S-J Management Sells 464-Unit South-End Complex

FEDERAL WAY, WA-The 464-unit Glen Park at West Campus apartment complex here has changed hands for $36.50 million or $78,664 per unit. The seller was S-J Management, a Seattle-based investment, brokerage and property management company. The new owner is JER/FSC Glen Park LLC. The principal of the LLC is Stanley Fimberg of Beverly Hills, but the JER stands for JER Properties of Dallas.Glen Park is located at 952 SW Campus Dr., about two miles from Interstate 5 and Highway 18 in the Twin Lakes area of Federal Way. The property is spread over 34 acres and includes a sports center and four playgrounds. Unit amenities include sunrooms, walk in closets, fireplaces and full size washer and dryers. S-J Management, which owns and manages about 2,500 apartments in Washington and Arizona, acquired Glen Park in July of 2000 for $32.15 million or $69,289 per unit. Company principal Michael Sauter did not return a phone call seeking comment on the property, such as how much his company invested in the property, its current occupancy, and what the sale price equates to in terms of a capitalization rate for the new owner. Jim Claeys and Jon Hallgrimson of CB Richard Ellis brokered both sides of the transaction.This is the third large apartment transaction in Federal Way in the past month. In April, Sterling Equities of New York sold the 368-unit Pheasant Run apartments to Pacifica Cos. of San Diego for $25.45 million or $69,157 per unit and Commercial Ventures of San Diego sold the 335 units in two properties (Colony and Mirror Woods) for $25.25 million or $72,388 per unit to a joint venture of San Diego-based Crown Pacific Properties and a real estate opportunity fund managed by AEW Capital Management LP. The buyers of both properties told GlobeSt.com at the time of their acquisitions that they are looking to accumulate between 1,500 and 2,000 units in the region.The largest apartment transaction in the history of Federal Way occurred last June, when Bascom Northwest Ventures LLC of San Francisco paid Chicago-based Equity Residential $49 million or $65,333 per unit for the 750-unit Waterstone Place Apartments. The asking price was $53.5 million or $71,333 per unit. Most of the properties are located in the West Campus area of Federal Way, and all but the Glen Park transaction was brokered by Kenny Dudunakis of Hendricks & Partners. “There are a couple of (apartment to condominium) conversions occurring in the area that are putting more demand on the apartment’s there,” Dudunakis tells GlobeSt.com. “But apartment sales are occurring in every corner of the Puget Sound; we are on a record pace.”