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Apartment Complex Value Jumps $15M in Four Years

EVERETT, WA-Security Properties of Seattle sells a 220-unit complex for $38 million four years after acquiring it for $23.1 million.

By Brian K. Miller | Updated on May 26, 2008

EVERETT, WA-Demand for Northwest apartment buildings continues to be strong. Security Properties recently sold for $38 million an eight-year-old, 220-unit complex here that it acquired in 2004 for $23.1 million.

The asset is called Hearthstone at Merrill Creek. Completed in 2000, the gated community sits on 14.1 acres project near The Boeing Co. facility that will assemble the new 787 Dreamliner, as well as other major employers in the Everett/Mukilteo/Seaway Center area.

In explaining to 65% growth in value over four years, John Hallgrimson of CB Richard Ellis, who with partner Frank Bosl sold the property both to and for Security Properties, tells GlobeSt.com that the market has been a perfect storm of rent growth, decreasing rental concessions and capitalization rate compression over the past several years.

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