KENT, WA - Admiral Capital Group and Security Properties announced the successful sale of Waters Edge Apartments, a 304-unit multifamily property located in Kent, Washington, in the Seattle MSA.
Admiral and Security Properties acquired the apartment community in February 2015 through a joint venture. The investment provided an opportunity to purchase a well-located asset in the fourth largest manufacturing and distribution center market in the United States at a discount to replacement cost.
During its ownership, the joint venture repositioned the property by curing deferred maintenance, enhancing the exterior and upgrading unit interiors. Select exterior improvements included re-siding the entire property, replacing wooden decks and installing a new playground amenity. Interior renovations included modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades repositioned the property to compete with higher quality assets with higher overall rents.
"Our strategy is to identify capital-deprived assets in markets with a supply and demand imbalance," said Dan Bassichis, Co-Founder of Admiral Capital Group. "Waters Edge was an ideal fit and provided the opportunity for our partnership to invest the necessary capital to improve the property and experience for the residents and capture a share of the growing demand and rent growth in the submarket."
"Waters Edge is representative of the opportunities we like to target. By executing an extensive renovation plan, including a complete re-side, the partnership was able to enhance the asset's physical condition to accurately align with its submarket-leading location," said Barrett Sigmund, Senior Director of Investments at Security Properties.
"The investment in Waters Edge was the continuation of a long-term relationship with SPI," said Jarett Kaplus, Principal at Admiral. "We continue to proactively seek additional value-add multifamily investments nationwide, including in the Pacific Northwest."
Philip Assouad and Giovanni Napoli, commercial real estate brokers with Kidder Mathews, handled the Waters Edge sale.
The sale represents the ninth realization for Admiral in its first value-add real estate fund, Admiral Capital Real Estate Fund, L.P. ("ACRE I"). To date, Admiral has invested in 14 assets with an aggregate purchase price of over $370 million and continues to actively pursue value-add opportunities in top 25 MSA's.