Home Finance Security Properties Spends $136.25MM to Acquire the 512-Unit Taluswood Apartments in Mountlake...

Security Properties Spends $136.25MM to Acquire the 512-Unit Taluswood Apartments in Mountlake Terrace

By Jack Stubbs

Seattle-based Security Properties, a national multifamily developer and investor, recently made moves to expand its Puget Sound region portfolio. On Thursday, May 16th, the company spent $136.25 million, or approximately $266,113 per unit, to acquire the Taluswood Apartments in Mountlake Terrace, Snohomish County records show. The seller of the property was Chicago-based real estate investor and property management company Waterton Associates.

Waterton acquired the property from Vancouver, WA-based Holland Partners for $80.5 million, or approximately $157,000 per unit, in September 2015. And the recent sale of the Taluswood Apartments comes roughly a year after the property was put on the market, with the figure of $136.25 eclipsing the projected transaction price. According to a mid-June 2018 report written by CoStar, bids for the property were expected to come in at about $100 million, or approximately $195,000 per unit. 

The three-story Taluswood Apartments, located at 4208 236th Street SW roughly one mile east of downtown Mountlake Terrace, was built in 1986 and contains 512 units. 

The apartment complex offers a mix of one-, two- and three-bedroom units, according to Security Properties’ web site. The one-bedroom units are 644 square feet and rent for between $1,305; the two-bedroom units range from 884 to 908 square feet and rent for $1,575; and the three-bedroom units total 1,208 square feet and rent for $2,310. 

Some of the prominent in-unit amenities include fireplaces, wood-style flooring, vaulted ceilings in select units and patio/balcony. Some of the property amenities available to residents at Taluswood include a fully-equipped fitness center, heated outdoor swimming pool, on-site property management and maintenance services and a creekside walking trail.

The property is roughly two miles from access to the intersection of Interstate-5 and Washington State Route 104 and fourteen miles north of Seattle. 

Founded in 1969, Security Properties specializes in the development and management of assets through a variety of public, private and non-profit partnerships, according to the company’s web site. Since its formation, Security Properties and its partners have invested over $1.6 billion of equity in multifamily real estate, representing a portfolio value of nearly $4.01 billion. 

Today, the Security Properties portfolio reflects interests in 112 assets encompassing nearly 22,140 multifamily housing units (including properties under construction), making it one of the largest owners of residential real estate in the country, according to the company’s web site. 

The recent purchase of the Taluswood Apartments is the company’s latest statement of intent in the Puget Sound region, and the company has been active over the last several months. In late March 2019, the company acquired the 160-unit Hana Apartments in Seattle from R.C. Hedreen Company for $41.646 million, or about $260,000 per unit. In early April, the company placed the 267-unit Beaumont Grand Apartment Complex in Lakewood with an equity partner in a transaction totaling $46.5 million. 

Security Properties’ Puget Sound region portfolio includes more than 30 multifamily properties, according to the company’s web site. In Snohomish County, the company also owns the 124-unit Woodstone Apartments in Bothell—other nearby properties include the Ballinger Commons Apartments and Echo Lake Apartments in Shoreline and the On the Green at Harbor Pointe in Mukilteo.

Waterton, a real estate investment and property management company, focuses on U.S. multifamily, senior living and hospitality properties, according to the company’s web site. Founded in 1995, Waterton executes value add strategies and manages a national portfolio of  properties on behalf of institutional investors, family offices and financial institutions. Waterton manages its multifamily and senior living properties through a vertically integrated operations platform.