(EDITOR’S NOTE: Accoriding to public documents filed with King County, the sale comprised of two parcels, which include the 131-unit Avalon Kirkland and the 29-unit Aqua View apartments next door. The total price was for $85.5 million. The seller for both properties was Avalon Bay Communities.)
On September 27, 2018, Security Properties and an affiliate of Rockwood Capital purchased Avalon Kirkland, a 131-unit multifamily property located in Kirkland, WA. The property was originally built in two phases in 1968 and 1989-90 and features some of the largest units in the area—averaging 1,345 square feet.
Located just south of downtown Kirkland, Avalon Kirkland provides residents a high-quality experience associated with waterfront living in a highly-sought after, suburban neighborhood with convenient access to upscale retail, high-quality schools and the area’s top employment centers. Across the street from the property is Carillon Point, a mixed-use development featuring the largest marina on Lake Washington, approximately 450,000 square feet of Class A office space, a 4-star waterfront hotel and an array of boutique restaurant and retail options. Downtown Kirkland, just one mile to the north, offers easy access to over 80 retailers, 200 restaurants, multiple waterfront parks and a farmer’s market. Residents have direct access to the Cross Kirkland Corridor trail, a 5.75-mile walking, running, and biking trail, that provides convenient travel to both Downtown Kirkland and Downtown Bellevue.
Given the property’s unparalleled location and irreplaceable setting overlooking Lake Washington, Security Properties and Rockwood Capital plan on extensively renovating the unit interiors while also adding a community common area. According to Davis Vaughn, Senior Director at Security Properties, the acquisition was made because, “We feel this is the best garden-style asset in the submarket. The outstanding views combined with the Kirkland location give us the opportunity to implement a higher-level renovation that will be unique relative to other rental product in this market. We look forward to creating value for our investors by renovating to a finish level and amenity set that is appropriate for irreplaceable real estate.”
“Consistent with our longstanding investment philosophy, we believe the quality of a property’s surrounding environment can be as important in contributing to rising and enduring value of an investment, as the buildings themselves,” said Peter Kaye, Managing Partner, Rockwood Capital. “Located in a city with significant barriers to new development and very few property sales, Kirkland Avalon represented a rare opportunity to purchase an apartment community with exceptional physical attributes and a high-quality outdoor experience. These unique characteristics made the profile of this investment a perfect fit for our long-term investment vehicle.”
The property will be managed by Security Properties-affiliate Security Properties Residential.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 48 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 83,000 residential units at a cost of over $5.7 billion. Security Properties Residential is the affiliated property management firm of Security Properties, created to increase the value of its real estate holdings by more closely managing its assets. Security Properties maintains a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists. For more information, visit www.securityproperties.com
About Rockwood Capital
Rockwood Capital, LLC (Rockwood) is a real estate investment management firm founded in 1995 that invests in residential, office, retail, hotel and research and development properties that can be repositioned, recapitalized, developed or improved in select markets throughout the United States. Notably, Rockwood has extensive experience in the multifamily sector, represented by the firm’s current 29 asset portfolio comprising 6,382 units across the country.
Rockwood and its principals have invested on behalf of their clients approximately $28.1 billion of real estate through ten value-add vehicles and ten separate accounts. Today, Rockwood has offices in New York, NY, San Francisco, CA, and Los Angeles, CA that manages a portfolio of approximately $3.4 billion of net equity value in approximately $6.8 Billionof gross real estate value as of 6/30/2018. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices.