By Meghan Hall
University Communities has secured new equity partners for two University District Apartment communities at a time when the neighborhood is rapidly growing. University Communities, a Denver-based multifamily owner and operator, brought on investors for its Lothlorien and Wilsonian Apartments complexes for a combined $85.5 million. The new investing entities were listed as Lothlorien PropCo LLC and Wilsonian U-Cal LLC.
The larger of the two transactions was for the Lothlorien Apartments, a seven-story mixed-use building. The transaction closed at $54.5 million. Located at 4730 University Way NE, the property is situated less than two blocks from the University of Washington. University Communities has been the owner of the property for nearly two decades, and last brought on a round of equity partners in 2005 and 2006, according to public records.
Built in 2008, the community has 146 units. The complex features a mix of studio, one- and two-bedroom units with rents starting at around $1,439 per month, according to University Communities’ website. Amenities include bike racks, a parking garage and rooftop terrace with barbecue grills.
“Our prime location makes the Lothlorien the top choice for students and professionals alike. With shops, restaurants, and nightlife within walking distance, your search is over for your new apartment home,” the property website states. “If you want to drive you’ll appreciate the easy access to Interstate-5 and the gated underground parking garage. The central location of the Lothlorien makes returning from your adventures a breeze.”
In a second transaction for the Wilsonian, investors were brought on board in a deal that closed at $31 million. Also seven stories, the Wilsonian was originally constructed in 1923 and operated as a five-star hotel. To date, the community features a mix of 96 studio, one- and two-bedroom units. A clubhouse and courtyard are included as amenities for tenants, and rents begin at around $1,200 per month.
It is unclear what role the new equity partner will play in the running and maintenance of the two communities. However, University Communities has been in the student housing industry for more than two decades. As an institutional money manager, the firm acquires and operates university-related housing across the country. According to its website, University Communities typically targets assets near major universities and research institutions. Its portfolio includes assets in California, Arizona, Texas, Washington D.C., Wisconsin and more.