximately 9,000 apartments and condominium homes, according to the company’s website.
Sares Regis Group has been an active presence in the Seattle area over the last 18 months. In March 2016, the company received a $50 million commitment from the Ohio Bureau of Workers Compensation Fund for its SARES-REGIS Multifamily Value-Add Fund II, a commingled fund that has both Northern California and greater Seattle among its targeted investment markets. In August 2016, the Multifamily Value-Add Fund held a final close, having raised over $300 million in total equity commitments. Utilizing leverage, the Fund will seek to acquire approximately $850 million of assets in its target markets. Finally, in another deal that closed December 2016, the company acquired the 238-unit Solara Apartment community in north Seattle from Denver-based Simpson Housing for $65.2 million.
Founded in 1995, Waterton manages a national portfolio of multifamily and hospitality properties on behalf of institutional investors, family offices and financial institutions, according to their website. As of June 30 2017, the company’s portfolio includes roughly $3.4 billion in real estate assets, including 41 multifamily investments totaling approximately 14,000 units, according to their website. The company’s portfolio includes residential and hospitality assets in states nationwide, including California, Colorado, Florida and Illinois. Waterton’s one residential asset in Washington is Taluswood in Mountlake Terrace, a 512-unit property.