Home Finance Strata Buys Five-Property Apartment Portfolio for $153.5MM

Strata Buys Five-Property Apartment Portfolio for $153.5MM

Sportsman's Warehouse, Everett, Puget Sound

By Jon Peterson

San Diego-based Strata Equity Group has acquired a five-property apartment portfolio totaling 1,041 units in Everett and Lynwood for $153.5 million, according to sources that track the sale of apartments in the greater Seattle market.

Strata did not respond to a phone call seeking comment for this story. The seller of the portfolio was Irving, Texas-based Archon Group, a subsidiary of New York City-based Goldman Sachs. Archon declined to comment beyond that they confirmed they were the seller of the portfolio.

Both the buyer and seller were represented by the Seattle office of Moran and Company. The listing agents on the sale were Jeff Williams, Chris Ross and Tim Brown.

The biggest of the five properties is the 504-unit Fulton’s Crossing and Landing located at 120 Southeast Everett Way in Everett. The sales price was $74 million or $146,825 per unit. The cap rate on this sale was 5.2 percent. This yield factor’s in the properties current net operating income. The three-story complex was built in 1989 and is now 94 percent occupied.

A second asset in the portfolio in Everett is the 107-unit Saratoga complex. This property was acquired for $16 million, according to sources familiar with the sale. The cap rate, based on the current rent in the property, comes out at 5.5 percent. This asset was developed in 1989 and had a current occupancy at 94.5 percent at the time of the sale.

The 117-unit Mirabella property in Everett was also involved in the sale. It was purchased for $16.5 million with 30 percent in equity and balance in a loan arranged by the San Diego-office of CBRE Capital Markets. The people involved from this company were Bill Chiles, Scott Peterson and Brain Cruz. This company declined to comment when contacted for this story. This asset is a 1991 vintage property that will yield the new owner a 6.1 percent cap rate based on current net operating income. Current occupancy in the complex was 93 percent.

The other property in Everett was the 121-unit Cascadia Point located at 8710 5th Avenue West, which was developed in 1990. The property was bought for $18 million. The deal was completed at a 5.1 percent cap rate, based on the asset’s current net operating income. The complex was 94 percent occupied.

The only property in the portfolio in Lynwood is the 192-unit Nickel Creek property located at 3702 204th Street Southwest. It was purchased for $29 million with the new owner putting 30 percent or $8.7 million in equity and the balance in a loan of $20.3 million. CBRE also arranged the debt on this property. The cap rate on the property is 5.6 percent that factors in the existing rents in the complex. The 1986-vintage property was 93.3 percent occupied at closing.