Home AEC UDR Plans to Buy Bellevue’s Brio Apartment Complex in 2021 for $170MM

UDR Plans to Buy Bellevue’s Brio Apartment Complex in 2021 for $170MM

UDR, Bellevue, Brio Apartments, MetLife, Elements Apartments
Image Courtesy of UDR

By Jon Peterson

Denver, Colo.-based UDR will be acquiring the 259-unit Brio apartment complex in Bellevue for $170 million in 2021, according to a statement made by the public real estate investment trust as part of its 2019 fourth quarter earnings report. The per-unit price would come to about $656,000.

The apartment complex is current being developed and is in lease-up by an un-named third-party developer. The complex should be completed later this year. The asset is located at 11130 Northeast 10th Street in Bellevue. 

The property, according to Brio’s website, will have studios, one- and two-bedroom units. The units will be between 430 and 1,412 square feet and pricing will start at $2,117 per month. Community amenities range from a fitness center to indoor swimming pool, dog wash station, conference room, resident lounge and yoga studio. On-site retail will also be provided.

In November of last year, UDR made a $115 million secured loan to the property. The interest rate on the loan is 4.75 percent and the debt has a maturity that lasts for another 2.8 years. UDR also entered into a purchase option agreement at the time the loan was funded which gives UDR the ability to acquired the property at a fixed price.

This property is located very close to the Elements Apartment complex in Bellevue that UDR also owns.  Elements is located at 958 111thAvenue Northeast. The public REIT stated in the fourth quarter earnings call that Brio will be considered a third phase of the Elements project and allow them to continue to grow its operations in the Bellevue market.

UDR currently has control over a total of 2,992 apartment units in the greater Seattle market. The portfolio has a current occupancy of 96.6 percent, and the net operating income being produced by the portfolio represents 7.7 percent of the total NOI being created by UDR as a company.

The public REIT is a history of buying and development apartment complexes on a national scale. Most of its assets it invests in on its own. In the past, the company has done joint ventures on some assets with major institutional investors such as MetLife. In December, UDR announced that it had closed on a previously announced $1.76 billion deal with MetLife Investment Management. In the deal, UDR acquired 50 percent interested in not previously owned communities that spanned 3,321 apartment homes, one community under development and four development sites. It also sold to MetLife 50 percent ownership interest in five joint venture communities which total about 1,001 units.