By Jack Stubbs
The Summit Apartment Homes, a Redmond apartment community comprised of 96 units was sold last week in a transaction worth $29,600,000, or just over $308,000 per unit, according to public records filed with King County. The seller was Sares-Regis Group, a development firm located in Irvine, CA that focuses on the acquisition and management of residential, industrial and commercial properties. The buyer was Coast Equity Partners III, an Everett Washington-based firm.
The deal closed on September 1st. Philip Assouad and Giovanni Napoli of Kidder Mathews represented Sares-Regis.
The complex, built in 1981 and located at 14820 Redmond Way, contains 96 units within three stories. One of the complex’s unique features is that it is comprised of only two-bedroom units. In addition, the asset includes a designated barbecue area, hardwood-style flooring in kitchens and entryways, stainless steel appliances throughout the property, and a streamlined online payment system. Some of the on-site services include a business center, as well as a designated clubhouse and lounge. Based on information compiled on apartments.com, The Summit is more than just a collection of apartment homes, as it offers a “first-rate living experience,” namely, the luxurious on-site shared amenities and an apartment orientation that fosters a truly communal atmosphere, according to the web site.
The Sares-Regis Group, which operates along the West coast, develops a wide range of community-oriented and sustainable residential assets. With an emphasis on multifamily developments, Sares-Regis has developed more than 20,000 multifamily properties over the last three decades.
Coast Equity Partners is a value-add investor in a diverse array of multifamily assets across the Western United States. CEP focuses on the improvement and repositioning of these properties by enhancing property management and resident services on-site.
According to a recent, first quarter of 2017 Kidder Mathews multifamily report for King, Pierce, Snohomish, Thurston & Kitsap Counties, the regional apartment market vacancy rate is currently 3.4 percent, well below the 20-year average of 4.9 percent. Vacancy last peaked at a rate of 7.2 percent in fall of 2009 as the recession was fully felt. Occupancy increased ever since, with vacancy oscillating from 3.3 percent to 4 percent over the past three years as consistent demand has nearly matched the significant amounts of new inventory.