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Orion, Guggenheim Buy Pair of Apartment Properties

EVERETT, WA-In a joint venture with Guggenheim Real Estate, Orion Residential LLC of Seattle pays between $35 million and $40 million for Fulton's Crossing and Fulton's Landing, two neighboring apartment complexes totaling 504 units.

By Brian K. Miller | Updated on January 03, 2005

EVERETT, WA-Orion Residential LLC of Seattle is the new owner of Fulton’s Crossing and Fulton’s Landing, two adjacent apartment properties here with a combined 504 units. Orion acquired the property through its joint venture with an affiliate of Guggenheim Real Estate. The seller was Sterling Equities of New York. Local sources tell GlobeSt.com the sale price was somewhere between $35 million and $40 million. The two properties are located at 120 SE Everett Mall Way, near the Boeing Co.’s airplane manufacturing facilities. The apartment complexes were completed in two phases in the later half of the 1980s. The apartment buildings hold one- and two-bedroom units. Common-area amenities include a clubhouse, business facilities, fitness center with tanning beds, two large swimming pools with heated spa and a children’s playground. Debt financing for the transaction was provided through the assumption of existing Fannie Mae loans. The joint venture put up the equity. Orion Residential is a national investment company backed by Starwood Capital Group Global LLC. While not commenting on the price, Orion president Brian Ward tells GlobeSt.com the combined properties have a 94% physical occupancy. Through lease up, renovation and increased rents, Ward hopes to have the investment producing an 8% yield within the next two years. “The reasons we are so excited about this property in Seattle is that concessions there are rapidly leaving the market, there continue to be incredible barriers to entry, real job growth. “We think this market is ready to catch fire; we will be aggressively buying over the next two years.” Indeed, Ward says Orion Residential will spend at least $500 million in 2005 investing in markets like Seattle, Washington, DC, and California and Southern Florida.

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