By Jon Peterson
Seattle-based Security Properties has purchased the 188-unit Clock Tower Village Apartments in DuPont and achieved a 5.8 percent cap rate on this transaction, as stated by sources that track the sale of apartments in the greater Seattle market.
“We think that the property is located in a very strong market. The demographics in the area are very strong. It’s situated in a nice neighborhood with low crime, good schools and this makes it a very attractive place for families to live,” says Davis Vaughn, an investment manager with Security Properties.
“It’s situated in a nice neighborhood with low crime, good schools and this makes it a very attractive place for families to live”
The property has a current vacancy of around six to seven percent. This puts the property in line with the greater vacancy of the sub-market of Tacoma. The Class A complex was developed in two phases in 1997 and 2005 by a family enterprise.
The sales price on the property was $30 million. Both the buyer and seller of the property were represented in the transaction by Bellevue-based Summerfield Commercial. “We did a full marketing package on the complex. We received a total of seven or eight offers on the property. Within the master planned community of DuPont, there are only two other Class A apartment complex that would compete with Clock Tower Village,” says Ryan Kidwell, a managing broker with Summerfield Commercial. He worked on the transaction along with Robert Parmar and Greg Wendelken. Their company focuses on the institutional sales of apartments in Washington, Oregon and Arizona.
The new owner will be making some improvements to the complex. “The interior units of the first phase of the property will be renovated. We are also planning to convert the existing clubhouse into a leasing office for the complex,” said Vaughn.
Security Properties declined to name its financial partner in this transaction. The company is known as an active developer and buyer of apartments and has a regional focus for its investments in the western part of the country. Its target markets are Seattle, Portland, California, Las Vegas, Reno and Denver.