By Meghan Hall
Investors are continuing to recognize the importance of the multifamily asset class and are deploying capital with urgency. In another sizable multifamily transaction this year, The Shidler Group has acquired the Park on 20th Apartments in Lake Stevens, Wash., for $76.35 million, or roughly $391,538 per unit for the total amount. The seller of the property was an entity affiliated with Evergreen Housing Development Group, according to public records.
The deal was split into two transactions: In the first, The Shidler Group paid $60.08 million. In the second transaction, Evergreen Housing Development Group sold the remainder of the property for $15.27 million. It is likely, given the nature of the transaction, that The Shidler Group acquired the land beneath the development separately. The firm has a history of purchasing the ground beneath projects or executing ground leases as part of its investment strategy.
“Today, The Shidler Group is one of the nation’s most active investors in Land underlying multifamily communities on 99-year Ground Leases,” the firm states on its website. “…The Group will acquire a Leased Fee interest directly from a third-party investor who retains ownership of the multifamily complex on a long-term Ground Lease. More often, the Group creates new Leased Fee interests by purchasing multifamily communities and separating the ownership of the Land from the ownership of the Improvements.”
The Park on 20th Apartments are located at 10227 20th St. SE and include one-, two- and three-bedroom units ranging in size from 565 square feet to about 1,330 square feet. The community was completed just last year and has 195 apartments in all. Amenities include a fitness center, clubhouse and lounge.
Recently, The Shidler Group also purchased Phase I of the Ethos Apartments in Kent, Wash., for $113 million. In March of 2021, the company sold the Microsoft-leased Advanta Commons in Bellevue, Wash., for $169 million; the buyers were Talon Private Capital and PGIM. The Shidler Company maintained ownership of the ground lease in the deal.
Beyond commercial real estate, the organization has also founded five NYSE-listed public corporations that have issued more than $20 billion in debt and equity securities, according to its website. Many of the company’s ground leases and passive ownership of land is held for the “benefit of educational institutions” supported by The Shidler Family Foundation.