Goodman Sells Tukwila Apts. for $63,333 Per Unit

TUKWILA, WA-Seattle businessperson John Goodman has sold his 210-unit Park Place by the Woods apartment complex here to Pacific Property Company, an apartment investment firm out of Palo Alto, CA. The sale price was $13.3 million or $63,333 per unit.Park Place By The Woods was built in 1979 and sits between two major employment centers, Sea-Tac International Airport and the Southcenter Mall. One of the larger properties in the submarket, it offers a mix of studio, one- and two-bedroom units in several two- and three-story, wood-sided buildings. Amenities include a clubhouse with weight room, sauna and tanning bed, swimming pool and tennis court. Pacific Property CFO Steven Weilbach tells GlobeSt.com that the property was well leased at the time of sale but that the rents being paid were “well below market.” The in-place cap rate on the transaction is 5%, Weilbach says, but he hopes to push that to 6% within the first 12 months. Pacific Property plans to spend approximately $500,000 to complete minor interior and exterior upgrades to the property. Pacific Property owns some 2,000 units in Northern California that are managed by Goodman’s Pinnacle Realty Management. Pacific also handed Pinnacle the management assignment for its only other Seattle-area apartment property, Aspenwood, a 98-unit apartment development in Bellevue that it acquired in February for $9.3 million or about $95,000 per unit. Park Place by the Woods, however, will no longer be managed by Pinnacle. Instead, Alliance Residential will manage the asset for Pacific. Looking ahead, Weilbach tells GlobeSt.com he has intentions of acquiring $50 million to $100 million of additional real estate in the Puget Sound. Firm wide, he expects the company will acquire about $400 million worth of real estate in 2005. “We’re targeting submarkets that have the best barriers to new supply and the best rent growth prospects,” he says.