(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
RENTON, WA-Fairfield Residential Apartments LLC has received a senior financing loan of $103 million for two multifamily properties totaling 880 units in the Renton submarket of Seattle—the Reserve and the Sanctuary—from Prudential Life Insurance Co. The seven-year, fixed-rate loans are further evidence that the multifamily sector remains a major target for financing and investment.
Jones Lang LaSalle Capital Markets’ executive managing director Tom Fish, managing director David Young and EVP Holly Minter acted on behalf of the borrower in securing the loan. “Multifamily continues to be the strongest property sector in the greater Seattle MSA, as this financing proves,” said Minter in a prepared statement. “We garnered a significant amount of interest from the lending community eager to expand their portfolios in the Pacific Northwest and were able to secure excellent terms for Fairfield.”
The five-story properties are located in the Landing, a master-planned mixed-use project, and sit on a combined 7.83 acres. Built in 2009 and 2010, the property’s amenities include a swimming pool and spa, clubhouse, parking garages, picnic areas and conference rooms. Fairfield Residential is the property manager for both assets.
“We’ve witnessed a strong economic recovery in this region, and a steady uptick in job growth leading to a surge in demand for apartment housing,” said Young in the release. “Generation Y is leading the movement to the West Coast and Seattle is the top draw for this group under age 35.”
Greg Laycock, EVP and managing director of Transwestern, tells GlobeSt.com that the big draw to Seattle for Generation Y residents is the employment base of tech and biotech, combined with smaller, more affordable apartment units that can fit today’s sleeker electronics. “The developers have created an interesting trend. Mike Scott calls them iHomes—the units are smaller footprints, and the layout and design are more conducive to the ability to fit electronics into a smaller space. There’s more of a trend toward usable space, which leads to smaller units. If you’re trying to drop down the average-dollar rent amount, the absolute dollar total is less so that your budget is not personally impacted.”
As GlobeSt.com previously reported, earlier this month Fairfield Residential Co. LLC paid Farnam Realty $22.65 million for ownership rights to City Scape at Lakeshore in Tempe, AZ. The buyer added the 214-unit City Scape to its purchase of the 408-unit Tempe Grove Apartments, on which it closed in early September.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
