S-J Management Sells 157-Unit South-End Complex

AUBURN, WA-S-J Management LLC has sold the 157-unit Amberview Apartments here for $11.25 million or $71,656 per unit. The Seattle-based real estate investment, brokerage and property management company acquired the property in February 2002 for $9.52 million or $60,669 per unit. The new owner is FSC/AUBURN Associates, LLC, whose principal is Stanley Fimberg of Beverly Hills, CA. S-J chief executive Michael Sauter tells GlobeSt.com that the cap rate on the sale equates to a 5.2% cap rate based on in-place numbers. The proceeds from the sale are being investment in the Phoenix area, which Sauter considers a better multifamily market right now. “We still consider the Puget Sound market a soft or weak rental market,” he says. “While there’s been an increase in rental activity and turnover is decreasing, rental rates are virtually unchanged from a year ago and about 65% to 70% of apartment owners are still offering incentives to new renters. As short-term holders, we don’t see the light at the end of the tunnel. On the flip side, a buyer ready to hold three to five years will no doubt see the market turn and will do just fine, which is why we are getting good prices.”In Phoenix, Sauter says S-J has accumulated about 1,000 units and is looking to add another 1,500 units by the end of the year. It is also selling some assets there that it acquired less than two years ago. In one deal, it is selling for $100,000 per unit a 170-unit property it acquired in July 2003 for $84,000 per unit. Due to that kind of potential return, “all our money is going into Phoenix,” Sauter says.Last week, GlobeSt.com reported that Fimberg acquired the 464-unit Glen Park Apartments in Federal Way from S-J Management for $36.5 million or $78,664 per unit. 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 acquired the asset in July 2000 for $32.15 million or $69,289 per unit.