By Meghan Hall
Commercial real estate has proven its resiliency, and private investors are also looking to capitalize on the market. In a recent deal, the Grand Pacific Apartments in Tacoma sold for $33.5 million, or about $250,000 per unit. The buyers were several individuals affiliated with Tacoma-based Grand Pacific Apts. LLC, according to public records. The sellers are associated with Kenneth Rody of Grand Pacific LLC.
The asset is located at 7015 D Street. The 134-unit complex is brand new, according to its Facebook page. Apartments feature luxury vinyl plank flooring, custom cabinetry and more. When the community opened, rents started at $1,210 per month for one-bedrooms and $1,475 per month for two-bedrooms.
The complex is south of downtown Tacoma in a primarily residential neighborhood. A Safeway-anchored shopping center, Fred Meyer, IDEA High School and Birney Elementary are all located nearby.
In recent months, investment into multifamily assets has picked up, especially for those outside of urban downtown cores.
“The Seattle and Puget Sound commercial real estate market experienced a true roller coaster of changing dynamics throughout the last 20 months,” states a recent report by Kidder Mathews. “Now, as we close out 2021 and enter 2022, apartment investors can take comfort in the fact that a broad recovery is nearly in our rearview mirrors, and the region is poised for continued economic vibrancy.”
In suburban Pierce County, where the Grand Pacific Apartments are located, rents have increased by 12 percent, from $1,346 per month to $1,508 per month, year over year. Vacancy has declined to 2.7 percent–the lowest out of any submarket studied by Kidder Mathews. According to the report, vacancy is at an all time low since 2005.
While sales volume is not what it was pre-pandemic, investors are taking note. This year, 32 deals have closed for a total sales volume of $326 million. As economic fundamentals improve, driven by the presence of major companies–especially Amazon–more investors are expected to move into the submarket.