NEWCASTLE, WA—A fund operated by Security Properties Inc. has sold Newport Crossing, a 192-unit apartment property here.
The property, which was acquired in 2012 at a purchase price of $30.35 million, was sold this week for $38.8 million, following a substantial value add renovation program implemented by Security Properties and its affiliated property management firm, Madrona Ridge Residential.
As part of the renovation Security Properties and its joint venture partner, an east coast insurance company, invested $1.5 million to repaint and re-roof buildings, redesign the community pool, improve landscaping and upgrade unit interiors.
"The purchase, renovation and sale of Newport Crossing reflects our overall strategy of pursuing multifamily real estate investment opportunities in high-growth western markets characterized by sustainable job and population growth, significant barriers to development and high homeownership costs," said Security Properties CEO David Dufenhorst. "In this property, we saw substantial opportunity to add value and the surrounding submarket had all of the traits we look for: a dynamic economy, solid demographics, attractive amenities and excellent transit access."
Newport Crossing was built in 1990 and is situated in a prime town-center location adjacent to efficient transit service. It was the fifth investment for Security Multifamily Property Fund I, which acquired a total of 17 properties in multiple states.
These assets were acquired either directly or in institutional joint ventures with a variety of partners. Newport Crossing was owned in a joint venture with an east coast insurance company. With the conclusion of this sale, Fund I will have 15 multifamily properties remaining in its portfolio.
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