The 357-unit apartment property, Alaire, features an average unit size of 1,074 square feet.
RENTON, WA—As Seattle continues on an upward trajectory fueled by e-commerce and tech, multifamily assets remain in high demand with investors. Specifically with a focus on location desirability, value-add opportunities and strong demographics, Canada-based RISE Properties Trust and Tokyu Land US Corporation recently purchased Alaire Apartments for $97.5 million. Built in 1988, Alaire is located approximately 11 miles from Seattle and Bellevue.
“Alaire's location gives residents a short commute to either Seattle or Bellevue,” said Barrett Sigmund, president at RISE. “Despite the close-in location, the property has a low-density feel and large units that are not common with newer product. The current owner significantly upgraded the exterior and the extensive common area amenities of the property. RISE will take the asset to the next level with a thoughtful interior renovation program and a focus on customer service.”
Located at 510 Stevens Ave. SW, the 357-unit apartment property features an average unit size of 1,074 square feet and includes a mix of one-, two- and three-bedroom units. Amenities include two pools and fitness centers, a spa, sport court, dog park, clubhouse lounge, game room and a leasing office.
The demographics in Renton are relatively strong and improving as the Seattle economy continues to expand. Renton has a low 3.61% unemployment rate and an average household income of $77,305, according to data from Applied Geographic Solutions.
“There are a number of high-paying employers in the city, including Boeing, the Valley Medical Center, Paccar, Group Health and the FAA,” Beau Madsen, investment manager at RISE Properties Trust, tells GlobeSt.com. “In addition to the positive employment picture, almost 70% of the residents have had education beyond high school. This bodes well for the strength and stability of the market going forward.”
The asset is two miles from Renton's The Landing, a lifestyle center that boasts more than 30 restaurants and totals more than 600,000 square feet of mixed-use retail. Alaire is similarly near Southport, a development on South Lake Washington that includes a newly constructed 348-room Hyatt Regency, as well as an adjacent set of newly constructed office buildings that total approximately 700,000 square feet. The property is also a short walk to neighborhood retail including Fred Meyer, Safeway and Walmart.
The transaction represents the first joint venture between the two companies, RISE and Tokyu.
“It is a great fit for the first acquisition of our value-add strategy in the Pacific Northwest,” says Nobuhide Kashiwagi, president of Tokyu. “We like the trajectory of growth in the Seattle market and feel Alaire is well positioned to capture that momentum.”
The transaction was brokered by Kidder Mathews' multifamily brokers, Philip Assouad and Giovanni Napoli, along with Dave Schumacher of Colliers International.
“Alaire is one the first institutional multifamily assets south of the core markets. As residents continue to seek affordability at quality communities that provide convenience and ease of accessibility to major employment hubs, properties like Alaire should capture more growth compared to other assets that are further removed or don't have the desirable aesthetics or amenities that Alaire provides,” said Napoli and Assouad.
In addition to Alaire, RISE owns 11 multifamily properties throughout Seattle and the surrounding area, including Modera (Seattle), West Ridge Park Apartments (West Seattle), Artesia by the Lake (Everett), Bentley House (Issaquah), Rainier Pointe (Fife), Borgata Apartments and Townhomes (Renton), Citywalk Apartments (Seattle), Northline Apartments (Seattle), Starboard Apartments (Kirkland), Station 9 Apartments (Lynnwood) and Woodcreek Apartments (Lynnwood).
The property will be managed by Thrive Communities, a Seattle-based property management firm with approximately 10,000 apartments under management.
For more information on multifamily news, join GlobeSt.com at RealShare Apartments in Los Angeles from October 29-30, 2018. RealShare Apartments brings together the industry's top owners, investors, developers, brokers and financiers as they gather for THE MULTIFAMILY EVENT OF THE YEAR! This conference leverages the strength of ALM's Real Estate Forum and GlobeSt.com, which report daily on the multifamily sector. Register for RealShare Apartments.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
